Financial Data and Key Metrics Changes - For Q4 2025, the company reported approximately $8.3 billion in revenue, exceeding guidance by roughly $800 million, with core operating income at $519 million and a core operating margin of 6.3%, a 50 basis point improvement year-over-year [8][9] - GAAP operating income totaled $337 million, with diluted earnings per share at $1.99 and core diluted earnings per share at $3.29 [8][9] - Full-year adjusted free cash flow was over $1.3 billion, with a healthy balance sheet showing a debt-to-core EBITDA ratio of 1.3 times and cash balances of approximately $1.9 billion [11][12] Segment Performance Changes - Regulated Industries revenue was $3.1 billion, with a year-over-year increase of approximately 3% and a core operating margin of 6.5% [9] - Intelligent Infrastructure revenue reached $3.7 billion, driven by strong demand in cloud and data center, with a core operating margin of 5.9% [9][10] - Connected Living and Digital Commerce revenue totaled $1.4 billion, reflecting a year-over-year decline of approximately 14%, but with a core operating margin of 6.6%, up 210 basis points year-over-year [10] Market Data and Key Metrics Changes - The company anticipates Regulated Industries revenue for Q1 FY26 to be $3.05 billion, up 3% year-on-year, while Intelligent Infrastructure is expected to grow approximately 47% year-on-year to $3.67 billion [13][14] - Connected Living and Digital Commerce revenue is expected to decline by 16% year-on-year to $1.29 billion, reflecting a strategic shift towards higher-margin opportunities [13][14] Company Strategy and Industry Competition - The company is focusing on system-level integration in Intelligent Infrastructure, leveraging AI-related growth across capital equipment, cloud, and data center markets [21][49] - In Regulated Industries, the strategy includes supporting automotive and healthcare sectors while navigating regulatory changes and market dynamics [16][48] - The Connected Living segment is transitioning away from lower-margin consumer products towards advanced technologies in automation and robotics [30][54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth in healthcare and AI-related sectors, despite short-term challenges in automotive and renewables [46][48] - The company expects overall revenue growth of approximately 5% for FY26, with core operating margins expanding to around 5.6% [55][56] - The focus remains on maintaining a strong balance sheet while returning about 80% of free cash flow to shareholders [56][58] Other Important Information - The company completed a $1 billion share repurchase authorization and has a new $1 billion program authorized for FY26 [12] - The anticipated new facility in North Carolina is set to come online in summer 2026, aimed at enhancing AI rack manufacturing capabilities [52] Q&A Session Summary Question: Growth areas in AI - The company expects 25% year-on-year growth in AI revenue, with significant growth in cloud and data center infrastructure, particularly in electrical switch gear [62][64] Question: Healthcare growth outlook - The company anticipates low to mid-single-digit growth in healthcare, driven by drug delivery systems and new business opportunities, despite delays in the Croatia facility impacting margins [63]

Financial Performance - Net revenue for the fourth quarter of fiscal year 2025 was $8252 million, compared to $6964 million in the same period last year[10] - Net revenue for fiscal year 2025 reached $29802 million, an increase from $28883 million in fiscal year 2024[10] - Core operating income (non-GAAP) for fiscal year 2025 was $1620 million, up from $1588 million in fiscal year 2024[10] - Adjusted free cash flow (non-GAAP) for fiscal year 2025 was $1318 million[14] - Share repurchases amounted to $1000 million for fiscal year 2025[14] Segment Results (Q4 FY2025) - Intelligent Infrastructure accounted for 45% of the total revenue[12] - Regulated Industries contributed 38% to the total revenue[12] - Connected Living & Digital Commerce generated 17% of the total revenue[12] FY26 Outlook - The company anticipates net revenue between $7700 million and $8300 million for the first quarter of fiscal year 2026[25] - Core diluted earnings per share (non-GAAP) are projected to be between $247 and $287 for the first quarter of fiscal year 2026[25] - The company forecasts net revenue of $313 billion and core operating margin of 56% for fiscal year 2026[80]

Group 1 - The third quarter is concluding with stocks reaching new highs despite weaker economic data and anticipation surrounding the Federal Reserve [2][3] - A significant day for earnings is expected, with major companies like Costco, Accenture, and Jabil reporting [3][4] - Economic data releases today include Durable Goods Orders, Q2 GDP Data, Initial Jobless Claims, and Existing Home Sales, marking a busy day for economic indicators [4]

Core Points - Kitron's Chief Operating Officer Kristoffer Asklöv has resigned to become CEO of a Swedish manufacturing company outside Kitron's competitive landscape [1] - Asklöv has been with Kitron for four years and has significantly contributed to the company's growth and operational development [2] - To facilitate a smooth transition, Asklöv will remain with Kitron until the end of the year, with his responsibilities being divided between the Chief Technology Officer Stian Haugen and Hasse Faxe, who will join as Chief Commercial Officer [3] Company Overview - Kitron is a leading Scandinavian electronics manufacturing services company operating in sectors such as Connectivity, Electrification, Industry, Medical devices, and Defence/Aerospace [4] - The company has operations in multiple countries including Norway, Sweden, Denmark, Lithuania, Germany, Poland, the Czech Republic, India, Malaysia, China, and the United States [4] - Kitron employs approximately 2,400 people and reported revenues of EUR 647 million in 2024 [4]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1][2] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Kimball Electronics (KE) Analysis - Kimball Electronics (KE) has shown a four-week price change of 8.5%, indicating growing investor interest [4] - Over the past 12 weeks, KE's stock has gained 58.7%, with a beta of 1.28, suggesting it moves 28% more than the market [5] - KE has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] - The stock has received a Zacks Rank 1 (Strong Buy) due to upward trends in earnings estimate revisions, which attract more investors [7] - KE is currently trading at a Price-to-Sales ratio of 0.51, suggesting it is undervalued at 51 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides KE, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in the identification of potential winning stocks [9]

Group 1 - Jabil Inc. is set to release its fourth-quarter earnings results on September 25, with analysts expecting earnings of $2.95 per share, an increase from $2.30 per share in the same period last year [1] - The company is projected to report quarterly revenue of $7.67 billion, compared to $6.96 billion a year earlier [1] - On July 17, Jabil announced a $1 billion share repurchase authorization [1] Group 2 - Jabil shares rose 0.5% to close at $234.45 on Tuesday [2] - Analysts have provided various ratings and price targets for Jabil, with JP Morgan maintaining an Overweight rating and raising the price target from $214 to $256 [4] - Stifel reinstated a Buy rating with a price target of $245, while B of A Securities raised its price target from $225 to $245 [4] - Raymond James reiterated a Strong Buy rating and increased the price target from $170 to $230, and Goldman Sachs raised its price target from $188 to $215 [4]

Core Viewpoint - Jabil Inc. is expected to provide conservative guidance for fiscal 2026, with a focus on AI and cloud-related revenue as key growth drivers, while other markets may remain flat or decline [1][4]. Group 1: Financial Projections - Analyst Ruplu Bhattacharya projects Jabil's revenue for fiscal 2026 to be $30.8 billion, with an operating margin of 5.6% and earnings per share (EPS) of $10.94, aligning closely with market estimates [2][4]. - AI-related revenue is anticipated to grow by 25% year-over-year, reaching $10.5 billion in fiscal 2026, up from $8.5 billion in fiscal 2025 [4]. Group 2: Strategic Developments - Jabil is investing $500 million in a new facility in North Carolina, expected to begin production in mid-2026, which will increase capital expenditures to approximately $540 million, or 1.8% of revenue for fiscal 2026 [5]. - Discussions with Indian Prime Minister Narendra Modi regarding a new facility in Gujarat, India, aim to support cloud, computing, storage, networking, and semiconductor markets [5]. Group 3: Market Segment Insights - Revenue from automotive and renewable energy segments is projected to decline year-over-year, although short-term gains may occur before energy tax credits expire [6]. - Healthcare revenue is expected to remain flat, with a facility for GLP-1 drugs in Croatia currently idle, which may slightly impact operating margins [6]. Group 4: Additional Opportunities - Ongoing efforts to secure deals similar to those with Johnson & Johnson could provide additional upside for the company [7]. - Digital commerce revenue is forecasted to increase year-over-year, while connected living revenue is expected to decline [7].

Group 1 - Needham raised its price target on TTM Technologies to $65 from $56 while maintaining a Buy rating, citing stronger growth prospects in AI data center and defense markets [1] - Shares of TTM Technologies increased by more than 1% in pre-market trading following the announcement [1] Group 2 - Street estimates for 2026 are considered conservative, especially in TTM's Data Center Computing business [2] - Despite concerns regarding the slower ramp-up at the Penang facility, Needham is confident that TTM's China operations, which represent the majority of production, can meet rising AI-driven demand [2] - There is potential upside from TTM's aerospace and defense segment as it approaches 2026 [2]

Core Insights - The current market presents a challenge for investors seeking safe places to allocate new capital, as the S&P 500 is experiencing record highs and significant rallies [1] - There are still opportunities to find relatively inexpensive stocks with above-average growth potential, particularly within the S&P 500 [2] Stock Selection - A screen identified 104 S&P 500 stocks with above-average growth and below-average price multiples, narrowing down to 86 after excluding energy and materials sectors [3][4] - T-Mobile is highlighted for its expected 19.4% earnings growth next year, trading at just over 18 times next year's earnings [4] - Royal Caribbean and Expedia are noted as strong travel stocks, with Expedia projected to grow earnings by 18% next year while trading at 13 times earnings, significantly cheaper than Booking Holdings [5] - Dollar Tree is identified as a consumer staples stock with a 15% growth rate, trading at less than 15 times next year's earnings, making it a favorable option [6] Financial Sector Opportunities - The financial sector is experiencing favorable conditions, with 34 of the 86 identified stocks coming from this sector [7] - Capital One Financial is projected to have nearly 14% earnings growth next year, trading at roughly 11 times next year's earnings [8] - American Express is expected to grow earnings by 12.6% next year, trading at less than 20 times earnings, which is cheaper than the overall S&P [9] - Citigroup is highlighted for its strong recovery under CEO Jane Fraser, with expected growth of 28% next year while trading at just 10.5 times earnings [10] - Keycorp, a regional bank, is expected to grow at 22% next year, trading at just under 11 times next year's earnings [11] Other Notable Stocks - Charles Schwab is recognized as a strong retail brokerage, while Apollo is noted for its leadership in private equity and private credit with projected earnings growth of 19% [12][13] - Insight, a biopharma company, stands out in the healthcare sector with expected earnings growth of 19% and trading at just under 12 times next year's earnings [14] - Caterpillar is noted for its strong performance, with an expected 18% earnings growth and trading at 22 times next year's earnings [15] - Dell Technologies is mentioned as a core player in AI infrastructure, while BXP, a real estate company, has rebounded after trimming its dividend to focus on growth projects [18][19] - Energy, a utility company, is highlighted for its growth potential due to infrastructure projects, including a $10 billion data center by Meta [20]

Group 1 - Celestica (CLS) stock is highlighted as a significant investment opportunity, being this week's Big Cap 20 pick, with a year-to-date increase of over 168% [1] - The company specializes in design, manufacturing, and supply-chain solutions across various sectors, including enterprise, aerospace, health, communications, sustainable energy, and data centers [1] - Celestica stock ranks first in its category, indicating strong market performance and investor interest [1] Group 2 - The stock has experienced a notable pullback after a 95% surge, suggesting potential for bullish plays among option traders [4] - Despite not paying a dividend, strategies to create yield from Celestica stock are being explored [4] - The overall market sentiment includes other stocks performing well, with some mutual fund favorites up around 70% this year [4]