Jeni Hollander VP of Investor Relations Forward-Looking Statements and Non-GAAP Financial Measures Fiscal first quarter 2026 earnings September 18, 2025 Certain statements in this oress release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act, such as statements expected cost savings, the optimization of our network 2.0, the planned tax-free full separation of the FedEx Freight business into a new publicly traded company (the l"FedEx Freight Spi ...

Core Viewpoint - FedEx Corporation is expected to show revenue and earnings per share growth in its upcoming first-quarter financial results, despite a recent trend of stock sell-offs following earnings reports [1]. Earnings Estimates - Analysts predict FedEx will report first-quarter revenue of $21.67 billion, an increase from $21.60 billion in the same quarter last year [2]. - Expected earnings per share for the first quarter are $3.62, up from $3.60 in the previous year [2]. - The company has beaten revenue estimates in three consecutive quarters but only in four of the last ten quarters overall [2]. Recent Performance and Guidance - FedEx beat earnings per share estimates in the fourth quarter and has surpassed estimates in six of the last ten quarters [3]. - The company's guidance for first-quarter earnings per share is between $3.40 and $4.00, with revenue guidance ranging from $21.60 billion to $22.03 billion [3]. Analyst Sentiment - Analysts have been reducing their price targets for FedEx ahead of the earnings report, indicating a cautious outlook [4]. - Jay Woods from Freedom Capital Markets noted that FedEx has been a frustrating stock, with shares declining after each of the last four earnings reports [4]. - The implied volatility on FedEx's earnings day is +/- 7.1% [5]. Key Items to Watch - Investors will focus on shipment volumes and the impact of a recent partnership with Amazon on FedEx's shipments [5]. - The expiration of a partnership with the United States Postal Service may also affect the company's performance [6]. - FedEx is targeting $1 billion in cost savings by fiscal 2026, and investors will be keen to see any updates on this goal [6]. Analyst Ratings and Price Targets - Evercore ISI Group downgraded FedEx from Outperform to In-Line, lowering the price target from $249 to $243 [7]. - Bernstein maintained a Market Perform rating but reduced the price target from $249 to $247 [7]. - Bank of America Securities downgraded from Buy to Neutral, lowering the price target from $245 to $240 [7]. - JPMorgan maintained an Overweight rating but lowered the price target from $290 to $285 [7]. - UBS maintained a Buy rating while reducing the price target from $297 to $293 [7]. Stock Performance - FedEx stock is currently up 0.9% to $229.64, with a 52-week trading range of $194.30 to $308.53 [8]. - The stock has declined 16.3% year-to-date in 2025 [8].

Company Performance - Celsius Holdings, Inc. reported $1.07 billion in revenues for the first half of 2025, representing a 41% increase year-over-year [1][8] - The second quarter alone generated $739.3 million, with $301.2 million attributed to the newly acquired Alani Nu brand [1][8] - Management has set a target of $50 million in cost savings from the integration of Alani Nu [2] Market Position and Consumer Demand - Celsius products are now available in over 240,000 U.S. retail outlets, reaching approximately 43% of U.S. households [2] - Strong repeat purchases and significant performance during Amazon Prime Day indicate robust consumer demand [2] - New flavors and limited-time offers have contributed to sustained momentum in sales [2] Competitive Landscape - Monster Beverage Corporation reported a 4.4% increase in net sales to $3.97 billion for the first half of 2025, with second-quarter revenues up 11.1% to $2.11 billion [4] - The Coca-Cola Company achieved flat first-half net revenues of $23.7 billion, with a 5% organic growth, and second-quarter revenues rose 1% to $12.5 billion [5] Financial Metrics and Valuation - Celsius Holdings' stock has surged 74.3% over the past year, contrasting with a 17% decline in the industry [6] - The company trades at a forward price-to-earnings ratio of 44.56, significantly higher than the industry average of 15.67 [10] - The Zacks Consensus Estimate projects year-over-year earnings growth of 54.3% for 2025 and 28.6% for 2026 [13]

Core Insights - Hooker Furniture Corporation (NASDAQ: HOFT) reported Q2 FY26 results with revenue of $82.1 million, operating income of ($4.4) million, and adjusted EPS of ($0.31), falling short of consensus estimates [1] - Revenue declined 13.6% year-over-year, primarily due to a 44.5% decline at HMI driven by weak demand, tariff-related buying hesitancy, and a major customer bankruptcy [1] - Despite the sales decline, consolidated gross margin remained stable at 20.5%, supported by cost savings and improved labor efficiency [1] Financial Performance - HOFT's revenue of $82.1 million was below the expected $93.7 million and consensus of $91.2 million [1] - Operating income was reported at ($4.4) million, compared to estimates of ($0.8) million and ($1.5) million [1] - Adjusted EPS of ($0.31) was worse than the expected ($0.08) and consensus of ($0.16) [1] Sales and Market Dynamics - HMI experienced a significant 44.5% year-over-year decline in sales, indicating weak demand and external pressures [1] - In contrast, Hooker Branded net sales grew by 1.3% year-over-year, while Domestic Upholstery sales remained flat, showing resilience in legacy brands [1] Cost Management and Profitability - The company achieved $3.7 million in expense savings in the first half of FY26, moving towards an annualized savings goal of $25 million by FY27 [8] - Management is focused on navigating macroeconomic challenges, including housing market weakness and high mortgage rates, while aiming to return to profitability [1] Debt and Liquidity - HOFT repaid $16.5 million of debt year-to-date and reduced inventory to $58.5 million, enhancing liquidity during the transition to a new warehouse in Vietnam [8]

Market Opportunity & Protocol Performance - A protocol achieving $155 million ARR suggests significant market potential [1] - 70% cost savings for enterprises indicates a strong value proposition [1] Potential Market Inefficiency - The market may be undervaluing the protocol's actual revenue and impact [1] - Traders might be overlooking the protocol's revenue generation capabilities [1]

Medtronic Conference Summary Company Overview - **Company**: Medtronic (NYSE: MDT) - **Date of Conference**: September 10, 2025 - **Key Speaker**: Greg Smith, Executive Vice President of Enterprise Operations Key Points and Arguments Supply Chain and Operations - Medtronic's supply chain was decentralized with four manufacturing teams and nine supply chain organizations before 2021, leading to inefficiencies [3][4] - Stabilization of the supply chain took approximately two and a half years, with significant foundational work required [5][6] - Over 250 personnel were deployed to suppliers to resolve issues during the pandemic [5] Cost of Goods Sold (COGS) - COGS is primarily composed of materials (60%), labor, and burden [8] - Initial cost savings were mainly from supplier negotiations, but now focus has shifted to improving productivity across all cost buckets [9][10] - Gross savings from materials have increased from 2.5% to over 5%, with inflation now at 3% [11][14] Material Purchasing and Supplier Management - Medtronic improved its preferred supplier base from 40% to 68%, enhancing leverage and cost structure [18] - The company has implemented a Value Added Value Engineering (VAV) team to optimize product designs and reduce costs [19][20] - Savings from preferred suppliers can vary, with some yielding single-digit savings and others high double-digit savings [23] Labor and Manufacturing Efficiency - Medtronic has adopted a lean manufacturing process, the Medtronic Performance System, across all facilities to standardize operations [26][27] - The company has achieved almost double-digit productivity improvements in factories [16] - Labor costs are seen as a risk due to statutory increases in certain countries, particularly Mexico [30][60] Burden and Overhead Management - Burden includes overhead costs such as engineering and infrastructure [32] - Automation and AI are being utilized to reduce manual inspections and improve efficiency [33][86] Logistics and Distribution - Medtronic has taken over its distribution network, closing five third-party distribution centers and opening new ones [37][40] - The logistics cost is estimated to be 2% to 3% of sales, with 60% attributed to COGS [39] - The company aims to minimize touches and maximize shipping efficiency [37][38] Tariffs and Geopolitical Risks - The company is actively managing logistics to optimize tariffs and has a strong focus on country of origin for products [52][54] - Geopolitical events pose significant risks to supply chains, and Medtronic is aware of its tiered supplier risks [91] Future Outlook - Medtronic anticipates continued improvements in gross savings through ongoing programs and initiatives [90] - The company is focused on balancing fixed cost investments with potential demand, particularly for new product launches [81][85] AI and Technology Integration - AI is being integrated into various processes, including demand planning and manufacturing execution systems [86][87] - The goal is to achieve zero-touch order processing and improve overall productivity [88] Additional Important Insights - The company has a robust pipeline of programs aimed at achieving the targeted 5% gross savings [70][71] - Continuous improvement and transformational programs are essential for driving down material costs and enhancing productivity [90] - The management team is supportive of initiatives that align with the company's strategic goals [67]

Core Insights - The Hershey Company is enhancing its focus on efficiency through its Advancing Automation and Agility (Triple A) transformation program, now expecting $150 million in net savings for the year, an increase from the previous forecast of $125 million, and raising the three-year target to $400 million from $350 million [1][9] Group 1: Cost Management and Efficiency - A key initiative, Smart Complexity, aims to simplify packaging and product assortments, streamline manufacturing, and utilize technology-enabled automation, which is expected to reduce costs and create efficiencies for both the company and its retail partners [2] - Hershey's execution on cost management is ahead of schedule, showing visible improvements in manufacturing and administrative efficiency, indicating confidence in achieving higher productivity than initially anticipated [4] Group 2: Margin Pressures and Recovery Strategies - Hershey's adjusted gross margin decreased by 510 basis points to 38.1% in Q2 2025 due to cocoa inflation and tariffs impacting profitability, with the expanded savings pipeline intended to help offset these pressures and support margin recovery [3] - Management believes that combined pricing actions, procurement strategies, and productivity initiatives could restore over 500 basis points of adjusted gross margin by 2026 [3][9] Group 3: Market Performance and Valuation - Hershey's shares have declined by 2.3% over the past month, underperforming the industry decline of 1.5% and the broader Consumer Staples sector and S&P 500 index growth of 1.7% and 2%, respectively [5] - The company currently trades at a forward 12-month P/E ratio of 29.09, which is higher than the industry average of 23.49 and the sector's 17.12, indicating a premium valuation relative to peers and reflecting market expectations regarding its business stability [10]

Cost Analysis - Surrogacy costs are reaching $200,000 [1] - Couples are increasingly relying on friends and family for surrogacy to save money [1] Relationship Impact - Financial pressures from surrogacy are testing the limits of relationships [1]

Core Insights - Philip Morris International Inc. is on track with its three-year cost-savings program, targeting $2 billion in gross cost efficiencies between 2024 and 2026, having already realized over $1.2 billion by mid-2025 [1][8] - The company's profitability is improving, with an adjusted operating income margin expansion of 290 basis points in the first half of 2025, indicating strong operational execution [2][4] Cost-Saving Initiatives - The company is advancing initiatives to streamline operations and boost productivity, including manufacturing and organizational process optimizations [3][4] - In the second quarter, restructuring charges of $243 million were recorded related to manufacturing footprint optimization in Germany [3] Peer Comparison - Altria Group, Inc. reported a 4.2% increase in adjusted operating companies income in Q2 2025, driven by higher pricing and reduced costs, despite lower shipment volumes [5] - Turning Point Brands, Inc. achieved a gross margin expansion of 310 basis points year over year, reaching 57.1%, while investing in sales and marketing to strengthen long-term growth [6] Valuation and Earnings Estimates - Philip Morris shares have decreased by 7.7% in the past month, contrasting with the industry's growth of 0.1% [7] - The company trades at a forward price-to-earnings ratio of 20.67X, higher than the industry's average of 15.23X [10] - The Zacks Consensus Estimate for PM's earnings per share for 2025 and 2026 has increased slightly to $7.50 and $8.39, respectively [11]

Group 1 - Gannett Co., Inc. (NYSE: GCI) is undergoing multiple changes aimed at enhancing its operations and increasing profitability [1]