Energy was the worst sector today with every component closing lower in the red. Performers include APA, Marathon Petroleum, Philips 66. Why are we seeing such a drastic move lower and will it continue.Joining us now, Bill Perkins. He is the founder, managing partner, and head trader for Skyler Capital, an energy focused fund. And Bill, it's great to have you back on the show.Welcome. >> Thanks. Great to be back.A lot to get into here, but first I do want to start with the move we've seen in crude oil uh an ...

Core Insights - Comfort Systems USA reported a 33% year-over-year revenue growth in its third-quarter earnings, highlighting its strong performance amidst larger industry players like Honeywell and Carrier [1][2] - The company has experienced significant valuation growth since 2021, driven by increased investment in data centers and reshoring operations, with its stock price rising from approximately $50 to $500 per share over the past two decades [3][4] Company Performance - President and CEO Brian Lane emphasized the exceptional financial results achieved by the company's teams during the earnings call [2] - Comfort Systems, along with competitor Emcor, has historically grown at a steady pace by designing and installing HVAC and other systems for commercial buildings [3] Market Dynamics - The valuation of Comfort Systems and Emcor has surged due to the influx of investment in data centers, which require complex mechanical and electrical systems, making these companies key contractors in the sector [4][5] - Data centers have a significantly higher proportion of mechanical, electrical, and plumbing (MEP) content in construction costs, accounting for 60-70% compared to 20% in typical commercial buildings [6] Competitive Landscape - Comfort Systems focuses on Tier 2 cities, such as Richmond and Nashville, while Emcor targets Tier 1 cities like Los Angeles and Chicago, leading to different market dynamics for both companies [6] - The construction of data centers near Tier 2 cities provides Comfort Systems with additional advantages, as the skilled labor in these areas is less likely to be unionized, resulting in lower costs [7]

Core Viewpoint - Delta Airlines reported strong earnings for the third quarter, leading to a positive market reaction and boosting shares across the airline sector. The company is optimistic about continued growth into the fourth quarter, with expectations for record-breaking performance [1][2][8]. Financial Performance - Delta's third quarter revenue grew by 4% year-over-year, reaching $15.2 billion, which exceeded expectations [4]. - Earnings per share (EPS) for Delta came in at $1.71, marking a 14% increase compared to the previous year [4]. - Domestic passenger revenue increased by 5% year-over-year, driven by stronger corporate travel demand [6]. Market Trends - Premium travel demand outperformed economy class, with revenue from high-end segments increasing by approximately 9% in the quarter [5]. - Despite a 4% decline in main cabin revenue, the overall performance was bolstered by gains in premium cabins [6]. - Delta has improved its guidance for the fourth quarter, projecting earnings between $1.60 and $1.90, which is above market estimates [7][8]. Future Outlook - The CEO of Delta expressed confidence in the company's trajectory, anticipating the fourth quarter to potentially be the best in the company's history [8]. - The airline industry is seeing a rebound in travel trends, which is expected to continue into the next quarter [4][8].

Core Viewpoint - The utilities sector has become opportunistically cheap with strong growth potential and a significant price drop, suggesting that the Utilities Sector ETF (NYSEARCA:XLU) will outperform the broader market while providing defensive benefits in a weakening economy [1] Sector Performance - Utilities fell almost 5% last month despite a 30 basis point drop in interest rates, breaking the typical inverse relationship between utilities and yields [2][5] - Utilities are currently trading at a forward multiple of 18.1X, which is a substantial discount compared to the S&P 500's 30X trailing earnings and 22.1X forward multiple [9][11] Growth Potential - Utilities are forecasted to grow revenue by 6.4%, slightly above the S&P 500's 6.1%, and earnings growth is expected to be 16.6%, significantly outpacing the S&P 500's anticipated 11% growth [13][15][16] - Independent power producers (IPPs) are experiencing temporary growth rates of 70% due to a spike in auction energy prices, while regular electric utilities are growing at 15% [15] Valuation Mispricing - Utilities are undervalued relative to the broader market, with faster growth rates and lower multiples, which typically suggests higher risk; however, utilities are considered reliable businesses with consistent earnings growth [17][18] - The current discount of 4 turns on forward earnings multiple is unwarranted given the improved growth rate of utilities, which has surpassed that of the S&P 500 [25] Defensive Sector Outlook - The utilities sector is expected to benefit from anticipated interest rate cuts, with projections indicating a Fed Funds rate of 350-375 basis points after December [21] - A further decline in Treasury yields could redirect dividend investors' capital into the utility sector, enhancing its attractiveness [23] Investment Opportunities - The XLU ETF has significant holdings in IPPs, which may be overvalued; however, the sector overall remains cheap, with an average earnings multiple of 17.4 among tracked electric utilities [24][26] - Companies like Dominion (D), American Electric Power (AEP), and Pinnacle West (PNW) are highlighted for their strong fundamental positioning within the sector [27] Conclusion - The utilities sector presents a unique opportunity as it combines reliability, moderate growth, and value, making it an attractive investment option [28]

Financial Data and Key Metrics Changes - The company ended Q2 with $1.6 billion in Annual Recurring Revenue (ARR), growing 30% year over year [4] - Net new ARR for Q2 was $105 million, representing a 19% year-over-year increase [15][17] - Q2 revenue reached $391 million, also growing 30% year over year, or 31% in constant currency [17][22] - Non-GAAP gross margin was 78%, up 1 percentage point year over year, while non-GAAP operating margin was 15%, up 9 percentage points [22] Business Line Data and Key Metrics Changes - Customers with $100,000+ ARR contributed close to $1 billion of ARR, up 35% year over year, representing 59% of total ARR [4][15] - The company added 17 customers with more than $1 million in ARR, a quarterly record, with this cohort now generating over 20% of total ARR [4][15] - Approximately 8% of net new Annual Contract Value (ACV) came from new products launched in the past year [15][22] Market Data and Key Metrics Changes - 15% of net new ACV came from non-U.S. geographies, with Europe showing the highest sequential growth in the last four quarters [20] - The construction sector drove the highest net new ACV mix for the eighth consecutive quarter, with significant contributions from public sector and manufacturing [20][21] Company Strategy and Development Direction - The company aims to partner with large and complex operations organizations, which is fueling growth at scale [4][5] - The focus is on leveraging a unique data advantage and accelerating innovation through AI, which is expected to drive higher customer engagement [16][17] - The company is targeting large, less discretionary operations budgets, representing approximately 80% of customers' revenue [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering durable growth and creating long-term shareholder value due to a defensible data advantage and accelerating AI innovation [16][17] - The company is well-positioned to help customers optimize their operations amidst ongoing tariff uncertainties [61][62] Other Important Information - The company processed approximately 20 trillion data points annually, with a growing proprietary data asset that provides unique insights [5][13] - The Connected Operations Cloud platform is expected to drive actionable AI-powered insights for customers [13] Q&A Session Summary Question: Early customer conversations and product traction - Management noted strong enthusiasm for new products launched, particularly in routing and commercial navigation, with positive momentum in trials and pilots across various industries [27][28] Question: Performance bounce back after Q1 - Management indicated that the strong performance in Q2 was partly due to larger deals that were pushed from Q1, with significant momentum from $1 million+ ARR customers [30][32] Question: AI traction and monetization - Management highlighted that AI is enhancing core product experiences and enabling new product introductions, with a focus on delivering value through data insights [35][37] Question: Large customer momentum and investments - Management discussed ongoing investments in supporting large customers, including dedicated teams for strategic accounts and enhancements in product security and integration [42][44] Question: International growth and competitive environment - Management stated that sustained investments in Europe have led to success, with a focus on understanding local market needs and building relevant features [46][47] Question: Pre-delivery installation program value - Management explained that pre-installation of hardware in trucks streamlines operations for large enterprises, providing a better customer experience and operational efficiency [83][84] Question: Smaller and mid-sized customer behavior - Management confirmed consistent performance in the mid-market segment, with strong growth in ARR from $100K+ customers [87]

Ashish Saran SVP, Investor Relations Forward-looking statements Except for statements of historical fact, this presentation contains forward-looking statements (within the meaning of the federal securities laws) including, but not limited to, statements related to market trends and to the company's business and operations, business opportunities, growth strategy and expectations, and financial targets and plans, that involve risks and uncertainties. Words such as "anticipates," "expects," "intends," "plans, ...

Core Viewpoint - Dividends are attractive for investors as they provide passive income and reflect a company's commitment to rewarding shareholders through consistent payout increases [1][13] Company Summaries Apple (AAPL) - Apple reported record Services revenue and record EPS of $1.65 for its March quarter, with total sales growing 5% year-over-year [3] - The company announced a 4% increase in its quarterly dividend payout and a $100 billion share repurchase program, demonstrating strong cash generation capabilities [4] - Apple generated $20.8 billion in free cash flow during the latest period, benefiting from the recent de-escalation of trade tensions in China, which positively impacted its stock price, increasing nearly 20% since the announcement [6][7] Vistra (VST) - Vistra operates a diverse power generation fleet and has seen its shares rise nearly 70% over the past year, driven by demand from AI infrastructure development [8] - The company announced a 3% increase in its quarterly dividend, maintaining a 13% five-year annualized dividend growth rate and a sustainable payout ratio of 12% of earnings [10] - Vistra reaffirmed its current year guidance, providing reassurance to investors amid a challenging earnings cycle [12]