We came across a bullish thesis on DXC Technology Company on Financial Markets & Universal Law’s Substack. In this article, we will summarize the bulls’ thesis on DXC. DXC Technology Company's share was trading at $13.39 as of February 16th. DXC’s trailing and forward P/E were 5.82 and 4.00 respectively according to Yahoo Finance. "People Didn't Like" Paychex (PAYX)'s Quarter everything possible/Shutterstock.com DXC Technology is a global IT services and consulting firm formed from the merger of HPE Ser ...

Bloomin' Brands (NasdaqGS:BLMN) Q4 2025 Earnings call February 25, 2026 08:30 AM ET Company ParticipantsBrian Vaccaro - Managing Director of Equity ResearchDennis Geiger - Executive Director of Equity ResearchEric Christel - EVP and CFOMike Spanos - CEOTara Kurian - SVP of Investor Relations, FP&A, and InternationalConference Call ParticipantsAndrew Strelzik - Senior AnalystBrian Harbour - Equity Analyst and Executive Director of Restaurants & Food DistributionBrian Mullan - Director and Senior Research Ana ...

Bloomin' Brands (NasdaqGS:BLMN) Q4 2025 Earnings call February 25, 2026 08:30 AM ET Speaker11Greetings, welcome to the Bloomin' Brands, Inc. fourth quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow management's prepared remarks. Please note, this event is being recorded. It is now my pleasure to introduce your host, Tara Kurian, Senior Vice President, Investor Relations, FP&A and International. Thank you. Ms. Kuri ...

Core Insights - Coty Inc. reported a net loss of $126.9 million for Q2 FY 2026, significantly missing the consensus estimate of $0.18 EPS by $0.04, resulting in a 22% earnings surprise [1][1][1] - The company's like-for-like revenue declined approximately 3%, contrasting with previous guidance of low-single-digit growth, marking a notable deviation from industry peers who reported stable or improving margins [1][1][1] - Following the earnings miss, Coty withdrew its full-year FY 2026 guidance and introduced a new turnaround strategy called "Coty. Curated." under interim CEO Markus Strobel, aimed at refocusing on core brands [1][1][1] Company Performance - Coty's $126.9 million loss is an outlier in the beauty and personal care sector, where competitors like Estée Lauder, L'Oréal, and Shiseido have shown resilience and growth [1][1][1] - The stock price fell approximately 15% in after-hours and pre-market trading, reaching a 52-week low of $2.66 [1][1][1] - Prior to the earnings announcement, management had expressed optimism about Q2 performance, indicating a significant gap between public expectations and actual results [1][1][1]

Core Insights - Red Lobster is facing significant financial challenges, including bankruptcy, restaurant closures, and operational losses, prompting a review of its business strategy to stabilize and grow [1][4][6] Company Overview - Red Lobster has been a prominent seafood chain for nearly 68 years, known for affordable, high-quality seafood, with over 500 locations globally [3] - The company's growth strategy of offering premium products at low prices has become unsustainable, leading to financial difficulties [3] Financial Challenges - The acquisition by Golden Gate Capital in 2014 for $2.1 billion and subsequent sale-leaseback of real estate for $1.5 billion created substantial rent obligations, contributing to rising operational costs [5][6] - By 2023, annual lease obligations reached approximately $190.5 million, accounting for about 10% of revenue, with over $64 million linked to underperforming locations [6] Strategic Response - Following bankruptcy, Red Lobster is implementing a turnaround strategy that includes menu and marketing revamps to align with changing consumer preferences [7] - The company plans to close additional restaurants in 2026 to focus on higher-performing markets and reduce costs [4][8]

Financial Data and Key Metrics Changes - The company reported an organic net sales decline of 7% year-over-year, driven by lower sales in both North America and international segments [15] - Adjusted gross margin decreased to 19.5%, a drop of approximately 340 basis points year-over-year, primarily due to cost inflation and lower volume mix [15][16] - Adjusted EBITDA was $24 million, down from $38 million a year ago, reflecting lower gross margins [17][18] Business Line Data and Key Metrics Changes - In North America, organic net sales declined 10% year-over-year, primarily due to lower volume in snacks and baby formula, with adjusted gross margin at 20.8%, a decrease of 440 basis points [18][19] - The international segment saw a 3% decline in organic net sales, with adjusted gross margin at 18.1%, a 200 basis point decrease [19][20] - Snacks organic net sales were down 20% year-over-year, while the baby and kids segment saw a 14% decline [20] Market Data and Key Metrics Changes - North American snacks represented 22% of the company's net sales in fiscal 2025 and 38% of the North America segment's net sales, with negligible EBITDA contribution over the last 12 months [8][12] - The core categories in North America, including tea, yogurt, and baby foods, showed stability and growth potential despite challenges in other areas [12][18] Company Strategy and Development Direction - The company is executing a strategic review aimed at simplifying its portfolio, enhancing financial flexibility, and maximizing shareholder value [5][9] - A definitive agreement was reached to sell the North American snacks business for $115 million, with proceeds intended to reduce debt and strengthen the financial position [6][7] - The focus will shift to three flagship categories: tea, yogurt, and baby and kids, while continuing to develop the meal prep platform [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, highlighting improvements in operational execution and cash flow [12][14] - The company anticipates stronger top and bottom-line performance in the second half of the year, driven by ongoing initiatives and innovation [27][29] - Management acknowledged near-term pressures but emphasized the importance of strategic actions to drive sustainable growth [12][14] Other Important Information - Free cash flow in the second quarter was $30 million, an increase of 22% compared to the previous year [22] - The company has reduced net debt by $32 million, bringing total net debt to $637 million [23][24] - The strategic review includes plans for further asset sales and operational improvements to enhance financial flexibility [25] Q&A Session Summary Question: Details on the decision to divest the snacks portfolio - Management explained that the decision was part of a strategy to simplify the portfolio and focus on categories where the company has strengths, noting that snacks had become financially challenged [34][35] Question: Reallocation of innovations post-divestiture - Management confirmed plans to mitigate stranded costs of $20 million-$25 million and emphasized that freed resources would support innovation in remaining categories [41][42] Question: Cash generation from the snacks business - Management indicated that the snacks business was not a significant cash generator, and the divestiture would improve overall cash generation capabilities [45] Question: Future growth in the baby and kids business - Management expressed confidence in returning to growth in the baby and kids segment, particularly after cycling past challenges and launching new products [84][85]

Financial Data and Key Metrics Changes - The company reported an organic net sales decline of 7% year-over-year for the second quarter, driven by lower sales in both North America and international segments [15] - Adjusted gross margin decreased to 19.5%, a drop of approximately 340 basis points year-over-year, attributed to cost inflation and lower volume mix [15][16] - Adjusted EBITDA was $24 million, down from $38 million a year ago, reflecting lower gross margins [17][18] Business Line Data and Key Metrics Changes - In North America, organic net sales declined 10% year-over-year, primarily due to lower volume in snacks and baby formula, while beverages showed growth [18] - The adjusted gross margin in North America was 20.8%, a decrease of 440 basis points compared to the prior year [18] - International organic net sales declined 3%, with adjusted gross margin at 18.1%, a 200 basis point decrease year-over-year [19] Market Data and Key Metrics Changes - North American snacks represented 22% of the company's net sales in fiscal 2025, contributing negligible EBITDA over the last 12 months [8] - The core categories in North America, including tea, yogurt, and Baby & Kids, are expected to deliver stronger EBITDA margins in the low double digits [8][26] Company Strategy and Development Direction - The company is executing a strategic review aimed at simplifying its portfolio, enhancing financial flexibility, and maximizing shareholder value [5][9] - The divestiture of the North American snacks business for $115 million is a decisive step to focus on key categories and brands [6][7] - The company aims to drive sustainable, profitable growth through five key actions: streamlining the portfolio, accelerating brand innovation, strategic revenue management, productivity improvements, and strengthening digital capabilities [10][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's direction, emphasizing the importance of operational health and cash delivery [29] - The company anticipates sequential improvement in both top and bottom-line performance in the second half of the fiscal year, driven by innovation and pricing actions [27][62] - Management highlighted the need to focus on demand fulfillment categories where the company has demonstrated consistent delivery [51] Other Important Information - Free cash flow in the second quarter was $30 million, an increase of 22% compared to the previous year [22] - The company has reduced net debt by $32 million, bringing total net debt to $637 million [23][24] - The strategic review includes plans for further asset sales and operational improvements to enhance financial flexibility [25] Q&A Session Summary Question: Details on the decision to divest the snacks portfolio - Management explained that the decision was driven by the need to simplify the portfolio and focus on categories where the company can win, noting that snacks had become financially challenged [35][36] Question: Reallocation of innovations post-divestiture - Management confirmed that divesting snacks would free up resources for innovation in remaining categories, with plans to mitigate stranded costs within 6 to 12 months [41][42] Question: Cash generation from the snacks business - Management indicated that the snacks business was not a significant cash generator, and the divestiture would improve overall cash generation capabilities [45] Question: Future growth in Baby & Kids business - Management expressed confidence in returning to growth in the Baby & Kids segment, particularly after cycling past challenges and launching new products [85]

Core Insights - Hain Celestial reported a widening net loss of $116 million for Q2, compared to a loss of $104 million in the same period last year, amid declining sales and impairment charges [1][3] - The company's net sales decreased by 7% to $384.1 million, with organic sales also falling by 7% [1][3] Sales Performance - In North America, organic net sales fell by 10%, primarily due to declines in the snacks and baby-formula segments [2] - The international division's net sales decreased by 3% organically but increased by 2% on a reported basis to $186.3 million, aided by favorable exchange rates [2] Financial Impact - The second-quarter results included $132 million in impairment charges, with $119.9 million attributed to goodwill impairment [3] - Gross profit fell by 20.3% to $74.4 million, contributing to an operating loss of $98.8 million, up from $91.9 million a year earlier [3] Strategic Initiatives - The company is undergoing a strategic review, including the divestiture of its North American snacks business to enhance financial flexibility and improve margins [4] - Plans to reduce approximately 30% of SKUs in North America were announced, with expectations for sequential improvement in the latter half of the year [5] Market Reaction - Following the announcement, Hain Celestial's share price increased by 4.24% to $1.23 in early trading [5] - Analyst John Baumgartner noted that Q2 results fell short of Wall Street expectations but anticipated improved performance as the snacks business is divested [6]

Core Insights - Lumen Technologies' stock surged 29.2% following CEO Kate Johnson's insider purchase of $500,000 worth of shares after a post-earnings sell-off [1][4] Financial Performance - The fourth-quarter adjusted earnings per share exceeded expectations, while revenue met expectations. The full-year free cash flow outlook is projected between $1.2 billion and $1.4 billion, including non-recurring tax refunds of $300 million to $450 million [2] - Despite a decline in overall revenue by 9.5%, approximately 47% of Lumen's enterprise revenue is derived from newer, growing products, which saw a 7% increase last year [3] Stock Valuation and Debt - Lumen's stock is currently valued at 6.4 times this year's free cash flow guidance. The recent sale of its consumer-focused fiber-to-the-home business to AT&T for $4.8 billion has allowed Lumen to reduce its debt load significantly [5] - The company's debt is now just under 3.8 times EBITDA, which is an improvement from previous years but still considered high [6] Future Outlook - While Lumen's stock remains a risky investment, there is potential for upside if the company can successfully grow its revenue and profits, particularly through its new AI-oriented networking solutions [7]

Core Insights - Coty is undergoing a leadership transition with Markus Strobel appointed as interim CEO, emphasizing the need for significant improvements in the company's performance [1][2] - Despite having strong assets and competitive advantages, Coty's financial performance has been disappointing, leading to a new strategic plan called "Coty Curated" aimed at enhancing focus and execution [3][4] Financial Performance - For Q2 of fiscal year 2026, Coty reported net revenue of $1.7 billion, a 1% increase year-over-year, with prestige net revenue at $1.13 billion (up 2%) and consumer beauty net revenue at $545 million (down 2%) [5][6] - The company experienced a net loss of $126.9 million compared to a net income of $20.4 million in the previous year, although adjusted earnings per share improved to 14 cents from 11 cents [6] Strategic Initiatives - Coty is conducting a portfolio review to identify opportunities for unlocking shareholder value, particularly focusing on its mass color cosmetics business and operations in Brazil [4] - The company has withdrawn its previous fiscal year '26 guidance for earnings before interest, taxes, depreciation, and amortization due to market complexities and leadership changes, now providing guidance only for the third quarter [7]