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Mercury Systems (MRCY) Up 1% Since Last Earnings Report: Can It Continue?
ZACKS· 2025-09-10 16:30
Company Overview - Mercury Systems reported adjusted earnings of 47 cents per share for Q4 fiscal 2025, beating the Zacks Consensus Estimate by 123.81% and increasing 104.3% year-over-year from 23 cents per share in the prior year quarter [2][5] - Revenues for Q4 fiscal 2025 were $273.1 million, reflecting a 9.9% year-over-year increase and surpassing the Zacks Consensus Estimate by 12.99% [3][4] - Total bookings for Q4 fiscal 2025 were $341.5 million, resulting in a book-to-bill ratio of 1.25 [4] Financial Performance - Adjusted EBITDA for Q4 fiscal 2025 was $51.3 million, compared to $31.2 million for Q4 fiscal 2024, with an adjusted EBITDA margin of 18.8%, an improvement of 620 basis points year-over-year [5] - GAAP net income for Q4 fiscal 2025 was $16.4 million, with diluted earnings per share of $0.27, compared to a GAAP net loss of $10.8 million and a loss per share of $0.19 in Q4 fiscal 2024 [5] Balance Sheet & Cash Flow - As of June 27, 2025, cash and cash equivalents totaled $309.1 million, up from $269.8 million as of March 28, 2025, while long-term debt remained unchanged at $591.5 million [6] - Cash flow from operations was $38.1 million in the reported quarter, down from $71.8 million in the prior year quarter, with free cash flow at $34.0 million compared to $61.4 million for Q4 fiscal 2024 [6] Future Guidance - The company expects low single-digit revenue growth for fiscal 2026, with the first half remaining relatively flat year-over-year and sequential volume increases in the second half [7] - Adjusted EBITDA margin is projected to approach mid-teens for fiscal 2026, starting with low double-digit margins in the first half and expanding through the year [7] Market Position - Mercury Systems has a Zacks Rank 3 (Hold), indicating an expectation of an in-line return from the stock in the coming months [11] - The stock has a Growth Score of A but lags in Momentum Score with a D, and a Value Score of D, placing it in the bottom 40% for value investors [10]
Why Chewy Stock Got Chewed Up Today
Yahoo Finance· 2025-09-10 14:39
Core Viewpoint - Chewy's stock fell 12.6% despite meeting analyst forecasts for adjusted earnings and sales, indicating investor disappointment with the company's financial performance [1][9]. Financial Performance - Chewy reported Q2 sales of $3.1 billion, a year-over-year increase of nearly 9%, with a gross profit margin of 30.4%, up 90 basis points from the previous year [2]. - The company's adjusted earnings per share were $0.33, but GAAP earnings were only $0.14, reflecting a nearly 80% decline in profits year over year [4]. Customer Base and Business Model - A significant portion of Chewy's sales, 83%, came from repeat customers using the Autoship service, indicating a stable customer base [5]. Tax Impact - The decline in profits was primarily due to the reversal of a $253 million income tax credit received in the previous year, with Chewy paying $12 million in taxes this quarter [6]. Valuation Concerns - Chewy's stock is considered expensive, trading at 32 times free cash flow and nearly 100 times trailing earnings, leading to skepticism about its investment attractiveness [7].
Chewy's stock drops, as Wall Street may have gotten too excited ahead of earnings
MarketWatch· 2025-09-10 13:15
Core Viewpoint - Chewy's shares declined in early trading following the release of its fiscal second-quarter earnings, which met analysts' expectations but were deemed insufficient to satisfy investor sentiment [1] Company Summary - Chewy reported fiscal second-quarter earnings that aligned with analysts' projections, indicating stable performance in terms of revenue expectations [1] - Despite meeting projections, the earnings report did not meet the market's expectations for growth, leading to a drop in share price [1] Industry Summary - The online pet product retail sector continues to face challenges in meeting investor expectations, as evidenced by Chewy's recent performance [1] - Market sentiment appears to be cautious, reflecting broader trends in consumer spending and e-commerce growth within the pet products industry [1]
August's Most Upgraded: 3 Stocks With +20 Price Target Increases
MarketBeat· 2025-09-10 11:02
Group 1: Market Performance Overview - In August, the S&P 500 Index posted a moderate gain of around 2%, marking its fifth-best monthly performance of 2025 [1] - Shopify, MongoDB, and Snowflake outperformed the market, with respective share gains of approximately 3.5%, 32.7%, and 6.8% [11] Group 2: Shopify (NYSE: SHOP) - Shopify generated 64% of its revenue from the United States in 2024 and received 23 price target upgrades from Wall Street analysts in August [1][2] - The company's Q2 earnings report showed a revenue growth of 31% and gross merchandise volume (GMV) growth accelerated to nearly 31%, with international GMV increasing by 42% [3] - The MarketBeat consensus price target on Shopify is around $150, implying less than 3% upside, but the average updated target is nearly $167, suggesting a potential rise of more than 14% [4] Group 3: MongoDB (NASDAQ: MDB) - MongoDB received 22 price target upgrades following a strong earnings report, with shares gapping up by 38% after the release [5][6] - The company reported a revenue growth of 24%, the fastest rate in the past six quarters, and increased its full-year adjusted EPS guidance by nearly 22% [6] - The MarketBeat consensus price target on MongoDB is approximately $310, indicating around 4% downside, but the average updated target is slightly above $328 [7] Group 4: Snowflake (NYSE: SNOW) - Snowflake saw over 25 price target upgrades in August, with shares rising more than 20% after its earnings report [8][10] - The company reported a revenue growth of 32% in Q2, an increase from 26% in Q1, and slightly raised its full-year product revenue guidance [9] - The MarketBeat consensus price target on Snowflake is over $255, implying nearly 13% upside, with the average updated target suggesting a potential rise of 17% to $264 [10]
Methode Electronics, Inc. (NYSE: MEI) Earnings Report Highlights
Financial Modeling Prep· 2025-09-10 07:00
Core Insights - Methode Electronics, Inc. (MEI) reported a first-quarter fiscal 2026 EPS of -$0.29, which was better than the estimated EPS of -$0.40, indicating a smaller loss than expected [2][6] - The company achieved revenue of $240.5 million, exceeding the estimated revenue of approximately $229.9 million, suggesting stronger sales performance [3][6] - Despite revenue growth, MEI has a negative P/E ratio of approximately -4.20, reflecting ongoing financial challenges [3][6] Financial Metrics - The company's price-to-sales ratio is about 0.25, indicating that the market values its sales at a quarter of its current market price [4] - The enterprise value to sales ratio is approximately 0.48, reflecting the company's valuation relative to its sales [4] - MEI's debt-to-equity ratio is approximately 0.50, indicating a moderate level of debt compared to equity [5] - The current ratio is about 2.40, showing that the company has more than twice the current assets compared to its current liabilities, suggesting good short-term financial health [5]
Salesforce.com (CRM) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
ZACKS· 2025-09-03 22:31
Core Insights - Salesforce.com reported $10.24 billion in revenue for the quarter ended July 2025, marking a year-over-year increase of 9.8% and an EPS of $2.91 compared to $2.56 a year ago, exceeding Zacks Consensus Estimates [1] - The revenue surprise was +1.02% over the estimated $10.13 billion, while the EPS surprise was +5.05% over the consensus estimate of $2.77 [1] Financial Performance Metrics - Remaining performance obligation (RPO) - Current: $29.40 billion, exceeding the average estimate of $29.10 billion [4] - Remaining performance obligation (RPO) - Total: $59.90 billion, slightly above the average estimate of $59.85 billion [4] - Remaining performance obligation (RPO) - Noncurrent: $30.50 billion, below the average estimate of $30.74 billion [4] Geographic Revenue Breakdown - Revenue from the Americas: $6.74 billion, below the average estimate of $6.97 billion, with a year-over-year change of +8.6% [4] - Revenue from Asia Pacific: $1.07 billion, above the average estimate of $1.02 billion, with a year-over-year change of +13.9% [4] - Revenue from Europe: $2.43 billion, exceeding the average estimate of $2.15 billion, with a year-over-year change of +11.2% [4] Revenue Segmentation - Revenue from Professional services and other: $546 million, above the estimated $535.15 million, representing a year-over-year decrease of -2.7% [4] - Revenue from Subscription and support: $9.69 billion, slightly above the average estimate of $9.6 billion, with a year-over-year change of +10.6% [4] - Revenue from Subscription and support - Service: $2.46 billion, slightly below the average estimate of $2.47 billion, with a year-over-year change of +8.9% [4] - Revenue from Subscription and support - Marketing and Commerce: $1.37 billion, matching the average estimate, with a year-over-year change of +4.4% [4] - Revenue from Subscription and support - Platform and Other: $2.08 billion, exceeding the average estimate of $2.01 billion, with a year-over-year change of +16.7% [4] - Revenue from Subscription and support - Integration and Analytics: $1.52 billion, above the average estimate of $1.49 billion [4]
PRA Group (PRAA) Up 8.6% Since Last Earnings Report: Can It Continue?
ZACKS· 2025-09-03 16:36
Core Viewpoint - PRA Group reported strong second-quarter earnings, significantly beating estimates, driven by improved cash collections and portfolio income, while facing rising operating costs [2][3][5]. Financial Performance - Earnings per share (EPS) for Q2 2025 was $1.08, exceeding the Zacks Consensus Estimate by 74.2%, and up from 54 cents per share a year ago [2]. - Total revenues increased by 1.2% year over year to $287.7 million, surpassing the consensus mark by 4.2% [2]. - Cash collections reached $536.3 million, a 13.2% increase year over year, beating the consensus estimate of $519 million [4]. - Portfolio income rose 19.9% year over year to $250.9 million, exceeding the consensus mark of $249 million [5]. - Net income for the quarter was $45.7 million, an 82% increase year over year [6]. Operational Insights - Total operating expenses increased by 3.9% year over year to $202.6 million, driven by higher legal collection costs and other operating expenses [5]. - The cash efficiency ratio improved by 355 basis points year over year to 62.4% [6]. - Estimated remaining collections at the end of Q2 amounted to $8.3 billion, up 21.9% year over year [6]. Financial Position - As of June 30, 2025, cash and cash equivalents were $131.6 million, up from $105.9 million at the end of 2024 [7]. - Total assets increased to $5.4 billion from $4.9 billion at the end of 2024 [7]. - Total equity improved by 17% from the end of 2024, reaching $1.4 billion [8]. Future Outlook - Management estimates portfolio investments of $1.2 billion for 2025, with cash collections expected to see high-single-digit growth [9]. - The cash efficiency ratio is projected to exceed 60% in 2025, with a return on average tangible equity forecasted at around 12% [10]. - Consensus estimates for the stock have trended upward, with a 13.53% shift in estimates over the past month [11]. Industry Context - PRA Group operates within the Zacks Financial - Miscellaneous Services industry, where another player, Bread Financial Holdings, has seen an 11.1% gain over the past month [14]. - Bread Financial reported revenues of $929 million for the last quarter, reflecting a year-over-year decline of 1.1% [14].
Transocean (RIG) Up 5.2% Since Last Earnings Report: Can It Continue?
ZACKS· 2025-09-03 16:36
Core Viewpoint - Transocean has shown a positive performance with a 5.2% increase in shares since the last earnings report, outperforming the S&P 500, but there are questions about whether this trend will continue leading up to the next earnings release [1][2]. Financial Performance - Transocean reported breakeven adjusted earnings per share for Q2 2025, surpassing the Zacks Consensus Estimate of a loss of 1 cent and improving from a loss of 15 cents in the same period last year [3]. - Total adjusted revenues reached $988 million, exceeding the Zacks Consensus Estimate of $968 million and reflecting a 14.8% increase from $861 million in the prior year [4]. - Revenues from ultra-deepwater floaters were $699 million, while harsh environment floaters contributed $289 million, both showing year-over-year increases from $606 million and $255 million, respectively [5]. Revenue Breakdown - Ultra-deepwater floaters accounted for 70.7% of net contract drilling revenues, while harsh environment floaters made up 29.3% [5]. - Revenue efficiency improved to 96.6%, up from 95.5% in the previous quarter, but slightly down from 96.9% in the year-ago quarter [6]. Operational Metrics - Average day rates increased to $458,600 from $438,300 in the prior year, although this figure missed the Zacks Consensus Estimate of $462,400 [7]. - Fleet utilization rate rose to 67.3%, up from 57.8% in the same period last year, with a total backlog of $7.2 billion as of June 2025 [8]. Costs and Capital Expenditures - Total costs and expenses were reported at $823 million, a 5.9% increase from $777 million in the previous year, with operations and maintenance costs rising to $599 million from $534 million [9]. - Capital investments for the second quarter amounted to $24 million, with cash used in operating activities at $128 million and cash and cash equivalents at $377 million as of June 30, 2025 [10]. Market Sentiment and Outlook - There has been a downward trend in estimates, with a 5.88% shift in the consensus estimate over the past month [12]. - Transocean holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [14]. Industry Comparison - Transocean is part of the Zacks Oil and Gas - Drilling industry, where Nabors Industries has gained 9.1% over the past month, reporting revenues of $832.79 million, a year-over-year increase of 13.3% [15].
Why Is Allstate (ALL) Up 0.3% Since Last Earnings Report?
ZACKS· 2025-08-29 16:31
Core Viewpoint - Allstate's second-quarter earnings exceeded expectations, driven by strong premium growth and improved investment income, although total revenues slightly missed consensus estimates [2][3]. Financial Performance - Adjusted net income for Q2 2025 was $5.94 per share, surpassing the Zacks Consensus Estimate by 78.9%, and significantly up from $1.61 a year ago [2]. - Operating revenues increased by 6.1% year over year to $16.8 billion, but fell short of the consensus mark by 2.9% [2]. - Property and casualty insurance premiums rose 7.8% year over year to $15 billion [4]. - Net investment income was $754 million, a 5.9% increase year over year, but missed the Zacks Consensus Estimate of $815.4 million [4]. - Total costs and expenses decreased by 3% year over year to $14.8 billion, lower than the estimated $16.2 billion [5]. Segment Performance - The Property-Liability segment's premiums earned increased by 7.5% year over year to $14.3 billion, although it fell short of the Zacks Consensus Estimate by 1.4% [7]. - The Protection Services segment reported revenues of $867 million, a 12.2% year-over-year increase [8]. - The Allstate Health and Benefits segment saw a 50.4% decline in premium and contract charges to $235 million due to the sale of the Employer Voluntary Benefits unit [8]. Financial Position - As of June 30, 2025, Allstate had a cash balance of $995 million, up from $704 million at the end of 2024 [9]. - Total assets increased to $115.9 billion from $111.6 billion at the end of 2024 [9]. - Total equity rose to $24 billion from $21.4 billion at the end of 2024, with a book value per common share of $82.40, reflecting a 32.6% year-over-year increase [9]. Market Outlook - Estimates for Allstate have trended upward, with a consensus estimate shift of 7.33% in the past month [10]. - The stock has a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [12]. - Allstate's overall VGM Score is A, indicating strong performance across growth, momentum, and value metrics [11].
American Water Works (AWK) Up 1.9% Since Last Earnings Report: Can It Continue?
ZACKS· 2025-08-29 16:31
Core Viewpoint - American Water Works reported mixed Q2 2025 earnings, with EPS slightly below estimates but revenues exceeding expectations, indicating a need for investors to assess future performance trends [3][4]. Financial Performance - Q2 2025 operating EPS was $1.48, missing the Zacks Consensus Estimate of $1.49 by 0.7%, but improved 4.2% year-over-year from $1.42 [3]. - Total revenues reached $1.27 billion, surpassing the Zacks Consensus Estimate of $1.15 billion by 10.6% and increasing 11% from $1.14 billion in the previous year [4]. - Regulated businesses' net revenues were $1.17 billion, up 11.4% year-over-year, while other revenues were $92 million, up 6.5% [5]. Operating Expenses and Income - Total operating expenses for Q2 were $787 million, a 12.4% increase from $700 million in the prior year, primarily due to higher operating and maintenance costs [6]. - Operating income was $489 million, reflecting an 8.9% increase from $449 million year-over-year [6]. Growth and Expansion - The company added 7,600 customers through seven acquisitions as of June 30, 2025, with 20 more pending acquisitions expected to add 40,650 customers [7]. - New rates effective January 1, 2025, are projected to increase revenues by $270 million for the full year, with pending rate cases potentially adding another $126 million if approved [7]. Financial Position - Cash and cash equivalents were $94 million as of June 30, 2025, slightly down from $96 million at the end of 2024, with total liquidity at $1.17 billion [8]. - Total long-term debt decreased to $12.28 billion, down 1.9% from $12.51 billion at the end of 2024 [8]. Cash Flow and Investment - Cash flow from operating activities in the first half of 2025 was $632 million, compared to $727 million in the same period last year [9]. - The company invested $1.3 billion in the first half of 2025 to enhance its operations [9]. Guidance and Future Plans - American Water Works narrowed its 2025 EPS guidance to $5.70-$5.75, with the Zacks Consensus Estimate at $5.71, slightly below the midpoint of the guidance [11]. - The company reiterated long-term earnings and dividend growth expectations of 7-9% and plans to invest nearly $3.3 billion in 2025 [11]. - Long-term capital expenditure is projected to be between $17-$18 billion for 2025-2029 and $40-$42 billion for 2025-2034 [12]. Analyst Sentiment - Analysts have not made any earnings estimate revisions in the past two months, indicating a period of stability in expectations [13]. - The stock currently holds a subpar Growth Score of D and a Momentum Score of B, with an overall VGM Score of D, placing it in the bottom 40% for value investors [14].