Core Viewpoint - Wells Fargo is expected to report a slight decline in revenues for the first quarter of 2025, with challenges in net interest income and non-interest revenues impacting overall performance [2][3]. Financial Performance - The Zacks Consensus Estimate for first-quarter 2025 revenues is $20.8 billion, indicating a 0.3% year-over-year decline [2]. - The consensus estimate for earnings has been revised downward to $1.23, reflecting a 2.4% decline from the prior-year quarter [3]. - Wells Fargo has a history of earnings surprises, with an average surprise of 11.23% over the trailing four quarters [5]. Revenue Breakdown - Net interest income (NII) is estimated at $11.85 billion, showing a marginal rise from the previous quarter [9]. - Mortgage banking revenues are expected to decline by 7.1% to $273.1 million due to stagnant refinancing activities [10]. - Investment advisory and asset-based fee revenues are projected to increase by 1.4% to $2.6 billion [11]. - Investment banking (IB) income is estimated at $714.7 million, reflecting a 1.4% sequential decline [13]. - Total non-interest income is expected to be $8.94 billion, indicating a 4.7% sequential increase [14]. Expense and Asset Quality - Expenses are anticipated to rise due to investments in technology and digitalization efforts [14]. - Total non-accrual loans are estimated at $7.89 billion, suggesting a 2.2% sequential increase [15]. - Non-performing assets are expected to rise to $8.1 billion, indicating a 1.7% increase from the previous quarter [15]. Market Position and Valuation - Wells Fargo's shares have outperformed the industry and major peers, with a forward P/E ratio of 10.15X, which is below the industry average of 10.39X [21]. - The stock is trading at a premium compared to Bank of America and Citigroup, which have forward P/E ratios of 9.24X and 7.41X, respectively [23]. Strategic Outlook - Under CEO Charlie Scharf, Wells Fargo is enhancing its compliance framework and risk management techniques [24]. - There is optimism regarding the potential lifting of the $1.95 trillion asset cap imposed after the 2018 scandal, which could facilitate loan growth [25]. - The bank is implementing cost-cutting measures to lower operating expenses and improve long-term profitability [27].

Core Viewpoint - Marathon Digital Holdings, Inc. (MARA) has seen a 3.9% increase in share price over the past month, outperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Earnings Estimates - Analysts have not made any earnings estimate revisions in the last two months, resulting in a consensus estimate shift of -216.67% [2] VGM Scores - Marathon Digital holds a poor Growth Score of F, a Momentum Score of F, and a Value Score of F, placing it in the lowest quintile for investment strategies, with an overall aggregate VGM Score of F [3] Outlook - The company has a Zacks Rank of 3 (Hold), indicating an expectation of an in-line return from the stock in the upcoming months [4]

Core Insights - Kroger Co. reported fourth-quarter fiscal 2024 results with top-line sales missing estimates while bottom-line earnings exceeded expectations, although both metrics declined year over year [1][3][4] Financial Performance - Adjusted earnings per share were $1.14, beating the Zacks Consensus Estimate of $1.12, but down from $1.34 in the previous year [3] - Total sales were $34,308 million, a decrease from $37,064 million in the year-ago period, impacted by a $2.7 billion effect from the 53rd week in 2023 and a $737 million decline from Kroger Specialty Pharmacy sales [4] - Excluding fuel, Kroger Specialty Pharmacy, and the extra week in 2023, sales grew by 2.6% year over year, with identical sales without fuel rising by 2.4% [5] Margin and Profitability - Gross margin was 22.7% of sales, influenced by the sale of Kroger Specialty Pharmacy and lower shrink, partially offset by lower pharmacy margins [6] - Adjusted FIFO operating profit was $1,174 million, down from $1,307 million reported in the year-ago period [7] Balance Sheet and Cash Flow - Kroger ended the quarter with cash of $216 million, total debt of $17,905 million, and shareholders' equity of $8,281 million, with net total debt increasing by $3,584 million over the last four quarters [8] - The company guided capital expenditures between $3.6 billion and $3.8 billion and expects to generate adjusted free cash flow of $2.8 billion to $3 billion in fiscal 2025 [8] Future Outlook - For fiscal 2025, Kroger anticipates identical sales without fuel to increase between 2% and 3%, with adjusted earnings projected to be between $4.60 and $4.80 per share compared to $4.47 in fiscal 2024 [9] - Management expects an adjusted FIFO operating profit of $4.7 billion to $4.9 billion for fiscal 2025, consistent with the $4.7 billion reported in fiscal 2024 [9] Stock Performance - Kroger's shares have risen by 12.5% over the past three months, outperforming the industry growth of 2.6% [10]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Quanex Building Products despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to show a quarterly loss of $0.06 per share, reflecting a year-over-year change of -133.3%, while revenues are projected to be $381.2 million, an increase of 59.4% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 4% lower in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, which complicates predictions of an earnings beat [10][11]. Historical Performance - Quanex has a history of beating consensus EPS estimates, having done so in the last four quarters, including a +15.09% surprise in the last reported quarter [12][13]. Stock Movement Factors - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [14].

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Marvell Technology, driven by higher revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Marvell is expected to report quarterly earnings of $0.59 per share, reflecting a year-over-year increase of +28.3% [3]. - Revenues are projected to reach $1.8 billion, which is a 26.5% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - A positive Earnings ESP of +2.77% suggests that analysts have recently become more optimistic about Marvell's earnings prospects [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - Marvell currently holds a Zacks Rank of 2, indicating a high likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Marvell exceeded the expected earnings of $0.40 per share by delivering $0.43, resulting in a surprise of +7.50% [12]. - Over the past four quarters, Marvell has beaten consensus EPS estimates three times [13]. Conclusion - While an earnings beat is a positive indicator, other factors may also influence stock movement, making it essential to consider the broader context [14][16]. - Marvell is viewed as a compelling candidate for an earnings beat, but investors should remain aware of additional influencing factors [16].

Core Viewpoint - Acadia Healthcare Company, Inc. is expected to report its fourth-quarter 2024 results on February 27, 2025, with earnings estimated at 72 cents per share and revenues of $779.89 million, indicating a year-over-year revenue growth of 5% despite a decline in earnings per share [1][2]. Financial Estimates - The fourth-quarter earnings estimate has decreased by 2 cents per share over the past 60 days, reflecting a year-over-year decrease of 15.3% in earnings [2]. - For the full year 2024, the revenue estimate for Acadia Healthcare is $3.16 billion, representing a year-over-year increase of 7.9%, while the EPS estimate is $3.38, indicating a decline of approximately 1.7% year-over-year [3]. Recent Performance - Acadia Healthcare has consistently beaten consensus earnings estimates in the last four quarters, with an average surprise of 3.9% [3]. - However, the current model indicates uncertainty regarding an earnings beat for the upcoming quarter, as the company has an Earnings ESP of -5.44% and a Zacks Rank of 4 (Sell) [4]. Revenue Drivers - Revenue estimates for Acute Inpatient Psychiatric Facilities are projected to increase nearly 6% from the previous year's figure of $375.6 million, while Residential Treatment Centers are expected to see a 23% increase from $84.3 million [6]. - U.S. same-facility patient days are anticipated to grow by 4% year-over-year, with admissions expected to rise by 3.1% [7]. Expense Considerations - Rising expenses are likely to impact profit levels, with total expenses expected to increase by more than 6% in the upcoming quarter due to higher salaries, professional fees, and operating costs [8]. - Supply costs are also projected to rise due to increased utilization [8]. Other Revenue Insights - Revenue estimates for Specialty Treatment Facilities are expected to decrease by nearly 2% from $151.3 million, and Comprehensive Treatment Centers are projected to see a 1.2% decline from $131.6 million [9].