Key Takeaways GLDD, INFU, TILE and CENX stocks were screened for margins, EPS growth and bullish analyst sentiment.All have witnessed upward EPS estimate revisions recently, reflecting confidence in their outlooks.All picks hold high Zacks Ranks and strong VGM Scores, supporting their upside potential.Investors seek companies that consistently generate profits. One of the best metrics to measure profitability is the net profit margin. This metric highlights a company's ability to convert sales into actual p ...

Core Insights - Baker Hughes Company (BKR) has announced a definitive agreement to acquire Chart Industries (GTLS) for $210 per share, valuing the deal at $13.6 billion, which is a strategic move to enhance its Industrial & Energy Technology segment [1][8] Group 1: Acquisition Details - The acquisition is expected to add $4.2 billion in revenues and $1 billion in adjusted EBITDA for Chart Industries in 2024, expanding Baker Hughes' capabilities in LNG and decarbonization markets [2][8] - The deal has been unanimously approved by both companies' boards and is subject to regulatory approvals and a shareholder vote from Chart investors [4] Group 2: Financial Implications - Baker Hughes anticipates $325 million in annualized cost synergies by year three through supply-chain consolidation and operational efficiencies [3] - The transaction is projected to be accretive to growth, margins, earnings per share (EPS), and cash flow, with expectations of double-digit EPS growth within the first full year post-closing [3][8] Group 3: Strategic Positioning - The acquisition strengthens Baker Hughes' aftermarket services business by increasing its installed base and driving recurring revenue streams [3] - Baker Hughes plans to reduce leverage to 1.0-1.5x within 24 months after closing, maintaining its A credit rating and long-term dividend growth strategy [4]

Core Insights - InsCorp, Inc. reported a significant increase in earnings per share (EPS) to $0.73 in 2Q25, up from $0.57 in 1Q25 and $0.63 in 2Q24, indicating a positive trend in financial performance [1][15] - The company experienced a 24% year-over-year revenue growth in 2Q25, reaching $1,519,000, compared to 13% growth in 1Q25 [2] - The hiring of Billie Jo Parker as Chief Banking & Development Officer is expected to enhance business development and client services [9] Financial Performance - Net interest income rose by 27% year-over-year in 2Q25, with a net interest margin (NIM) improvement of 34 basis points to 3.21% [3][12] - The efficiency ratio improved to 60.9% in 2Q25 from 66.1% in 1Q25, reflecting better cost management [1][12] - Provision for credit losses increased to $380,000 in 2Q25, compared to $75,000 in 2Q24, which slightly restrained pretax income growth [2][15] Loan and Deposit Growth - Loan growth accelerated to 17% year-over-year in 2Q25, with notable increases in various categories such as residential loans (29% Y/Y) and HELOC (68% Y/Y) [4] - Total deposits grew by 18% year-over-year, driven by a 42% increase in interest-bearing transaction balances [5] - Medquity, INSBANK's healthcare division, reported an 18% year-over-year loan growth, contributing to the overall loan portfolio [4] Asset Quality and Capital Ratios - Asset quality remains strong, with nonperforming loans (NPLs) improving to 0.65% of total loans, down from 1.08% a year ago [6] - The bank's capital ratios indicate a well-capitalized status, with a tier-1 leverage ratio of 11.28% and a common equity tier-1 capital ratio of 12.01% [7][12] - Tangible book value per share increased by 6.4% year-over-year to $26.48 as of June 30, 2025 [8][12] Shareholder Returns - The Board of Directors approved a quarterly dividend of $0.11 per share, representing a 10% increase from the previous year [10] - The company repurchased 33,000 shares in 2Q25, amounting to 1.1% of the outstanding shares, as part of its ongoing share repurchase program [10]

We're going to be getting two of the MAG 7 finally reporting after the bell today. Alphabet and Tesla, two of the mega cap stocks that are reporting after the bell tonight. Right now though, we're going to focus in on Alphabet.Joining us right now with what to expect is Paul Meeks. He's Harvest Portfolio Management CIO. And Paul, you think the street expectations are are are pretty decent in terms of what you'd be expecting from Alphabet 2.That's right. You know, the key with Alphabet until further notice i ...

Core Insights - Investors prioritize businesses that consistently generate profits, with net profit margin being a crucial metric for assessing profitability and operational effectiveness [1][2] Summary by Sections Net Profit Margin - Net profit margin is calculated as Net Profit divided by Sales multiplied by 100, indicating a company's efficiency in converting sales into actual profits [2] - A higher net profit margin reflects better operational strength and cost management, which is essential for rewarding stakeholders and attracting talent [2] Pros and Cons - Net profit margin provides clarity on a company's business model, including pricing policy and manufacturing efficiency, making it a preferred metric for investors [3] - Limitations include significant variations across industries and complications arising from different accounting treatments, particularly for non-cash expenses [3][4] Winning Strategy - A healthy net profit margin and solid earnings per share (EPS) growth are key elements sought in a business model [5] Screening Parameters - Criteria for screening include a net margin of at least 0%, positive percentage change in EPS, and a high broker rating indicating bullishness on the stock [6][7] Company Highlights - Great Lakes Dredge & Dock Corporation (GLDD) is the largest provider of dredging services in the U.S., with a Zacks Rank of 1 and a VGM Score of A, and its 2025 earnings estimate has been revised upward by $0.27 to $0.96 per share [9][10] - Interface, Inc. (TILE) is the world's largest manufacturer of modular carpets, holding a Zacks Rank of 2 and a VGM Score of A, with its 2025 earnings estimate revised to $1.58 per share [10][11] - Catalyst Pharmaceuticals, Inc. (CPRX) focuses on therapies for rare diseases, carrying a Zacks Rank of 2 and a VGM Score of A, with a recent upward revision of its 2025 earnings estimate to $2.25 per share [11][12] - Sterling Infrastructure, Inc. (STRL) operates in E-Infrastructure and Building Solutions, holding a Zacks Rank of 2 and a VGM Score of B, with its 2025 earnings estimate revised upward by $0.11 to $8.56 per share [13][14]

Summary of Celanese Conference Call Company Overview - **Company**: Celanese - **CEO**: Scott Richardson, appointed on January 1st, with over 20 years of experience at Celanese in various roles in Asia and the U.S. [1][2] Key Focus Areas 1. **Earnings Per Share (EPS) Growth**: - Targeting EPS of $1.3 to $1.5 for Q2, an increase of approximately $1 or $0.08 from Q1 [3] - Focus on driving incremental EPS every quarter, independent of broader macroeconomic conditions [3][4] 2. **Free Cash Flow Generation**: - Projecting free cash flow of $700 to $800 million for the year [4] - Emphasis on working capital reduction and significant cuts in capital expenditures [4][5] 3. **Deleveraging the Balance Sheet**: - Targeting $3.5 billion in maturities to be paid off by the end of 2027 using free cash flow and divestiture proceeds [5][6] - Recent refinancing transaction pushed out maturities, with a focus on reducing leverage [6][7] Business Trends and Market Insights - **Regional Performance**: - Improvement noted in the automotive sector, particularly in Europe, with an end to destocking observed since February [12][13] - Stability in the Western Hemisphere automotive market, but softness in demand from China [13][14] - **Visibility and Order Trends**: - Limited visibility on orders due to macroeconomic uncertainty, leading to cautious customer commitments [17][18] - **Cost Savings Initiatives**: - Increased cost savings target from $80 million to $120 million, with a focus on Engineered Materials [22] - Operational changes and asset optimization are key drivers of these savings [22][23] Tariff and Trade Impacts - Anticipated tariff impacts of approximately $15 million per quarter in Q3, primarily affecting products shipped from the U.S. to China [24] - Expectation that tariff impacts will decrease in the second half of the year due to logistical adjustments [25] Future Guidance and Strategic Goals - **EPS Exit Rate**: - Aiming for a $2 per share exit run rate for the year, with a bridge from Q2 EPS of $1.4 [27][29] - Focus on self-help actions and cost reductions to achieve this target [28][29] - **Investment and Capital Expenditure**: - CapEx reduced to maintenance levels of $300 million to $350 million, expected to remain stable for several years [49][50] - Emphasis on harvesting returns and improving free cash flow before considering growth capital investments [50][51] Industry Dynamics - **Automotive Sector**: - Normalization of volumes in the automotive sector, with stable sales in the U.S. but some volume weakness in China [52][55] - Focus on specialty applications in China, where technical requirements are increasing [58][60] - **Nylon and Acetyls**: - Addressing profitability issues in the nylon portfolio through plant closures and price increases [70][71] - New supply in acetyls from China is being managed by pushing capacity downstream [75] Divestiture Strategy - Targeting $1 billion in divestiture proceeds by 2027, with strong interest in the MicroMax transaction [5][41] - Exploring additional asset sales to accelerate deleveraging and unlock value [39][45] Conclusion - Celanese is focused on executing its strategic initiatives to drive EPS growth, generate free cash flow, and deleverage its balance sheet while navigating a challenging macroeconomic environment. The company is also adapting to industry dynamics, particularly in the automotive and chemical sectors, to position itself for future growth.

Financial Data and Key Metrics Changes - Revenue for the fiscal second quarter was $980 million, meeting guidance [11] - Non-GAAP operating margin was 5.7%, at the high end of guidance [12] - Non-GAAP EPS was $1.66, exceeding guidance due to strong operating margin performance and favorable tax rate [13] - Free cash flow generated was $16.5 million, significantly better than expectations [13] Business Line Data and Key Metrics Changes - Aerospace and defense sector revenue increased 8% sequentially, with healthy wins of $27 million [27][28] - Healthcare life sciences sector revenue was up 10% sequentially, with wins of $118 million, including the largest-ever award for sustaining services [32][33] - Industrial sector revenue decreased 10% sequentially, with wins of $60 million [36][38] - Semi cap sector showed robust growth, with high teens growth expected for the fiscal year [111] Market Data and Key Metrics Changes - Incremental strengthening in healthcare customer outlooks offset modest reductions in other markets [12] - Signs of inventory corrections peaking in the broader industrial market [23] - Demand in aerospace and defense is being offset by reduced near-term demand in the aerospace subsector [30] Company Strategy and Development Direction - Company is strategically investing in talent, technology, and facilities to navigate current market complexities [9] - Continued focus on sustainability and innovation as core values [16] - Anticipates $100 million of free cash flow for fiscal 2025, aiming for meaningful EPS growth [10][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic uncertainty but remains optimistic about achieving meaningful EPS growth in fiscal 2025 [22][137] - Customers are currently taking a wait-and-see approach regarding tariffs, with no immediate impact on demand noted [66] - Company is well-positioned to adjust to customer needs and market conditions [64] Other Important Information - Company recognized as Manufacturer of the Year Mega Category by Wisconsin Manufacturers and Commerce [17] - New facility in Malaysia expected to open this summer, enhancing capacity [68] Q&A Session Summary Question: Impact of tariffs on operations - Management indicated that customers are taking a wait-and-see approach regarding tariffs, with no immediate demand degradation observed [62][66] Question: Capacity and new facilities - Current capacity is sufficient across regions, with new facility in Malaysia expected to enhance operations [68] Question: Cash cycle days target - Management aims for cash cycle days to improve to mid to low sixties, with each day of reduction freeing up $10 million in cash flow [75][76] Question: Dynamics behind outsourcing in aerospace and defense - Increased openness to outsourcing observed among customers due to changes in demand relative to capacity [80][82] Question: Details on healthcare sustainable services program - Program involves single-use capital equipment, with potential for significant ramp-up over two to three quarters [86] Question: Industrial market demand signals - Inventory corrections appear to have peaked, leading to stronger demand signals from industrial customers [98] Question: Engineering wins diversification - Engineering wins have diversified across multiple sectors, indicating strong future growth potential [118] Question: Currency hedging strategy - Company is actively hedging against currency volatility to mitigate potential impacts on P&L [124]

Investment Rating - The report maintains a positive outlook for the China equity market, with raised index targets for MXCN and MXHK, indicating a bullish sentiment for the upcoming quarters [5][6]. Core Insights - The report anticipates a mixed environment for 2Q25, with intertwined upside and downside risks, driven by factors such as better-than-expected EPS growth and potential macroeconomic challenges [5][6]. - The adoption of AI technologies, particularly DeepSeek, is expected to enhance corporate margins by identifying cost-saving opportunities [15][21]. - The report highlights a significant shift in fund flows, with US/HK listed China equity ETFs experiencing substantial net inflows, reversing previous outflows [23][26]. Summary by Sections 2Q25: Margins May Surprise Positively - The report identifies four key positives for 2Q25, including relative EPS growth upcycle within Asia and the positive impact of DeepSeek on corporate margins [7][15]. - The MSCI-China index has shown resilience, benefiting from improved policy visibility and earnings upcycle [7][8]. Index Targets, Sector Allocation, and Top Picks - The report raises all three targets for MXCN from HK$58/67/76 to HK$70/80/89 and for MXHK from HK$9,500/10,700/11,800 to HK$10,300/11,600/12,400 [5][6]. - Sector recommendations include upgrading Discretionary and Healthcare to Overweight (OW) while downgrading Industrials to Neutral [5][6]. Consumption and Retail Trends - Retail sales in China showed a year-on-year increase of 4.0% in January-February 2025, indicating a recovery in consumer sentiment [61][64]. - The report notes that the average home price to household income ratio has reached historically low levels, suggesting improved affordability in the housing market [45][70]. Fund Flows and Market Dynamics - Offshore passive fund flows have driven net inflows into China equities, accounting for 119% of total net inflows year-to-date [26][34]. - The report estimates that a 50 basis point increase in allocation to China could result in US$82 billion (Rmb592 billion) of net inflows [34].