Key Takeaways BSX's international revenues rose, led by 12.1% growth in emerging markets and 15.4% in APAC.BSX's MedSurg strength showed 28% Urology growth and double-digit Endoscopy gains in the United States.BSX's foreign exchange caused a 1.2% Q2 revenue headwind, with tariffs set to impact $100M in 2025.Boston Scientific’s (BSX) second-quarter 2025 performance was driven by its robust expansion of operations across different geographies outside the United States. The company’s impressive growth within t ...

Core Insights - Chewy, Inc. reported Q1 FY2025 earnings with net sales of $3.12 billion, an increase of 8.3% year-over-year, and adjusted EBITDA of $192.7 million, reflecting a 6.2% adjusted EBITDA margin [1] - The company exceeded internal forecasts for growth and profitability, continuing disciplined share repurchases and making significant progress in core initiatives such as AutoShip, Chewy Plus, advertising, and veterinary clinic expansion [2] AutoShip Performance - The AutoShip subscription model accounted for 82.2% of total net sales, up from the mid-60% range at IPO, with AutoShip revenue growing 14.8% year-over-year, significantly outpacing overall company growth [3][4] - First quarter AutoShip customer sales reached $2.56 billion, representing approximately 82% of Q1 net sales, indicating strong customer loyalty [4] Market Position and Share Gains - The U.S. pet industry is expanding at an annual rate of 3%-4%, with online purchasing penetration estimated in the low-30% range; Chewy is capturing more than 50 cents of every dollar shifting to online channels, compared to 40-42 cents in previous years [5][6] - Management identified the migration to a proprietary first-party advertising platform as a key driver for 60 basis points of year-over-year gross margin expansion [6] Advertising and Revenue Streams - The new advertising system allows for scaling campaigns across on-site and off-site inventory, creating a high-margin revenue stream targeting 1%-3% of net sales [7] - The rapid ramp-up of high-contribution sponsored ads is expected to enhance gross margins and profit conversion [8] Future Guidance - Management reiterated FY2025 full-year net sales guidance of $12.3 billion–$12.45 billion, indicating 6%-7% growth, with first-half momentum suggesting a path toward the upper half of this range [10] - Adjusted EBITDA margin guidance remains at 5.4%-5.7% for FY2025, with an anticipated 80% EBITDA-to-free-cash-flow conversion, projecting about $550 million in free cash flow [11]

Core Insights - BofA Securities analyst Ken Hoexter upgraded ArcBest Corporation from Underperform to Neutral, raising the price target from $63 to $74, citing momentum in gaining market share among core customers [1] - The analyst increased the 2Q25 and full-year 2025 EPS estimates by 1% to $1.60 and $5.85, respectively, reflecting stronger-than-expected second-quarter volume trends driven by growth in the core LTL business [2] - ArcBest's tons per day rose 5% over April, exceeding the typical 3% increase, while shipments per day were up 2%, compared to the usual 1%, attributed to gains in core and new accounts [3] Performance Metrics - ArcBest's performance is outpacing the industry, which is experiencing high-single-digit declines in volumes, while ArcBest's tons per day are up 5% year-over-year for the quarter to date [3] - The company typically sees a sequential margin improvement of 70 basis points from the second to third quarter, but Hoexter estimates a stronger 160-basis-point gain, projecting 3Q margins at 90.4% [7] - For the fourth quarter, Hoexter expects a 100-basis-point drop in margins, forecasting 4Q margins at 91.4% [7] Market Reaction - ArcBest shares are trading higher by 4.9% to $70.57 at the last check [8]