Seagate Heads into Earnings with Azure Momentum, But Wall Street Is Split
Key takeaways
- Seagate’s new storage approvals and strong earnings outlook lift the stock, but technical weakness and high valuation multiples temper enthusiasm.
- $7.42
EPS
Earnings per share — profit for one share of the company, in dollars.
- Revenue $4.14 billion
- last year $2.61
EPS
Earnings per share — profit for one share of the company, in dollars.
What happened
Seagate Technology Holdings PLC (NASDAQ: STX) announced that its high‑capacity HAMR‑based Mozaic drives have been approved by Broadcom Inc. (NASDAQ: AVGO) as the first and only SMR drives for Broadcom’s host bus adapter, and that Microsoft Corp. (NASDAQ: MSFT) Azure Storage has qualified the same configuration for hyperscale deployments. The company’s shares rose 3.94% to $655.36 ahead of its earnings release on Oct. 27, where analysts expect earnings per share of $7.42 on revenue of $4.14…
Why it matters
The approvals give Seagate a validated, high‑density storage solution that can be deployed at scale in AI and cloud data centers, potentially boosting demand for its drives. The earnings outlook shows a sharp jump in Earnings per share — profit for one share of the company, in dollars.EPS
Short-term and longer-term
Short-term. The next few days will see the stock react to the earnings report on Oct.
Longer-term. Over the coming months, the approvals from Broadcom and Microsoft could strengthen Seagate’s position in the high‑density storage market, supporting long‑term revenue growth.
Words on this card
- HAMR
- Heat‑assisted magnetic recording, a technology that increases storage density by using heat to write data
- SMR
- Shingled magnetic recording, a method of packing data tracks more tightly to boost capacity
- SMA
- Simple moving average, a trend indicator that smooths price data over a set period
- RSI
- Relative strength index, a momentum oscillator that measures overbought or oversold conditions
- MACD
- Moving average convergence divergence, a trend‑following momentum indicator
- EPS Learn
- Earnings per share — profit for one share of the company, in dollars.