Key Takeaways ST reported Q4 EPS of 88 cents on $917.9M in revenues, beating the consensus estimate.Industrials and Aerospace segments drove growth, lifting adjusted margin 60 bps to 19.6%.ST sees Q1 EPS of 81-85 cents and revenues of $917M-$937M, up 1%-3% year over year.Sensata Technologies Holding plc (ST) reported fourth-quarter 2025 adjusted earnings per share (EPS) of 88 cents, up from 74 cents a year ago. The bottom line beat the Zacks Consensus Estimate by 2.3%.Revenues for the quarter reached $917.9 ...

Company Overview - Badger Meter, Inc. (NYSE:BMI) is a leading manufacturer of flow measurement, quality, control, and communication solutions primarily for the municipal water utility market [2][3] - The company operates in an oligopolistic water-metering market, providing essential solutions with a recurring revenue model [3] Financial Performance - Badger Meter, Inc. reported total sales of $221 million in Q4 2025, reflecting an 8% increase year-over-year [4] - As of February 18, 2026, Badger Meter, Inc. stock closed at $158.20 per share, with a one-month return of -8.09% and a twelve-month decline of 27.49% [2][4] Investment Insights - The company is noted for its high-quality operations, healthy capital structure, and good management, which support durable growth and value compounding through economic cycles [3] - Despite the potential of Badger Meter, Inc. as an investment, the company is not among the 30 most popular stocks among hedge funds, with 28 hedge fund portfolios holding its stock at the end of Q3 2025, down from 32 in the previous quarter [4] - The company faces competition from certain AI stocks that are perceived to offer greater upside potential and less downside risk [4]

Core Viewpoint - Frequency Electronics, Inc. (FEIM) has significantly outperformed its industry peers, with a 41.7% increase in share price over the past six months, compared to the industry's 3.9% growth, driven by strong demand in defense and aerospace sectors, recurring contracts, and innovative technologies [1][14] Company Overview - Frequency Electronics is a leading provider of precision time and frequency generation technology, serving both commercial and U.S. Government sectors, with products including atomic clocks, oscillators, and power systems [3] - The company operates through two main segments, FEI-NY and FEI-Zyfer, focusing on applications in satellite payloads, secure communications, and military systems [3] Key Tailwinds - Robust demand from the U.S. Government and defense programs is a major growth driver, with recent contracts totaling approximately $6 million for secure communications systems [4] - The aerospace sector is also a focus, with significant contracts awarded, including $4.8 million for airborne-rated synchronization systems and $9.2 million for oscillators for environmental satellites [5][6] - The funded backlog increased to approximately $82 million by October 2025, indicating healthy demand, with 69% expected to be realized within the next 12 months [7] Innovation and R&D - The company is differentiating itself through innovation, particularly with the development of a Rubidium Atomic Clock for airborne applications, supported by over $2.3 million in R&D investments [8] Financial Position - FEIM maintains a strong working capital position of $31.3 million and a current ratio of 2.6:1, reflecting financial discipline [9] - A new $20 million share repurchase program indicates confidence in long-term value and commitment to enhancing shareholder returns [9] Challenges - The company faces challenges, including a decline in gross margins from 48.2% to 38.2% year over year, driven by a shift to lower-margin projects [10] - Operating income dropped 34.5% due to higher SG&A expenses and rising material costs, alongside dependence on U.S. government contracts [10] Valuation - From a valuation perspective, FEIM is trading at 6.59X trailing 12-month EV/sales, which is above the industry average of 3.7X and higher than peers like Transcat and Badger Meter [11]

Core Insights - Blackbaud, Inc. (BLKB) reported Q4 2025 non-GAAP EPS of $1.19, exceeding Zacks Consensus Estimate by 3.5%, with an 11.2% year-over-year increase [1] - Total revenues for 2025 were $1.13 billion, down 2.3% year-over-year, primarily due to the divestiture of EVERFI [2][4] - The company achieved the Rule of 40 milestone two years ahead of schedule, indicating strong execution of its strategic priorities [3] Financial Performance - Non-GAAP organic revenues increased by 4.3% on a reported basis and 4% on a constant-currency basis year-over-year [5] - Non-GAAP gross margin improved to 61.6% from 59.4% a year ago, while total operating expenses decreased significantly to $113.1 million from $529.8 million [6] - GAAP operating margin rose to 20% from a negative 121.6%, and non-GAAP operating margin increased by 270 basis points to 30% [6] Shareholder Returns and Cash Flow - The company repurchased approximately 8% of its outstanding common stock in 2025 and plans to continue share buybacks of 5%-10% in 2026 [3][11] - As of December 31, 2025, Blackbaud had total cash and equivalents of $759 million, up from $457.4 million as of September 30, 2025 [9] - Cash provided by operating activities was $265.6 million for Q4, down from $296 million in the prior-year quarter [10] 2026 Outlook - Blackbaud projects 2026 GAAP revenue between $1.173 billion and $1.179 billion, with non-GAAP diluted EPS forecasted at $5.15 to $5.25 [12] - The company anticipates non-GAAP adjusted EBITDA to reach between $430 million and $438 million, with adjusted free cash flow expected to be $280 million to $290 million [12] Strategic Initiatives - Blackbaud is enhancing its AI capabilities through a partnership with Anthropic, focusing on AI-powered solutions [14] - The company was recognized in Newsweek's list of America's Most Responsible Companies for the fifth consecutive year, highlighting its commitment to responsible business practices [15]

Core Insights - Badger Meter, Inc. (NYSE:BMI) is recognized as one of the 13 Best Long Term Low Risk Stocks to Buy Now [1] - Recent analyst actions include a downgrade from Buy to Hold by Argus Research and a price target reduction from $255 to $220 by Seaport Research, although the latter maintains a Buy rating [2] Financial Performance - In Q4 2025, Badger Meter reported sales of $221 million, an 8% increase year-over-year, with base sales growth of 2% [4] - Operating profit margins improved by 40 basis points to 19.5%, while base operating earnings rose 9% year-over-year, lifting base operating margins by 140 basis points to 20.5% [4] - Gross margins expanded by 180 basis points to 42.1% compared to 40.3% a year earlier [4] Business Developments - The company experienced strong customer demand for its cellular AMI solution and is making progress with the SmartCover addition to its BlueEdge smart water management platform [3] - Winning the PRASA AMI project in Puerto Rico has strengthened the company's market position and supports its long-term growth outlook [3]

Core Insights - FUJIFILM Holdings Corporation reported a net income of ¥73.1 billion for the third quarter of fiscal 2025, an increase from ¥71.2 billion in the same quarter last year [1] - The company achieved record revenues of ¥857.4 billion, reflecting a year-over-year growth of 5.5%, primarily driven by the Healthcare and Electronics segments [2][10] Segment Performance - The Healthcare segment generated revenues of ¥266.1 billion, up 7.7% year over year, with Medical Systems revenues increasing by 4.7% to ¥170.2 billion, driven by strong sales of endoscopes and medical IT systems [3][4] - Bio CDMO revenues surged by 18.5% to ¥60.8 billion, attributed to new operations in Denmark, despite some delays in securing early-stage projects [5] - The Electronics segment saw revenues rise to ¥119.2 billion, a 17% increase year over year, with Semiconductor Materials revenues growing by 25.5% to ¥77.7 billion due to strong demand for advanced applications [6] - The Imaging Solutions segment reported revenues of ¥194.2 billion, up 14.6% from the previous year, driven by strong sales in both Consumer and Professional Imaging [10][11] Financial Overview - Selling, general and administrative expenses increased by 5% to ¥215.8 billion, while research and development expenses rose by 2.2% to ¥41.7 billion [13] - Operating income for the quarter increased by 2.6% year over year to ¥90 billion, supported by higher gross margins and favorable exchange-rate effects [13] - As of December 31, 2025, cash and cash equivalents were ¥188.1 billion, up from ¥160.9 billion at the end of September 2025, while total debt increased to ¥941.3 billion [14] Guidance and Projections - FUJIFILM maintained its revenue forecast for fiscal 2025 at ¥3,300 billion, indicating a growth of 3.3% year over year, while raising projections for operating income to ¥335 billion and net income to ¥264.5 billion [15][16] - Anticipated revenues from the Healthcare and Business Innovation segments are now expected to be ¥1,090 billion and ¥1,175 billion, respectively, down from previous estimates [17]

Core Insights - The article discusses the trend of high-net-worth investors focusing on long-term investments rather than short-term market predictions, emphasizing the importance of patience and understanding in investment decisions [1][2]. Investment Strategy - Wealthy investors are adopting a disciplined approach, avoiding quick gains and emotional decisions, which allows them to benefit from economic growth over time [2]. - Many affluent investors prefer index funds to mitigate the stress of selecting individual stocks, providing a practical way to maintain investment and reduce complexity [3][4]. Stock Selection Methodology - The article outlines a methodology for selecting stocks, focusing on those with a 5-year return exceeding 60% and a beta of less than 1.0, indicating lower volatility compared to the market [6]. Company Highlights - **Fifth Third Bancorp (NASDAQ:FITB)**: - Achieved a 5-year return of 66.88% with a beta of 0.98. The bank reported higher fourth-quarter profits driven by increased interest income and loan demand, with net interest income rising 6% to $1.53 billion [9][10][11]. - The bank's assets under management grew approximately 16% to $80 billion, reflecting improved economic sentiment and lower borrowing costs [11][12]. - **Badger Meter, Inc. (NYSE:BMI)**: - Recorded a 5-year return of 47.98% with a beta of 0.88. The company experienced an 8% increase in fourth-quarter sales to $221 million, with operating profit margins improving to 19.5% [13][16]. - The company highlighted strong customer demand for its cellular AMI solution and successful project wins, supporting its long-term growth outlook [15][17].

Core Insights - Sony Group Corporation reported a third-quarter fiscal 2025 net income per share of ¥62.82, an increase from ¥56.42 in the previous year, with adjusted net income at ¥377.3 billion compared to ¥341.1 billion last year [1][11] Financial Performance - Quarterly total revenues increased by 1% year over year to ¥3,713.7 billion, with weak sales in Game & Network Services, Pictures and Entertainment, and Technology & Services segments, offset by growth in Imaging & Sensing Solutions and Music segments [2][11] - Total costs and expenses for the quarter were ¥3,203.6 billion, down 1.9% year over year, leading to an operating income of ¥515 billion, which rose by 22% [13] Segment Performance - Game & Network Services (G&NS) sales decreased by 4% year over year to ¥1,613.6 billion, impacted by lower hardware unit sales, although operating income rose by 19% to ¥140.8 billion due to increased sales in network services [5] - Music sales improved by 13% year over year to ¥542.4 billion, driven by stronger live events and higher streaming revenues, with operating income increasing to ¥106.4 billion from ¥97.4 billion [6] - Pictures segment sales declined by 11% year over year to ¥353.3 billion, with operating income down 9% to ¥30.9 billion due to lower revenues from theatrical releases [7] - Technology & Services (ET&S) sales totaled ¥658.1 billion, down 7% year over year, with operating income decreasing by 23% to ¥59.4 billion [8] - Imaging & Sensing Solutions (I&SS) sales rose by 21% year over year to ¥604.3 billion, with operating income increasing to ¥132 billion from ¥97.5 billion [9] Fiscal Guidance - Sony revised its fiscal 2025 sales forecast to ¥12,300 billion from ¥12,000 billion, primarily due to expected strength in G&NS and I&SS divisions, with G&NS revenues now expected at ¥4,630 billion and I&SS at ¥2,080 billion [3][11] - Operating income guidance for fiscal 2025 has been raised to ¥1,540 billion from ¥1,430 billion, with net income now estimated at ¥1,130 billion compared to the previous estimate of ¥1,050 billion [15]

Core Insights - PTC Inc reported a significant increase in non-GAAP EPS of $1.92 for Q1 fiscal 2026, representing a 75% year-over-year growth, surpassing both the Zacks Consensus Estimate of $1.59 and management's guidance of $1.26-$1.82 [1][9] Financial Performance - Revenues reached $686 million, up 21% year-over-year, and exceeded the consensus estimate by 7.4% [2][9] - Recurring revenues were $657.3 million, reflecting a 25.4% increase year-over-year [5] - License revenues accounted for 39.4% of total revenues at $269.7 million, up 56% from the previous year [6] - Support and cloud services revenues, making up 57.3% of total revenues, increased by 8.9% year-over-year to $393.3 million [6] - Professional services revenues decreased by 27% year-over-year to $22.9 million [6] Product Group Performance - PLM revenues were $432 million, up 22% year-over-year, while CAD revenues reached $254 million, up 20% year-over-year [7][10] Annualized Recurring Revenue (ARR) - By the end of Q1, constant-currency ARR, excluding Kepware and ThingWorx, was $2.3 billion, a 9% increase year-over-year [8] - Including Kepware and ThingWorx, constant-currency ARR totaled $2.5 billion, up 8.4% from the previous year [8] Operating Metrics - Total operating expenses were $346.9 million, slightly up from $337.8 million in the prior-year quarter [11] - Non-GAAP operating income increased to $309.6 million from $191.3 million year-over-year, with an operating margin of 45%, up 1,130 basis points [11] Cash Flow and Share Repurchase - Cash provided by operating activities was $270 million, compared to $238 million in the prior-year quarter [13] - Free cash flow was $267 million, up from $236 million year-over-year [13] - The company repurchased $200 million of common stock during the quarter and plans to repurchase approximately $250 million in Q2 [14] Future Outlook - For Q2 fiscal 2026, PTC estimates revenues between $710-$770 million and non-GAAP EPS in the range of $1.93-$2.54 [15] - Fiscal 2026 revenue projections are now between $2,675 million and $2,940 million, indicating a year-over-year increase of 2%-7% [16] - Cash from operations is projected at around $1.03 billion, a 19% increase year-over-year, with free cash flow expected to be around $1 billion, suggesting a 17% increase [17]

Tesla - Tesla reported earnings per share of $0.50 for the quarter, beating estimates but down 63% from the same period last year, marking the lowest fourth-quarter earnings since 2020 [1] - The company announced plans to more than double its annual capital spending to $20 billion by 2026, with significant investments in AI and robotics, including a $2 billion investment in Elon Musk's xAI [1][2] - Tesla will discontinue production of its S and X models to repurpose its Fremont plant for building Optimus robots, as these models account for less than 5% of overall vehicle sales [1][2] - The shift in Tesla's mission statement to focus on creating a world of abundance aligns with its push towards autonomy and robotics [1][2] Competition and Market Dynamics - Tesla's auto segment revenue declined by 11% in the fourth quarter due to increased competition in the EV market, particularly from GM and other automakers [2] - The discontinuation of the Model S and X was anticipated as these aging vehicles had not seen significant updates since their introduction [2] - Concerns were raised about Tesla's ability to deliver on its ambitious timelines for autonomous robots and robotaxis, with skepticism regarding the feasibility of mass production within the next two years [3][4][5] Meta and Microsoft - Meta's shares rose by approximately 9% after beating revenue expectations and announcing a significant increase in capital expenditures to $115-135 billion for 2026, nearly double its 2025 CapEx [8] - Microsoft shares fell by 12% following a slowdown in growth for its Azure Cloud computing unit, despite a nearly doubled future sales backlog driven by investments in OpenAI [8][10] - The contrasting market reactions to Meta and Microsoft's capital expenditure announcements highlight investor sentiment towards AI investments and the perceived return on investment [8][10] Investment Sentiment - Investors are increasingly scrutinizing capital expenditures, questioning the return on investment, especially in light of high spending figures exceeding $100 billion annually [10] - Meta's aggressive spending is seen as a bet on future ad revenue growth, while Microsoft faces concerns over its reliance on OpenAI for a significant portion of its backlog [10][11] - The evolving narrative around AI investments suggests that companies may experience fluctuating investor confidence based on their capital allocation strategies and growth prospects [11]