Earnings Surprise
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DOW Warms Up to Q1 Earnings: What's in the Cards for the Stock?
ZACKS· 2025-04-23 11:10
Core Viewpoint - Dow Inc. is expected to report a decline in first-quarter 2025 results due to soft demand and pricing pressures, despite some benefits from productivity initiatives [1][2]. Revenue Estimates - The Zacks Consensus Estimate for Dow's revenues in the upcoming quarter is $10,271.4 million, reflecting a year-over-year decline of 4.6% [6]. - Revenue estimates for the Packaging & Specialty Plastics segment are projected at $5,172.1 million, indicating a 4.8% decline year over year [6]. - The Industrial Intermediates & Infrastructure segment is expected to generate $2,872.6 million, showing a 4.5% year-over-year decline [6]. - The Performance Materials & Coatings segment is estimated to bring in $2,098.2 million, suggesting a 2.5% decline year over year [7]. Factors Affecting Q1 Results - Dow is facing demand softness in Europe and China, with lower consumer spending due to inflation impacting demand in Europe [8]. - Construction and manufacturing activities in Europe remain weak, while the property sector in China is sluggish with declining new home prices [8]. - Inflationary pressures are affecting demand for consumer durables and construction, with automotive demand in Europe also softening [9]. - The Performance Materials & Coatings unit is challenged by weak siloxane prices due to competitive pricing pressures from increased supply in Asia [10]. - Higher feedstock and energy costs are expected to impact earnings, with a projected $100 million headwind in the Packaging & Specialty Plastics segment [12]. Cost-Saving Initiatives - Dow is implementing targeted actions to reduce direct and labor costs, aiming to cut costs by $1 billion to improve margins [13]. - The benefits of these cost-saving actions are anticipated to be reflected in the company's bottom line for the upcoming quarter [13]. Earnings Prediction - The Earnings ESP for Dow is currently at 0.00%, with a consensus estimate indicating a loss of 2 cents for the first quarter [15]. - Dow carries a Zacks Rank of 5 (Strong Sell), indicating a low likelihood of an earnings beat this season [16].
Quest Diagnostics Q1 Earnings & Revenues Top Estimates, Stock Up
ZACKS· 2025-04-22 15:35
Core Viewpoint - Quest Diagnostics Inc. reported strong first-quarter 2025 results, with adjusted earnings per share (EPS) of $2.21, exceeding estimates and showing year-over-year growth [1][2][8] Financial Performance - Adjusted EPS of $2.21 beat the Zacks Consensus Estimate by 2.8% and increased by 8.3% compared to the previous year [1] - GAAP EPS was $1.94, reflecting a 12.8% increase from the same quarter last year [2] - Revenues rose 12.1% year over year to $2.65 billion, surpassing the Zacks Consensus Estimate by 1.5% [3] - Diagnostic Information Services revenues increased by 12.7% year over year to $2.59 billion, exceeding projections [3] - Volumes measured by requisitions were up 12.5% year over year, with revenue per requisition increasing by 0.3% [4] Margin and Cost Analysis - Cost of services was $1.79 billion, up 12.2% year over year, while gross profit reached $863 million, an 11.9% increase [5] - Gross margin stood at 32.5%, nearly unchanged from the previous year [5] - SG&A expenses were $476 million, an 8.1% increase from the first quarter of 2024 [5] - Adjusted operating margin improved by 60 basis points year over year to 14.6% [5] Liquidity and Financial Health - Cash and cash equivalents at the end of Q1 2025 were $188 million, down from $549 million at the end of Q4 2024 [6] - Cumulative net cash from operating activities was $314 million, compared to $154 million at the same time last year [6] - The company has a five-year annualized dividend growth rate of 7.17% [6] 2025 Guidance - Full-year 2025 revenue outlook is reaffirmed at $10.70 billion to $10.85 billion, indicating a year-over-year increase of 8.4% to 9.9% [7] - Adjusted EPS guidance remains unchanged at $9.55 to $9.80, with the Zacks Consensus Estimate at $9.68 [7] Market Reaction and Outlook - Following the earnings report, DGX shares gained nearly 6.7% in pre-market trading [2] - The growth in revenue was attributed to a rebound in demand, contributions from acquisitions, and expanded health plan access [8][9]
Earnings Preview: Archer Daniels Midland (ADM) Q1 Earnings Expected to Decline
ZACKS· 2025-04-22 15:07
The market expects Archer Daniels Midland (ADM) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if the ...
Entergy (ETR) Earnings Expected to Grow: Should You Buy?
ZACKS· 2025-04-22 15:07
Entergy (ETR) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 29. On the ...
Earnings Preview: Kraft Heinz (KHC) Q1 Earnings Expected to Decline
ZACKS· 2025-04-22 15:07
Core Viewpoint - The market anticipates a year-over-year decline in Kraft Heinz's earnings due to lower revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Kraft Heinz is expected to report quarterly earnings of $0.60 per share, reflecting a 13% decrease year-over-year, with revenues projected at $6 billion, down 6.5% from the previous year [3]. - The consensus EPS estimate has been revised 0.38% 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 is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -0.94%, which indicates a bearish outlook on earnings prospects [10][11]. - Historically, Kraft Heinz has beaten consensus EPS estimates in the last four quarters, with a notable surprise of +7.69% in the last reported quarter [12][13]. Stock Movement Factors - The potential for stock movement hinges on whether the earnings report exceeds or falls short of expectations, with management's commentary on business conditions being crucial [2][14]. - Despite the negative Earnings ESP, other factors may influence stock performance, making it essential to consider a broader range of indicators [14][16].
General Motors (GM) Earnings Expected to Grow: Should You Buy?
ZACKS· 2025-04-22 15:06
Core Viewpoint - General Motors (GM) is anticipated to report a year-over-year increase in earnings despite a decline in revenues for the quarter ending March 2025, with the actual results being crucial for the stock's near-term price movement [1][2]. Earnings Expectations - The earnings report is scheduled for release on April 29, 2025, and could positively influence the stock if the results exceed expectations; conversely, missing estimates may lead to a decline [2]. - The consensus estimate for GM's quarterly earnings is $2.64 per share, reflecting a year-over-year increase of 0.8%, while revenues are projected at $42.37 billion, a decrease of 1.5% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 1.83%, indicating a reassessment by analysts regarding GM's earnings prospects [4]. - The Zacks Earnings ESP (Expected Surprise Prediction) model suggests that recent estimate revisions provide insights into the company's business conditions leading up to the earnings release [5][6]. Earnings Surprise Potential - GM's Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +6.34%, indicating a likelihood of beating the consensus EPS estimate [10][11]. - Historically, GM has successfully beaten consensus EPS estimates in the last four quarters, with a notable surprise of +3.78% in the most recent quarter [12][13]. Conclusion - While GM is positioned as a strong candidate for an earnings beat, other factors should also be considered when evaluating the stock ahead of the earnings release [16].
Amcor (AMCR) Earnings Expected to Grow: Should You Buy?
ZACKS· 2025-04-22 15:06
The market expects Amcor (AMCR) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the st ...
Earnings Preview: Northern Oil and Gas (NOG) Q1 Earnings Expected to Decline
ZACKS· 2025-04-22 15:06
Core Viewpoint - The market anticipates a year-over-year decline in earnings for Northern Oil and Gas (NOG) despite an increase in revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Northern Oil and Gas is expected to report quarterly earnings of $1.12 per share, reflecting a year-over-year decrease of 12.5% [3]. - Revenue projections stand at $557.77 million, indicating a 4.8% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 10.72% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Northern Oil and Gas is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.96% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive reading is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [8]. - Northern Oil and Gas currently holds a Zacks Rank of 4, complicating the prediction of an earnings beat despite the positive Earnings ESP [11]. Historical Performance - In the last reported quarter, Northern Oil and Gas was expected to earn $1.13 per share but reported $1.11, resulting in a surprise of -1.77% [12]. - Over the past four quarters, the company has exceeded consensus EPS estimates three times [13]. Conclusion - While Northern Oil and Gas does not appear to be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [16].
Earnings Preview: ArcBest (ARCB) Q1 Earnings Expected to Decline
ZACKS· 2025-04-22 15:06
The market expects ArcBest (ARCB) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Apr ...
Analysts Estimate Pfizer (PFE) to Report a Decline in Earnings: What to Look Out for
ZACKS· 2025-04-22 15:06
Company Overview - Pfizer is expected to report quarterly earnings of $0.67 per share, reflecting a year-over-year decline of 18.3% [3] - Revenues are anticipated to be $13.88 billion, down 6.7% from the same quarter last year [3] - The Most Accurate Estimate for Pfizer is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -7.23% [10] Earnings Expectations - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from analysts [4] - A positive or negative Earnings ESP reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [7][8] - Despite a Zacks Rank of 2 (Buy), the negative Earnings ESP makes it challenging to predict an earnings beat for Pfizer [11] Historical Performance - In the last reported quarter, Pfizer exceeded expectations by delivering earnings of $0.63 per share against an expected $0.48, resulting in a surprise of +31.25% [12] - Over the past four quarters, Pfizer has consistently beaten consensus EPS estimates [13] Industry Context - AbbVie, a peer in the Large Cap Pharmaceuticals industry, is expected to post earnings of $2.40 per share, indicating a year-over-year increase of 3.9% [17] - AbbVie's revenue is projected to be $12.91 billion, up 4.8% from the previous year [17] - AbbVie has an Earnings ESP of -0.92% and a Zacks Rank of 3 (Hold), making it difficult to predict an earnings beat [18]