We have a decent amount of grist for the stock market mill this morning, with key earnings reports joining key economic news. Pre-market indexes have slid into the red from early-morning highs, but are leveling off currently: the Dow is -133 points, -0.27%, the S&P 500 -19, -0.28%, the Nasdaq -92, -0.37% and the small-cap Russell 2000 -10, -0.39%.Jobless Claims Remain Historically LowThursday morning Weekly Jobless Claims are out again ahead of today’s open, with an Initial Jobless Claims headline of 206K b ...

Key Takeaways New Jobless Claims Sink to Early 2026 LevelsTrade Deficit Sinks to -$70B, Inventories FlatWalmart, Deere & Etsy All Beat Earnings Ahead of the OpenThursday, February 19th, 2026We have a decent amount of grist for the stock market mill this morning, with key earnings reports joining key economic news. Pre-market indexes have slid into the red from early-morning highs, but are leveling off currently: the Dow is -133 points, -0.27%, the S&P 500 -19, -0.28%, the Nasdaq -92, -0.37% and the small-ca ...

Core Viewpoint - GE HealthCare reported strong financial results for the quarter, exceeding earnings and revenue expectations, driven by growth in key segments [1][2][3]. Financial Performance - Adjusted earnings were $1.44 per share, surpassing the consensus estimate of $1.40 [1]. - Total sales reached $5.69 billion, exceeding the consensus of $5.61 billion, with a revenue growth of 7.1% and organic revenue growth of 4.8% [2]. - Net income margin decreased to 10.3%, down 320 basis points, while adjusted EBIT margin was 16.7%, down 200 basis points, affected by tariff expenses and unfavorable mix [4]. Segment Performance - Imaging segment sales increased by 6.6% to $2.55 billion, with organic growth of 5.3% [5]. - Advanced Visualization Solutions (AVS) sales rose by 5.9% to $1.53 billion, with organic growth of 4.2% [5]. - Pharmaceutical Diagnostics sales surged by 22.3% to $790 million, with organic growth of 12.7% [5]. - Patient Care Solutions sales slightly declined by 0.3% to $825 million, with a 1.1% organic decrease [5]. Strategic Outlook - GE HealthCare anticipates a lower tariff impact in 2026 compared to 2025 and aims to deliver profitable growth and strong cash flow [6]. - The company forecasts adjusted earnings for fiscal 2026 to be between $4.95 and $5.15 per share, compared to the consensus of $4.92 [6]. Stock Performance - GE HealthCare stock increased by 6.64% to $84.01 at the time of publication [7].

Core Insights - General Motors (GM) aims to increase its domestic production to an industry-leading 2 million units annually, driven by the need to mitigate tariff costs which amounted to $3.1 billion in 2025 [1][2] Production Plans - GM plans to ramp up production by adding gas-powered crossovers from Mexico to plants in Kansas and Tennessee, as well as full-size SUVs and pickup trucks to an idled plant in Michigan, potentially reaching its production goal by 2027 [3] - The company expects to outproduce Ford Motor, which assembled 2.1 million vehicles in the U.S. in 2024, thereby reclaiming its title as the top assembler of vehicles in the U.S. [2][4] Tariff Costs - GM's expected tariff costs for 2026 are projected to be between $3 billion and $4 billion, aligning with the $3.1 billion incurred in 2025, which was lower than previous estimates of $3.5 billion to $4.5 billion [2][6] - The company has managed to reduce its net tariff exposure through self-help initiatives and supportive policy actions, although costs could rise depending on duties on vehicles imported from South Korea [7]

Core Viewpoint - Abercrombie & Fitch has revised its fiscal 2025 outlook, maintaining most projections while refining certain assumptions regarding sales growth and operating margins [1][4]. Group 1: Financial Projections - For the full year, net sales growth is now anticipated to be at least 6%, narrowing from the previous guidance of 6% to 7% [1]. - Operating margin is projected to be around 13%, down from the earlier expectation of 13.0% to 13.5% [1]. - Earnings per diluted share for the year are forecasted to be between $10.30 and $10.40, compared to the earlier range of $10.20 to $10.50 [2]. - For the fourth quarter, net sales growth is expected to be around 5%, consistent with the prior guidance range of 4% to 6% [4]. - Quarterly net income per diluted share is now expected to fall between $3.50 and $3.60, compared to earlier guidance of $3.40 to $3.70 [4]. Group 2: Capital Expenditure and Share Repurchases - Planned share repurchases remain at approximately $450 million for the year, with around $100 million planned for the fourth quarter [2][5]. - Capital expenditure guidance has been increased to $245 million, up from roughly $225 million previously [2]. Group 3: Operational Plans - The company's real estate plans remain unchanged, with around 40 net store additions expected, including 60 openings and 20 closures [3]. - The updated outlook incorporates estimated tariff-related costs of around $90 million, equivalent to 170 basis points of net sales [5]. - A $39 million pre-tax benefit linked to a litigation settlement is also reflected in the guidance [6].

Core Insights - Hershey Co. reported disappointing Halloween sales in the US but raised its annual outlook due to price increases [1][4] - The company is experiencing a shift in consumer behavior towards cheaper and trendier sweets, influenced by higher cocoa costs [3][5] Sales Performance - Halloween sales are expected to be soft this season, with about a third of sales typically occurring in the final week when Halloween falls on a Friday [3] - Halloween accounts for nearly 18% of annual US candy sales, second only to Christmas [1] Financial Outlook - Hershey now anticipates full-year net sales growth of 3%, up from a previous estimate of 2% [4] - The company has increased its projection for adjusted earnings per share [4] Pricing Strategy - Hershey implemented double-digit price hikes in July due to high cocoa costs, resulting in approximately 7 points of price realization in North American confections last quarter [5] - The optimistic outlook reflects the company's ability to navigate economic pressures on US consumers [5] Consumer Trends - Despite economic pressures, the company remains optimistic about consumer resilience in its category [6] - Many food companies are seeing lower-income consumers focusing on essentials, but Hershey's category is showing resilience [6] Tariff Impact - Hershey expects tariff expenses to be between $160 million and $170 million, a reduction of $10 million due to lower Canadian retaliatory tariffs [6] Diversification - Hershey is perceived as less diversified compared to competitors like Mondelez International Inc. [7] - The company recently acquired LesserEvil, which produces organic snacks, and its sales of salty snacks in North America rose 10% last quarter, exceeding the overall growth rate [7]

Core Insights - Companies are expected to increase prices to safeguard their profit margins [1] Group 1 - The trend of price increases is likely to be widespread across various sectors [1] - Protecting margins is becoming a critical strategy for companies facing rising costs [1]

Core Insights - The world's largest sportswear group is shifting its focus back to athletics and store sales after prioritizing style and digital platforms for several years [1] Group 1 - The company is realigning its strategy to emphasize athletic performance and physical retail presence [1]

Core Insights - The luxury home furnishings sector is facing challenges due to economic headwinds and changing consumer preferences, impacting financial outlooks and strategic decisions of major players [1] - RH reported disappointing second-quarter results, leading to a decline in its share price [1][6] Financial Performance - RH's sales growth for the second quarter was 8.4%, slightly below the consensus estimate of 9.0%, despite improved demand from product transformation and new gallery openings [3] - Management has guided for third-quarter sales growth of 8%-10% and EBIT margin of 12%-13%, which is below the consensus expectations of 11% and 17.8% respectively [4] - RH has lowered its 2025 revenue growth and operating margin guidance to 9%-11% and 13.0%-14.0%, down from previous estimates of 10%-13% and 14.0%-15.0% [5] Market Reactions - RH shares were down 0.45% at $227.09, trading within a 52-week range of $123.03 to $457.26 [6] - Analysts have differing views, with JPMorgan maintaining an Overweight rating and raising the price target from $250 to $275, while Telsey Advisory Group downgraded its rating from Outperform to Market Perform and reduced the price target from $255 to $220 [8]

Investment Rating - The report assigns a Neutral rating to HP Inc. (HPQ) with a 12-month target price of $27, indicating a downside potential of 4.7% from the current price of $28.34 [11][15]. Core Insights - HPQ's F2Q25 earnings per share (EPS) of $0.71 missed Goldman Sachs (GS) estimates of $0.82 and consensus of $0.80, while revenue of $13.2 billion was largely in line with estimates [2][3]. - The company lowered its guidance for F2025 EPS to $3.00-$3.30 from a previous range of $3.45-$3.75, reflecting moderated demand and the impact of tariffs [2][7]. - The outlook for the PC industry has been adjusted to low single-digit percentage (LSD%) unit growth year-over-year, down from mid-single-digit percentage (MSD%) growth previously expected [7][13]. Financial Performance - HPQ's F2Q25 revenue of $13,220 million was slightly below GS estimates of $13,241 million but above consensus of $13,132 million, showing a year-over-year increase of 3% [8][10]. - The Personal Systems Group revenue was $9,024 million, exceeding GS estimates, with a 6% year-over-year increase in units [5][10]. - Printing revenue was $4,181 million, which fell short of GS estimates and consensus, with total units up 1% [5][10]. Margin Analysis - The non-GAAP operating income for F2Q25 was $961 million, missing GS estimates of $1,076 million, with a margin of 7.3% [9][10]. - Personal Systems Group EBIT margins were reported at 4.5%, significantly below the GS estimate of 5.7% [9][10]. - Printing EBIT margins improved to 19.5%, slightly above GS estimates of 19.0% [9][10]. Future Guidance - For F3Q25, HPQ provided guidance for GAAP diluted EPS of $0.57-$0.69 and non-GAAP diluted EPS of $0.68-$0.80, which is below the consensus estimate of $0.90 [6][11]. - The company anticipates free cash flow for F2025 to be in the range of $2.6-$3.0 billion, down from a previous estimate of $3.2-$3.6 billion [2][7]. Investment Thesis - The report suggests that HPQ's growth may be impacted by softer near-term demand for PCs and printing due to macroeconomic factors and excess channel inventory [13]. - However, HPQ's focus on higher-end PCs and initiatives in the printing segment, such as ink subscription services, may provide a competitive edge [13][14].