Seagate Technology Holdings plc Just Beat EPS By 79%: Here's What Analysts Think Will Happen Next

Investors in Seagate Technology Holdings plc (NASDAQ:STX) had a good week, as its shares rose 4.6% to close at US$87.26 following the release of its quarterly results. 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. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Seagate Technology Holdings

Following the latest results, Seagate Technology Holdings' 22 analysts are now forecasting revenues of US$8.86b in 2025. This would be a major 41% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Seagate Technology Holdings forecast to report a statutory profit of US$4.65 per share. In the lead-up to this report, the analysts had been modelling revenues of US$8.66b and earnings per share (EPS) of US$3.90 in 2025. So it seems there's been a definite increase in optimism about Seagate Technology Holdings' future following the latest results, with a solid gain to 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. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Seagate Technology Holdings at US$119 per share, while the most bearish prices it at US$55.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying 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. Not only are Seagate Technology Holdings' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Seagate Technology Holdings' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Seagate Technology Holdings going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Seagate Technology Holdings that you need to be mindful of.

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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.