Since the start of 2025, the United States construction sector has been navigating through choppy waters, hit by several unfavorable market factors, including a still-high mortgage rate scenario and an unhinged interest rate environment. With the 30-year mortgage rate lingering between 6.9% and 6.7% (during the January-March 2025 period), reaching as high as 7.04% for the week ending on Jan. 16, 2025, the residential construction market is likely to have remained soft, mainly for the multi-family starts. Ho ...

Sezzle Inc. (SEZL) is scheduled to release its first-quarter 2025 results on May 7, after the bell. SEZL surpassed the Zacks Consensus Estimate in the fourth quarter of 2024 by 40.7%.Sezzle’s Q1 ExpectationsThe Zacks Consensus Estimate projects revenues at $64.8 million, marking a 37.9% increase from the year-ago quarter. This anticipated top-line growth is likely driven by a larger, more engaged subscriber base and favorable momentum from the company’s partnership with WebBank. As part of this collaboratio ...

Core Viewpoint - The Walt Disney Company is expected to report second-quarter fiscal 2025 results on May 7, with revenue estimates at $23.14 billion, reflecting a 4.78% year-over-year growth, while earnings per share (EPS) are projected to decline by 2.48% to $1.18 [1][2]. Financial Performance - The consensus estimate for the current quarter's EPS has decreased by a penny over the past 30 days, indicating a downward trend [2]. - In the last reported quarter, Disney achieved an earnings surprise of 22.22%, with an average surprise of 12.67% over the last four quarters [2]. Earnings Expectations - Current estimates show an Earnings ESP of -1.48% and a Zacks Rank of 4 (Sell), suggesting a low probability of an earnings beat this time [3]. - Management anticipates high-single digit adjusted EPS growth for fiscal 2025 compared to fiscal 2024, contingent on successful execution across various fronts [13]. Segment Performance - The Entertainment segment reported strong performance in the fiscal first quarter, generating $1.7 billion in operating income, a 95% increase year-over-year, but faces challenges in sustaining this momentum [5]. - The Experiences segment, including theme parks and cruise lines, is expected to incur over $40 million in pre-opening expenses for Disney Cruise Line, with total expenses projected to exceed $200 million for the fiscal year [7][8]. - The streaming services, particularly Disney+, are experiencing uncertainty with expected subscriber declines compared to the fiscal first quarter [9]. Strategic Developments - Disney's recent ventures into original programming for Disney+ and the acquisition of a 70% stake in Fubo introduce both strategic opportunities and execution risks, with regulatory approvals required for the Fubo transaction [10][11]. - The combination of Hulu+ Live TV assets with fuboTV adds complexity to integration efforts [10]. Valuation and Market Position - Disney shares have declined 16.9% year-to-date, underperforming the broader Zacks Consumer Discretionary sector [14]. - The company is trading at a forward 12-month P/S ratio of 1.72X, higher than the industry average of 1.39X, indicating a stretched valuation [16]. - Disney's debt stands at $45.3 billion, contrasting unfavorably with its cash and cash equivalents of $6 billion [16]. Investment Considerations - The premium valuation of Disney appears increasingly difficult to justify given the anticipated headwinds in the Sports segment, Cruise Line expenses, and subscriber challenges in streaming [19][20]. - Investors may consider reducing exposure to the stock ahead of the fiscal second-quarter results to mitigate potential risks associated with operational pressures [22].

Core Viewpoint - Canadian Natural Resources Limited (CNQ) is expected to report first-quarter results on May 8, with earnings estimated at 73 cents per share and revenues of $6.8 billion, reflecting a year-over-year increase in both earnings and revenues [1][3]. Group 1: Previous Quarter Performance - In the last reported quarter, CNQ missed the consensus earnings estimate, reporting adjusted earnings per share of 66 cents against an expectation of 69 cents, while total revenues of $6.8 billion exceeded estimates by 6.3% due to increased product sales [2]. - CNQ has had a mixed earnings surprise history, beating estimates twice in the last four quarters and missing twice, with an average surprise of 0.7% [2]. Group 2: Estimate Revisions and Predictions - The Zacks Consensus Estimate for first-quarter 2025 earnings has remained unchanged over the past week, indicating a 43.14% year-over-year increase, while revenue estimates suggest an 11.21% increase from the previous year [3]. - CNQ's revenues are projected to rise to $6,395 million in the upcoming quarter, up from $6,115 million in the same quarter last year, driven by strong performance in the Exploration & Production and Oil Sands Mining and Upgrading segments [5]. Group 3: Production and Operational Highlights - CNQ's oil sands mining and upgrading assets have shown strong production, averaging about 634,000 bbl/d in January and February 2025, with February marking the highest monthly gross production in its history at approximately 640,000 bbl/d [4]. - The company recently completed a swap with Shell, acquiring a 10% interest in the Scotford Upgrader and Quest Carbon Capture facilities, which enhances its production capacity by 31,000 bbl/d [3]. Group 4: Expense Considerations - CNQ is facing rising expenses across various segments, with North Sea expenses expected to increase to $254.2 million from $140 million year-over-year, and Offshore Africa expenses anticipated to rise to $88.6 million from $70 million [6]. - The Oil Sands Mining and Refining expenses are projected to increase to $2,186.5 million and $254.3 million, respectively, compared to $2,139 million and $241 million in the previous year [6].

Core Viewpoint - Crocs, Inc. is expected to report a decline in both revenue and earnings per share for the first quarter of 2025, with challenges stemming from the HEYDUDE brand and a volatile operating environment [1][2][3]. Financial Performance - The consensus estimate for revenues is $909.6 million, reflecting a 3.1% decrease from the previous year [1]. - Earnings per share are estimated at $2.51, indicating a 16.9% decline year-over-year [1]. - The company has a trailing four-quarter earnings surprise of 17.8% on average, with the last quarter surpassing estimates by 10.04% [2]. Brand Performance - The HEYDUDE brand is facing significant challenges, with expected revenue declines of 14-16% due to weak wholesale demand [4]. - The Crocs brand is projected to have flat to slightly down revenue performance, although international growth may provide some support [4]. - Direct-to-consumer (DTC) revenues are growing, but overall brand momentum is under pressure [2][5]. Market Conditions - Crocs anticipates a 3.5% year-over-year revenue decline, influenced by currency fluctuations, with a $19 million adverse impact from foreign currency [3]. - The North America business is expected to decline by mid-single digits, partially due to the timing shift of the Easter holiday [4]. Valuation - Crocs is trading at a forward 12-month price-to-earnings ratio of 7.11X, which is below both its five-year high of 34.18X and the industry average of 10.15X, indicating an attractive valuation opportunity [7]. Stock Performance - Over the past six months, Crocs' shares have decreased by 9.1%, contrasting with the industry growth of 17.6% [8].

Core Viewpoint - Spectrum Brands Holdings, Inc. (SPB) is anticipated to report a decline in both revenue and earnings for the second quarter of fiscal 2025, with revenues expected at $694.9 million, a decrease of 3.3% year-over-year, and earnings per share (EPS) projected at $1.35, down 16.7% from the previous year [1][2]. Financial Performance - The Zacks Consensus Estimate for SPB's fiscal second-quarter revenues is $694.9 million, reflecting a 3.3% decline from the same quarter last year [1]. - The EPS estimate is $1.35, indicating a 16.7% decrease compared to the year-ago quarter, with a 9.4% downward revision in the last 30 days [2]. - In the last reported quarter, SPB achieved an earnings surprise of 12.1%, averaging a 52.5% earnings surprise over the trailing four quarters [2]. Earnings Prediction Model - The current model does not predict an earnings beat for SPB, as it holds an Earnings ESP of +3.70% and a Zacks Rank of 5 (Strong Sell) [3]. Strategic Initiatives - SPB's second-quarter results are expected to reflect the impacts of its aggressive investment strategy focused on long-term value creation, including enhancing brand equity, expanding e-commerce, and modernizing the supply chain [4]. - The expiration of tariff exemptions and new tariffs, particularly affecting the Home & Personal Care (HPC) segment, are anticipated to increase costs and pressure margins [5]. - Ongoing efforts to divest or restructure the HPC segment may face challenges due to geopolitical uncertainties and operational complexities, potentially delaying strategic transactions [6]. Market Conditions - Soft consumer demand in discretionary categories, especially in the HPC segment and small kitchen appliances, may negatively impact overall sales amid macroeconomic pressures like inflation and high interest rates [7]. - The Zacks Consensus Estimate for the HPC segment's sales is $261 million, slightly up from $260 million year-over-year, while the Global Pet Care segment is expected to see revenues of $278 million, down from $291 million [8]. Valuation and Stock Performance - SPB is trading at a forward 12-month price-to-earnings ratio of 12.79X, higher than the industry average of 11.34X [9]. - SPB's shares have declined by 22% over the past three months, compared to a 9.9% decline in the industry [10].

Core Viewpoint - Viatris (VTRS) is set to report its first-quarter 2025 results on May 8, 2025, with revenue estimates at $3.24 billion and earnings at $0.50 per share [1] Group 1: Revenue Performance by Segment - Growth in Developed Markets is expected to be driven by strong new product performance and generics, with revenue estimates at $1.9 billion [2][3] - Emerging Markets are likely to see growth from the expansion of the cardiovascular portfolio in Latin America and key markets like Turkey, India, and Brazil, with revenue estimates at $480 million [4] - Sales in JANZ (Japan, Australia, and New Zealand) are anticipated to be negatively impacted by government price regulations, with revenue estimates at $309 million [5] - Greater China may experience revenue growth due to demand for chronic disease management products, with estimates at $553 million [6] Group 2: Brand and Generic Performance - The brand business constitutes the majority of Viatris' portfolio, benefiting from cardiovascular portfolio expansion in Latin America and strong growth in Europe and Greater China [7] - Operating expenses are expected to rise due to investments in new product launches and R&D progress [7] Group 3: Stock Performance and Earnings History - Viatris' shares have declined by 31.2% over the past year, contrasting with a 1% decline in the industry [8] - The company has a mixed earnings surprise history, beating estimates in two of the last four quarters and missing in the other two, with an average surprise of 1.26% [9] Group 4: Earnings Prediction Model - The current model does not predict an earnings beat for Viatris, as it has a Zacks Rank of 4 (Sell) despite an Earnings ESP of +3.31% [10][11]

Core Viewpoint - Sealed Air Corporation (SEE) is expected to report a decline in both net sales and earnings for the first quarter of 2025, with a consensus estimate of $1.27 billion in net sales, reflecting a 4.6% decrease year-over-year, and earnings estimated at 67 cents per share, indicating a 14.1% decline from the previous year [1]. Group 1: Earnings Performance - Sealed Air has a history of beating earnings estimates, with an average surprise of 27.1% over the last four quarters [2]. - The current Earnings ESP for Sealed Air is +0.12%, and the company holds a Zacks Rank of 3, suggesting a neutral outlook [4]. Group 2: Segment Performance - The Protective segment has faced lower volumes for 12 consecutive quarters, with a projected year-over-year volume decline of 4.2% for Q1 2025 [5]. - The Food segment, after experiencing lower volumes for seven quarters, is expected to show flat volumes year-over-year in Q1 2025, with net sales estimated at $841 million, a 3.1% decrease from the prior year [6][7]. - The Protective segment's net sales are estimated at $419 million, reflecting a 9.2% year-over-year decline, with adjusted EBITDA projected to decrease by 17.5% [8]. Group 3: Operational Factors - The company's Reinvent SEE Strategy is expected to drive productivity gains and mitigate supply-chain challenges, positively impacting operating margins in the March-ended quarter [9]. Group 4: Stock Performance - Over the past year, Sealed Air's stock has declined by 20.5%, compared to a 10.5% decline in the industry [10].

Core Insights - Corpay, Inc. (CPAY) is set to release its first-quarter 2025 results on May 6, with expectations of surpassing the Zacks Consensus Estimate for the fifth consecutive quarter, having achieved an average earnings surprise of 0.6% in the past four quarters [1][2] Revenue Expectations - The Zacks Consensus Estimate for Corpay's revenues is $1 billion, indicating an 8% growth compared to the same quarter last year, driven by improved performances across three segments [2] - Vehicle payments are projected to generate revenues of $506.7 million, reflecting a 2.6% increase year-over-year, supported by toll tax hikes in Brazil and enhanced digital sales efforts in the U.S. [3] - Corporate payments are estimated at $335.7 million, suggesting a significant 26.5% year-over-year growth, attributed to solid spending volumes and rising cross-border revenues [4] - Lodging revenues are expected to reach $115.8 million, indicating a 4.1% growth from the previous year, bolstered by improved same-store sales in Corpay's workforce business [4] Earnings Projections - The consensus estimate for earnings per share is $4.49, which represents a 9.5% increase year-over-year, driven by robust revenue growth and effective expense management [5] - Current analysis indicates that Corpay may not achieve an earnings beat this quarter, with an Earnings ESP of -0.22% and a Zacks Rank of 3 (Hold) [6]

Kyndryl (KD) is scheduled to release fourth-quarter fiscal 2025 results on May 7, after market close.The company surpassed the Zacks Consensus Estimate in the past four trailing quarters. On average, it delivered an earnings surprise of 60.5%.Kyndryl Holdings, Inc. Price, Consensus and EPS Surprise Kyndryl’s Q4 ExpectationsThe Zacks Consensus Estimate for revenues is pegged at $3.8 billion, indicating a 1.9% decline from the year-ago quarter’s actual. The top line is expected to have declined on the back of ...