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Seagate (STX) Q1 Earnings Preview: What You Should Know Beyond the Headline Estimates

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Wall Street analysts forecast that Seagate (STX - Free Report) will report quarterly earnings of $1.48 per share in its upcoming release, pointing to a year-over-year increase of 772.7%. It is anticipated that revenues will amount to $2.11 billion, exhibiting an increase of 44.8% compared to the year-ago quarter.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

That said, let's delve into the average estimates of some Seagate metrics that Wall Street analysts commonly model and monitor.

Analysts expect 'Capacity Shipped - Mass capacity' to come in at 114.99 EB. Compared to the present estimate, the company reported 79.2 EB in the same quarter last year.

The average prediction of analysts places 'Capacity Shipped - Total' at 125.04 EB. The estimate compares to the year-ago value of 89.6 EB.

Analysts forecast 'Capacity Shipped - Legacy' to reach 10.05 EB. The estimate compares to the year-ago value of 10.4 EB.

View all Key Company Metrics for Seagate here>>>

Over the past month, shares of Seagate have returned +10.7% versus the Zacks S&P 500 composite's +3.8% change. Currently, STX carries a Zacks Rank #1 (Strong Buy), suggesting that it may outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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