Core Viewpoint - Automatic Data Processing (ADP) reported strong fourth-quarter fiscal 2025 results, with earnings and revenues exceeding estimates, but has seen a recent decline in share performance compared to the S&P 500 [1][2]. Financial Performance - ADP's earnings per share (EPS) for Q4 fiscal 2025 was $2.26, beating the consensus estimate by 1.8% and increasing 8.1% year-over-year [2]. - Total revenues reached $5.1 billion, surpassing estimates by 1.5% and growing 5.7% year-over-year [2]. Segmental Results - Employer Services generated revenues of $3.5 billion, an 8% increase on a reported basis but missed the estimate of $3.8 billion [3]. - PEO Services revenues rose 9% year-over-year to $1.2 billion, falling short of the $1.7 billion estimate [3]. - Average worksite employees paid by PEO Services increased by 3% to 761,000 [3]. Interest and Client Funds - Interest on funds held for clients grew 11% year-over-year to $308 million, missing the estimate of $342.4 million [4]. - The average client funds balance increased by 6% to $38.1 billion, with the average interest yield expanding by 20 basis points to 3.2% [4]. Margins - Adjusted EBIT rose 9% year-over-year to $5.3 billion, with the adjusted EBIT margin increasing by 50 basis points to 26% [5]. - The margin for Employer Services increased by 50 basis points, while PEO Services saw a decrease of 20 basis points [5]. Balance Sheet and Cash Flow - At the end of Q4 fiscal 2025, ADP had cash and cash equivalents of $3.3 billion, up from $2.7 billion in the previous quarter [6]. - Long-term debt increased to $4 billion from $3 billion in the preceding quarter [6]. - The company generated $1.4 billion in cash from operating activities during the quarter [6]. Fiscal 2025 Outlook - ADP lowered its revenue growth guidance for fiscal 2025 to 5-6% from the previous 6-7% [7]. - Adjusted EPS growth guidance was updated to 8-10% from 8-9% [7]. - The adjusted effective tax rate is estimated at 23%, and the guidance for adjusted EBIT margin was raised to 50-70 basis points [7]. Estimate Trends - There has been a downward trend in estimates for ADP, indicating a shift in expectations [10][12]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [12].

Core Viewpoint - DexCom's recent earnings report shows a positive performance with adjusted earnings per share beating estimates, but the stock has underperformed the S&P 500 in the past month, raising questions about future trends leading up to the next earnings release [1][2]. Financial Performance - DexCom reported Q2 2025 adjusted earnings per share of 48 cents, exceeding the Zacks Consensus Estimate of 45 cents by 6.7%, and up from 43 cents in the prior-year quarter [2]. - Total revenues increased by 15.2% year-over-year to $1.16 billion, surpassing the Zacks Consensus Estimate by 3.1% [3]. - Sensor and other revenues, which account for 97% of total revenues, rose 18% year-over-year to $1.12 billion, while hardware revenues decreased by 31% to $39.3 million [4]. Geographic Revenue Breakdown - U.S. revenues, making up 73% of total revenues, grew by 15% year-over-year to $841 million, while international revenues (27% of total) improved by 16% to $316.1 million [5]. Margin and Expense Analysis - Adjusted gross profit was $695.9 million, a 9.1% increase from the prior-year quarter, with an adjusted gross margin of 60.1%, down 340 basis points year-over-year [6]. - Total adjusted operating income reached $221.8 million, up 13.5% from the previous year, with an adjusted operating margin of 19.2%, down 30 basis points year-over-year [7]. Financial Position - At the end of Q2, DexCom had cash, cash equivalents, and marketable securities totaling $2.93 billion, an increase from $2.7 billion in Q1 2025, with total assets rising to $7.33 billion from $6.75 billion [8]. Future Guidance - DexCom raised its 2025 revenue outlook to a range of $4.6-$4.625 billion, indicating a year-over-year growth of 14-15%, and expects an adjusted gross margin of approximately 62% and an adjusted operating margin of about 21% [9]. Market Sentiment and Estimates - Recent estimates for DexCom have shown a downward trend, with the stock currently holding a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return in the coming months [10][12]. Industry Comparison - DexCom operates within the Zacks Medical - Instruments industry, where another player, IQVIA Holdings, reported a revenue increase of 5.3% year-over-year, indicating a mixed performance within the sector [13].

Core Viewpoint - WEX reported strong Q2 2025 earnings, with both earnings and revenues exceeding estimates, despite some declines in specific segments [2][4][6]. Financial Performance - Adjusted earnings per share for Q2 2025 were $3.95, surpassing the Zacks Consensus Estimate by 7.1% and showing a year-over-year increase of 1.02% [2]. - Revenues for the quarter totaled $659.6 million, beating the consensus estimate by 0.9%, but reflecting a decline of 2.06% compared to the previous year [2]. Segmental Performance - The Mobility segment's revenues decreased by 3.7% year-over-year to $346.2 million, falling short of the estimate of $354.4 million [3]. - The Corporate Payments segment reported revenues of $118.3 million, down 34.2% from Q2 2024, missing the estimate of $119 million [3]. - The Benefits segment saw a significant increase in revenues, up 45.5% year-over-year to $195.1 million, exceeding the estimate of $185.5 million [3]. Operating Results - Adjusted operating income declined by 11.3% to $243 million compared to the previous year, but exceeded the estimate of $223.2 million [4]. - The adjusted operating income margin was 36.8%, surpassing the estimate of 33.9%, although it declined by 390 basis points year-over-year [4]. Balance Sheet & Cash Flow - WEX ended the quarter with cash and cash equivalents of $772.6 million, an increase from $595.8 million at the end of December 2024 [5]. - Long-term debt stood at $3.9 billion, significantly higher than $595.8 million at the end of December 2024 [5]. - The company utilized $264.6 million in cash from operating activities during the quarter, with adjusted free cash flow of $194.3 million and capital expenditures totaling $34.6 million [5]. Future Outlook - For Q3 2025, WEX expects revenues between $669 million and $689 million, with adjusted net income projected between $4.30 and $4.50 per share [6]. - For the full year 2025, revenues are anticipated to be between $2.61 billion and $2.65 billion, with adjusted net income expected between $15.37 and $15.77 per share [6]. Estimate Trends - Following the earnings release, there has been an upward trend in estimates, with the consensus estimate shifting by 5.56% [7]. Investment Scores - WEX holds an average Growth Score of C and a similar score for momentum, but has an A grade for value, placing it in the top 20% for this investment strategy [9]. - The overall aggregate VGM Score for WEX is B, indicating a favorable investment outlook [9]. General Outlook - The upward trend in estimates and the magnitude of revisions suggest a promising outlook for WEX, which currently holds a Zacks Rank 2 (Buy) [10].

Core Viewpoint - Quest Diagnostics has shown a positive performance with an 8.2% increase in shares since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Financial Performance - In Q2 2025, Quest Diagnostics reported adjusted earnings per share of $2.62, exceeding the Zacks Consensus Estimate by 1.9% and up 11.5% from the previous year [2] - GAAP earnings were $2.47 per share, reflecting a 21.7% increase year-over-year [3] - Revenues for Q2 rose 15.2% year-over-year to $2.76 billion, surpassing the Zacks Consensus Estimate by 1.5% [4] - Diagnostic Information Services revenues increased by 15.7% year-over-year to $2.70 billion, exceeding projections [4] - Volumes measured by requisitions increased by 16.3% year-over-year, while revenue per requisition decreased by 0.4% [5] Margin Analysis - The cost of services was $1.82 billion, up 14.1% year-over-year, with gross profit at $943 million, up 17.3% [6] - Gross margin improved to 34.2%, an increase of 61 basis points [6] - SG&A expenses rose to $486 million, up 16.8% from the previous year, with an adjusted operating margin of 14.6%, representing a 37 basis points expansion [6] Financial Position - At the end of Q2 2025, cash and cash equivalents were $319 million, up from $188 million at the end of Q1 [7] - Cumulative net cash from operating activities was $858 million, compared to $514 million in the same period last year [7] - The company has a five-year annualized dividend growth rate of 7.31% [7] 2025 Guidance - Quest Diagnostics updated its full-year 2025 revenue outlook to a range of $10.80 billion to $10.92 billion, indicating a year-over-year increase of 9.4% to 10.6% [8] - Adjusted earnings per share guidance was revised to a range of $9.63 to $9.83 [8] Estimate Trends - Estimates for the company have trended downward over the past month, indicating a potential shift in market expectations [10][12] - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [12] VGM Scores - Quest Diagnostics has a Growth Score of B, a Momentum Score of F, and a Value Score of B, resulting in an aggregate VGM Score of B [11]

Core Viewpoint - Amphenol's shares have increased by approximately 12.1% since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this positive trend leading up to the next earnings release [1] Group 1: Earnings Report and Estimates - Fresh estimates for Amphenol have trended upward over the past month, with the consensus estimate shifting by 20.03% [2] - The recent earnings report indicates that the stock has a Zacks Rank of 1 (Strong Buy), suggesting expectations for above-average returns in the coming months [4] Group 2: VGM Scores - Amphenol has a Growth Score of B, but it is lagging in Momentum Score with an F, and has a Value Score of D, placing it in the bottom 40% for that investment strategy [3] - The overall aggregate VGM Score for Amphenol is D, which is relevant for investors not focused on a single strategy [3]