Summary of Ziff Davis (ZD) FY Conference Call - May 14, 2025 Company Overview - Ziff Davis has built a portfolio through systematic acquisitions and growth in digital media and internet businesses, focusing on value creation across five vertical categories [4][14] - The company aims for organic growth and growth through acquisitions, with a diversified business model including advertising, subscription, and licensing revenue [4] Financial Performance - Reported a revenue growth of 5% in the quarter, with the Digital Media segment growing 9% [5] - Reaffirmed guidance for mid-single-digit growth across revenue, EBITDA, and EPS for the year [5] - Strong M&A activity expected to continue, with a healthy balance sheet [6] Advertising and Market Trends - Advertising revenues increased by 12% in Q1, with strong performance across tech, shopping, health, and gaming categories [7][11] - Health and wellness sector driven by a strong FDA drug pipeline, while gaming benefits from upcoming console releases [8][9] - Concerns about tariffs affecting the tech and shopping categories, but no immediate signs of impact observed [10][11] Segment Analysis Technology and Shopping - The CNET Group and RetailMeNot segment grew 14% in revenue and 44% in adjusted EBITDA, driven by organic growth and margin expansion [21] - B2B businesses have been a drag on growth but are now profitable [22] Gaming and Entertainment - IGN Entertainment segment grew mid-single digits, with strong advertising growth but some challenges in subscription offerings [26][28] - Anticipated growth from new gaming IP and streaming platforms [30] Health and Wellness - Everyday Health Group showed mid to high single-digit revenue growth and double-digit EBITDA growth, benefiting from a favorable pharma advertising environment [32][34] Connectivity - Ookla segment maintained flat revenue despite a 25% decline in wireless access point sales industry-wide, with expectations for growth as Wi-Fi 7 is introduced [41][42] Cybersecurity and Martech - This segment declined due to tough year-over-year comparisons, but there is optimism for sequential growth throughout the year [44][46] AI and Intellectual Property - Ziff Davis filed a lawsuit against OpenAI for unauthorized use of its content, emphasizing the need for compensation for IP usage [47][49] - 35% of the company's revenues are web traffic-based, with 40% of that from search, indicating a diversified revenue model [51][52] M&A Strategy - The company is focused on tuck-in acquisitions that are synergistic with existing businesses, with a robust pipeline across all segments [63][64] - Historical targets include 20% cash-on-cash returns and maintaining a gross debt to EBITDA ratio of three times [66] Market Outlook - The company is optimistic about returning to organic growth and a consistent M&A cadence, with all segments positioned for potential growth [76][78] - The management believes that the current market valuation does not reflect the company's performance and potential [68][70] Conclusion - Ziff Davis is positioned for growth across its diversified portfolio, with strong financial performance and a proactive approach to M&A and market challenges [80][81]

Core Insights - Bandwidth (BAND) reported revenue of $174.24 million for the quarter ended March 2025, reflecting a year-over-year increase of 1.9% and surpassing the Zacks Consensus Estimate of $168.87 million by 3.18% [1] - The company's EPS was $0.36, up from $0.27 in the same quarter last year, resulting in an EPS surprise of 24.14% compared to the consensus estimate of $0.29 [1] Financial Performance Metrics - Net retention rate was reported at 116%, exceeding the average estimate of 115.3% from three analysts [4] - Geographic Revenue from International markets was $22.45 million, significantly higher than the average estimate of $14.79 million, marking a year-over-year increase of 4.1% [4] - Geographic Revenue from North America was $151.79 million, slightly below the average estimate of $154.45 million, with a year-over-year change of 1.6% [4] - Revenue from Messaging surcharges reached $40.78 million, surpassing the four-analyst average estimate of $37.29 million [4] - Revenue from Cloud communications was $133.46 million, exceeding the four-analyst average estimate of $131.64 million [4] Stock Performance - Over the past month, Bandwidth's shares have returned +5.3%, while the Zacks S&P 500 composite has seen a +10.6% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - Murphy Oil reported revenue of $665.71 million for Q1 2025, a year-over-year decline of 16.4% and a slight miss of 0.31% against the Zacks Consensus Estimate of $667.76 million [1] - The company's EPS for the same period was $0.56, down from $0.85 a year ago, but exceeded the consensus estimate of $0.48 by 16.67% [1] Financial Performance - Revenue from exploration and production in Canada was $165.70 million, surpassing the three-analyst average estimate of $158.14 million, reflecting a year-over-year increase of 21% [4] - Revenue from exploration and production in the United States was $509.50 million, compared to the average estimate of $494.29 million, showing a year-over-year decline of 22.8% [4] - Total revenue from sales to customers was $672.73 million, exceeding the three-analyst average estimate of $653.43 million, but representing a 15.4% decline compared to the previous year [4] Production Metrics - Total net crude oil and condensate production was 84.26 thousand barrels per day, below the estimated 85.84 thousand barrels per day [4] - Total net natural gas liquids production was 8.41 thousand barrels per day, compared to the estimated 9.16 thousand barrels per day [4] - Total net natural gas production was 424.23 million cubic feet per day, slightly below the estimated 426.47 million cubic feet per day [4] Stock Performance - Murphy Oil's shares returned +7% over the past month, while the Zacks S&P 500 composite increased by +10.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Performance - For the quarter ended March 2025, AMC Entertainment reported revenue of $862.5 million, a decrease of 9.3% year-over-year [1] - The earnings per share (EPS) was -$0.58, an improvement from -$0.78 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $838.97 million by 2.81% [1] - The company delivered an EPS surprise of 4.92%, compared to the consensus EPS estimate of -$0.61 [1] Key Metrics - Food and beverage revenue was $283.40 million, slightly below the average estimate of $283.53 million, reflecting an 11.8% year-over-year decline [4] - Other theatre revenue reached $105.60 million, surpassing the average estimate of $88.93 million, marking a 5.9% year-over-year increase [4] - Admissions revenue was $473.50 million, exceeding the average estimate of $466.53 million, but showing a 10.7% decline year-over-year [4] Stock Performance - AMC Entertainment shares returned 1.1% over the past month, while the Zacks S&P 500 composite increased by 10.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - BrightView Holdings (BV) reported revenue of $662.6 million for the quarter ended March 2025, reflecting a year-over-year decline of 1.5% but exceeding the Zacks Consensus Estimate by 2.68% [1] - The company achieved an EPS of $0.14, which is an increase from $0.11 a year ago, representing a surprise of 16.67% over the consensus estimate of $0.12 [1] Revenue Breakdown - Maintenance Services revenue was $492.80 million, surpassing the estimated $475.15 million, but showing a year-over-year decline of 3.5% [4] - Development Services revenue reached $171.90 million, slightly above the estimated $171.87 million, with a year-over-year increase of 4.6% [4] - Snow Removal Services under Maintenance generated $172.50 million, exceeding the estimated $144.67 million, but reflecting a minor decline of 0.4% year-over-year [4] - Landscape Maintenance Services revenue was $320.30 million, below the estimated $330.48 million, indicating a year-over-year decrease of 5.1% [4] - Revenue eliminations were reported at -$2.10 million, slightly worse than the average estimate of -$2.03 million, but showing a year-over-year improvement of 5% [4] Adjusted EBITDA Performance - Adjusted EBITDA for Development Services was reported at $17.20 million, significantly higher than the average estimate of $11.08 million [4] - Adjusted EBITDA for Maintenance Services was $56.30 million, also exceeding the estimated $54.96 million [4] Stock Performance - BrightView's shares have returned +17.7% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - MKS Instruments reported strong financial results for the quarter ended March 2025, with revenue and EPS exceeding both year-over-year figures and Wall Street expectations [1][3]. Financial Performance - Revenue for the quarter was $936 million, reflecting a year-over-year increase of 7.8% and a surprise of +0.27% over the Zacks Consensus Estimate of $933.5 million [1]. - EPS was reported at $1.71, compared to $1.18 in the same quarter last year, resulting in a surprise of +20.42% against the consensus estimate of $1.42 [1]. Segment Performance - Semiconductor segment revenues were $413 million, exceeding the average estimate of $403.45 million, with a year-over-year increase of 17.7% [4]. - Electronics and Packaging segment revenues reached $253 million, surpassing the average estimate of $242.64 million, marking a year-over-year growth of 21.6% [4]. - Specialty Industrial segment revenues were $270 million, slightly above the average estimate of $268.58 million, but showing a year-over-year decline of 12.6% [4]. - Total product revenues were $819 million, compared to the average estimate of $798.27 million, indicating an 8.6% year-over-year increase [4]. - Service revenues were $117 million, slightly below the average estimate of $118.75 million, with a year-over-year increase of 2.6% [4]. Stock Performance - MKS Instruments shares have returned +23.6% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3]. - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3].

Core Insights - Middleby (MIDD) reported revenue of $906.63 million for Q1 2025, a year-over-year decline of 2.2%, with an EPS of $2.08 compared to $1.89 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $941.15 million, resulting in a surprise of -3.67%, while the EPS exceeded the consensus estimate of $1.94 by +7.22% [1] Revenue Breakdown - Commercial Foodservice revenue was $562.72 million, below the average estimate of $579.76 million, reflecting a year-over-year decline of -4.7% [4] - Residential Kitchen revenue reached $176 million, slightly below the average estimate of $182.68 million, showing a year-over-year increase of +1.2% [4] - Food Processing revenue was reported at $167.91 million, compared to the estimated $178.72 million, marking a year-over-year increase of +3.2% [4] Segment Operating Income - Commercial Foodservice segment operating income was $132.07 million, exceeding the average estimate of $128.21 million [4] - Residential Kitchen segment operating income was $11.81 million, surpassing the average estimate of $9.20 million [4] - Food Processing segment operating income was $23.51 million, significantly lower than the estimated $34.98 million [4] Stock Performance - Over the past month, Middleby shares have returned +8.2%, compared to the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Fidelity National Information Services (FIS) reported revenue of $2.53 billion for the quarter ended March 2025, reflecting a year-over-year increase of 2.6% [1] - Earnings per share (EPS) for the quarter was $1.21, up from $1.10 in the same quarter last year, indicating a positive trend in profitability [1] - The reported revenue exceeded the Zacks Consensus Estimate of $2.5 billion by 1.10%, and the EPS also surpassed the consensus estimate of $1.20 by 0.83% [1] Revenue Breakdown - Banking Solutions revenue was $1.72 billion, slightly above the average estimate of $1.71 billion, with a year-over-year increase of 2% [4] - Corporate and Other revenue was reported at $50 million, compared to the average estimate of $49.64 million, showing a significant year-over-year decline of 35.1% [4] - Capital Market Solutions revenue reached $764 million, exceeding the average estimate of $756.36 million, with a year-over-year growth of 8.2% [4] Adjusted EBITDA Analysis - Adjusted EBITDA for Banking Solutions was $688 million, below the average estimate of $720.66 million [4] - Adjusted EBITDA for Corporate and Other was -$99 million, better than the estimated -$129.07 million [4] - Adjusted EBITDA for Capital Market Solutions was $369 million, slightly above the average estimate of $360.18 million [4] Stock Performance - Fidelity National's shares have returned +14% over the past month, outperforming the Zacks S&P 500 composite's +11.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Performance - The company achieved net sales of $702 million with a 5% organic volume growth driven by construction services, steel conduit, metal framing, and cable management products [6][12] - Adjusted EBITDA was $116 million, with adjusted EBITDA margins expanding sequentially to 16.6% from 15% in the previous quarter [12] - Adjusted EPS was reported at $2.04, reflecting a strong performance despite a 17% year-over-year decline in average selling prices [12][13] Business Line Performance - Organic volumes increased by 5% compared to a 1% decline in the same quarter of the previous fiscal year, with significant growth in metal framing, cable management, and construction services [12][14] - The electrical cable and flexible conduit category saw low single-digit growth year-to-date, while PVC conduit products experienced a decline in volume [15][16] - The S and I segment improved adjusted EBITDA margins due to strong volume performance and better productivity, contributing approximately $11 million to segment EBITDA [16] Market Dynamics - The company noted a slowdown in planning activity across several non-residential categories, as indicated by the Dodge Momentum Index [11] - Despite recent increases in construction starts, there is a possibility of slower activity moving forward due to economic uncertainties and potential project delays [20][21] - The impact of tariffs on imported steel and aluminum products is expected to benefit the company, as most of its products are sourced domestically [10][22] Strategic Direction - The company remains committed to a balanced capital deployment model, focusing on returning cash to shareholders through share repurchases and dividends while investing in growth initiatives [18][25] - The management emphasized the importance of maintaining a strong financial profile and leveraging domestic manufacturing capabilities to serve the electrical infrastructure market [23][24] Management Commentary - Management expressed cautious optimism regarding future demand for US-made steel conduit, despite uncertainties surrounding tariffs and macroeconomic conditions [10][20] - The company is maintaining its full-year fiscal 2025 adjusted EBITDA guidance in the range of $375 million to $425 million, with adjusted EPS expected between $5.75 and $6.85 [21][25] - Management acknowledged the challenges posed by competing technologies, particularly in the fiber optic space, which contributed to an impairment charge for certain long-lived assets [9][65] Other Important Information - The company ratified a new five-year labor agreement with the United Steel Workers at its Harvey, Illinois facility, which is expected to enhance productivity [7][8] - The company repurchased approximately $50 million in shares during the second quarter and increased its dividend to $0.33 per share [8] Q&A Session Summary Question: Expectations for PVC conduits for the remainder of the year - Management indicated that pricing for PVC conduits has continued to decline, but they are maintaining their previous guidance regarding future pricing expectations [30] Question: Market share for PVC conduit - Management believes the company remains a leader in the PVC conduit market, although imports have been increasing [31][32] Question: Recent import levels and potential pricing upside - Management noted that PVC imports have increased significantly year-over-year, but the future trajectory remains uncertain due to tariffs [40][41] Question: Impact of tariffs on steel pricing - Management stated that the 25% tariff on imported steel is expected to benefit the company, although predicting exact impacts remains challenging [44][46] Question: Impairment of HD PVC and competitive changes - Management clarified that the impairment was influenced by competing technologies, particularly fiber optics, and not by the company's own product performance [64][67] Question: Direction from the administration regarding tariffs - Management confirmed that there has been no specific direction from the administration regarding tariffs, leading to a prudent decision to take the impairment charge [73][76] Question: Demand cadence for products - Management reported that demand has been improving month-over-month, with cautious optimism for the remainder of the fiscal year [92][94] Question: Construction services opportunity - Management indicated that data centers are expected to become a significant portion of the construction services business moving forward [95][96]

Core Insights - Regal Rexnord (RRX) reported revenue of $1.42 billion for the quarter ended March 2025, reflecting an 8.4% decline year-over-year, while EPS increased to $2.15 from $2.00 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.37 billion by 3.44%, and the EPS surpassed the consensus estimate of $1.82 by 18.13% [1] Revenue Breakdown - Automation & Motion Control (AMC) revenues were $396.30 million, exceeding the two-analyst average estimate of $380.10 million, with a year-over-year change of -1% [4] - Industrial Powertrain Solutions (IPS) revenues reached $612.70 million, slightly below the average estimate of $614.62 million, representing a year-over-year decline of 4.8% [4] - Power Efficiency Solutions (PES) revenues amounted to $409.10 million, surpassing the average estimate of $385.58 million, with a year-over-year increase of 6.2% [4] Stock Performance - Regal Rexnord shares have returned +13% over the past month, significantly outperforming the Zacks S&P 500 composite, which saw a change of +0.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]