Core Insights - Republic Services reported revenue of $4.14 billion for the quarter ended December 2025, reflecting a 2.2% increase year-over-year, while EPS rose to $1.76 from $1.58 in the previous year [1] - The revenue fell short of the Zacks Consensus Estimate of $4.21 billion, resulting in a surprise of -1.76%, whereas the EPS exceeded expectations by 8.74% against a consensus estimate of $1.62 [1] Revenue Breakdown - Environmental solutions revenue was $422 million, below the average estimate of $438.21 million, marking a year-over-year decline of 12.5% [4] - Recycling & Waste revenue reached $3.71 billion, slightly below the estimated $3.78 billion [4] - Total Collection revenue was $2.83 billion, compared to an estimate of $2.87 billion, showing a year-over-year increase of 3.9% [4] - Small-container Collection revenue matched estimates at $1.29 billion, with a year-over-year increase of 5.4% [4] - Large-container Collection revenue was $768 million, below the estimated $791.85 million, reflecting a year-over-year increase of 2.8% [4] - Residential Collection revenue was $761 million, slightly below the estimate of $768.99 million, with a year-over-year increase of 2.4% [4] - Transfer revenue was $457 million, below the average estimate of $470.21 million, with a year-over-year increase of 2.7% [4] - Landfill revenue was $781 million, below the estimated $803.64 million, showing a year-over-year increase of 4.6% [4] - Other non-core revenue was $95 million, slightly below the estimate of $96.67 million, with a year-over-year increase of 4.4% [4] - Recycling processing and commodity sales revenue was $105 million, exceeding the estimate of $99.67 million, with a year-over-year increase of 6.1% [4] - Environmental solutions revenue was $435 million, below the average estimate of $465.3 million, marking a year-over-year decline of 12.8% [4] Stock Performance - Shares of Republic Services have returned +5.8% over the past month, outperforming the Zacks S&P 500 composite, which declined by -1.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Market Overview - The S&P 500 and other major indices experienced a mixed trading day, with the S&P 500 and Dow finishing up about 0.1% each, while the Nasdaq composite also rose by 0.1%, but the Nasdaq 100 closed down by 0.1% [6][7] - Overall, the market showed indecisiveness, fluctuating between gains and losses throughout the day, indicating a "wait and see" approach among investors [5][6] Sector Performance - Real estate was the biggest gainer among sectors, increasing by 1%, while financials also performed well, and tech rose by approximately 0.5% [9] - Consumer staples were the largest losers, declining by 1.5%, followed closely by energy, which fell by 1.4% [10] Earnings Reports - Caesars Entertainment reported a fourth-quarter loss of $1.23 per share, with net revenue of $2.92 billion, slightly above the street estimate of $2.89 billion [11] - Norwegian Cruise Line was the top gainer in the S&P 500, rising by about 12% after Elliott Investment Management acquired a more than 10% stake and urged changes to unlock significant shareholder value [13] - Masimo saw a 34% increase in its stock price after Danaher announced its acquisition for $80 per share, representing a 40% premium over the previous close, with a total enterprise value of approximately $9.9 billion [14] - TripAdvisor's stock rose by about 9% following a letter from Starboard Value highlighting underperformance and plans to nominate a majority slate of directors [14] - Genuine Parts Company, the owner of Napa Auto Parts, fell by over 14.5% after reporting fourth-quarter earnings that missed expectations and announcing plans to split into two public companies [18] - General Mills' stock dropped by 7% after the company lowered its fiscal 2026 outlook due to a challenging consumer environment [24] Guidance and Future Outlook - Cadence Design reported adjusted EPS of $0.99, beating expectations, and provided full-year revenue guidance of $5.9 billion to $6 billion, aligning with street estimates [16] - Palo Alto Networks projected full-year adjusted EPS between $3.65 and $3.70, below the estimate of $3.87, with revenue guidance of $1.28 billion to $1.31 billion [21]

Core Insights - Leidos Holdings, Inc. (LDOS) reported fourth-quarter 2025 adjusted earnings of $2.76 per share, exceeding the Zacks Consensus Estimate of $2.57 by 7.4% and showing a year-over-year increase of 16.5% from $2.37 [1] - The company’s total revenues for Q4 2025 were $4.21 billion, missing the Zacks Consensus Estimate of $4.25 billion by 1.1% and reflecting a 3.6% decrease year-over-year, primarily due to a six-week government shutdown [3][8] - LDOS ended 2025 with a total backlog of $49.03 billion, an increase from $48.39 billion at the end of 2024, with $9.69 billion of this amount being funded [4][8] Financial Performance - For the full year 2025, adjusted earnings were reported at $11.99 per share, surpassing the Zacks Consensus Estimate of $11.76 and increasing 17.4% from $10.21 in the previous year [2] - The company’s GAAP earnings for Q4 2025 were $2.53 per share, up from $2.12 in the prior-year quarter [1] - Cash and cash equivalents as of January 2, 2026, totaled $1.11 billion, compared to $849 million a year earlier, while long-term debt increased to $4.63 billion from $4.05 billion [10] Operational Statistics - The cost of revenues decreased by 5.6% year-over-year to $3.65 billion, while adjusted operating income rose to $473 million from $421 million in the year-ago quarter [5] - Interest expenses increased slightly to $48 million from $47 million in the previous year [5] Segment Performance - In the National Security and Digital segment, net revenues decreased by 2.5% year-over-year to $1.85 billion, but adjusted operating income improved to $196 million from $175 million [6] - The Health & Civil segment reported revenues of $1.21 billion, down 9.3% year-over-year [6] - The Commercial & International segment saw revenues of $610 million, up 1% year-over-year, with adjusted operating income totaling $51 million compared to $40 million in the prior year [7][9] Guidance for 2026 - Leidos Holdings expects adjusted earnings for 2026 to be in the range of $12.05-$12.45 per share, with the Zacks Consensus Estimate at $12.35, and revenues projected between $17.50-$17.90 billion, with the consensus at $17.87 billion [11]

Leidos (LDOS) reported $4.21 billion in revenue for the quarter ended December 2025, representing a year-over-year decline of 3.6%. EPS of $2.76 for the same period compares to $2.37 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $4.25 billion, representing a surprise of -1.07%. The company delivered an EPS surprise of +7.6%, with the consensus EPS estimate being $2.57.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how the ...

Core Insights - TC Energy Corporation (TRP) reported fourth-quarter 2025 adjusted earnings of 70 cents per share, exceeding the Zacks Consensus Estimate of 65 cents, driven by strong performance in its Canadian, U.S., and Mexico Natural Gas Pipelines segments, although down from 75 cents in the previous year due to weaker results in the Power and Energy Solutions segment [1][9] Financial Performance - Quarterly revenues reached $3 billion, surpassing the Zacks Consensus Estimate by $55 million, but decreased by 16.9% year over year [2] - Comparable EBITDA increased to C$3 billion from C$2.6 billion in the prior year [2] - The board declared a 3.2% quarterly dividend hike to 87.75 Canadian cents per common share, translating to an annualized rate of C$3.51 [2] Segment Performance - Canadian Natural Gas Pipelines reported a comparable EBITDA of C$961 million, up 12.9% year-over-year, with deliveries averaging 27.2 billion cubic feet per day (Bcf/d), a 5% increase [3] - U.S. Natural Gas Pipelines reported a comparable EBITDA of C$1,388 million, a 15.7% increase, with daily average flows of 29.6 Bcf/d, marking a 9.5% increase [4] - Mexico Natural Gas Pipelines reported a comparable EBITDA of C$397 million, up 69.7% year-over-year, with flows averaging 2.7 Bcf/d [5] - Power and Energy Solutions segment reported a comparable EBITDA of C$217 million, down 36.4% from the previous year, impacted by an extended outage [6] Expenditure and Balance Sheet - As of December 31, 2025, capital investments amounted to C$5.3 billion, with cash and cash equivalents of C$168 million and long-term debt of C$45.2 billion, resulting in a debt-to-capitalization ratio of 60% [7] 2026 Guidance - The company anticipates 2026 EBITDA to be between C$11.6 billion and C$11.8 billion, with plans for net capital spending of up to C$6 billion [9][10] - Management expects to place approximately C$4 billion of projects into service during the year, contributing to growth [11] - The company aims to fully allocate its C$6 billion annual net capital expenditure target through 2030, with potential for increased investment later in the decade [12]

Group 1 - Earnings season is slowing down, but significant companies like Walmart, Alibaba, Newmont Mining, Medtronic, Palo Alto Networks, DoorDash, and Occidental Petroleum are still set to report [1] - Implied volatility tends to be high before earnings reports due to market uncertainty, leading to increased demand for options [2] - After earnings announcements, implied volatility typically decreases to normal levels [3] Group 2 - Expected price ranges for stocks can be calculated by adding the prices of at-the-money put and call options, using the first expiry date after the earnings date [3] - Traders can structure their trades based on expected moves, with bearish traders selling bear call spreads and bullish traders selling bull put spreads or using naked puts [5] - Neutral traders may consider iron condors, ensuring short strikes are outside the expected range when trading over earnings [5] Group 3 - It is advisable for traders to use risk-defined strategies and maintain small position sizes when trading options over earnings [6] - A significant move in stock prices should not impact the portfolio by more than 1-3% if a full loss occurs [6] Group 4 - A stock screener can identify stocks with high implied volatility, with filters including total call volume greater than 5,000, market cap greater than 40 billion, and IV rank greater than 50% [7][8]

A month has gone by since the last earnings report for Bank of America (BAC) . Shares have lost about 0.1% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Bank of America due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.Bank of Amer ...

Core Viewpoint - Wells Fargo's recent earnings report shows mixed results, with adjusted earnings per share surpassing estimates but revenues falling short, indicating potential challenges ahead for the company [2][4]. Financial Performance - Fourth-quarter 2025 adjusted earnings per share were $1.76, exceeding the Zacks Consensus Estimate of $1.66, and up from $1.42 in the prior-year quarter [2]. - Net income on a GAAP basis was $5.36 billion, a 6% increase from the prior-year quarter, while total revenues were $21.29 billion, missing estimates and increasing 4.5% year over year [3][4]. - For 2025, total revenues reached $83.69 billion, which also missed estimates but represented a 2% year-over-year increase [4]. Income and Expenses - Net interest income (NII) was $12.33 billion, up 4% year over year, driven by higher loan and investment securities balances [5]. - Non-interest income grew 5% year over year to $8.96 billion, benefiting from higher asset-based fees and the absence of prior losses [6]. - Non-interest expenses decreased by 1% year over year to $13.72 billion, reflecting cost-cutting measures and efficiency initiatives [7]. Loan and Deposit Growth - Total average loans were $955.8 billion, a 3% sequential increase, while total average deposits rose to $1.37 trillion, also up 3% sequentially [8]. Credit Quality - The provision for credit losses was $1.04 billion, down 5% from the prior-year quarter, with net loan charge-offs at 0.43% of average loans, down from 0.53% [10]. - Non-performing assets increased by 7.1% year over year to $8.5 billion, indicating some deterioration in credit quality [10]. Capital and Profitability Ratios - The Tier 1 common equity ratio was 10.6%, down from 11.1% in the previous year [11]. - Return on assets was 1.02%, slightly down from 1.05% a year ago, while return on equity increased to 12.3% from 11.7% [12]. Future Outlook - For 2026, Wells Fargo expects NII to be approximately $50 billion, supported by balance-sheet growth and favorable loan and deposit mix [13]. - Non-interest expenses for 2026 are projected to be around $55.7 billion, influenced by higher compensation and technology investments [13]. - Recent estimates for the stock have shown an upward trend, with a Zacks Rank of 3 (Hold), suggesting an in-line return expected in the coming months [14][16].

Core Insights - Applied Materials (AMAT) reported first-quarter fiscal 2026 non-GAAP earnings of $2.38 per share, exceeding the Zacks Consensus Estimate by 8.7% and remaining flat compared to the previous year [1] - The company has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 5.2% [1] Financial Performance - AMAT's revenues for the first quarter of fiscal 2026 were $7.01 billion, surpassing the Zacks Consensus Estimate by 1.79%, but decreased by 2.2% year over year [2] - The stock price increased by 11.8% in pre-market trading following the earnings report, and the stock has surged 112% over the past year [2] Segment Performance - Semiconductor Systems generated revenues of $5.14 billion, accounting for 73.3% of total revenues, but declined by 8.1% year over year [3] - Applied Global Services reported revenues of $1.56 billion, representing 22.2% of total revenues, with a year-over-year increase of 15.2% [3] - Other revenues reached $312 million, up 44.4% year over year [3] Geographic Revenue Breakdown - Revenue contributions from various regions included: - United States: $656 million (9%) - Europe: $221 million (3%) - Japan: $525 million (7%) - Korea: $1.46 billion (21%) - Taiwan: $1.72 billion (25%) - Southeast Asia: $335 million (5%) - China: $2.1 billion (30%) [4] - Year-over-year growth was observed in Taiwan (45.6%) and Southeast Asia (17.1%), while declines were noted in Japan (2.8%), Europe (33.0%), China (6.6%), Korea (12.5%), and the United States (28.5%) [4] Margins and Expenses - The non-GAAP gross margin was reported at 49.1%, an increase of 20 basis points year over year [5] - Non-GAAP operating expenses were $1.34 billion, up 1.7% year over year, leading to a non-GAAP operating margin of 30.0%, down 60 basis points from the previous year [5] Balance Sheet and Cash Flow - As of January 25, 2026, cash and cash equivalents plus short-term investments totaled $8.51 billion, slightly down from $8.57 billion in the prior quarter [6] - Long-term debt stood at $6.45 billion, and the company generated non-GAAP free cash flow of $1.04 billion, returning $702 million to shareholders through share repurchases and dividends [6] Q2 Guidance - For the fiscal second quarter of 2026, AMAT expects net sales of $7.65 billion (+/- $500 million), above the Zacks Consensus Estimate of $7.03 billion, indicating a year-over-year decline of 1% [9] - The company anticipates non-GAAP earnings per share of $2.64 (+/- $0.20), with a projected non-GAAP gross margin of approximately 49.3% and operating expenses around $1.42 billion [10]

Core Viewpoint - Occidental Petroleum Corporation (OXY) is anticipated to report a decline in both revenue and earnings for the fourth quarter of 2025, with significant year-over-year decreases expected [1][5]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for revenues is $5.88 billion, reflecting a decline of 13.96% from the previous year [2]. - The consensus estimate for earnings is 19 cents per share, indicating a year-over-year decline of 76.25%, with the bottom-line estimate decreasing by 44.12% over the past 60 days [2]. Earnings Surprise History - Occidental Petroleum has consistently beaten the Zacks Consensus Estimate in the last four quarters, achieving an average surprise of 27.8% [3]. Earnings Prediction Model - The current model does not predict an earnings beat for OXY, as it has an Earnings ESP of -5.88% and a Zacks Rank of 4 (Sell) [4][6]. Production and Financial Performance - OXY's production volumes are expected to remain strong due to robust performance across domestic assets, which may offset impacts from a scheduled turnaround at Al Hosn [8]. - The company has generated cash flow and utilized it to reduce debts, retiring $8.1 billion in debt, which lowered annual interest expenses by $440 million, potentially benefiting fourth-quarter earnings [9]. - Cost management initiatives are yielding positive results, likely improving margins and positively impacting earnings [10]. Production Expectations - For Q4 2025, OXY expects production of 1,440-1,480 thousand barrels of oil equivalent per day (Mboe/d), with the Permian Resources segment output projected at 795-815 Mboe/d [11]. Stock Performance - OXY's shares have increased by 6.4% over the past three months, compared to the industry's growth of 15.5% [12]. - The stock is trading at a premium, with a trailing 12-month EV/EBITDA of 5.48X, above the industry average of 4.89X [14]. Investment Thesis - The company benefits from a strong U.S. presence and a focus on the Permian Basin, with acquired assets expected to support production growth [16]. - The sale of the chemical business, OxyChem, to Berkshire Hathaway allows the company to concentrate on core operations and further reduce debts [16]. Summary of Performance Factors - Cash flow generation, debt reduction initiatives, and contributions from acquisitions are expected to enhance performance, particularly from the Midstream segment [19].