Intel continues to pull back on its manufacturing projects | TechCrunch https://t.co/K8Oz6ARV3j ...

Key Takeaways DOV posted Q2 adjusted EPS of $2.44, up from $2.10 last year and ahead of the estimate of $2.39.Q2 sales rose 5.2% y/y to $2.05B, with the gross margin expanding to 39.9% from 38.6% last year.DOV raised the 2025 EPS guidance to $9.35-$9.55 and reported Q2 bookings of $2.01B, up y/y from $1.88B.Dover Corporation (DOV) has reported second-quarter 2025 adjusted earnings per share (EPS) from continuing operations of $2.44, beating the Zacks Consensus Estimate of $2.39. In the year-ago quarter, the ...

Market Overview - Pre-market futures are mixed but showing signs of weakness, following record high closes on the S&P 500, with profit-taking being a potential factor [1] - The tech-heavy Nasdaq is up by 42 points (+0.18%), while the Dow is down 300 points (-0.67%) due to UnitedHealth's DOJ probe, and the S&P 500 is nearly flat at -0.004% [2] Job Market Data - Initial Jobless Claims have decreased for six consecutive weeks, with the latest figure at 217K, the lowest in 14 weeks, down from 250K in early June [3] - Continuing Claims are reported at 1.955 million, slightly above the previous week's revised figure of 1.951 million, indicating a stall just below the 2 million mark [4] Q2 Earnings Reports - American Airlines (AAL) reported earnings of 95 cents per share, exceeding expectations by +20.25%, but shares fell -6% due to warnings of softer demand leading to a Q3 loss [5] - Honeywell (HON) surpassed earnings expectations with $2.75 per share, a +4.2% increase, and revenues of $10.35 billion, but shares are down -2.7% as the company plans to split into three segments by 2026 [6] - Union Pacific (UNP) reported earnings of $3.03 per share, beating expectations by +4.84%, with revenues of $6.2 billion, but shares are down -3% ahead of the opening bell [7] Economic Indicators - Upcoming S&P flash Services and Manufacturing PMI for July are expected to show slight growth in Services to 53.2 and a dip in Manufacturing to 52.7, both remaining above the growth threshold of 50 [8] - New Home Sales for June are anticipated to rise to 645K units, up from 623K the previous month, although existing home sales were disappointing, falling below 4 million for the first time since September [9] Future Earnings Reports - Q2 earnings reports will continue after the market closes, with Intel (INTC) and Deckers Outdoor (DECK) among the companies set to report [10]

Financial Data and Key Metrics Changes - The company reported a net income of $54.4 million, or $0.54 per share, for Q2 2025, with consolidated revenue increasing to $698 million, a 4% increase year-over-year [5][6] - Consolidated operating income rose by 31% to $79.2 million, and consolidated adjusted EBITDA grew by 20% to $103 million [6][20] - Free cash flow for the quarter was $46.9 million, with an ending cash position of $434 million and no borrowings under the secured revolving credit facility [6][7] Business Segment Performance - Subsea Robotics (SSR) saw operating income improve by 4% to $64.5 million, with revenue increasing approximately 2% and an EBITDA margin of 35% [8][9] - Manufactured Products generated operating income of $18.8 million, marking a 31% rise, with revenue growing by 4% to $145 million [10][11] - Offshore Projects Group (OPG) reported operating income of $21.7 million, with revenue increasing by 4% and operating income margin expanding to 15% [12][13] - Aerospace and Defense Technologies (AdTech) operating income increased by 125% to $16.3 million, with a 13% increase in revenue [15][17] Market Data and Key Metrics Changes - ROV revenue per day increased to $11,065, with fleet utilization at 67% [5][8] - The company maintained a 60% share of the contracted floating rig market with ROV contracts on 81 of the 136 floating rigs under contract [9] - The company anticipates continued tendering activity supportive of ROV utilization and pricing assumptions, particularly in decommissioning opportunities in Europe [9][10] Company Strategy and Industry Competition - The company remains positive about growth in both energy and aerospace and defense markets, with expectations for continued growth beyond 2025 [23] - The recent reconciliation bill is expected to positively impact all three AdTech business lines over the next five years, particularly in unmanned underwater vehicles [18][23] - The company is gearing up to increase capacity to serve the submarine maintenance and repair market due to anticipated funding increases [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain market share and improve operational results across segments [21][22] - The outlook for Q3 2025 includes expected increases in consolidated revenue and EBITDA, with projections for SSR and AdTech showing significant growth [19][20] - Management noted that visibility into future contracts has improved, particularly with larger international contracts [49] Other Important Information - Unallocated expenses for the quarter were $46.7 million, slightly higher than guidance [19] - The company has secured order commitments totaling approximately $100 million in the first weeks of Q3 2025 [11][32] Q&A Session Summary Question: Impact of offshore rig white space on business - Management acknowledged some impact but noted that pricing improvements have offset concerns, with expectations for ROV utilization to reach 70% by year-end [26][27] Question: Orders in the manufactured product segment - Management indicated that orders are expected to be flat year-over-year, with positive signals for 2026 [30][32] Question: ROV utilization outlook - Management stated that the lower utilization outlook relates to both vessel and rig support, with increased clarity on plans for Q4 [39][40] Question: Free cash flow visibility - Management highlighted that cash flow typically rebounds in Q3 and Q4, with significant amounts sitting in receivables [42][44] Question: OPG business visibility - Management confirmed improved visibility due to securing larger contracts, which stabilizes the business [48][49] Question: Potential impact of the reconciliation bill - Management discussed the positive implications for OTEC and other business lines, particularly in defense and space sectors [50][55]

Trump Tariffs Cool Small Business Dealmaking, Particularly In Manufacturing https://t.co/XYvb0Jc3BL https://t.co/DzbQoDcZHv ...

Plexus (PLXS) Q3 2025 Earnings Call July 24, 2025 08:30 AM ET Company ParticipantsShawn Harrison - Vice President of Communications & Investor RelationsTodd Kelsey - President and Chief Executive OfficerOliver Mihm - Executive VP & COOPatrick Jermain - Executive VP & CFOJacob Moore - Equity Research AssociateConference Call ParticipantsDavid Williams - Equity Research AnalystJames Ricchiuti - Senior AnalystAnja Soderstrom - Financial Analyst, Equity Research - Small-Mid Cap Technology SectorOperatorLadies a ...

Financial Data and Key Metrics Changes - Revenue for the fiscal third quarter was $1,018 million, meeting guidance, with a sequential increase observed [5][6] - Non-GAAP operating margin was 6%, increasing by 30 basis points sequentially, achieving the goal of 6% or greater for three of the last four quarters [6][25] - Non-GAAP EPS was $1.9, exceeding guidance due to strong operating performance and lower interest expense [7][25] - Free cash flow for the quarter was $13.2 million, significantly better than expectations, contributing to a projected $100 million for fiscal 2025 [7][27] Business Line Data and Key Metrics Changes - Aerospace and Defense sector revenue increased by 6% sequentially, with new program ramps contributing to performance [16] - Healthcare Life Sciences sector revenue was up 2% sequentially, below expectations due to a customer design update causing temporary delays [18] - Industrial sector revenue increased by 4% sequentially, with strong demand in broadband communications and energy markets [20] Market Data and Key Metrics Changes - The funnel of qualified manufacturing opportunities increased by 4% sequentially to $3.6 billion, indicating robust growth prospects [22] - The company observed early signs of increasing activity in the European defense sector, which is expected to contribute positively moving forward [6][18] Company Strategy and Development Direction - The company is focused on enabling customer success and driving operational efficiency, which is expected to sustain strong financial performance [14] - Strategic investments are aimed at creating long-term shareholder value through improved profitability and free cash flow [5][14] - The company anticipates healthy year-over-year revenue growth across all market sectors for fiscal 2026, without assuming improvements in end market demand [13][14] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing strength in new program wins and opportunities to gain market share, despite uncertainties from tariffs and evolving program ramp timelines [6][12] - The outlook for fiscal fourth quarter includes expected revenue growth and strong financial performance, with guidance for revenue between $1,025 million and $1,065 million [13][30] - Management expressed optimism about the defense sector, particularly in Europe, and the potential for increased demand in fiscal 2026 [18][84] Other Important Information - The company has been recognized as a top workplace and has received accolades for its commitment to sustainability and community engagement [10][11] - The company has reduced total debt by over $200 million since last year's fiscal third quarter, maintaining a strong balance sheet [31] Q&A Session Summary Question: Can you provide more color on the semi cap pushouts? - Management clarified that the pushouts are specific to certain programs and do not indicate perishable demand, with Q4 buoyed by new program ramps in the semi cap subsector [36][37] Question: What is the outlook for the aerospace and defense side? - Management noted that while there is still no pull from Boeing or Airbus, strong demand is observed in defense and space subsectors, with expectations for future increases [38][39] Question: What is the guidance for the industrial business? - Management indicated that semi cap is a significant part of the industrial business, with a forecast of low double-digit growth for fiscal 2025, down from mid-teens previously [45] Question: What are the expectations for the new facility in Malaysia? - Management expects minimal drag from startup expenses and anticipates a quick ramp to profitability, focusing initially on semi cap and healthcare sectors [47][51] Question: How is the engineering solutions segment performing? - Management highlighted that engineering solutions are a significant differentiator, contributing over $100 million in revenue, with strong growth and profitability expected [58][60] Question: What is the impact of tariffs on demand? - Management reported limited changes due to tariffs, with most customers in a wait-and-see mode, and noted strong compliance efforts in their Mexico operations [68] Question: What are the expectations for cash cycle days? - Management guided for cash cycle days to improve to the mid-60s, with ongoing efforts to reduce inventory days [70]

Financial Data and Key Metrics Changes - Total consolidated revenue decreased year over year by 5.8% to €64.8 million, despite strong performance in the Medical segment [20][23] - Gross profit margin increased to 58.3%, reflecting changes in revenue mix and optimization of production costs [20][31] - Adjusted EBIT for the quarter amounted to €3.1 million, showing a strong increase compared to prior quarters [20][25] - Net result for the quarter was a profit of €0.2 million, impacted by unfavorable exchange rate fluctuations [20][33] - Free cash flow was positive, leading to a net cash position of €63 million at the end of Q2, an increase of €2 million since the beginning of the year [20][35] Business Line Data and Key Metrics Changes - Medical segment achieved high double-digit growth, with revenue increasing by almost 17% this quarter [20][26] - Software segment revenue decreased by 12% to €9.9 million, partly due to the transition to a recurring revenue model and macroeconomic pressures [20][27] - Manufacturing segment revenue declined by almost 25% compared to the same period last year, realizing quarterly revenue of €22.1 million [20][29] Market Data and Key Metrics Changes - Materialise Medical accounted for 51% of total revenue, Materialise Software for 15%, and Materialise Manufacturing for 34% in Q2 [23] - The U.S. market continued to face challenges, impacting sales volumes in the Software segment [27][61] Company Strategy and Development Direction - The company is focusing on mass personalization in the medical business, expanding into new markets such as respiratory [7][8] - A pilot collaboration with Johnson & Johnson aims to advance the adoption of surgical planning solutions in the respiratory market [11] - The company is engaging with the defense sector to enhance regional defense capabilities, which is expected to open new opportunities [15][16] Management Comments on Operating Environment and Future Outlook - Management anticipates that geopolitical volatility and macroeconomic uncertainty may intensify, impacting the business climate for the remainder of the year [37] - Revenue guidance for the full year has been slightly reduced from €270 million - €285 million to €265 million - €280 million [38] - Despite the lower revenue outlook, management remains confident in the fundamentals of the business and the potential for structural cost efficiencies [38] Other Important Information - The company continues to invest in R&D, with over €11 million spent in the quarter, primarily in the Medical segment [32] - A restructuring in the manufacturing division has been implemented to manage costs amid revenue pressures [19][30] Q&A Session Summary Question: Can you quantify the opportunity in the respiratory market? - Management indicated that the respiratory market is new and still developing, with revenue impact not expected until next year [44][45] Question: What is the purpose of the €20 million debt taken out during the quarter? - This debt is part of an earlier agreement for a €50 million facility, intended for CapEx or M&A investments in the future [47][49] Question: What drove the strong gross margins despite lower revenues? - The strong gross margins were attributed to a combination of mix effects and the ability to reduce production costs in both medical and manufacturing segments [50] Question: Will the medical segment continue to see double-digit growth? - Management expressed confidence that the medical segment will continue to grow, with ongoing investments in new markets [58] Question: What parameters were used for the revised top-line guidance? - The revised guidance was based on a detailed exercise considering various business lines and market conditions, rather than a single parameter [60][62]

Core Insights - Graco Inc. reported revenue of $571.81 million for the quarter ended June 2025, a year-over-year increase of 3.4%, but fell short of the Zacks Consensus Estimate by 2.29% [1] - The company's EPS for the same period was $0.75, down from $0.77 a year ago, resulting in an EPS surprise of -3.85% compared to the consensus estimate of $0.78 [1] Financial Performance Metrics - Net sales in Expansion Markets were $40.57 million, below the average estimate of $44.58 million [4] - Contractor net sales reached $288.96 million, slightly below the average estimate of $293.15 million, but represented a year-over-year increase of 7.2% [4] - Industrial net sales were reported at $242.28 million, compared to the average estimate of $247.27 million, with a significant year-over-year increase of 55.6% [4] - Operating earnings for the Industrial segment were $82.37 million, slightly below the average estimate of $83.57 million [4] - Operating earnings for Expansion Markets were $8.83 million, compared to the average estimate of $9.07 million [4] - Unallocated corporate expenses showed an operating loss of $9.21 million, better than the estimated loss of $12.06 million [4] - Contractor operating earnings were reported at $75.49 million, below the average estimate of $80.24 million [4] Stock Performance - Graco's shares returned +1.9% over the past month, while the Zacks S&P 500 composite increased by +5.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1 - China's dependence on Iranian and Russian oil is a significant issue in upcoming U.S.-China trade talks [1] - Beijing is the top importer of Iranian oil and the second-largest importer of Russian oil despite U.S. sanctions [1] - The Trump administration plans to address China's oil trade in the near future, with previous negotiations held in Geneva and London [4] Group 2 - Tariff revenues have reached record highs, generating $100 billion so far [2] - The U.S. has raised tariffs on Chinese goods multiple times this year, with the highest duty reaching 145% in April and the current levy at 30% [5] - American goods imported by China face a 10% duty [5] Group 3 - The U.S. aims to curb China's status as the world's manufacturing powerhouse, which currently accounts for 30% of global manufacturing [6][7] - There is a call for China to limit its massive export economy and enhance its role as a global trade partner, which could benefit the U.S. manufacturing sector [8]