Key Points GE Aerospace is what remains of General Electric after a series of spin offs. The company makes and services jet engines. GE Aerospace had a strong second quarter, increased its guidance, and has a huge backlog. 10 stocks we like better than GE Aerospace › General Electric is a storied name on Wall Street and in the world more generally. But the company got caught up in the mortgage mess during the Great Recession, and getting back on track meant a massive corporate makeover. The GE ti ...

Financial Data and Key Metrics Changes - Q4 2025 revenue declined 7.3% to $5.88 million compared to $6.35 million in Q4 2024 due to reduced customer project activity [14] - Fiscal year 2025 revenue decreased 9.9% to $18.15 million from $20.14 million in 2024, primarily due to reduced customer project activity [16] - Q4 2025 gross profit decreased to $1.2 million from $1.43 million in Q4 2024, with a gross margin of 20.4% compared to 22.5% in Q4 2024 [14] - Fiscal year 2025 gross margin improved to 25.2% from 23.3% in 2024, benefiting from a focus on higher margin products [16] - Q4 2025 operating loss improved to $187,000 from a loss of $462,000 in Q4 2024 [15] - Net loss for fiscal year 2025 was $948,000 or -$0.10 per share, an improvement from a net loss of $1.372 million or -$0.13 per share in 2024 [16] Business Line Data and Key Metrics Changes - The company is focused on enhancing customer experience through technology upgrades, with a positive outlook for new business opportunities driven by box office strength [4][5] - The company’s marketing plan emphasizes brand visibility and driving qualified sales leads through industry trade shows [8] - The company is actively pursuing international channels for long-term growth and evaluating complementary products or services [9] Market Data and Key Metrics Changes - The domestic box office revenue saw a 37% increase year-over-year, reaching approximately $2.6 billion in the June quarter [5] - Total domestic revenue for 2025 is expected to be approximately $9.4 billion, supported by major year-end releases [5] Company Strategy and Development Direction - The company aims to reduce exposure to business cycles in the cinema equipment industry and build a base of more predictable and recurring business [7] - The company is committed to ongoing cost management and cash preservation to navigate the evolving marketplace [12] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about new business opportunities due to a rebound in consumer demand and box office momentum [4] - The company anticipates stronger revenue in the second half of 2026 compared to the first half, largely due to customer project timing [17] Other Important Information - The company’s net cash position grew to $5.7 million at the close of 2025, with no long-term debt [16] - The company is in dialogue with large regional exhibitors for premium cinema equipment over the next 12-24 months [12] Q&A Session Summary Question: Size of the funnel of new opportunities compared to the beginning of the year - The funnel of new opportunities continues to grow and evolve, with a positive outlook as customer activity increases [20][21] Question: Update on LEA professional power amplifiers - The company remains optimistic about LEA professional power amplifiers, with ongoing testing processes in larger organizations [22] Question: Status on bids for large sports venues - The company is still actively bidding on various projects related to large sports venues [23] Question: Recurring revenue base and growth expectations - The recurring revenue base of $8 million - $9 million consists of operational items and is expected to grow as the customer base expands [25] Question: Margins on recurring revenue - Margins on recurring revenue are generally in the middle range, providing a predictable revenue and margin stream [27] Question: Opportunities outside the U.S. - The company is actively pursuing international opportunities but cannot provide specific timing for revenue generation from outside the U.S. [28][29]

Group 1 - Chewy is focusing on market share and customer loyalty for long-term success, despite short-term earnings dips [1][2] - The company's strategy has shifted from rapid growth to nurturing loyalty and recurring purchases, with Chewy+ and autoship programs showing steady growth [1][5] - Chewy reported net sales of $3.1 billion in Q2 2025, an 8.6% increase year-over-year, with autoship accounting for 83% of total net sales and growing 15% year-over-year [4][6] Group 2 - Chewy's customer base has grown to 21 million active customers, spending an average of $591 per year, capturing 41% of the online pet supply market [6] - The company stands out due to its early adoption of autoship and e-commerce, outperforming brick-and-mortar competitors like Petco and PetSmart [7] - Recent quarterly reports showed a decline in earnings due to a one-time tax break in 2024, but other metrics like gross margin improved, growing 90 basis points to 30.4% [10]

Group 1 - Joseph Shaposhnik believes that many investors have lost faith in actively managed funds, which he considers "broken" but fixable [1][2] - Shaposhnik launched the Rainwater Equity ETF RW this summer, with a significant contribution from Bill Miller, a renowned value investor [3] - His experience at TCW highlighted that predictable-growth businesses tend to outperform, leading him to focus on companies with recurring revenue [4] Group 2 - The fund's strategy includes investing in companies with secured revenue through subscriptions or contracts, which supports management's growth investments [5] - Major holdings include Microsoft, which benefits from its Office 365 subscription model, and Broadcom, which has seen a 46% stock gain this year due to new AI customers and large orders [5][6] - GE Aerospace is identified as a top pick, benefiting from its dominant position in commercial aerospace propulsion and expected steady growth in the sector [6][7] Group 3 - Larry Culp, CEO of GE Aerospace, is recognized for his strong leadership and track record, which is expected to drive the company's turnaround [7] - GE Aerospace is viewed as a pure-play investment in the long-term growth of commercial aerospace and defense, with projected free cash flow and earnings growth of 20% over an extended period [7]

Company Overview - Brown & Brown, Inc. is a leading insurance brokerage with a focus on risk management and insurance solutions, operating across four core segments: Retail, Programs, Wholesale Brokerage, and Services [2] - The company serves a diverse clientele, including businesses, families, and organizations, addressing evolving coverage needs and shifting regulations [2] Business Model and Growth Drivers - Brown & Brown's business model is durable, characterized by stable client relationships supported by annual policy renewals and trust built through expertise [3] - Growth is driven by recurring commission and fee revenues, cross-selling opportunities, acquisitions of independent agencies, and the expansion of specialty and wholesale offerings [3] - The company has demonstrated strong execution, leveraging scale and long-term relationships to enhance its market position [3] Financial Performance and Valuation - The company generates significant free cash flow, reinforcing its status as a resilient compounder in a stable industry [4] - Current valuations indicate that the stock is trading around fair value, suggesting limited margin of safety, yet its cash flow strength and long-term compounding potential make it appealing for investors seeking durable growth [4] - The stock price has depreciated approximately 21.3% since previous coverage, primarily due to valuation headwinds, but the bullish thesis remains intact as the company continues to show durable execution [5]

Group 1 - APi Group (NYSE: APG) is transitioning from a roll-up of specialty contractors to a platform with a strong recurring revenue mix in the building services sector [1] - The company is focusing on creating a defensible business model that can withstand market fluctuations [1]

Group 1 - The core focus of the discussion is Ford's transformation from merely selling unconnected vehicles to becoming a curator, fleet operator, and service provider for integrated software-defined services and recurring revenue [2] - This transformation represents a significant shift in Ford's business model, emphasizing the importance of software-enabled services in the automotive industry [2] - The context of this discussion takes place during Morgan Stanley's 13th Annual Laguna Industrial Autos Conference, highlighting the industry's evolving landscape [1] Group 2 - Adam Jonas, who leads Morgan Stanley's auto and shared mobility team, is transitioning into a new role focused on robotics and physical AI, indicating a broader industry trend towards technological integration [1] - The presence of key Ford executives, including the CFO of Ford Pro and the President of Integrated Services, underscores the company's commitment to this strategic shift [1] - The conference serves as a platform for discussing historic changes in the automotive sector, particularly in relation to software and service integration [2]

Core Insights - Fortinet (FTNT) is experiencing significant growth among large enterprise customers, with deals exceeding $1 million increasing over 50% year-over-year, driven by innovation and rising demand for integrated cybersecurity solutions [1][10] - The company's revenue profile is being reshaped by larger, multi-product contracts, with total billings rising 15% year-over-year in Q2 2025, and projected growth of 14% in 2025 and 11% in 2026 [2][4] Revenue and Growth - The preference for bundled solutions integrating firewalls, SD-WAN, SASE, and managed services is a major catalyst for growth, with Fortinet's Unified SASE and Security Operations businesses now accounting for approximately 35% of total billings [3][10] - Management has raised the full-year billings midpoint by $100 million, projecting revenues for 2025 to be between $6.67 billion and $6.82 billion, indicating a 13.3% growth at the midpoint [4][5] Competitive Landscape - Palo Alto Networks (PANW) competes with Fortinet in large enterprise deals, leveraging its AI-driven platforms and strong integration capabilities [6] - CrowdStrike Holdings (CRWD) also poses a challenge with its AI-native Falcon platform, enhancing its position through strategic partnerships and integrated deployments with Fortinet [7] Valuation and Performance - Year-to-date, Fortinet shares have declined by 15.2%, underperforming the Zacks Security industry's gain of 12.5% and the Computer and Technology sector's rise of 16% [8] - Fortinet's current Price/Book ratio stands at 29.85X, which is higher than the industry's 21.12X, indicating a potentially overvalued position [11] Earnings Estimates - The consensus estimate for 2025 earnings is $2.51 per share, reflecting a year-over-year growth of 5.91% [14]

RT Ash (@ahboyash)Here’s what we learnt from @Collector_Crypt and synthesising the dataa) Scale of Demand• Moving ~18k–20k packs/day at $50 each → estimated around ~$900k–$1m daily revenue• Gives us roughly $30m/month gross run rate, despite constant sell-outs and supply bottlenecks (wen gacha restock pls)• Demand is far outweighing supply, creating frustrations among some users —> this is bullish• 17% of total users contributed to 92.8% of total gachapon spending on CC; 49.6% of users spent > $1000 (dashbo ...

Core Insights - Allot Ltd. (ALLT) is set to report its Q2 2025 results on August 14, with earnings expected to be breakeven compared to a loss of 2 cents in the same quarter last year [1] - The revenue consensus estimate for the upcoming quarter is $22.9 million, reflecting a 3.3% year-over-year increase [1][2] - The company has seen strong demand for its Smart and Tera III products, driven by multi-million-dollar agreements with tier-1 customers, which is expected to boost revenue and margins [6][8] Financial Estimates - The Zacks Consensus Estimate for Q2 2025 revenues is $22.9 million, with a year-over-year growth estimate of 3.34% [2] - For the next quarter (Q3 2025), the revenue estimate is $25.9 million, indicating an 11.45% growth [2] - The current year revenue estimate stands at $98.6 million, with a year-over-year growth of 6.95%, while the next year is projected at $125.7 million, reflecting a 27.48% increase [2] Earnings Projections - The earnings consensus for Q2 2025 is expected to be flat at $0.00, compared to a loss of $0.02 in the same quarter last year [3] - For the current year, the earnings estimate is $0.10, with a significant year-over-year growth of 150% expected for the next year at $0.28 [3] Market Performance - ALLT's stock has increased by 28% year-to-date, significantly outperforming the industry growth of 19% [10] - The current valuation metrics indicate that ALLT is trading at a trailing EV-to-EBITDA of 71.63X, which is considerably higher than the industry average of 35.85X [11] Strategic Positioning - The company is benefiting from rising high-margin recurring revenues from its SECaaS offerings, which are expected to grow around 50% year-over-year [8] - Partnerships, such as Verizon's integration of SECaaS into mobile plans, are enhancing recurring revenue visibility and long-term growth potential [6][13] - The competitive landscape includes companies like Radware and Ceragon Networks, which are also focusing on subscription-based services and recurring revenue strategies [9]