Core Insights - Willdan Group, Inc. (WLDN) reported strong fourth-quarter fiscal 2025 results, with adjusted earnings and revenues exceeding expectations, while both metrics showed year-over-year growth [1][4][9] Financial Performance - Adjusted EPS for Q4 was $1.57, surpassing the Zacks Consensus Estimate of 79 cents by 98.7%, and increased from $0.75 in the same quarter last year [4] - Net revenues reached $89.5 million, beating the consensus mark of $87 million by 2.4% and reflecting a 12.9% year-over-year increase [4] - Contract revenues rose 20.6% year over year to $173.7 million, with gross profit increasing to $62.6 million from $55 million [4][5] Segment Analysis - Energy Segment: Contract revenues increased to $148.3 million from $120.7 million year over year, with net revenues growing 15.7% to $65.5 million [6] - Engineering and Consulting Segment: Contract revenues rose to $25.4 million from $23.4 million year over year, with net revenues up 6% to $24 million [6][7] Annual Highlights - For fiscal year 2025, Willdan reported net revenues of $364.8 million, a 23.1% increase from fiscal 2024, and adjusted EPS of $4.89, up 101.2% from $2.43 a year ago [8] - Adjusted EBITDA for the year was $79.5 million, reflecting a 40.2% increase from the previous fiscal year [8] Future Outlook - For fiscal 2026, Willdan projects net revenues between $390 million and $405 million, with adjusted EBITDA expected to be between $85 million and $90 million, and adjusted EPS anticipated in the range of $4.50-$4.70 [9][11]

Group 1 - The market is currently experiencing mixed signals, with cyclicals leading due to investor bets on faster growth, while defensive sectors are also gaining traction, which is unusual for the early stages of an economic soft patch [2][8] - Major tech companies, referred to as hyperscalers, have historically attracted significant investment due to their dominance and cash flow generation, which supported their stock prices [3][4] - These hyperscalers are now reallocating cash towards AI infrastructure, leading to lower free cash flow and fewer stock buybacks, which may pressure their share prices [4][5] Group 2 - The shift in investment flows is moving towards cyclical equity groups such as financials, industrials, and materials, which have been overlooked in recent years [6][9] - Early signs of increased demand for copper indicate a potential pickup in business investment, benefiting materials companies like Freeport-McMoRan and Ivanhoe Electric [10] - Industrial firms, particularly Caterpillar, are expected to perform well due to growth in global manufacturing activity [11] Group 3 - As hyperscalers enhance their data centers, there will be increased demand for networking gear, benefiting companies like Coherent, Amphenol, and Arista Networks [12] - The current market dynamics suggest a rotation towards cyclicals while maintaining some defensive positions, indicating a transition rather than an impending recession [13]

Core Insights - Applied Optoelectronics (AAOI) shares surged 20-28% after a strong Q4 earnings report, beating EPS estimates by 90% due to robust datacenter demand [1] - The company guided Q1 revenue to be between $150 million and $165 million, indicating a sequential growth of approximately 17% at the midpoint [1] - Management indicated that demand will outpace production capacity through mid-2027, suggesting a multi-year constrained supply scenario [1] Financial Performance - Q4 revenue reached $134.27 million, exceeding the $132.22 million estimate, representing a year-over-year growth of 33.9% [1] - The company reported a loss of $0.01 per share, significantly better than the estimated loss of $0.1084, marking a 90% beat [1] - Datacenter revenue was $74.88 million, up 69.2% year-over-year, now accounting for over half of total quarterly revenue [1] Future Projections - AAOI finished 2025 with total annual revenue of $456 million, with potential monthly revenue reaching $378 million by mid-2027 if demand and production ramp up as expected [1] - This projection implies an annualized run rate exceeding $4.5 billion, approximately ten times the revenue reported for the entire year [1] - Management's guidance reflects confidence in scaling production and maintaining gross margins above 30% while increasing R&D spending, which rose 54.5% year-over-year to $25.8 million in Q4 [1] Market Reaction - The stock's significant price increase reflects market optimism regarding AAOI's growth potential and the shift from incremental growth to a potential category leap [1] - CEO Thompson Lin expressed confidence in the company's momentum entering 2026 and highlighted a $300 million investment for facility expansion in Texas [1] - The stock currently trades above the $50 analyst consensus price target, indicating a valuation premium driven by optimism but also associated risks [1]

Core Insights - Nvidia reported strong quarterly results, with data center revenue increasing by 75% and guidance exceeding consensus by $5 billion, excluding China, indicating potential for further growth [2][3] - The market's reaction to Nvidia's earnings may not reflect the strong performance due to pre-existing expectations and market flows related to AI trades [4][6] Financial Performance - Nvidia's networking segment saw a remarkable growth of 263%, highlighting the strength in its data center operations [4] - The overall earnings performance was anticipated, as capital expenditure (capex) trends from hyperscalers suggested strong results [3][6] Market Dynamics - Despite strong earnings, Nvidia's stock has remained relatively flat, attributed to broader market concerns rather than company fundamentals [6] - The narrative around AI investments may shift, leading to renewed interest in stocks like Nvidia that are posting strong numbers [7] Sector Trends - The networking sector is experiencing significant growth, with companies like Arista Networks positioned as leaders [11] - The optical components market is also on an upward trajectory, with companies such as Coherent and Lumenum expected to benefit from a multi-year cycle [12] Investment Considerations - There is a rotation in investment focus from copper-related components to optical technologies, suggesting a shift in market dynamics [15] - Companies that are able to adapt and innovate within their sectors, such as K8 10 Core, are likely to see continued interest from investors [13]

天风通信丨1月&2月金股华懋科技：COHR&LITE大涨，核心供应商华懋科技坚定看好600亿以上目标市值持续坚 定推荐！ COHR和LITE昨日继续大涨COHR和LITE+5%。 我们继续坚定核心推荐核心供应商华懋科技，光模块&算力卡放量CPO布局先进封装，重视三大预期差！ 预期差一（高速光模块）： 光模块26-27年景气度供不应求。 COHR和LITE昨日继续大涨COHR和LITE+5%。 公司高速光模块PCBA卡位早，草案披 我们继续坚定核心推荐核心供应商华懋科技，光模块&算力卡放量CPO布局先进封装，重视三大预期差！ 天风通信丨1月&2月金股华懋科技：COHR&LITE大涨，核心供应商华懋科技坚定看好600亿以上目标市值持续坚 定推荐！ 预期差三（算力板卡）：公司作为国内算力卡龙头板卡独家供应商，当下需求非常旺盛，同时未来超节点、液冷 等新产品新方案的迭代、价值量和弹性空间都有望充分释放。 预期差二（npo/cpo/先进封装）： 我们反复强调华懋NPO和CPO先进封装逻辑，可市场认知依旧完全不清楚公司这 块到底做什么，未来会有怎样的机会。 # 首先公司已经形成下列cpo/npo产品的供货：Lumentu ...

Investment Rating - The report maintains an "Outperform" rating for the industry [2] Core Viewpoints - Optical Circuit Switch (OCS) technology enables direct switching of optical signals between fiber ports without optical-electrical-optical (O/E/O) conversion, significantly reducing latency and power consumption, with potential power savings of over 30% for AI computing clusters and data center interconnects [3][4][92] - The OCS market is expected to grow rapidly, with a projected market size exceeding $2.5 billion by 2029, driven by increasing demand from AI data centers and enhanced customer penetration [4][81] - The report highlights four main technology routes for OCS: MEMS, liquid crystal, piezoelectric, and silicon waveguide, with MEMS technology currently leading the market [4][14][92] Summary by Sections 1. OCS as a New Photonic Interconnect Technology - OCS technology allows for high bandwidth capabilities and low latency, making it suitable for modern data center demands [13] - The technology is transparent to rate and protocol, allowing for seamless upgrades without hardware replacement [13] - OCS can be incrementally deployed and expanded, reducing initial capital investment [13] 2. OCS Applications for AI Data Centers - Google has been at the forefront of developing ASIC chips, with the latest TPU generation utilizing OCS technology for enhanced interconnectivity [51][64] - The TPU architecture requires a significant number of ports, indicating a growing demand for OCS solutions [71] 3. OCS Industry Chain Company Layout - Various companies are positioned within the OCS industry chain, including Silex, Tengjing Technology, and Zhongji Xuchuang, each focusing on different aspects of OCS technology and components [83][84] - The report emphasizes the importance of collaboration between domestic manufacturers and leading global firms to capitalize on the OCS market growth [84] 4. Investment Recommendations - The report suggests focusing on companies within the OCS supply chain, particularly those with established partnerships with leading international firms, as they are likely to benefit from the industry's growth [4][90]

Key Takeaways TRU expects earnings to rise 11% and 16.6% in 2026 and 2027, respectively, on solid revenue growth.TRU's OneTru and TrueIQ platforms boost analytics, credit and fraud solutions globally.TRU expands via the Monevo buy and the Mexico deal, while competition pressures growth margins.TransUnion (TRU) has a Growth Score of B, which condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth.The company’s first-quarter 2026 earnings are expected to increas ...

Core Insights - Skillsoft Corp.'s (SKIL) Percipio has transitioned the company from a traditional content provider to an AI-first skill-management organization, which is crucial for its market positioning [1] - The launch of the next-gen Skillsoft Percipio platform addresses the increasing demand for a connection between learning, skills development, and business performance, with a focus on workforce readiness [2] - Percipio's repositioning is supported by CAISY, LX Design Studio, and agentic AI capabilities, enabling faster bespoke content generation and efficient management of human and AI agents [3] Performance Metrics - The AI learner base increased by 74% year over year, while AI learning hours rose by 158%, indicating that Percipio is a key growth driver for the company [4][8] - The dollar retention rate for the talent development solutions segment remained at 99%, showcasing Percipio's role in retaining recurring revenues from existing customers [4][8] Strategic Positioning - Percipio allows SKIL to move away from the commoditized content market and enter the skills intelligence domain, with optimism about its potential to drive measurable business outcomes [5] - The company has experienced a significant decline in share price, dropping 84.7% over the past year, contrasting with the industry's 7% growth [6] Valuation Insights - SKIL trades at a 12-month forward price-to-earnings ratio of 0.86X, significantly lower than peers Enpro Inc. at 29.36X and Coherent Corp. at 40.78X, as well as the industry average of 21.95X [10] - The Zacks Consensus Estimate for EPS for 2026 and 2027 is projected at $4.17 and $4.64, respectively, remaining flat over the past 60 days [13]

Investment Rating - The report maintains an "Outperform" rating for the industry [2] Core Viewpoints - Optical Circuit Switch (OCS) technology enables direct switching of optical signals between fiber ports without optical-electrical-optical (O/E/O) conversion, significantly reducing latency and power consumption, with potential power savings of over 30% for AI computing clusters and data center interconnect systems [3][4][92] - The OCS market is expected to grow rapidly, with a projected market size exceeding $2.5 billion by 2029, driven by increasing demand for AI data centers and enhanced customer penetration [4][79] - OCS technology has four main technical routes: MEMS, liquid crystal, piezoelectric, and silicon waveguide, with MEMS being the fastest to commercialize, primarily led by Google [4][14][92] Summary by Sections 1. OCS as a New Photonic Interconnect Technology - OCS technology avoids traditional bandwidth bottlenecks and power losses associated with electrical switching, offering high bandwidth capacity and low latency [3][13] - The four main technical routes for OCS are MEMS, liquid crystal, piezoelectric, and silicon waveguide, each with different cost, performance, and technical difficulty trade-offs [14][92] 2. OCS Applications for AI Data Centers - Google has been at the forefront of developing ASIC chips, with the TPU reaching its seventh generation, indicating a strong push towards integrating OCS technology in data centers [51][64] - The TPU architecture utilizes OCS technology to interconnect thousands of TPU chips, enhancing performance and efficiency [64][71] 3. OCS Industry Chain Company Layout - Various companies are positioned within the OCS industry chain, including Silex, Tengjing Technology, and Zhongji Xuchuang, each focusing on different aspects of OCS technology and components [83][84] - Companies like Lumentum and Coherent are key suppliers for MEMS and liquid crystal OCS solutions, indicating a robust supply chain for OCS technology [4][14][84] 4. Investment Recommendations - The report suggests focusing on companies within the OCS supply chain, particularly those with deep collaborations with leading global firms, such as Zhongji Xuchuang and Guangxun Technology, as they are expected to benefit from the growth in OCS technology [4][90]

If you're interested in broad exposure to the Mid Cap Blend segment of the US equity market, look no further than the State Street SPDR S&P MIDCAP 400 ETF Trust (MDY) , a passively managed exchange traded fund launched on May 4, 1995.The fund is sponsored by State Street Investment Management. It has amassed assets over $25.63 billion, making it one of the larger ETFs attempting to match the Mid Cap Blend segment of the US equity market.Why Mid Cap BlendMid cap companies have market capitalization between $ ...