We came across a bullish thesis on XPEL, Inc. on Capital Light’s Substack by Luke Wolgram. In this article, we will summarize the bulls’ thesis on XPEL. XPEL, Inc.'s share was trading at $53.49 as of January 26th. XPEL’s trailing P/E was 31.46  according to Yahoo Finance. Largest Automotive Companies and Suppliers in the World Photo by Yannis Zaugg on Unsplash XPEL, Inc. manufactures, installs, sells, and distributes protective films, coatings and related services. XPEL has transitioned from a pure grow ...

Financial Data and Key Metrics Changes - For the full year 2025, sales reached $24.6 billion, with core revenue increasing by 2% [9] - Adjusted operating profit margin was 28.2%, and adjusted diluted net earnings per share were $7.80, up 4.5% year-over-year [9] - Free cash flow generated was $5.3 billion, resulting in a free cash flow to net income conversion ratio of approximately 145% [10] Business Line Data and Key Metrics Changes - Biotechnology segment core revenue increased by 6% [16] - Bioprocessing core revenue grew high single digits, with consumables and equipment both contributing to growth [16] - Life sciences segment core revenue increased by 0.5%, with consumables experiencing a decline due to lower demand [19] - Diagnostics segment core revenue increased by 2%, with clinical diagnostics growing mid-single digits [20] Market Data and Key Metrics Changes - Core revenues in developed markets increased low single digits, with North America flat and Western Europe up mid-single digits [15] - High growth markets saw mid-single digit increases, with solid growth outside of China, offsetting a low single-digit decline in China [15] Company Strategy and Development Direction - The company aims for long-term value creation through a differentiated portfolio and the Danaher Business System [9] - Continued investment in innovation led to over 20 new product launches in biotechnology, enhancing customer capabilities [10] - The company anticipates high single-digit core revenue growth in bioprocessing for 2026, driven by strong demand for monoclonal antibodies [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about gradual end market improvements continuing into 2026, supported by a strong balance sheet [9] - The company expects core revenue growth in the range of 3%-6% for 2026, with adjusted diluted EPS guidance set at $8.35-$8.50 [23] - Management noted that the bioprocessing market is expected to grow due to robust FDA approvals and increased uptake of existing therapies [18] Other Important Information - The company has maintained a free cash flow to net income conversion ratio exceeding 100% for 34 consecutive years [10] - The company is well-positioned for M&A opportunities, with a constructive environment and strong cash flow generation [68] Q&A Session Summary Question: Can you discuss the core revenue guidance and potential upside? - Management indicated that the 3%-6% core revenue guidance reflects expectations of continued recovery in end markets, with bioprocessing expected to remain strong [31][34] Question: What is the outlook for bioprocessing and equipment orders? - The order book supports high single-digit growth for bioprocessing, with equipment orders showing sequential growth, although still below historical levels [36] Question: How is the M&A environment shaping up? - The M&A environment is seen as more constructive, with improving valuations and a strong balance sheet allowing for potential aggressive moves [68][70] Question: What are the expectations for life sciences and academic demand? - Management expects gradual improvement in life sciences, particularly in pharma, but noted that academic demand remains muted [84][85] Question: Can you elaborate on the performance of the SCIEX segment? - SCIEX experienced mid-single-digit growth, driven by innovation and improvement in the pharma end market [42][43]

Key Takeaways CAT is projected to report a year-over-year earnings decline in Q425 despite revenue growth of 10.4%.Higher volumes and $37.5B backlog support sales, but tariffs and rising costs pressure profits.CAT's segments are expected to see volume gains, while operating margin is projected to fall to 13.2%.Caterpillar Inc. (CAT) is anticipated to witness a year-over-year decline in its bottom line despite higher revenues when it reports fourth-quarter 2025 results on Jan. 29, before the opening bell. Th ...

Core Insights - United Parcel Service, Inc. (UPS) reported strong fourth-quarter 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1][10] - Quarterly earnings per share (EPS) of $2.38 surpassed the estimate of $2.22 but represented a 13.5% decline year over year [1][10] - Revenues reached $24.4 billion, exceeding the estimate of $24 billion, but decreased by 3.3% year over year [1][10] Q4 Earnings Summary - U.S. Domestic Package revenues were $16.8 billion, down 3.2% year over year, attributed to a decline in volume, while revenue per piece increased by 8.3% [3] - The segment's adjusted operating profit fell 2.7% year over year to $1.71 billion, with an adjusted operating margin of 10.2% [3] - International Package revenues totaled $5.05 billion, up 2.5% year over year, driven by a 7.1% increase in revenue per piece, although adjusted operating profit decreased by 14.5% to $908 million [4] - Supply Chain Solutions revenues were $2.67 billion, down 12.7% year over year, with an adjusted operating profit of $276 million, reflecting a 2.8% decline [5] 2026 Outlook - Management provided optimistic guidance for full-year 2026, projecting revenues of approximately $89.7 billion, surpassing the Zacks Consensus Estimate of $87.9 billion and the 2025 figure of $88.7 billion [2][6] - Estimated capital expenditures for 2026 are around $3 billion, with expected dividend payments of approximately $5.4 billion, pending board approval [6]

Core Insights - The company reported a signed backlog of $17.2 million at year-end, indicating strong demand for its Building Solutions division, which is expected to benefit from structural tailwinds as factory-built construction gains market share [1] - The company experienced a 7.2% decline in gross profit for the full year 2024, primarily due to a one-time accounting adjustment and lower revenues in certain business segments, but saw a positive shift in momentum in the second half of 2024 [2] - Revenue for Q4 2024 increased by 21.1% to $17.1 million compared to Q4 2023, driven by M&A activities, particularly the acquisition of Timber Technologies [4][3] Financial Performance - Full year 2024 revenue rose 16.5% to $53.4 million from $45.8 million in 2023, with Q4 gross profit increasing 55.3% to $4.5 million compared to $2.9 million in Q4 2023 [4][3] - Consolidated gross profit for Q4 2024 was $4.4 million, up 55.9% year-over-year, but full year gross profit decreased by 7.3% to $11.1 million due to lower margins in the first half of the year [7] - SG&A expenses increased by 31.7% in Q4 2024 compared to the same period in 2023, largely due to the impacts of recent acquisitions [8] Strategic Developments - The company has enhanced contract language to mitigate risks associated with input cost changes and has implemented a hedging strategy to manage lumber price fluctuations [5][28] - The acquisition of Alliance Drilling Tools has diversified the company's portfolio and is expected to contribute significantly to future growth, with ADT generating approximately $10.5 million in revenue and a gross margin of 48% for the full year 2024 [5][6] - The company is optimistic about its sales pipeline and backlog, anticipating substantial growth beginning in Q4 2024 and continuing into 2025 [16][17] Market Conditions - The Building Solutions division faced demand softness in the first half of 2024 due to interest rate sensitivity and credit availability, but project momentum improved in the latter half of the year [2] - The company is closely monitoring the impact of fiscal policies, including tariffs, on its operations, particularly regarding lumber sourcing from Canada [1][27]

Core Viewpoint - American Airlines reported a slim profit in the fourth quarter despite significant costs from the government shutdown, indicating challenges but also a positive outlook for future performance [4][5][6]. Financial Performance - In the fourth quarter, American Airlines generated revenue of $40 billion, reflecting a 2.5% increase year-over-year, while net income fell to $99 million from $590 million [5]. - Excluding special items, the net income for the fourth quarter was $106 million, equating to 16 cents per share, which was below analysts' expectations of 34 cents [5][7]. Impact of Government Shutdown - The government shutdown incurred a cost of $325 million, leading to a 2.5% decline in domestic passenger unit revenue; however, the airline noted that domestic unit revenue would have been positive without this impact [6]. - The CEO highlighted that the shutdown affected American Airlines more severely than its competitors due to its domestic focus [4]. Future Outlook - The company expressed optimism for the upcoming months, with early revenue trends showing strong bookings in January and expectations for solidly positive first-quarter unit revenue [6][7]. - American Airlines anticipates total revenue growth of 7.0%-10.0% for the first quarter, despite forecasting an adjusted loss per share between 10 cents and 50 cents [7]. Market Demand - The airline noted a recovery in bookings, particularly in premium cabins and corporate channels, with systemwide revenue intakes for the first three weeks of 2026 up by double digits year-over-year [6][7]. - The CEO emphasized the company's strong positioning for significant upside in 2026 and beyond, citing investments in customer experience, network, fleet, partnerships, and loyalty programs [7].

Core Insights - Thermo Fisher Scientific (TMO) is expected to report quarterly earnings of $6.43 per share, reflecting a 5.4% increase year-over-year, with revenues projected at $11.94 billion, a 4.8% increase compared to the previous year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 0.1%, indicating analysts' reassessment of their initial forecasts [2]. - Changes in earnings estimates are crucial for predicting investor reactions to the stock, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenues- Laboratory Products and Biopharma Services' at $6.15 billion, indicating a year-over-year change of +3.7% [5]. - 'Revenues- Specialty Diagnostics' is expected to reach $1.21 billion, reflecting a +4.8% change year-over-year [5]. - 'Revenues- Life Sciences Solutions' is projected at $2.89 billion, showing an increase of +11.2% from the year-ago quarter [5]. - 'Revenues- Analytical Instruments' is forecasted at $2.19 billion, indicating a slight change of +0.1% from the prior year [6]. Geographic Revenue Insights - North America is expected to generate $6.27 billion in revenues, reflecting a +6.9% year-over-year change [6]. - Asia-Pacific revenues are projected at $2.16 billion, indicating a decline of -1.8% from the previous year [7]. - Revenues from Europe are expected to reach $3.10 billion, showing a +7.2% change year-over-year [8]. - Other regions are estimated to generate $411.17 million, reflecting a -6.3% change from the year-ago quarter [7]. Organic Revenue Growth - The combined assessment suggests that 'Revenue Growth - Organic' will likely reach 2.5%, down from 4.0% in the previous year [8]. Stock Performance - Shares of Thermo Fisher have returned +7.8% over the past month, outperforming the Zacks S&P 500 composite, which saw a +0.2% change [8].

Core Insights - Beta Bionics experienced a significant decline in stock price following the release of preliminary fourth-quarter 2025 performance metrics that did not meet market expectations [1] - The company reported lower-than-expected new patient starts for its iLet automated insulin delivery system, raising concerns among investors about short-term adoption trends and revenue growth [1] - On January 9, 2026, Beta Bionics' stock fell approximately $11.85, or 37.04%, closing at $20.14 [1]

Core Viewpoint - Abbott Laboratories' stock price pullback in January 2026 is seen as an overreaction driven by market sentiment rather than fundamental weaknesses, making the stock attractive for buying [2][4]. Financial Performance - Abbott reported Q4 revenue of $11.46 billion, reflecting a 4.5% increase year-over-year, with adjusted earnings per share (EPS) growing by 12%, slightly above consensus expectations [5]. - Despite some metrics falling short of market expectations, the company demonstrated solid sales growth and improved margins, indicating a strong operational performance [5][7]. Segment Analysis - The company's diversified healthcare portfolio showed strength, with Established Pharmaceuticals growing by 9% and Med Tech by 12.3%, while the Nutrition and Diagnostic segments faced declines, particularly a nearly 9% drop in Nutrition [6]. - The growth in the pharma segment was driven by generics and emerging markets, showcasing the resilience of Abbott's product offerings [6]. Margin and Earnings Outlook - Although margins fell short of analyst forecasts, they were supported by a favorable product mix, strength in Med Tech, and operational improvements, with expectations for continued earnings growth of 10% in 2026 [7]. - The company anticipates that earnings growth will outpace revenue growth, which is crucial for sustaining capital returns [7]. Capital Returns and Dividend Policy - Abbott is recognized as a Dividend King, having increased its dividend payout for over 50 years, with a current yield of approximately 2.5% [8]. - The company maintains a payout ratio of less than 50% of consensus earnings forecasts, allowing for share buybacks and reinforcing its capital return strategy [8].

Core Insights - LSI Industries' shares increased by over 14% following the announcement of its fiscal 2026 second-quarter results [1] Sales Performance - LSI's net sales for the quarter ended December 31 were $147 million, reflecting a decline of less than 1% year over year, attributed to the normalization of event-driven grocery sales [3] - The lighting business was a significant growth driver, with sales increasing by 15% [3] Profitability and Cash Flow - Adjusted net income rose slightly to $8.4 million, or $0.26 per share, surpassing Wall Street's expectations of $0.22 per share [4] - The company generated $23.3 million in free cash flow, which was used to pay down debt and strengthen the balance sheet [5] - Management plans to utilize strong cash generation for organic growth investments and potential acquisitions [5] Future Outlook - The company anticipates continued year-over-year revenue growth in the lighting segment and a resumption of growth in the display solutions segment as it enters the second half of fiscal 2026 [5]