Why Seagate (STX) Could Beat Earnings Estimates Again

Core Insights - Seagate (STX) is positioned to potentially continue its earnings-beat streak in upcoming reports, particularly within the Zacks Computer - Integrated Systems industry [1] Earnings Performance - In the most recent quarter, Seagate reported earnings of $2.46 per share, missing the expected $2.59 per share, resulting in a surprise of 5.28%. In the previous quarter, the company exceeded expectations by reporting $1.90 per share against a consensus estimate of $1.76 per share, achieving a surprise of 7.95% [2] Earnings Estimates and Predictions - Estimates for Seagate have been trending higher, influenced by its history of earnings surprises. The stock currently has a positive Zacks Earnings ESP of +2.75%, indicating a bullish outlook from analysts regarding the company's earnings prospects [5][8] - The combination of a positive Earnings ESP and a Zacks Rank of 1 (Strong Buy) suggests a high likelihood of another earnings beat in the near future [8] Earnings ESP Methodology - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions. This method aims to provide a more accurate prediction of earnings outcomes [7] - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6]