Core Insights - The Q2 earnings season is underway, with over 400 companies set to report, including 109 S&P 500 members, indicating a broad sector representation beyond just finance [1][9] - Early results show a positive trend, with companies not only beating lowered estimates but also providing favorable management commentary that may bolster Q3 earnings expectations [2][3] Earnings Performance - As of July 21, 62 S&P 500 members reported Q2 results, showing a +9.3% increase in total earnings year-over-year and +5.8% higher revenues, with 82.3% exceeding EPS estimates and the same proportion beating revenue estimates [4][6] - The current earnings and revenue growth rates for the 62 index members are notably above historical averages, suggesting a strong start to the earnings season [4][5] Future Expectations - Total S&P 500 earnings for Q2 are projected to increase by +6% with +4.3% higher revenues, reflecting a positive outlook for the remainder of the reporting cycle [14][18] - For the Mag 7 group, which includes major companies like Tesla and Alphabet, total Q2 earnings are expected to rise by +11.7% on +11.3% higher revenues [18][20] Company-Specific Insights - Alphabet is expected to report earnings of $2.14 per share on $79.3 billion in revenues, reflecting year-over-year increases of +13.2% and +11.1% respectively, despite facing challenges related to its search business and antitrust concerns [10][11] - Tesla is anticipated to report earnings of $0.40 per share on $22.5 billion in revenues, representing year-over-year declines of -23.1% and -11.9%, influenced by operational challenges in the EV market and market perceptions of Elon Musk [13][14]

We're back with final trade. Sat, you get to kick us off. Uh, Morgan Stanley, great earnings.Stock didn't do much. It's digesting. I think the future for Morgan Stanley, especially if you have M&A growth coming, is going to be really good.Weiss Netflix. It was my final trade on Friday. It's my final trade today.Unfairly penalized for the quarter and I still think it's a good opportunity. And tomorrow and the day after and the day after. Not not today though. Amy, not today.Cognex. This is an unloved stock. ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering LCI (LCII) , which belongs to the Zacks Automotive - Original Equipment industry.When looking at the last two reports, this recreational vehicle parts supplier has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 36.72%, on average, in the last two quarters.For the most recent quarter, LCI was expected to post ear ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider AutoNation (AN) . This company, which is in the Zacks Automotive - Retail and Whole Sales industry, shows potential for another earnings beat.This auto retailer has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 12.13%.Fo ...

Adient (ADNT) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing earn ...

Core Insights - Tesla is expected to release its second-quarter 2025 results on July 23, focusing on improvements in its Energy & Service and Other Businesses [1] Financial Performance - In Q1 2025, Tesla reported earnings per share of 27 cents, down from 45 cents year-over-year, and missed the Zacks Consensus Estimate of 44 cents [3] - Total revenues for Q1 2025 were $19.33 billion, a 9% decline year-over-year, also missing the consensus mark of $21 billion [3] - Cash and cash equivalents stood at $37 billion as of March 31, 2025, with long-term debt decreasing to $5.3 billion from $5.7 billion at the end of 2024 [5] Energy & Service Business - Energy deployment in Q1 2025 rose to 10.4 GWh from 4.05 GWh in Q1 2024, with Energy Generation and Storage revenues totaling $2.73 billion, a 67% increase year-over-year [4] - The company expects revenues from the Energy Generation & Storage business to reach $3.04 billion, indicating a 0.7% year-over-year increase, with gross margin expected to rise to 26.7% from 24.6% [6] - Services and Other revenues are projected to be around $3.15 billion, reflecting a 20.7% year-over-year increase, with gross margin expected to improve to 10% from 6.4% [7] Market Expectations - The Zacks Consensus Estimate for Q2 2025 earnings is 40 cents per share, representing a 23.08% decline year-over-year, with sales estimated at $22.48 billion, an 11.85% decline [8] - Tesla's core EV business is facing challenges with weaker deliveries, but rising gross profits from Energy & Service and Other Businesses may offset losses in Q2 [8]

Core Insights - Carvana Co. (CVNA) aims to sell 3 million cars annually and achieve 13.5% adjusted EBITDA margins within the next 5 to 10 years [1][10] - The company plans to expand its operational locations from 23 to around 60 to enhance vehicle reconditioning capacity [2][10] - Carvana's acquisition of ADESA has provided valuable infrastructure, allowing for efficient scaling through existing auction and inspection facilities [3][10] - Compared to other auto retailers like Lithia Motors and AutoNation, Carvana is positioned to improve its margins while these competitors face challenges [5][6][7] - Carvana's stock has outperformed the Zacks Internet-Commerce industry, with a year-to-date share price increase of 70.9% compared to the industry's 9.5% growth [8] Company Strategy - Carvana is focused on improving its business operations by closely monitoring revenue generation and expenditure [1] - The company is leveraging existing inspection centers to maximize growth without the need for extensive new construction [4] - Future growth will require investment, but Carvana believes it is in a strong position to grow efficiently compared to peers [4] Competitive Landscape - Lithia Motors reported an adjusted EBITDA margin of 4.4% in Q1 2025, showing a slight increase from 4% in the previous year, but faces pressure from high tariffs and potential price increases [5][6] - AutoNation's SG&A as a percentage of gross profit has increased significantly, indicating declining operational efficiency, which may impact its margins [7] Financial Performance - Carvana's valuation appears high, with a forward price/sales ratio of 3.61, exceeding the industry's 2.17 [13] - The Zacks Consensus Estimate for Carvana's EPS has seen slight downward revisions for 2025 and 2026 [12]

Investors interested in Automotive - Original Equipment stocks are likely familiar with Adient (ADNT) and Mobileye Global (MBLY) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Sty ...

Jeep and Chrysler maker Stellantis on Monday reported that US tariffs have cost the company nearly $350 million as it paused production at its North American plants and lowered shipments of imported vehicles.The Dutch-based automaker — which has a portfolio that also includes Ram, Fiat and Peugeot — shipped about 109,000 fewer vehicles, a 25% drop, compared to the same period last year, the company said in releasing prelimnary data ahead of reporting earnings next week.Last year, Stellantis imported over 40 ...

Tesla CEO Elon Musk is back to “sleeping in the office” as he tries to reassure shareholders that his companies have his full attention following the end of his controversial stint in the White House.“Back to working 7 days a week and sleeping in the office if my little kids are away,” Musk wrote in a post on X, his social media platform formerly known as Twitter, in the early hours Sunday morning.Tesla is scheduled to make its first earnings report since Musk stepped down from his White House role on Wedne ...