What is the outlook for STX's EPS in upcoming quarters?

**Seagate Technology Holdings PLC (STX) is poised for a positive EPS outlook in the upcoming quarters**, based on several key indicators: 1. **Recent Performance and Projections**: - STX's second-quarter 2025 earnings report showed a significant improvement in net income, with a reported $336.0 million, up from a $19.0 million loss in the same quarter of 2024. - The company's EPS for the second quarter of 2025 was $1.59, an increase from $0.091 loss in the previous year's same quarter. - Analysts expect the company to announce earnings of $1.87 per share for the upcoming quarter ending on January 21st, 2025. 2. **Growth Drivers**: - Revenue growth has been substantial, with a 50% increase in revenue from the second quarter of 2024 to the same quarter of 2025, reaching $2.33 billion. - The non-GAAP gross margin expanded by 220 basis points to 35.5%, indicating improved profitability. - The company's hard disk drive revenue was $2.2 billion, with significant volume shipments, and mass capacity revenue was $1.9 billion, both showing a 9% sequential increase. 3. **Financial Health and Liquidity**: - Seagate Technology has a strong liquidity position with $2.7 billion in available liquidity and an undrawn revolving credit facility. - The company's debt balance was $5.7 billion, but the net leverage ratio was 2.5 times, with further reduction expected. 4. **Market Position and Outlook**: - The company's market cap is substantial, and it has a significant presence in the data storage market. - The tech industry is forecasted to grow at an average annual rate of 6.8%, and Seagate Technology is expected to grow at an average annual rate of 8.2% over the next three years. - Institutional investors show confidence, with 85.26% of the stock owned by institutional investors and hedge funds. In conclusion, the outlook for Seagate Technology's EPS in upcoming quarters is positive, considering the company's recent financial performance, growth drivers, and market position. The expected growth in revenue and profitability, along with a strong liquidity position, supports a favorable EPS outlook.