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Tariffs Make McCormick Look Less Spicy
Yahoo Finance· 2025-10-09 13:59
Key Points McCormick saw modest growth in sales and earnings during the quarter that ended Aug. 31. However, the spice company cut its earnings projections for the remainder of the 2025 fiscal year. McCormick blamed rising costs for ingredients and commodities along with higher tariffs for the reduced guidance. 10 stocks we like better than McCormick › Here's our initial take on McCormick's (NYSE: MKC) fiscal third-quarter financial report. Key Metrics Metric Q3 2024 Q3 2025 Change vs. ...
TPC vs. FLR: Which Construction Stock is the Better Buy Now?
ZACKS· 2025-09-15 15:06
Core Insights - Companies in the construction sector, such as Tutor Perini Corporation (TPC) and Fluor Corporation (FLR), are benefiting from increased public infrastructure investment trends in various regions including the U.S., Canada, the Middle East, and Europe [1][2] Group 1: Tutor Perini Corporation (TPC) - TPC is focusing on higher-margin project opportunities in its Civil and Building segments to enhance long-term revenue visibility and profitability [2][6] - The company reported significant new awards in Q2 2025, including the Midtown Bus Terminal Replacement Phase 1 project valued at $1.87 billion, contributing to a total backlog of $21.1 billion, which grew by 102% year-over-year [5][9] - TPC raised its 2025 GAAP EPS outlook to a range of $1.70-$2.00 and adjusted EPS to $3.65-$3.95, reflecting strong operational performance and contributions from higher-margin projects [7][22] - The Zacks Consensus Estimate for TPC's 2025 EPS indicates a 220.8% year-over-year growth, with estimates trending upward [17][18] Group 2: Fluor Corporation (FLR) - FLR, with a market cap of approximately $6.63 billion, is focusing on key markets within its Energy Solutions, Urban Solutions, and Mission Solutions segments while maintaining strong client relationships [8][10] - The company's backlog decreased by 13% year-over-year to $28.21 billion, impacted by project delays and rising costs [12][20] - FLR's 2025 EPS estimates imply a year-over-year decline of 12.5%, with estimates trending downward over the past 60 days [18][19] - The "Building a Better Future" strategy aims for long-term diversification and disciplined growth, but near-term challenges hinder its attractiveness [22] Group 3: Comparative Analysis - TPC's focus on higher-margin projects and strategic bidding is translating into strong earnings momentum, positioning it as a value-driven growth stock [20][22] - In contrast, FLR is facing execution risks, project delays, and a declining backlog, making it less attractive as an investment opportunity [20][22] - Overall, TPC is rated as a better investment opportunity with a Zacks Rank 1 (Strong Buy), while FLR carries a Zacks Rank 5 (Strong Sell) [22]
Kinross Gold's Costs to Rise Ahead: Can Profits Keep Shining?
ZACKS· 2025-08-26 12:21
Core Insights - Kinross Gold Corporation (KGC) experienced a 4% year-over-year increase in production costs of sales per ounce, reaching $1,074 in Q2, while all-in-sustaining costs (AISC) rose nearly 8% to $1,493 per gold equivalent ounce sold, indicating inflationary pressures [1][7] - The company anticipates continued cost pressures through the end of 2025, projecting full-year AISC to reach $1,500 and production cash costs around $1,120 per ounce due to lower expected production and inflation [2][7] - KGC's AISC remains lower than peers Barrick Mining Corporation and Newmont Corporation, but rising costs suggest potential margin compression risks ahead [5][7] Industry Comparisons - Barrick Mining Corporation reported a 17% increase in cash costs per ounce and a 12% rise in AISC year-over-year, with AISC reaching $1,684 in Q2 [3] - Newmont Corporation's gold costs applicable to sales rose approximately 6% to $1,215 per ounce, with AISC increasing around 2% to $1,593 per ounce due to production declines from asset divestments [4] Stock Performance - KGC's shares have surged 112.9% year-to-date, outperforming the Mining – Gold industry, which rose 78.6%, primarily driven by a rally in gold prices [6] - The forward 12-month earnings multiple for KGC is currently at 13.97, aligning with the industry average, and it holds a Value Score of A [8] Earnings Estimates - The Zacks Consensus Estimate for KGC's earnings in 2025 and 2026 indicates a year-over-year increase of 92.7% and 9.5%, respectively, with EPS estimates trending higher over the past 60 days [9]
First Watch (FWRG) Q2 Sales Rise 19%
The Motley Fool· 2025-08-05 23:51
Core Insights - First Watch Restaurant Group reported Q2 2025 revenue of $307.9 million, slightly exceeding analyst expectations of $306.6 million, but diluted EPS of $0.03 fell short of the $0.05 estimate and declined from $0.14 in the prior year [1][2][5] Financial Performance - Revenue increased by 19.1% year-over-year from $258.6 million in Q2 2024 [2][5] - Same-restaurant sales growth was 3.5%, with a 2.0% rise in same-restaurant guest count [2][5] - Adjusted EBITDA was $30.4 million, down 13.9% from $35.3 million in Q2 2024 [2] - Restaurant-level operating profit margin decreased from 21.9% to 18.6% [2][7] Company Overview - First Watch operates a chain of sit-down restaurants focusing on breakfast, brunch, and lunch, with 600 locations across 31 states [3] - The company emphasizes fresh, made-to-order dishes and avoids microwaves and deep fryers [3] Strategic Initiatives - The company is pursuing aggressive growth through new restaurant openings and franchise acquisitions, aiming for over 2,200 locations in the U.S. [4][6] - Key strategies include a "Follow the Sun" menu philosophy, investment in digital ordering, and a culture focused on employee retention and guest satisfaction [4] Market Dynamics - Despite strong sales growth, the company faced significant cost inflation, leading to a drop in income from operations margin to 2.4% from 6.4% in the prior year [7] - High prices for commodity ingredients and increased labor costs contributed to margin pressures [7][10] Future Outlook - Management raised full-year adjusted EBITDA guidance to $119–123 million, anticipating revenue growth of about 20% for fiscal 2025 [11] - Same-restaurant sales growth is expected to be in the low single digits, with cost inflation anticipated to peak in Q2 and moderate thereafter [12]
Hershey to hike chocolate prices by double digits — and it's not because of tariffs
New York Post· 2025-07-22 20:38
Core Insights - Hershey plans to implement a double-digit price increase across its confection portfolio due to rising cocoa costs [1][4] - The price increase is not influenced by tariffs or trade policies, but rather reflects the reality of escalating ingredient costs, particularly cocoa [2] - Cocoa prices have experienced significant fluctuations, reaching a record high in December due to supply issues in Ghana and the Ivory Coast, although they have recently fallen to an eight-month low [4] Company Actions - During a quarterly earnings call, Hershey's CEO indicated that the company is adjusting pack sizes and pricing to manage high input costs, particularly for seasonal items, which will result in higher prices in the second and third quarters [5]
Conagra Brands Q4 Earnings Coming Up: What Investors Need to Know
ZACKS· 2025-07-04 13:56
Core Insights - Conagra Brands, Inc. (CAG) is expected to report a decline in both revenue and earnings for the fourth quarter of fiscal 2025, with earnings per share (EPS) estimated at 59 cents, reflecting a 3.3% decrease year-over-year [1][8] - The consensus estimate for quarterly revenues is projected at $2.9 billion, indicating a 1.8% decline from the previous year [1][8] - For fiscal 2025, the overall earnings guidance suggests a decline of 12.7% in EPS to $2.33, with organic net sales growth expected to decrease by 2% [1][4] Financial Performance - The adjusted operating margin for fiscal 2025 is projected at 14.4%, down from previous levels, with adjusted earnings forecasted at $2.35 per share, a decrease from $2.67 in fiscal 2024 [4] - The trailing four-quarter negative earnings surprise for CAG averages almost -0.1% [1] Cost Pressures - Persistent cost inflation, particularly in input and protein costs, continues to impact margin performance, with an expected adjusted gross margin contraction of 170 basis points year-over-year [2] - Rising selling, general and administrative (SG&A) expenses, including advertising and promotional spending, are further squeezing profitability [2] Market Conditions - The Foodservice segment is under pressure due to weaker commercial traffic and a sluggish recovery in out-of-home dining, reflecting broader industry challenges [3] - Currency volatility due to international exposure adds additional pressure on the company's performance [3]
ARMN vs. BTG: Which Gold Mining Stock is the Better Pick Now?
ZACKS· 2025-06-25 12:51
Core Insights - Aris Mining Corporation (ARMN) and B2Gold Corp. (BTG) are both international gold mining companies with operations in the Americas, focusing on emerging markets [1] - Gold prices have increased approximately 26% this year, reaching a peak of $3,500 per ounce in April 2025, driven by geopolitical tensions and central bank purchases [2] - Both companies are positioned to benefit from the favorable gold price environment, but they face challenges from rising costs [24] Aris Mining Highlights - Aris Mining has shown an 8% year-over-year increase in gold production for Q1, aiming for a full-year production guidance of 230,000 to 275,000 ounces [4][8] - The Segovia Operations in Colombia are crucial for production growth, with expansion projects expected to increase production rates significantly in the second half of 2025 [5] - The company has a strong balance sheet with a cash balance of $240 million and generated $40 million in cash flow in Q1, supporting its growth initiatives [7] - However, Aris Mining's all-in-sustaining costs (AISC) increased to $1,570 per ounce, indicating a decline in cost efficiency [8][9] B2Gold Highlights - B2Gold is on track to produce between 970,000 and 1,075,000 ounces of gold in 2025, benefiting from new projects like the Goose Project and the Gramalote Project [12][13] - The company has a solid financial position with cash and cash equivalents of $330 million and a low long-term debt-to-capitalization ratio of 11.4% [14] - B2Gold offers a dividend yield of 2.2% and has a payout ratio of 44%, indicating a commitment to returning value to shareholders [14] - The company's AISC rose to $1,533 per ounce, reflecting cost inflation pressures across its operations [15] Stock Performance and Valuation - Year-to-date, Aris Mining's stock has increased by 89.1%, while B2Gold's stock has risen by 45.9%, compared to the Zacks Mining – Gold industry's increase of 56.6% [16] - Aris Mining is trading at a forward 12-month earnings multiple of 4.44, which is a 67.2% discount to the industry average of 13.52X [19] - B2Gold is trading at a forward earnings multiple of 7.15, which is below the industry average but at a premium to Aris Mining [20] Earnings Growth Estimates - The Zacks Consensus Estimate for Aris Mining's 2025 sales and EPS indicates a year-over-year growth of 55.7% and 226.5%, respectively [21] - B2Gold's 2025 sales and EPS estimates imply year-over-year growth of 56.2% and 231.3%, respectively [22]
Is Nomad Foods' Pricing Power Enough to Offset Protein Costs?
ZACKS· 2025-06-18 14:05
Core Insights - Nomad Foods Limited (NOMD) is facing increasing input cost pressures, particularly in protein categories such as chicken and red meat, due to heightened demand and disruptions related to Asian flu in Europe [1][7] - The company's management indicated that pricing actions are being implemented but will likely lag behind cost inflation in the near term, leading to a revised lower adjusted EBITDA growth guidance for 2025 [2][3] Financial Performance - In Q1 2025, Nomad Foods reported a gross margin increase of 90 basis points year-over-year to 27.8%, but adjusted EBITDA declined by 1.8%, indicating early signs of margin pressure [2][7] - The updated guidance for adjusted EBITDA growth for 2025 has been revised downward to a range of 0% to 2%, from a previous range of 2% to 4% [2] Market Position and Strategy - Nomad Foods has a history of pricing to recover cost increases, but prolonged inflation in protein inputs may challenge consumer elasticity, particularly in value-seeking markets like the UK [3] - The company must balance cost recovery with demand retention while maintaining brand strength to offset margin pressure in the upcoming quarters [3] Peer Comparison - Conagra Brands (CAG) is also facing elevated protein and input costs, resulting in a 389-basis-point adjusted gross margin decline in Q3 fiscal 2025, and is focusing on portfolio restructuring [4] - Lamb Weston reported 9% global volume growth in Q3 fiscal 2025 and is executing over 30 strategic projects, despite a 5% decline in price/mix due to strategic pricing adjustments [5] Valuation Metrics - Nomad Foods shares have decreased approximately 5.5% in the past month, compared to a 1.7% decline in the industry [6] - The company trades at a forward price-to-earnings ratio of 7.89X, significantly lower than the industry average of 15.77X [9] Earnings Estimates - The Zacks Consensus Estimate for Nomad Foods' current financial-year sales and earnings per share implies year-over-year growth of 4.6% and 7.3%, respectively [11] - For Q2 2025, the consensus estimate for sales is $892.71 million, reflecting a year-over-year growth estimate of 5.54% [12]
Will Elevated Costs Undermine The TJX Companies' Off-Price Edge?
ZACKS· 2025-06-16 15:45
Core Insights - The TJX Companies is experiencing increased operating costs, particularly in wages and sourcing, impacting its financial performance [1][3] - The company anticipates further declines in gross margin due to tariff-related costs and ongoing inflationary pressures [2][3] Financial Performance - In Q1 of fiscal 2026, selling, general and administrative (SG&A) expenses rose to 19.4% of sales, an increase of 20 basis points from the previous year, primarily driven by higher store payroll costs [1][7] - Gross margin decreased by 50 basis points to 29.5%, influenced by unfavorable inventory hedge adjustments [1] - For Q2 of fiscal 2026, gross margin is projected to decline by another 40 basis points year-over-year to 30% [2][7] - The company expects fiscal 2026 gross margin to be between 30.4% and 30.5%, reflecting a 10-20 basis point drop from the prior year [2][7] Cost Management - The company is implementing mitigation strategies, including pricing adjustments and sourcing shifts, to address cost pressures [2][3] - Ongoing inflation in wages, freight, and tariffs complicates the maintenance of gross margin, necessitating a balance between margin preservation and value positioning [3] Peer Comparison - Dollar General reported an 8.5% year-over-year increase in SG&A in Q1 of fiscal 2025, attributed to higher labor costs and incentive compensation [4] - Burlington Stores experienced a 4.8% year-over-year rise in SG&A, with sourcing costs increasing to $197 million from $183 million [5] Valuation and Estimates - TJX shares have declined by 8.2% in the past month, compared to a 5% decline in the industry [6] - The forward price-to-earnings ratio for TJX is 26.74X, lower than the industry average of 32.42X [8] - The Zacks Consensus Estimate indicates a year-over-year earnings growth of 4.7% for fiscal 2026 and 10.3% for fiscal 2027 [9]
Newmont's Soaring Unit Costs Warrant Caution: Can It Protect Margins?
ZACKS· 2025-06-12 12:31
Core Insights - Newmont Corporation's first-quarter 2025 results indicate significant increases in unit costs, with gold costs applicable to sales rising 16% year over year to $1,227 per ounce and all-in sustaining costs (AISC) reaching $1,651 per ounce, reflecting a 13% sequential and 15% year-over-year increase [1][6] Cost Trends - Newmont expects gold AISC for its total portfolio to be $1,630 per ounce in 2025, up from $1,516 per ounce in 2024, driven by increased direct operating costs and inflation [2][6] - Higher labor costs, which account for about half of Newmont's direct costs, are a significant concern, alongside rising materials and contract services costs [2][6] - The company anticipates unit costs for the second quarter to be similar to or slightly higher than the first quarter due to increased sustaining capital spending, which is expected to peak in the second quarter [2] Peer Comparisons - Barrick Mining Corporation experienced a 22% sequential increase in AISC to $1,775 per ounce, influenced by operational challenges and lower production [3] - Agnico Eagle Mines Limited reported a slight decline in AISC of 0.6% in the first quarter but projects an increase for the remainder of 2025, with total cash costs per ounce expected between $915 and $965 [4] Market Performance - Newmont's shares have increased by 43.2% year to date, compared to a 48.1% rise in the Zacks Mining – Gold industry, largely due to a rally in gold prices [5] - The company is currently trading at a forward 12-month earnings multiple of 12.12, which is approximately 9.6% below the industry average of 13.4X, and holds a Value Score of A [9] Earnings Outlook - The Zacks Consensus Estimate for Newmont's earnings implies a year-over-year rise of 20.1% for 2025 and 11.7% for 2026, with EPS estimates trending higher over the past 60 days [10]