Yahoo Finance Seagate Technology Holdings plc Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
It's been a good week for Seagate Technology Holdings plc (NASDAQ:STX) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.5% to US$87.11. Revenues were US$1.7b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.12, an impressive 79% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Seagate Technology Holdings after the latest results.
View our latest analysis for Seagate Technology Holdings
Taking into account the latest results, the current consensus from Seagate Technology Holdings' 22 analysts is for revenues of US$8.86b in 2025. This would reflect a huge 41% increase on its revenue over the past 12 months. Earnings are expected to improve, with Seagate Technology Holdings forecast to report a statutory profit of US$4.65 per share. Before this earnings report, the analysts had been forecasting revenues of US$8.66b and earnings per share (EPS) of US$3.71 in 2025. So it seems there's been a definite increase in optimism about Seagate Technology Holdings' future following the latest results, with a sizeable expansion in the earnings per share forecasts in particular.
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$95.06, suggesting that the forecast performance does not have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Seagate Technology Holdings, with the most bullish analyst valuing it at US$119 and the most bearish at US$55.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Seagate Technology Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 32% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 7.0% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 4.8% per year. So it looks like Seagate Technology Holdings is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Seagate Technology Holdings following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$95.06, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Seagate Technology Holdings going out to 2026, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 3 warning signs for Seagate Technology Holdings you should know about.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
