Liberty Latin America Ltd (LILA) Q2 2025 Earnings Call August 07, 2025 08:30 AM ET Speaker0Good morning, ladies and gentlemen, and thank you for standing by. Today's call is being recorded.I'll now turn the call over to Sumit Dahta, VP of Investor Relations for Liberty Latin America.Speaker1Good morning, and welcome to Liberty Latin America's Second Quarter twenty twenty five Investor Call. At this time, all participants are in listen only mode. Today's formal presentation materials can be found under the I ...

Core Insights - F5 Inc. (FFIV) is set to report its third-quarter fiscal 2025 results on July 30, with projected non-GAAP EPS between $3.41 and $3.53, and a consensus estimate of $3.49, reflecting an 8.28% year-over-year increase [1] - The company anticipates non-GAAP revenues in the range of $740 million to $760 million, with a consensus estimate of $753.1 million, indicating an 8.3% year-over-year growth [1] Group 1: Revenue and Earnings Projections - F5's Product segment is expected to benefit from recovering demand for software solutions, particularly in hybrid and multi-cloud architectures, with software revenues estimated at $202 million [2] - The Systems segment is likely to see increased sales due to technology refresh activities for VIPRION and iSeries offerings, with estimated revenues of $144.7 million [3] - Overall Product revenues are projected at $346.6 million, driven by strong sales in both Software and Systems divisions [3] Group 2: Growth Drivers and Challenges - The growth in BIG-IP and NGINX subscription software deals is anticipated to be a significant growth driver, aided by performance data, automation capabilities, and lower ownership costs [4] - However, slower growth in perpetual software licenses due to IT budget cuts amid macroeconomic uncertainties may offset overall software revenues, although new avenues like AI adoption are expected to contribute positively [5] Group 3: Earnings Prediction Model - Current analysis indicates that F5 does not conclusively predict an earnings beat this season, with an Earnings ESP of -0.33% and a Zacks Rank of 3 (Hold) [6]

Core Insights - ManpowerGroup reported a net loss of $67.1 million or $1.44 per basic share for Q2 2025, a significant decline from net earnings of $60.1 million or $1.24 per diluted share in the same period last year [1][2] - Revenues for the second quarter remained flat at $4.5 billion, but decreased by 3% on a constant currency basis [1][7] - The company faced a non-cash goodwill and intangible asset impairment charge of $89 million, restructuring costs, and losses from the sale of businesses, which collectively reduced earnings per share by $2.22 [2][8] Financial Performance - For the six months ended June 30, 2025, net losses were $61.5 million or $1.32 per basic share, compared to net earnings of $99.8 million or $2.05 per diluted share in the prior year [3][18] - Excluding impairment and restructuring charges, adjusted earnings per share for the six-month period was $1.22, reflecting a 47% decrease in constant currency [3][10] - Total revenues for the six-month period were $8.6 billion, a decrease of 4% compared to the previous year [3][18] Operational Insights - The company is focusing on diversifying, digitizing, and innovating to enhance its role as a strategic workforce partner amid mixed demand across global markets [3][5] - Positive signs of stabilization are noted in the U.S. and parts of Europe, although demand remains volatile due to economic and geopolitical factors [3][5] - The gross profit margin for Q2 2025 was 16.9%, slightly down from the previous quarter, influenced by changes in business mix [7][12] Segment Performance - The Americas region saw a slight revenue decline of 0.4%, with the U.S. specifically down by 3.3% [14][21] - Southern Europe reported a 2.4% increase in revenues, driven by growth in Italy, while Northern Europe experienced a 10.7% decline [14][21] - The Manpower and Talent Solutions brands returned to revenue growth, while Experis faced declines due to sluggish professional staffing demand [7][12] Future Outlook - The company anticipates diluted earnings per share for Q3 2025 to be between $0.77 and $0.87, factoring in a favorable currency impact [3][5] - Ongoing investments in digital capabilities and AI adoption are expected to position the company for future growth and enhanced client value [3][5]

Company Overview - Pitney Bowes (PBI) shares increased by 9.9% to close at $12.1, with trading volume significantly higher than usual, compared to a 7.1% gain over the past four weeks [1] - The company is transforming into a cash-generative technology-enabled service, with a substantial portion of its revenue derived from USPS, providing stability and resilience [2] Financial Performance - Pitney Bowes is expected to report quarterly earnings of $0.27 per share, reflecting an 800% year-over-year increase, while revenues are projected to be $475.92 million, a 40% decline from the previous year [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Pitney Bowes is part of the Zacks Office Automation and Equipment industry, which includes Seiko Epson Corp. (SEKEY), whose stock decreased by 0.3% to $6.3, with a -0.2% return over the past month [5] - Seiko Epson's consensus EPS estimate has also remained unchanged at $0.13, representing a 31.6% decline from the previous year [6]

Core Insights - Wendy's Company is focusing on digital investments to enhance customer engagement and drive sales amid pressure on consumer traffic [1] - The company has achieved record app engagement and digital sales exceeding 20% of total sales in Q1 2025 [10] Digital Initiatives - The introduction of gamification in the Wendy's app aims to deepen user engagement and encourage repeat visits, with personalized content and targeted messaging improving conversion rates [2] - The rollout of Fresh AI technology in 168 locations is expected to increase average checks and improve order accuracy and crew productivity, with plans to expand to over 500 locations by year-end [3][4] Competitive Landscape - Other industry players like Yum! Brands and BJ's Restaurants are also advancing their digital capabilities, focusing on operational upgrades and guest engagement to drive growth [5] - Yum! Brands is enhancing its digital sales through AI-powered personalization and loyalty integration, while BJ's Restaurants is improving service speed and accuracy through digital upgrades [6][7] Financial Performance - Wendy's shares have declined by 12.2% over the past three months, contrasting with the industry's growth of 4.6% [8] - The company has a forward 12-month price-to-earnings ratio of 11.31, which is below the industry average, indicating a potential investment opportunity [14]

Core Viewpoint - Autodesk is positioned for potential new highs in Q3 due to its cloud transition, AI adoption, and strong financial performance, consistently outperforming consensus figures and providing favorable guidance [1][3] Financial Performance - Autodesk's revenue grew by 15% in Q1, an increase from 11% in the previous quarter and year, driven by client wins and market penetration [4] - The consensus for Q2 revenue growth is 14%, slightly lower than Q1, but revisions may lead to a higher range before results are released [9] - The company is forecasted to maintain a modest double-digit CAGR through the middle of the next decade, with earnings growth expected to outpace revenue growth [3] Market Sentiment - Analyst coverage remains steady with 23 analysts covering the stock, leading to a Moderate Buy sentiment that could shift to Strong Buy with recent revisions [2] - The price target for Autodesk has been raised to $343.64, indicating a potential upside of approximately 10% from current levels [1][2] Stock Dynamics - Autodesk's stock is at a critical resistance point, retesting highs from 2021, with a potential move above these levels signaling a market shift [5] - The company has reduced its share count by approximately 0.5% year over year through share repurchases, providing leverage for shareholders [10] Institutional Activity - Institutions own about 90% of Autodesk's stock, with a trend of buying in the first half of the year followed by selling in Q2, although initial reports for Q3 indicate significant buying activity [11][12]

Acquisition Announcement - Data cybersecurity company Rubrik announced its intent to acquire Predibase, a startup focused on training and fine-tuning open source AI models [1][2] - The deal's financial terms were not disclosed, but reports suggest it falls between $100 million and $500 million [1] Company Background - Predibase was founded in 2021 and has raised over $28 million in venture capital from notable investors such as Felicis, Greylock, and Sancus Ventures [2] - Rubrik, founded in 2014, has raised more than $1.6 billion in venture capital and went public in April 2024 [6] Strategic Implications - The integration of Predibase is expected to enhance Rubrik users' ability to build AI agents using platforms like Amazon Bedrock, Azure OpenAI, and Google Agentspace [2] - Bipul Sinha, CEO of Rubrik, emphasized that combining Predibase's capabilities with Rubrik's secure data platforms can transform AI applications by addressing performance and cost issues [3] Industry Trends - Rubrik's acquisition is part of a broader trend where companies are acquiring firms to strengthen their technology stack for AI agent development [3] - Other recent acquisitions in the industry include Salesforce acquiring Informatica for $8 billion and Snowflake acquiring Crunchy Data [4]

Core Insights - Unisys Corporation (UIS) is increasing its focus on Licensing and Support (L&S) services, with 2025 revenue expectations raised to $410 million from $390 million due to higher client demand and longer renewals [1][9] Group 1: Revenue and Performance - The upward revision in L&S revenue is attributed to increased consumption patterns and longer-term renewals, as clients depend more on Unisys' Clear Path Forward platforms for AI adoption and data integration [2][9] - Many renewals are being executed earlier and for longer durations, indicating a stronger client commitment to data reliability and compute efficiency [3] - Approximately 65% of annual L&S revenues are expected in the second half of 2025, which is anticipated to stabilize full-year revenue and cash flow outlook [4] Group 2: Market Position and Valuation - Unisys shares have increased by 2.4% over the past three months, while the industry average rose by 3.4%, with competitors like C3.ai, Dynatrace, and Fujitsu showing higher gains [5] - UIS is currently trading at a forward 12-month price-to-sales (P/S) multiple of 0.15X, significantly below the industry average of 19.26X, suggesting an attractive investment opportunity [8] Group 3: Earnings Estimates - The Zacks Consensus Estimate for Unisys' 2025 earnings per share has been revised upward from 25 cents to 58 cents, reflecting strong analyst confidence in the stock's near-term prospects [10] - Projections indicate a 28.9% rise in earnings for Unisys in 2025, compared to growth rates of 9.8%, 13.7%, and 42.3% for competitors C3.ai, Dynatrace, and Fujitsu, respectively [12]

Investment Rating - The report does not explicitly state an investment rating for the industry but provides insights into market conditions and forecasts for the S&P 500 [2][4]. Core Insights - The S&P 500 is forecasted to reach 6,500 by 2026, with adjusted EPS expected to be $280 [7]. - The report highlights a projected 12-month total return of 9% for the S&P 500, compared to a historical median of 13% [11]. - Economic growth forecasts indicate a rise in the US effective tariff rate by 13 percentage points, impacting market dynamics [30]. - The report notes that the US real GDP growth is expected to be 2.4% in 2024 and 2.2% in 2025 [34]. - The equity market is currently positioned lightly at -1.3 standard deviations, indicating potential for upward movement [20]. Summary by Sections Economy and Earnings - The report discusses the correlation between macroeconomic factors and individual stock returns, with macro factors explaining 42% of median S&P 500 stock returns [13]. - It also mentions that actual 1Q EPS growth was 12%, significantly above the consensus of 6% [45]. Valuation - Investors are currently assigning a valuation premium for quality factors, with various metrics indicating a preference for companies with strong fundamentals [17]. Money Flow and Demand for Stocks - The report indicates that market breadth has narrowed, which could signal momentum risk for the S&P 500 [23][27]. Corporate Uses of Cash - Companies are increasingly focused on passing through increased input costs to maintain profit margins, with a significant percentage indicating plans to adjust prices accordingly [61]. AI Adoption - The report does not provide specific insights on AI adoption within the industry but emphasizes the importance of companies with pricing power in the current economic environment [65].

AI Adoption & Challenges - Generative AI adoption is slow, with only 10% of people using it daily, despite rapid advancements [2] - Experienced individuals are less likely to adopt AI, while less experienced individuals see it as a way to level up [4][6] - The biggest barrier to AI adoption is mindset, with many people skeptical despite witnessing multiple technological shifts [9] - A new digital divide may emerge based on the ability to partner with AI tools [3] The Four C's of Generative AI Adoption - **Context:** Understand how AI fits into individual workflows by identifying low-value activities that AI can assist with [16][17][18][19] - **Capabilities:** Be aware of AI's strengths and limitations, matching tasks to AI capabilities beyond basic functions like email responses [20][21][22][23] - **Communication:** Provide clear and detailed instructions to AI, recognizing that output quality depends on input quality [24][25][26][27] - **Challenge:** Start experimenting with AI tools and resources, as there are low barriers to entry [28][32] Shifting Perspectives on AI - Stop defining ourselves solely by tasks performed and hours invested, and instead see AI as a time-saving and enhancing tool [11][12] - Recognize that AI has different forms of intelligence, excelling at pattern matching and data processing [13][14] - Partner with AI to transform operations instead of fearing replacement, synergizing human skills with AI capabilities [15] The Importance of AI Adoption - Postponing learning about AI leads to a competitive disadvantage and missed opportunities to shape its future [33] - Embracing AI offers the opportunity to improve the standard of living, save time, and open up new markets [11]