Core Insights - Waste Connections, Inc. (WCN) reported fourth-quarter 2025 earnings that slightly exceeded the Zacks Consensus Estimate, with an 11.2% year-over-year increase in earnings and a 5% year-over-year growth in revenues [1][9] - Despite the earnings beat, the stock price fell by 6.6% following the results announcement on February 11, reflecting investor disappointment [1] - Over the past year, WCN shares have decreased by 14%, contrasting with a 3.5% decline in the industry and a 15.3% increase in the Zacks S&P 500 Composite [1] Segment Performance - The Solid Waste Collection segment generated $1.7 billion in revenues, marking a 5.8% year-over-year increase [2] - Revenues from the Solid Waste Disposal and Transfer segment rose by 5.4% year-over-year to $757.1 million, driven by solid core pricing [2] - The Solid Waste Recycling segment experienced a 14.3% decline in revenues, totaling $51.2 million [3] - The E&P Waste Treatment, Recovery and Disposal segment reported revenues of $171.1 million, reflecting a 16.9% year-over-year increase [3] - The Intermodal and Other segment saw revenues of $42.3 million, down 7.9% from the previous year [3] Operating Results - Adjusted EBITDA for the quarter was $731.9 million, an 8% decrease from the prior year, with an adjusted EBITDA margin of 32.4%, down 110 basis points year-over-year [4] - The company recorded an operating loss of $199.1 million, compared to an operating income of $420.8 million in the same quarter last year [4] Balance Sheet & Cash Flow - At the end of the fourth quarter of 2025, Waste Connections had cash and cash equivalents of $46 million, down from $117.6 million in the previous quarter [5] - The long-term debt and notes payable increased to $8.8 billion from $8 billion in the third quarter of 2025 [5] - The company generated $556.9 million in cash from operating activities, with adjusted free cash flow of $175.6 million and capital expenditures totaling $261.1 million [6] - During the quarter, Waste Connections paid out $89.9 million in dividends [6] FY26 Outlook - For the fiscal year 2026, Waste Connections anticipates revenues between $9.9 billion and $9.95 billion, with the Zacks Consensus Estimate at $9.95 billion [7] - Adjusted EBITDA is expected to be in the range of $3.3 billion to $3.325 billion [7] - Waste Connections currently holds a Zacks Rank of 4 (Sell) [7]

Core Insights - Dillard's, Inc. (DDS) is anticipated to experience a year-over-year decline in earnings for the fourth quarter of fiscal 2025, with a revenue estimate of $2.02 billion reflecting a slight growth of 0.16% compared to the previous year, while earnings per share are projected to drop by 26% to $9.98 [1][8]. Financial Performance - In the last reported quarter, Dillard's achieved an earnings surprise of 29.2%, and over the trailing four quarters, the company has averaged a 26.5% beat against the Zacks Consensus Estimate [2]. - The company expects SG&A expenses to rise by 4.8% year-over-year for the fiscal fourth quarter, with the SG&A expense rate projected to increase by 120 basis points to 23.2% [6]. Growth Drivers - Dillard's fourth-quarter results are expected to benefit from growth initiatives and effective execution, particularly in brick-and-mortar stores and e-commerce, which are aimed at retaining existing customers and attracting new ones [3][4]. - The company has been enhancing its customer base through store improvements, better brand partnerships, and trend-focused assortments, which are anticipated to support flat year-over-year comparable-store sales [3][4]. Challenges - The company is facing challenges from a tough retail environment characterized by cautious consumer spending and increased operating expenses due to higher payroll costs and investments in store personnel [5]. - These factors are likely to negatively impact margins and the bottom line for the fiscal fourth quarter, with a predicted 16.1% decline in operating profit and a 190-basis point contraction in operating margin [5][6]. Valuation and Market Performance - Dillard's is currently trading at a forward price-to-earnings ratio of 20.82X, which is above the industry average of 14.71X and its five-year median of 13.14X [8][9]. - Over the past three months, Dillard's shares have increased by 7.6%, compared to a 10.6% growth in the industry [10].

Industry Overview - The Zacks Advertising and Marketing industry includes a wide range of services such as advertising, branding, digital marketing, and healthcare marketing, with key players like Interpublic and Omnicom [2] - The pandemic has significantly changed how industry players operate, leading to a focus on strategic initiatives and demand sources to adapt to the post-pandemic environment [2] Current Economic Context - The economy showed resilience with a GDP growth of 4.4% in Q3 2025, up from 3.8% in Q2, and non-manufacturing activities remained strong, as indicated by the Services PMI staying above 50% for 19 consecutive months [3] - Demand for services in the industry is stable, with revenues and cash flows expected to gradually return to pre-pandemic levels, supporting stable dividends for most players [4] Digital Marketing Trends - There has been an increase in digital media consumption, with consumers spending more time on various platforms, benefiting agencies that provide digital marketing services [5] Industry Performance and Valuation - The Zacks Advertising and Marketing industry currently holds a Zacks Industry Rank of 90, placing it in the top 37% of 243 Zacks industries, indicating solid near-term prospects [6] - Over the past year, the industry has underperformed the S&P 500, declining 25.3% compared to the S&P 500's growth of 14% [7] - The industry is trading at a forward P/E ratio of 8.83X, significantly lower than the S&P 500's 22.52X and the sector's 18.01X, with historical trading ranges between 7.47X and 14.26X [10] Company Highlights - **Publicis Groupe S.A. (PUBGY)**: The company has shown strong organic momentum, with investments in AI and talent leading to higher revenue quality and margin strength. The Zacks Consensus Estimate for its 2026 earnings has been revised upward by 3.1% to $2.35 [14][15][16] - **Omnicom Group (OMC)**: The company offers a broad range of services and focuses on consumer-centric solutions, which helps in driving stable revenue growth. The Zacks Consensus Estimate for its 2026 earnings has been revised upward by 2.5% to $9.58 [19][20][21] - **Stagwell (STGW)**: The company emphasizes a digital-first marketing approach and has maintained its 2026 EPS estimate at $1.1, indicating stability in its earnings outlook [26][23]

Key Takeaways ARES reported record $46B 4Q25 investment and a record-high January 2026 pipeline.Ares Management is expanding its digital infrastructure, launching a $2.4B data center fund.ARES reaffirmed 16-20% FRE growth, more than 20% RI growth and raised its Q1 dividend 20%.At the 34th Annual Financial Services Conference hosted by Bank of America, Michael Arougheti, co-founder and CEO of Ares Management Corporation (ARES) , delivered an optimistic outlook on the firm’s prospects for 2026. Management ind ...

Shares of Tucows Inc. (TCX) have gained 0.7% since reporting results for the fourth quarter of 2025. This compares to the S&P 500 index’s 1.4% decline over the same time frame. Over the past month, however, the stock has lost 24.2% compared with the S&P 500’s 1.9% fall, indicating more pronounced volatility in TCX relative to the broader market.Earnings & Revenue PerformanceTucows reported fourth-quarter 2025 net revenues of $98.7 million, up 6% year over year from $93.1 million. Gross profit increased 14% ...

Core Insights - Opendoor Technologies Inc. (OPEN) is set to release its fourth-quarter 2025 results on February 19, with an expected earnings per share (EPS) loss of 8 cents, reflecting a 27.3% improvement from a loss of 11 cents in the same quarter last year [1][8] - The consensus estimate for fourth-quarter revenues is $596.4 million, indicating a 45% decline from the previous year's figure [2] Earnings Estimate Trend - The current EPS estimate for the fourth quarter remains unchanged at -0.08, with similar estimates for the next quarter and the current year [2] - The earnings surprise history shows that Opendoor has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 6.3% [3][4] Revenue Drivers - The fourth-quarter performance is expected to reflect early traction from the strategic reset towards a software-driven operating model, termed "Opendoor 2.0," which focuses on scaling acquisitions and embedding AI across workflows [9] - The renewed focus on high-quality home acquisitions is anticipated to drive contract activity, supported by AI-powered inspection and underwriting processes [10] - The reactivation of direct-to-consumer (D2C) channels is expected to enhance performance, with early tests showing stronger conversion rates compared to traditional methods [11] - Product innovations, such as Opendoor Checkout and expanded warranty offerings, are likely to strengthen the value proposition for buyers and sellers [12] Margins - Fourth-quarter margins are expected to balance acquisition rescaling with operational discipline, as the company works to clear legacy inventory [13] - Financing costs and holding expenses remain critical, but improved underwriting cycles and AI-driven processes are expected to support resale velocity [14] - Cost rationalization initiatives, including reducing external consultants and consolidating software vendors, are likely to enhance operating leverage [15] Stock Price Performance & Valuation - Opendoor's shares have increased by 17.6% over the past six months, contrasting with a 22.4% decline in the industry [16] - The stock is currently trading at a forward price-to-sales (P/S) multiple of 0.69, significantly below the industry average of 3.9 [19] Investment Considerations - The company is executing a strategic reset focused on acquisition velocity and AI-driven operational discipline, aiming for a defined path toward adjusted net income breakeven by the end of 2026 [22][23] - Despite the positive outlook, risks remain elevated due to the early stages of rebuilding acquisition volumes and pressures on near-term margins [24][27]

Core Insights - SIFCO Industries, Inc. (SIF) shares have increased by 68.7% since the earnings report for the quarter ended December 31, 2025, significantly outperforming the S&P 500 Index, which declined by 1.6% during the same period [1] Financial Performance - SIFCO reported net sales of $23.9 million for Q1 fiscal 2026, a 14.8% increase from $20.9 million in the same quarter last year [2] - The company achieved net income from continuing operations of $1.8 million, or $0.29 per diluted share, compared to a net loss of $2.4 million, or $(0.40) per diluted share, in the prior-year quarter [2] - EBITDA improved to $3.6 million from a loss of $0.8 million, while adjusted EBITDA rose to $3.9 million from a loss of $0.2 million a year earlier [2] Revenue Breakdown - Commercial revenue declined by 22.2% year over year to $8.7 million from $11.2 million, while military revenue increased by 57.3% year over year to $15.3 million from $9.7 million, indicating a shift towards defense programs [3] - Fixed-wing aircraft sales fell by 18.1% year over year, while rotorcraft revenue surged by 172.1%, driven by orders for programs like the UH-60 Black Hawk and CH-47 Chinook [4] - Commercial space revenue decreased by 53.1%, and energy components for power generation units dropped by 72.4%, whereas commercial product and other revenue rose by 138.7%, primarily due to munitions-related orders [4] Profitability and Cost Management - Gross profit increased to $5.2 million from $0.9 million in the prior-year quarter, attributed to higher throughput, favorable pricing, and an improved sales mix [5] - Cost of goods sold decreased by 5.9% to $18.8 million from $19.9 million, representing 78.4% of net sales compared to 95.6% in the previous year [5] - Selling, general, and administrative expenses fell by 6.8% to $2.6 million (11% of sales) from $2.8 million (13.6% of sales) [5] Balance Sheet and Liquidity - Operating cash flow turned positive at $8.1 million in Q1 fiscal 2026, compared to a use of $3.8 million in the prior-year period [6] - Cash and cash equivalents increased to $1.1 million as of December 31, 2025, from $0.5 million as of September 30, 2025 [6] - Total debt decreased to $2.9 million from $10.6 million at the end of fiscal 2025, partly due to significant reductions in revolver borrowings [6] Backlog and Market Outlook - Backlog stood at $139.5 million as of December 31, 2025, up from $121.9 million a year earlier, with recovery in aerospace markets cited as a key contributor [7] - Approximately $87.9 million of the remaining performance obligations are expected to be completed within the next 12 months [7] Management Commentary - Management attributed the improved financial performance to increased production throughput and lower fixed costs, noting strong demand and a stable order backlog across commercial and defense markets [8] - The shift towards military programs significantly influenced quarterly results, with military sales accounting for 63.8% of total net sales, up from 46.6% in the prior-year quarter [9] Future Investments - While SIFCO did not provide formal earnings guidance, it anticipates fiscal 2026 capital expenditures of $1 million to $2 million, primarily aimed at enhancing production capabilities and driving cost reductions [10] - Management expressed confidence that existing cash and available credit lines will be sufficient to fund operations and planned investments over the next 12 months [10] Strategic Developments - SIFCO completed the sale of its CBlade operations in October 2024, resulting in the cessation of its European manufacturing operations [11] - The first quarter of fiscal 2026 reflected no income from discontinued operations compared to $0.1 million in the prior-year quarter, highlighting SIF's focus on its core aerospace and defense forging business [11]

Core Insights - PayPal Holdings (PYPL) reported transaction revenues of $7.82 billion in Q4 2025, reflecting a 3% year-over-year growth and accounting for approximately 90.1% of its net revenues [1][8] - The growth in transaction revenues was driven by the rise in online shopping and mobile payments, contributing to solid quarterly results [1] Transaction Revenue Details - Transaction revenues primarily come from fees charged to merchants and consumers for payments processed through PayPal's platforms, calculated as a percentage of the transaction amount plus a fixed fee [2] - For Q4 2025, PayPal's transaction margin dollars (TM$) were reported at $4.03 billion, also up 3% year-over-year, with growth attributed to credit and omni initiatives, improved Payment Service Provider (PSP) profitability, and Venmo monetization efforts [3][8] Transaction Take Rate - The transaction take rate decreased by 9 basis points to 1.65% in Q4 2025, with a decline of about 7 basis points when excluding foreign exchange hedges [4] Peer Performance Comparison - Block's transaction revenues in Q3 2025 were $1.87 billion, up 9.4% year-over-year, representing 30.6% of its net revenues [5] - Payoneer Global's Q3 2025 total revenues were $270.9 million, up 9% year-over-year, with transaction revenue growth driven by increased transaction volume and improved SMB customer take rates [6] Valuation and Estimates - PayPal shares have declined 31% year-to-date, underperforming the broader industry and the S&P 500 Index [7] - The stock is trading at a forward 12-month P/E of 7.40X, significantly lower than the Zacks Financial Transaction Services industry's average of 18.15X, indicating a cheap valuation [9] - The Zacks Consensus Estimate for full-year 2026 EPS has been revised downward, suggesting a growth of only 1.3% year-over-year [10]

Core Viewpoint - Crown Crafts, Inc. reported a mixed performance for the third quarter of fiscal 2026, with significant declines in net sales and gross profit, but a notable increase in net income and earnings per share, driven by nonrecurring insurance proceeds [2][5]. Financial Performance - Net sales decreased by 11.3% year over year to $20.7 million from $23.4 million [2] - Gross profit fell by 20.3% to $4.9 million from $6.1 million, with gross margin compressing to 23.5% from 26.1% [2] - Net income increased by 69.1% to $1.5 million from $0.9 million, while diluted earnings per share rose by 55.6% to $0.14 from $0.09 [2] Product Category Performance - Sales of bedding and diaper bags dropped by 29.8% to $7.8 million from $11.2 million [3] - Sales of bibs, toys, and disposable products increased by 5.8% to $12.9 million from $12.2 million, indicating a divergence in product performance [3] Operating Metrics - Operating income swung to a loss of $0.1 million from income of $1.7 million a year earlier [4] - Marketing and administrative expenses increased by 12.9% year over year to $4.9 million from $4.4 million, rising to 24% of sales from 18.8% [4] Other Income and Expenses - Other income rose sharply to $2.5 million from a $33,000 expense in the prior-year period, primarily due to insurance proceeds [5] - The net impact of these proceeds added $2.1 million to income before taxes [5] Balance Sheet Overview - Inventories stood at $31.2 million at quarter-end, up from $27.8 million at fiscal year-end [6] - Total debt was approximately $16.4 million, including $11.3 million under the revolving line of credit [6] - Net cash provided by operating activities for the nine-month period was $7.1 million, slightly above the prior year's $6.9 million [6] Management Commentary - Management noted a challenging demand backdrop and elevated tariffs affecting products sourced from China, contributing to gross margin contraction [7] - Uneven consumer spending and retailer program changes were cited as headwinds, particularly in bedding and diaper bags [7] Strategic Focus - Management emphasized ongoing pricing actions, cost controls, and operational consolidation to drive profitability in a difficult macro environment [8] - The company did not provide formal financial guidance but expressed confidence in meeting liquidity needs through operational cash flow and available credit [12] Recent Developments - Crown Crafts announced the relaunch of the "Groovy Girls" line of soft fashion dolls by Manhattan Toy, available starting May 2026, reflecting a focus on internal product development [13]

Core Viewpoint - CAE is currently viewed as a more attractive investment option compared to AeroVironment based on valuation metrics and earnings outlook [3][7]. Valuation Metrics - CAE has a forward P/E ratio of 34.66, while AeroVironment has a significantly higher forward P/E of 70.42 [5]. - The PEG ratio for CAE is 2.28, indicating a more favorable valuation relative to its expected earnings growth compared to AeroVironment's PEG ratio of 3.61 [5]. - CAE's P/B ratio stands at 2.58, which is lower than AeroVironment's P/B ratio of 2.76, suggesting that CAE may be undervalued relative to its book value [6]. Earnings Outlook - CAE is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]. - CAE holds a Zacks Rank of 2 (Buy), indicating a stronger earnings estimate revision trend compared to AeroVironment's Zacks Rank of 3 (Hold) [3]. Value Grades - CAE has a Value grade of B, while AeroVironment has a Value grade of F, reflecting a significant difference in perceived value based on key financial metrics [6].