Key Points Fiserv's third-quarter report arrived with huge sales and earnings misses. The company also issued major downward revisions for its organic revenue growth and earnings targets. Organic revenue growth is now expected to come in at roughly 4%, and adjusted earnings per share are projected to dip slightly. 10 stocks we like better than Fiserv › Fiserv (NYSE: FI) stock is getting crushed in Wednesday's trading following a very disappointing quarterly report. The fintech company's share pric ...

Core Insights - Hubbell Incorporated reported strong third-quarter results for 2025, with double-digit adjusted earnings per diluted share growth driven by robust organic growth in Electrical Solutions and Grid Infrastructure products within the Utility Solutions segment, alongside a lower year-over-year tax rate [2][3]. Financial Performance - The Utility Solutions segment net sales increased by 1% to $944 million compared to $933 million in Q3 2024, with organic net sales also up approximately 1%. Grid Infrastructure net sales rose by about 9%, while Grid Automation net sales fell by approximately 18% [5]. - The Electrical Solutions segment net sales grew by 10% to $559 million compared to $510 million in Q3 2024, with organic net sales increasing by 8% and an acquisition contributing 1% [6]. - The effective tax rate decreased to 17.5% in Q3 2025 from 21.0% in Q3 2024, primarily due to a significant income tax benefit from an international restructuring [7]. - Adjusted diluted EPS for Q3 2025 was $5.17, compared to $4.61 in Q3 2024, reflecting a 12% increase [8][12]. Operational Highlights - The company achieved an operating margin of 22.0% in Q3 2025, up from 21.7% in Q3 2024, while the adjusted operating margin was 23.9%, compared to 23.8% in the prior year [12][36]. - Net cash provided by operating activities was $284 million in Q3 2025, an increase from $227 million in the same period of 2024. Free cash flow also rose to $254 million from $189 million year-over-year [9]. Outlook - For the full year 2025, Hubbell anticipates diluted EPS in the range of $16.55-$16.75 and adjusted diluted EPS between $18.10-$18.30, with total sales growth and organic net sales growth expected to be 3-4% [10][11].

Financial Data and Key Metrics Changes - The company reported a Q3 EBITDA margin of 54.4%, supported by growth in the commercial aftermarket and a focus on operating strategy [13][39] - Operating cash flow for Q3 exceeded $630 million, with a cash balance of nearly $2.8 billion at the end of the quarter [13][40] - Full fiscal year 2025 sales guidance was decreased by $60 million to a midpoint of $8.79 billion, while EBITDA guidance was raised by $40 million to a midpoint of $4.725 billion, reflecting a 13% increase [14][17] Business Line Data and Key Metrics Changes - Commercial OEM revenue decreased by 7% year-over-year in Q3, attributed to lower production rates at Boeing and Airbus [25][26] - Commercial aftermarket revenue increased by approximately 6% compared to the prior year, with growth across all submarkets [28][29] - Defense market revenue grew by approximately 13% year-over-year, with healthy bookings supporting continued growth [30][31] Market Data and Key Metrics Changes - The commercial OEM market is expected to see revenue growth in the flat to low single-digit percentage range, down from previous expectations [15][16] - The commercial aftermarket and defense revenue growth guidance remains unchanged, with expectations of high single-digit to low double-digit percentage growth [16][31] - The company noted that supply chain issues remain a bottleneck for OEM production ramp-up, but improvements are being observed [28][78] Company Strategy and Development Direction - The company aims to provide private equity-like returns with the liquidity of a public market, focusing on proprietary aerospace businesses with significant aftermarket content [10][11] - Recent acquisitions, including Servotronics and Simmons Precision, align with the company's strategy to enhance its portfolio [21][22] - The company maintains a disciplined approach to capital allocation, prioritizing reinvestment in businesses and accretive M&A [23][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the commercial OEM market, despite current challenges, and expects a return to positive growth in Q4 [62][63] - The company remains focused on operational excellence and efficient cost structures to navigate uneven demand in the commercial OEM market [19][39] - Management highlighted the importance of monitoring the aerospace and capital markets for future adjustments [18] Other Important Information - The company announced leadership transitions, with Mike Lisman set to take over as CEO on October 1 [38][39] - The company is approximately 75% hedged on its total gross debt balance, providing protection against interest rate fluctuations [41][42] Q&A Session Summary Question: About the aftermarket performance and future expectations - Management indicated that the commercial aftermarket growth is in line with expectations, and they anticipate continued growth in the high single-digit to low double-digit range [47][49] Question: Visibility into fourth-quarter growth rates - Management expressed confidence in achieving the guidance for the year, with expectations for a return to positive growth in the commercial OEM segment [60][63] Question: Supply chain improvements and potential headwinds - Management noted that supply chain conditions are improving, although some issues remain, and they are hopeful for a quick resolution to any disruptions [78][81] Question: Competitive landscape and second sourcing - Management reported no significant changes in the competitive landscape regarding second sourcing or PMA competition, maintaining a strong position in the market [102][104] Question: Insights on recent acquisitions and future opportunities - Management expressed optimism about the acquisition of Simmons and the potential for more carve-outs in the aerospace and defense sector [107][108]

Financial Data and Key Metrics Changes - Second quarter sales from continuing operations grew 4% on a reported basis and 1% on an operational basis, with adjusted earnings per share from continuing operations at $0.59, increasing 28% over the prior year [5][10][24] - Adjusted gross margins from continuing operations were 14.7%, a decrease of 170 basis points compared to the prior year [19] - Adjusted operating margin was 15.1%, improving 180 basis points compared to the prior year [21] Business Segment Data and Key Metrics Changes - Medical Products and Therapies (MPT) segment sales were $1.3 billion, increasing 1% in the quarter, with ITT division sales declining 1% to $1 billion [10][11] - Advanced Surgery sales totaled $296 million, growing 5% globally [14] - Healthcare Systems and Technologies (HST) sales were $767 million, increasing 2%, with Care and Connectivity Solutions (CCS) division sales rising 4% to $474 million [15] - Pharmaceutical segment sales totaled $612 million, increasing 1%, with injectables and anesthesia sales declining 4% [16][17] Market Data and Key Metrics Changes - U.S. patient admissions were slightly lower than anticipated, impacting demand for certain products [11] - International sales in CCS increased 7%, while frontline care sales declined 1% compared to the prior year [15][16] Company Strategy and Development Direction - The company aims to enhance operational effectiveness and improve performance, focusing on innovation and growth opportunities [6][30] - A strategic partnership with Visient was announced to ensure reliable access to IV fluids during supply disruptions [12] - The company is committed to maintaining a comprehensive IV Solutions portfolio and is optimistic about the recovery of hospital practices over time [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged softness in demand for certain products and the impact of fluid conservation efforts on sales [5][11] - The company expects total sales growth of 6% to 7% on a reported basis for 2025, with operational sales growth revised to 3% to 4% [26][34] - Management remains confident in the fundamentals of the business and anticipates a return to normal practices in the healthcare sector [30][66] Other Important Information - The company has incurred negative free cash flows of $144 million year-to-date but generated $77 million of positive free cash flows in the second quarter [25] - The anticipated impact from tariffs is estimated at approximately $40 million in 2025, a reduction from previous estimates [32] Q&A Session Summary Question: Impact of NOVUM on sales and operating margin - Management confirmed no impact from NOVUM in the second quarter and expressed confidence in the platform despite a voluntary pause in shipments [42][44] Question: Guidance implications if NOVUM issues persist - The low end of guidance assumes no further shipments of NOVUM for the rest of the year, capturing potential downside risks [48][52] Question: Evolution of business trends throughout the quarter - Management noted that business trends worsened, particularly in U.S. injectables, and emphasized a more reserved approach for the second half of the year [62][66] Question: TSA income and stranded costs management - Management is on track to mitigate stranded costs and ensure that TSA roll-off does not outpace stranded cost reductions [71][73] Question: Revenue guide reduction specifics - Management did not provide specific numbers but indicated that the low end of guidance assumes no improvement in fluid conservation [78] Question: Long-term growth model and new CEO's impact - Management highlighted ongoing innovation and new product launches as key to returning to 4% to 5% revenue growth, with optimism for 2026 [83][88]

Core Insights - CVS Health reported a net income of $1 billion for the second quarter of 2025, indicating progress in managing health benefit costs associated with its Aetna health insurance business [2][5] - The company's medical benefit ratio increased slightly to 89.9% in the second quarter, compared to 89.6% in the same period last year, while the six-month ratio improved to 88.6% from 90% [3] - Adjusted earnings per share remained relatively stable at $1.81, compared to $1.83 in the previous year, reflecting improved performance in the Health Care Benefits and Pharmacy & Consumer Wellness segments [6] Financial Performance - Total revenues in the health care benefits segment rose by 11.6% to nearly $36.3 billion, driven by growth in the Government business due to the Inflation Reduction Act's impact on Medicare Part D [8] - Overall company revenues increased by 8.4% to $98.9 billion, up from $91.2 billion in the prior year, with growth across all operating segments [8] - In the pharmacy and wellness segment, total revenues increased by 12.5% to $33.58 billion, primarily due to increased prescription and front store volume [9] Membership and Market Position - CVS has over 26 million members in its Aetna health insurance plans, although total membership decreased by 358,000 since March 31, reflecting declines in the individual exchange product line [7] - The company plans to exit the individual business under the Affordable Care Act effective with the 2026 benefit year, currently serving about 1 million individuals across 17 states [7] - CVS emphasizes its commitment to providing a connected and simpler health care experience for the 185 million people it serves, showcasing strong operational and financial improvements [9]