Core Insights - Leidos Holdings Inc. (LDOS) has seen a year-to-date share price increase of 3.1%, outperforming the S&P 500's return of 0.1%, but underperforming the Zacks Aerospace-Defense industry's growth of 17.5% and the broader Zacks Aerospace sector's appreciation of 18.6% [1][2] Group 1: Stock Performance and Backlog - The company ended Q1 2025 with a backlog of $46.30 billion, up from $43.55 billion in the previous quarter, indicating strong demand for its products across various industries [4] - The improved backlog is expected to bolster future revenue generation prospects, enhancing investor confidence in the stock's profitability [5] Group 2: Financial Health - Leidos Holdings reported cash and cash equivalents of $0.84 billion and current debt of $0.12 billion at the end of Q1 2025, indicating a strong solvency position [6] - The current ratio of 1.54 as of April 4, 2025, suggests the company has sufficient capital to meet short-term debt obligations [6] Group 3: Growth Prospects - The macroeconomic and geopolitical environment is favorable for Leidos Holdings, with increased defense spending anticipated, including a proposed 13% increase in the defense budget to $1.01 trillion for fiscal 2026 [7] - The company is well-positioned to contribute to the "Golden Dome" missile defense initiative, which aligns with its advanced air and missile defense capabilities [9] Group 4: Earnings Estimates - The Zacks Consensus Estimate for 2025 and 2026 sales suggests improvements of 2.7% and 3.2% year-over-year, respectively [11] - The Zacks Consensus Estimate for earnings per share for 2025 and 2026 has been revised upward by 1.8% and 1%, respectively, indicating growing analyst confidence in the stock's earnings growth capabilities [11] Group 5: Valuation - Leidos Holdings has a forward 12-month price-to-earnings (P/E) ratio of 13.49X, which is a discount compared to the industry average of 26.42X, suggesting a lower price relative to expected earnings growth [16] - Other industry peers, such as RTX and Northrop Grumman, are also trading at discounts to the industry average [17] Group 6: Investment Consideration - Investors may consider adding LDOS to their portfolio due to its discounted valuation, long-term growth prospects, and upward revisions in earnings estimates [18] - The company holds a VGM Score of A and a Zacks Rank of 2 (Buy), indicating strong performance potential [20]

Core Viewpoint - Booz Allen Hamilton's shares have experienced significant volatility following a downgrade by Goldman Sachs, reflecting concerns over medium-term earnings growth and revenue projections [1][2][3] Group 1: Stock Performance - Shares of Booz Allen Hamilton fell by as much as 4.9% before recovering slightly to a 4% decline [1] - The stock had previously sold off by a double-digit percentage after the fiscal-fourth-quarter earnings release [1] Group 2: Analyst Downgrade - Goldman Sachs downgraded Booz Allen Hamilton from neutral to sell, lowering the price target from $108 to $94 [2] - The current stock price is noted at $104.75 [2] Group 3: Earnings Growth Outlook - Goldman Sachs analysts project medium-term earnings growth for Booz Allen as "flat," with revenue growth expected between 0% and 4% for fiscal 2026, down from 12.4% last year [3] - Adjusted earnings are projected to be in the range of $6.20 to $6.55, compared to $6.35 last year [3] Group 4: Long-term Growth Potential - Despite short-term challenges, there is a high likelihood that Booz Allen's growth will resume after this year, particularly if the civil business stabilizes [6][7] - The defense and intelligence sectors, which account for 65% of revenue, are expected to grow in double digits, supporting overall company growth [6] - Historically, Booz Allen has achieved an 11.7% organic growth rate over the past three years [6] - If growth resumes, the P/E multiple could return to the low-20s, which has been the average over the past decade [7]

Company Overview - Kemper is an insurance holding company based in Chicago, operating in the Finance sector, with a year-to-date share price change of -6.79% [3] - The company currently pays a dividend of $0.32 per share, resulting in a dividend yield of 2.07%, which is higher than the Insurance - Multi line industry's yield of 1.72% and the S&P 500's yield of 1.6% [3] Dividend Analysis - Kemper's annualized dividend of $1.28 has increased by 3.2% from the previous year, with two dividend increases over the last five years, averaging an annual increase of 0.69% [4] - The company's current payout ratio is 20%, indicating that it pays out 20% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, Kemper anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $6.34 per share, reflecting a year-over-year growth rate of 7.64% [5] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - While high-growth firms and tech start-ups typically do not provide dividends, established companies like Kemper are viewed as attractive dividend options [7] - Kemper is recognized as a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]

Core Viewpoint - Flanigan's Enterprises, Inc. has experienced significant stock appreciation following its latest quarterly results, outperforming the S&P 500 Index during the same period [1] Financial Performance - For the quarter ended March 29, 2025, Flanigan's reported total revenues of $53.6 million, an 11.6% increase from $48.1 million a year ago [2] - Net income attributable to BDL stockholders rose 38.5% to $2.7 million from $1.9 million, translating to earnings of $1.45 per diluted share, up 39.4% from $1.04 in the prior-year quarter [2] - Restaurant food and bar sales increased to $40.8 million, a 9.9% rise from $37.1 million, while package store sales surged 18.8% to $12.1 million from $10.1 million [2] Profitability and Margins - Gross profit from restaurant and bar operations increased 10.2% to $27.4 million, while package store gross profit rose 27.7% to $3.4 million [3] - The gross profit margin for restaurant food and bar sales increased to 67.23% from 67.09% year over year, and for package store sales, it rose to 28.06% from 26.11% [3] Pricing Strategy - Flanigan's implemented targeted menu price increases in late 2024 and early 2025 to counter inflationary pressures, with bar prices raised by approximately 5.63% in August 2024 and food prices by 4.14% in November 2024 [4] Operational Insights - The restaurant operations generated $4.7 million in operating income, up 18.6% from $4 million a year earlier, while the package store segment posted $1.3 million, up 67.1% from $0.8 million [5] - A new company-owned restaurant opened in Hollywood, FL in March 2024 contributed to revenue growth [6] Comparable Sales Growth - Comparable weekly restaurant food sales rose 5.9%, with company-owned restaurants seeing an 8.1% increase [7] - Weekly average same-store package liquor store sales increased 18.9% year over year [7] Future Outlook - Flanigan's anticipates continued revenue growth throughout fiscal 2025, driven by the full-year impact of price adjustments and stable demand [8] Cost Management - Payroll costs increased 8.1% to $16.2 million, but as a percentage of revenue, they declined to 30.2% from 31.1% year over year, indicating improved labor efficiency [10] - Overall costs as a percentage of total revenues decreased from 94.4% to 93.2% due to cost containment strategies [11] Capital Expenditures and Liquidity - Flanigan's invested $1.73 million in capital expenditures during the 26 weeks ended March 29, 2025, and entered a purchase agreement for baby back ribs valued at approximately $7.8 million for 2025 [13] - The company reported a healthy liquidity position with $22.9 million in cash as of March 29, 2025, up from $21.4 million as of September 28, 2024 [14]

Core Viewpoint - Tutor Perini Corp. has exceeded earnings expectations for Q1 2025 and raised its full-year earnings guidance, driven by a record-high construction backlog and strong project execution [1][10]. Financial Performance - In Q1 2025, Tutor Perini reported earnings of $0.53, surpassing the Zacks Consensus Estimate by 783%, which was only $0.06 [3]. - Revenue increased by 19% to $1.25 billion from $1.05 billion in the same period last year, primarily due to higher-margin projects [4]. - The company repaid $121.9 million of its Term Loan B, resulting in a 24% reduction in total debt compared to the end of 2024 [5]. Backlog and New Contracts - Tutor Perini's backlog reached a record $19.4 billion as of March 31, 2025, up 94% from the end of Q1 2024, following $2 billion in new awards and contract adjustments [6][7]. - Significant new contracts include the $1.18 billion Manhattan Tunnel project and additional funding for various projects in Texas, Guam, and California [7]. Future Outlook - The company raised its full-year earnings guidance to a range of $1.60 to $1.95, up from $1.50 to $1.90 [10]. - Earnings for 2026 and 2027 are expected to more than double compared to 2025, with the Zacks Consensus for 2026 rising to $2.87, indicating further growth of 56% [11]. Market Performance - Tutor Perini's shares have reached new 5-year highs, outperforming the Russell 2000 small cap index year-to-date [12]. - The company is attractively priced with a forward P/E ratio of 19.3, a P/S ratio of 0.4, and a P/B ratio of 1.6, indicating potential value [14].

Hormel Foods Corporation (HRL) is likely to register top-line growth when it reports second-quarter fiscal 2025 earnings on May 29, before the market opens. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.9 billion, which indicates a 0.6% increase from the year-ago quarter. The consensus mark for earnings has remained unchanged in the past 30 days at 35 cents per share, which implies a 7.9% decrease from the figure reported in the year-ago quarter. HRL delivered a trailing four-quarter e ...

Company Overview - Guaranty Bancshares Inc. (GNTY) is headquartered in Addison and has experienced a price change of 22.8% this year [3] - The company currently pays a dividend of $0.25 per share, resulting in a dividend yield of 2.35%, which is higher than the Banks - Southwest industry's yield of 1.22% and the S&P 500's yield of 1.53% [3] Dividend Performance - The current annualized dividend of $1 represents a 4.2% increase from the previous year [4] - Over the last 5 years, Guaranty Bancshares has increased its dividend 5 times year-over-year, averaging an annual increase of 7.12% [4] - The company's payout ratio is currently 34%, indicating that it pays out 34% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - Guaranty Bancshares is expected to see earnings expansion this fiscal year, with the Zacks Consensus Estimate for 2025 at $3.30 per share, reflecting a year-over-year earnings growth rate of 20.44% [5] Investment Appeal - GNTY is considered a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 1 (Strong Buy) [7]

16 May 2025 | 4:25PM EDT +1(212)902-6781 | david.kostin@gs.com Goldman Sachs & Co. LLC Ben Snider +1(212)357-1744 | ben.snider@gs.com Goldman Sachs & Co. LLC Ryan Hammond +1(212)902-5625 | ryan.hammond@gs.com Goldman Sachs & Co. LLC Jenny Ma +1(212)357-5775 | jenny.ma@gs.com Goldman Sachs & Co. LLC Daniel Chavez +1(212)357-7657 | daniel.chavez@gs.com Goldman Sachs & Co. LLC Kartik Jayachandran +1(212)855-7744 | kartik.jayachandran@gs.com Goldman Sachs & Co. LLC US Weekly Kickstart Large-cap outperformance s ...

Shares of Optex Systems Holdings, Inc. (OPXS) have gained 19.1% since the company reported its earnings for the quarter ended March 30, 2025, notably outpacing the S&P 500’s 1% change in the same period. Over the past month, OPXS stock has surged 42.9%, significantly outperforming the S&P 500’s 11.4% rise, reflecting strong investor enthusiasm in response to robust quarterly results and management commentary.For the fiscal second quarter ended March 30, 2025, Optex reported earnings per share of 26 cents co ...

+91 226 842 1482 With Nifty nearing 25,000, we are now back to usual business after a dramatic weekend that culminated in India-Pakistan ceasefire (an uneasy calm, but we'll take it). We had advised in our previous notes to buy the dip given instances of sharp market recovery immediately once the escalation is behind. This report marks a return from the geopolitical Nikhil Arela to the fundamental, as we dissect the earnings to see what lies ahead. We retain our nikhil.arela@bernsteinsg.com positive view on ...