Core Viewpoint - Sherwin-Williams reported strong Q3 earnings and revenues that surpassed estimates, but there is a recent downward trend in estimates leading up to the next earnings release [2][8]. Financial Performance - Q3 2025 earnings were $3.35 per share, a 5.3% increase from $3.18 in the same quarter last year, with adjusted earnings at $3.59 per share, beating the Zacks Consensus Estimate of $3.46 [2]. - Revenues for Q3 were approximately $6.36 billion, reflecting a year-over-year increase of 3.2% and exceeding the Zacks Consensus Estimate of $6.2 billion [2]. Segmental Review - The Paint Stores Group segment achieved net sales of $3.84 billion, up 5.1% year over year, surpassing the Zacks Consensus Estimate of $3.72 billion, driven by higher selling prices and improved profits from operational leverage [3]. - The Consumer Brands Group segment saw a decline in net sales by 2.6% year over year to $770.1 million, although it beat the consensus estimate of $740 million, with soft DIY demand in North America and Latin America being the primary cause [4]. - The Performance Coatings Group reported a 1.7% increase in net sales to approximately $1.75 billion, exceeding the consensus estimate of $1.74 billion, supported by volume growth and acquisitions, despite a challenging sales mix [5]. Cash Flow and Shareholder Returns - In the first nine months of 2025, Sherwin-Williams generated $2.36 billion in net operating cash and returned $2.13 billion to shareholders through dividends and stock repurchases, including 4.5 million shares [6]. Future Outlook - For Q4 and full-year 2025, the company expects net sales to increase by a low to mid-single-digit percentage and a low-single-digit percentage, respectively, with projected net income per share ranging from $10.16 to $10.36 [7]. - The effective tax rate is anticipated to be in the low 20% range for 2025, and the full-year outlook includes the impact of the Suvinil acquisition, which was completed on October 1 [7]. Estimate Trends - Recent estimates for Sherwin-Williams have been trending downward, indicating a shift in market expectations [8][11]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [11].

Core Viewpoint - Teradyne's recent earnings report shows a mixed performance with revenues increasing year-over-year, but earnings per share declining, leading to questions about the sustainability of its positive stock trend [2][5]. Financial Performance - Teradyne reported Q3 2025 non-GAAP earnings of 85 cents per share, exceeding estimates by 8.97%, but down 5.6% year-over-year [2]. - Revenues reached $769 million, surpassing estimates by 3.32% and reflecting a 4.3% increase year-over-year [2]. - Revenue breakdown: Semiconductor Test platforms contributed $606 million (78.8%), Robotics $75 million (9.8%), and Product Test $88 million (11.4%) [3]. Cost and Margin Analysis - Non-GAAP gross margin was 58.5%, a decrease of 120 basis points year-over-year [3]. - Selling and administrative expenses rose 7.3% year-over-year to $169.1 million, accounting for 22% of revenues, an increase of 60 basis points [4]. - Engineering and development expenses increased 6.2% year-over-year to $124.8 million, representing 16.2% of revenues, up 30 basis points [4]. - Non-GAAP operating income fell 4.9% year-over-year to $156.9 million, with an operating margin contraction of 200 basis points to 20.4% [5]. Balance Sheet and Cash Flow - As of September 28, 2025, cash and cash equivalents were $297.7 million, down from $367.9 million as of June 29, 2025 [6]. - Net cash provided by operating activities for the quarter was $49 million [6]. Future Guidance - For Q4 2025, Teradyne anticipates revenues between $920 million and $1 billion, with non-GAAP earnings projected between $1.20 and $1.46 per share [6]. Market Sentiment and Estimates - Following the earnings release, there has been a 33.35% upward revision in consensus estimates, indicating positive market sentiment [7]. - Teradyne currently holds a Zacks Rank 2 (Buy), suggesting expectations for above-average returns in the coming months [10]. VGM Scores - Teradyne has a poor Growth Score of F and a similar score for momentum, with a D grade for value, placing it in the bottom 40% for value investors [8][9].

Core Viewpoint - UnitedHealth Group's recent earnings report shows a mixed performance with a significant decline in earnings year over year, despite revenue growth, raising questions about future performance leading up to the next earnings release [2][3]. Financial Performance - UnitedHealth reported Q3 2025 adjusted earnings per share (EPS) of $2.92, exceeding the Zacks Consensus Estimate of $2.75, but reflecting a 59.2% decline year over year [3]. - Revenues increased by 12% year over year to $113.2 billion, although this figure missed the consensus mark by 0.2% [3]. - The company's premium for the third quarter was $89 billion, up from $77.4 billion a year ago, but also fell short of the consensus estimate by 0.2% [5]. Medical Care Ratio and Costs - UnitedHealth's medical care ratio (MCR) was 89.9% in Q3, deteriorating by 470 basis points from the previous year and below the consensus estimate of 90.9% [6]. - Medical costs rose to $80 billion from $66 billion a year ago, contributing to the increased MCR [6]. - Total operating costs for Q3 reached $108.8 billion, an 18.2% increase year over year, driven by higher medical costs and operating expenses [7]. Business Segment Performance - Revenues from UnitedHealthcare, the health benefits segment, grew 16% year over year to $87.1 billion, surpassing the Zacks Consensus Estimate [8]. - Optum's revenues were $69.2 billion, an 8% increase year over year, also exceeding the consensus mark [9]. - However, earnings from operations in both segments saw significant declines, with UnitedHealthcare's operating earnings dropping to $1.8 billion from $4.2 billion a year ago [8][9]. Membership and Financial Position - As of September 30, 2025, UnitedHealthcare served 50.1 million members, a 1.6% increase year over year, but below the consensus estimate [10]. - The company ended Q3 with cash and short-term investments of $30.6 billion, up from $29.1 billion at the end of 2024, and total assets increased to $315.3 billion [12]. 2025 Outlook - Management projects adjusted net EPS for 2025 to be at least $16.25, an increase from the previous guidance of $16, while net earnings are expected to reach at least $14.9 billion [14]. - Revenue projections for 2025 are set between $445.5 billion and $448 billion, up from $400.3 billion in 2024 [14]. Market Sentiment and Estimates - There has been an upward trend in estimates revisions for UnitedHealth over the past month, indicating a potentially positive outlook [15]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [17].

Core Viewpoint - Skyworks Solutions has experienced a 17% decline in share price over the past month, underperforming the S&P 500, raising questions about the continuation of this negative trend leading up to the next earnings release [1] Financial Performance - Skyworks reported Q4 fiscal 2025 non-GAAP earnings of $1.76 per share, exceeding the Zacks Consensus Estimate by 21.4% and increasing 13.5% year-over-year [2] - Revenues for the quarter reached $1.1 billion, marking a 7.3% year-over-year increase and surpassing the consensus estimate by 8.38% [2] Revenue Breakdown - Mobile revenues accounted for nearly 65% of total revenues, with a sequential increase of 21% and a year-over-year increase of 7%, driven by strong performance from the company's largest customer [3] - The largest customer represented approximately 67% of total revenues in the reported quarter [3] - Broad Markets, which includes edge IoT, automotive, industrial, infrastructure, and cloud, grew 3% sequentially and 7% year-over-year, supported by growth in edge IoT, automotive, and data center sectors [4] Operating Metrics - The non-GAAP gross margin for Q4 fiscal 2025 remained stable at 46.5% year-over-year [5] - Research & development expenses as a percentage of revenues increased by 430 basis points year-over-year to 20.3% [5] - Selling, general, and administrative expenses rose by 290 basis points to 10.2% in the reported quarter [5] - Non-GAAP operating margin contracted by 270 basis points year-over-year to 24% [5] Balance Sheet and Cash Flow - As of October 3, 2025, cash and cash equivalents along with marketable securities totaled $1.39 billion, up from $1.34 billion as of June 27 [6] - Long-term debt stood at $995.8 million, showing a slight sequential increase [6] - Cash generated from operating activities was $200 million in the quarter, down from $314.1 million in the prior quarter [6] - Free cash flow was reported at $144 million, with a free cash flow margin of 13.1% [6] Guidance - For Q1 fiscal 2026, Skyworks expects revenues between $975 million and $1.025 billion, anticipating a low- to mid-single-digit sequential decline in Mobile revenues [7] - Broad Markets are projected to grow mid- to high-single-digit year-over-year, contributing 39% of total revenues [7] - Gross margin is expected to be approximately 47%, with operating expenses estimated between $230 million and $240 million [7] - Non-GAAP earnings per share are projected to be $1.40 at the midpoint of the revenue range [8] Market Sentiment - There has been an upward trend in estimates, with the consensus estimate shifting by 6.54% recently [9] - Skyworks holds a VGM Score of A, indicating strong performance across growth, momentum, and value metrics, placing it in the top 40% for value investors [10] - Overall estimates have been trending upward, suggesting a promising outlook for the stock, which currently holds a Zacks Rank 3 (Hold) [11]

Core Viewpoint - Wayfair's recent earnings report shows significant growth in earnings and revenues, indicating a positive trend for the company despite a slight decline in active customers [2][3][4]. Financial Performance - Wayfair reported Q3 2025 non-GAAP earnings of 70 cents per share, exceeding estimates by 52.17% and increasing 218.2% year over year [2]. - Net revenues for Q3 2025 rose 8.1% year over year to $3.1 billion, beating estimates by 3.62% [2]. - Gross profit for Q3 was $934 million, up 7% year over year, with a gross margin of 30% [7]. Customer Metrics - Last Twelve Months (LTM) net revenues per active customer increased 6.1% year over year to $578, surpassing estimates by 5.75% [3]. - The active customer base declined 2.3% year over year to 21.2 million, missing the consensus mark by 3.19% [3]. - Orders per customer increased to 1.87, up from 1.85 in the previous year, beating estimates by 3.32% [5]. Operational Efficiency - Adjusted EBITDA for Q3 was $208 million, up 74.8% year over year, with an adjusted EBITDA margin of 6.7%, expanding 250 basis points [7]. - Advertising expenses decreased 6.8% year over year to $330 million, while general and administrative expenses decreased 7.3% to $445 million [8][9]. Balance Sheet and Cash Flow - As of September 30, 2025, cash and short-term investments were $1.2 billion, down from $1.4 billion [10]. - Long-term debt decreased to $2.7 billion from $2.9 billion [10]. - Non-GAAP free cash flow for Q3 was reported at $93 million [10]. Future Guidance - For Q4 2025, Wayfair expects revenue growth in the mid-single digits year over year, factoring in a 100 basis-point headwind from exiting the German market [11]. - Gross margin is anticipated to range between 30% and 31% by the end of Q4 2025 [12]. Market Sentiment - There has been a notable upward trend in estimates, with a 92.31% shift in consensus estimates over the past month [13]. - Wayfair currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [15].

Core Insights - Deere & Company reported fourth-quarter fiscal 2025 earnings of $3.93 per share, missing the Zacks Consensus Estimate of $3.96, with a 14% decrease from the prior-year quarter due to higher production costs and tariff impacts offsetting gains from increased volumes [1][10] - Net sales of equipment operations reached $10.6 billion, up 14% year over year, exceeding the Zacks Consensus Estimate of $9.99 billion, while total net sales were $12.4 billion, an 11% increase year over year [2][10] Financial Performance - The cost of sales increased by 21% year over year to $7.94 billion, leading to a total gross profit decrease of 2.7% to $4.45 billion [3] - Selling, administrative, and general expenses rose by 3.6% to $1.28 billion compared to the prior-year period, resulting in total operating profit (including financial services) dipping 7% year over year to $1.35 billion [3] Segment Performance - Production & Precision Agriculture segment sales rose 10% year over year to $4.74 billion, beating estimates, but operating profit decreased 8% to $604 million due to higher production costs [4] - Small Agriculture & Turf sales increased 7% to $2.46 billion, with operating profit slumping 89% to $25 million due to higher warranty expenses and tariffs [5] - Construction & Forestry sales were $3.38 billion, up 27% year over year, with operating profit increasing 6% to $237 million despite increased production costs [6] Financial Services - Revenues in the Financial Services division were $1.55 billion, up 2% year over year, with net income rising to $293 million from $173 million in the prior-year quarter due to favorable financing spreads and lower provisions for credit losses [7] Cash and Debt Position - Cash and cash equivalents at the end of fiscal 2025 were $8.28 billion, up from $7.32 billion at the end of fiscal 2024, while cash flow from operating activities decreased to $7.5 billion from $9.23 billion [8] Fiscal Guidance - For fiscal 2026, Deere expects net income between $4.00 billion and $4.75 billion, with net sales for Production & Precision Agriculture projected to decrease by 5-10%, while Small Agriculture & Turf sales are expected to rise by 10% and Construction & Forestry sales by 10% [12] Stock Performance - Deere shares have gained 5.7% over the past year, outperforming the industry's growth of 4.5% [13]

Core Viewpoint - F5 Networks reported better-than-expected fourth-quarter results for fiscal 2025, but the stock has underperformed the S&P 500, raising questions about future performance leading up to the next earnings release [1][2]. Financial Performance - F5 reported non-GAAP EPS of $4.39 for Q4, exceeding the Zacks Consensus Estimate by 10.86% and management's guidance of $3.87-$3.99, marking a 19.6% year-over-year increase [3]. - Revenues for Q4 reached $810 million, surpassing the consensus mark by 2.22% and increasing 8% year-over-year, also exceeding management's guidance of $780-$800 million [4]. - Product revenues, accounting for 51.1% of total revenues, grew 15.6% year-over-year to $414.1 million, outperforming estimates of $397.9 million [5]. - Systems revenues surged 42% year-over-year to $186 million, representing approximately 45% of total Product revenues, driven by demand for infrastructure upgrades [6]. - Software revenues increased slightly by 0.3% year-over-year to $229 million, falling short of estimates of $234.5 million [7]. - Global Services revenues grew 2% year-over-year to $396 million, slightly above estimates of $393.4 million [7]. - Non-GAAP gross profit rose 10.3% year-over-year to $683 million, with a gross margin of 84.3%, up 130 basis points from the previous year [8]. - Non-GAAP operating income increased 16.5% to $299.4 million, with an operating margin improvement of 260 basis points to 37% [8]. Balance Sheet and Cash Flow - F5 ended the September quarter with cash and short-term investments of $1.36 billion, down from $1.44 billion in the previous quarter [9]. - The company generated an operating cash flow of $208 million for the quarter and $950 million for the full fiscal 2025 [9]. - F5 repurchased shares worth $125 million in Q4 and $502 million during the first nine months of fiscal 2025 [9]. Guidance - For Q1 of fiscal 2026, F5 expects revenues between $730 million and $780 million, with a projected non-GAAP EPS range of $3.35-$3.85 [10]. - Fiscal 2026 revenues are anticipated to grow in the mid-single-digit range, with non-GAAP EPS projected between $14.50 and $15.50 [10]. Market Sentiment - There has been a downward trend in estimates, with the consensus estimate shifting down by 13.23% [11]. - F5 currently holds a Growth Score of A but has a C for Momentum and an F for Value, placing it in the bottom 20% for the value investment strategy [12]. - The overall VGM Score for F5 is D, indicating a below-average return expectation in the coming months, reflected in a Zacks Rank of 5 (Strong Sell) [13].

Core Viewpoint - Everest Group's recent earnings report indicates a decline in operating income and premiums, raising concerns about future performance despite a slight increase in share price over the past month [1][3][11]. Financial Performance - Q3 2025 operating income was $7.54 per share, missing estimates by 43.7% and down 48.4% year over year [3]. - Total operating revenues reached $4.3 billion, a 0.7% increase year over year, but fell short of consensus estimates by 2.9% [4]. - Gross written premiums decreased by 1.1% year over year to $4.4 billion, with a notable decline in certain casualty lines [4]. - Net investment income was $540 million, up 8.8% year over year, exceeding estimates [5]. Claims and Expenses - Total claims and expenses rose by 9.2% to $4 billion, driven by higher incurred losses and other expenses [6]. - Underwriting loss was $130 million, contrasting with a profit of $272 million in the previous year [6]. - Pre-tax catastrophe losses were $50 million, significantly lower than the $279 million loss in the prior year [7]. Segment Performance - The Reinsurance segment's gross written premiums were $3.2 billion, down 1.8% year over year, with mixed performance across different lines [8]. - The Insurance segment generated $1.1 billion in gross written premiums, a 3.3% increase year over year, but faced declines in certain casualty lines [9]. Financial Position - Total investments and cash at the end of Q3 2025 were $45.8 billion, a 10.3% increase from the end of 2024 [10]. - Shareholder equity rose to $15.4 billion, up 10.8% year over year, with a book value per share of $366.22 [10]. - Cash flow from operations was $1.5 billion, down 16% year over year [10]. Market Sentiment - There has been a downward trend in earnings estimates for Everest Group, indicating potential challenges ahead [11][13]. - The company holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the near term [13].

Core Viewpoint - Universal Health Services (UHS) has shown strong performance in its recent earnings report, with significant growth in earnings and revenues, leading to an upward revision of its financial guidance for 2025 [3][11]. Financial Performance - UHS reported Q3 2025 adjusted earnings per share (EPS) of $5.69, exceeding the Zacks Consensus Estimate by 22.1% and reflecting a year-over-year increase of 53.4% [3]. - Net revenues reached $4.5 billion, marking a 13.4% year-over-year improvement and surpassing the consensus estimate by 4.2% [3]. - Adjusted EBITDA rose 27.4% year over year to $670.6 million, exceeding the estimate of $577.4 million [5]. Segment Performance - In Acute Care Hospital Services, adjusted admissions grew 2% on a same-facility basis, with net revenues improving 12.8% [6]. - Behavioral Health Care Services saw adjusted admissions increase by 0.5%, with net revenues rising 9.3% on a same-facility basis [7]. Operational Costs - Total operating costs for the quarter were $4 billion, an 11% increase year over year, driven by higher salaries, wages, and benefits [5]. Financial Position - As of September 30, 2025, UHS had cash and cash equivalents of $112.9 million, down 10.4% from the end of 2024 [8]. - Long-term debt decreased by 11.5% year over year to $4 billion, while total equity increased by 7.1% to $7.2 billion [9]. Share Repurchase Program - UHS repurchased shares worth approximately $234.3 million in Q3 and approved a $1.5 billion increase to its stock repurchase program, bringing the total remaining authorization to $1.8 billion [10]. Revised Guidance - The company revised its 2025 net revenue guidance to a range of $17.306-$17.445 billion, indicating a projected growth of 9.8% from 2024 [11]. - EPS is now expected to be between $21.50 and $22.10, reflecting a 31.2% growth from the previous year [12]. Market Outlook - Estimates for UHS have been trending upward, and the stock currently holds a Zacks Rank 2 (Buy), suggesting an expectation of above-average returns in the coming months [15].

Core Viewpoint - Principal Financial Group, Inc. reported mixed earnings results for Q3 2025, with operating net income missing estimates but showing year-over-year growth in both net income and operating revenues [3][4]. Financial Performance - Q3 2025 operating net income was $2.10 per share, missing the Zacks Consensus Estimate by 3.6%, but increased 19% year over year [3]. - Operating revenues rose 6.2% year over year to $3.8 billion, driven by increased premiums and net investment income, but fell short of estimates by 4.1% [3]. - Total expenses increased 3.8% year over year to $3.4 billion, lower than the estimated $3.6 billion [5]. Segment Performance - **Retirement and Income Solution**: Revenues increased 11.8% year over year to $1.9 billion, exceeding estimates, while pre-tax operating earnings rose 26% to $310.3 million, though it missed estimates [6]. - **Investment Management**: Revenues rose 3.7% year over year to $483.9 million, beating estimates, with pre-tax operating earnings increasing 9% to $173.5 million, also above estimates [7]. - **International Pension**: Revenues decreased 10.5% year over year to $248 million, but pre-tax operating earnings of $101.2 million exceeded estimates [8]. - **Specialty Benefits**: Revenues increased 3.2% year over year to $896.5 million, missing estimates, while pre-tax operating earnings surged 53% to $155.5 million, but also missed estimates [9]. - **Life Insurance**: Revenues increased 5.6% year over year to $364.2 million, missing estimates, with pre-tax operating losses widening to $69 million [10]. - **Corporate**: Pre-tax operating losses were $91.6 million, wider than the previous year's loss [11]. Financial Health - As of September 30, 2025, cash and cash equivalents were $5.1 billion, a 22% increase from the end of 2024 [12]. - Long-term debt was $3.9 billion, a slight decline of 0.7% from the end of 2024 [12]. - Book value per share increased 4.2% from the end of 2024 to $55.93 [12]. Shareholder Returns - Principal Financial returned $398 million to shareholders in Q3 2025, including $225 million in share repurchases and $173 million in dividends [13]. - The board declared a fourth-quarter dividend of 79 cents per share, an 8% increase from the previous year [13]. Market Outlook - Estimates for Principal Financial have been trending upward, indicating a positive outlook [14][16]. - The company holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [16].