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4 Must-Buy Efficient Stocks to Buy Amid Volatile Market Conditions
ZACKS· 2025-09-26 14:15
Key Takeaways Wolverine World Wide posted an average four-quarter earnings surprise of 39.1%.Interface delivered an average four-quarter earnings surprise of 33.5%.BuildABear Workshop and Analog Devices logged surprises of 21.3% and 5.8%, respectively.Efficiency level measures a company’s capability to transform available input into output, and is often considered an important parameter for gauging its potential to generate profits. A company with a high efficiency level is expected to provide stellar retur ...
Look Beyond the Fed: Bet on 4 Stocks With Increasing Cash Flows
ZACKS· 2025-09-10 15:15
Core Insights - Investors are focusing on cash-rich stocks with strong returns as attractive opportunities amid economic uncertainties, rather than solely on Federal Reserve policy shifts [1][9] Group 1: Importance of Cash Flow - Cash is essential for business vitality, providing the flexibility to make investment decisions and shielding companies from market turmoil [2] - Positive cash flow indicates an increase in liquid assets, enabling companies to meet obligations, reinvest, and return wealth to shareholders, while negative cash flow suggests declining liquidity [5] - Companies must not only have positive cash flow but also increasing cash flow to ensure future growth and reduce dependency on external financing [6] Group 2: Screening for Investment Opportunities - A screening process was established to identify stocks with increasing cash flow, focusing on those whose latest cash flow is at least equal to the 5-year average [7] - Stocks with a Zacks Rank of 1 (Strong Buy) have a history of outperformance, and brokers' positive ratings further support investment decisions [8] Group 3: Qualified Stocks - Materion Corporation (MTRN) specializes in high-performance engineered materials, with a Zacks Consensus Estimate for current-year earnings improving by 8.2% [10][11] - Willdan Group, Inc. (WLDN) provides consulting services to enhance cost and energy efficiencies, with a current-year earnings estimate up by 27.7% [11][12] - Build-A-Bear Workshop, Inc. (BBW) is a leading retailer of stuffed animals, with a fiscal 2026 earnings estimate revised upward by 3.9% [12][13] - NCS Multistage Holdings, Inc. (NCSM) focuses on engineered products for oil and gas operators, with a current-year earnings estimate improving by 62% [14]
Build-A-Bear Workshop(BBW) - 2026 Q2 - Earnings Call Transcript
2025-08-28 14:02
Financial Data and Key Metrics Changes - In Q2 2025, revenues increased by 11% to over $124 million, pretax income rose by 33% to over $15 million, and EPS grew by 47% to $0.94 [5][16][20] - For the first half of 2025, revenues grew more than 11% to over $252 million, pretax income increased over 31% to almost $35 million, and EPS rose approximately 45% to $2.11 [5][16][20] - The first half EBITDA margin rate was nearly 17%, more than tripled compared to 2019 [6] Business Line Data and Key Metrics Changes - Retail segment net sales were $114.6 million, an increase of 10.8%, with strong performance driven by positive traffic trends [17] - Commercial revenue, primarily wholesale sales, grew by 18.3% in the quarter [18] - E-commerce demand increased by 15.1%, benefiting from favorable product launch timing [17] Market Data and Key Metrics Changes - Domestic store traffic rose by 3%, significantly outperforming the national benchmark, which saw a 3% decline [17] - The company ended the quarter with 157 partner-operated units, accounting for 25% of total locations [10] Company Strategy and Development Direction - The company focuses on three strategic pillars: expanding experiential retail footprint, advancing digital transformation, and leveraging brand equity for growth [4][11] - The retail expansion includes opening 14 new experience locations, with 86% being international [8][9] - The digital transformation strategy emphasizes social media initiatives and user-generated content to engage a broader consumer base [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future despite potential economic uncertainties, citing a solid balance sheet and strong cash flow [7] - The company increased its 2025 guidance for revenue and pretax income based on current tariff rates and expectations for new unit growth [7][22] - Management acknowledged challenges from tariffs and inflation but remains focused on controlling internal factors [63][64] Other Important Information - The company returned over $13 million in capital to shareholders during the first half of the fiscal year [5][16] - The balance sheet showed cash and cash equivalents of $39.1 million, a 55.4% increase year-over-year [21] Q&A Session Summary Question: Can you talk about the response from consumers when prices are raised? - Management indicated that price increases are selective and strategic, aimed at maintaining value for consumers, with a focus on entry-level price points [31][32] Question: How should we think about the maturity of partner-operated stores? - Management noted that partner-operated stores are expanding successfully, with significant opportunities in international markets [40][41] Question: Can you provide an update on Mini Beans sales and wholesale distribution? - The Mini Beans collection saw an 80% year-on-year revenue increase, with ongoing discussions for broader wholesale distribution [47][49] Question: What is the outlook for the second half of the year? - Management indicated that while there are tougher comparisons from last year, they remain optimistic about revenue growth despite potential margin pressures from tariffs [61][62] Question: How does the balance sheet impact decisions on expanding company-operated stores? - Management stated that while they are open to considering operating stores, they prefer to leverage partnerships for market entry due to local expertise [74][78]
Hasbro (HAS) Up 5.8% Since Last Earnings Report: Can It Continue?
ZACKS· 2025-08-22 16:31
Core Viewpoint - Hasbro's recent earnings report shows a mixed performance with a decline in revenues but an increase in earnings, leading to raised full-year guidance despite macroeconomic challenges [2][3][10]. Financial Performance - In Q2 fiscal 2025, Hasbro reported adjusted EPS of $1.3, exceeding the Zacks Consensus Estimate of 78 cents, and up from $1.22 in the prior year [4]. - Net revenues were $980.8 million, beating the consensus mark of $877.3 million, but down 1% from $995.3 million in the previous year [4]. - Adjusted EBITDA was $302 million, compared to $313.5 million a year ago [7]. Segment Performance - Consumer Products segment revenues decreased 16% year over year to $442.4 million, although it beat expectations due to strong licensing revenues [5]. - The Wizards of the Coast and Digital Gaming segment saw revenues increase by 16% to $522.4 million, with an adjusted operating margin of 46.3% [6]. - The Entertainment segment's revenues fell 15% to $16 million, with an adjusted operating margin of 63.1% [6]. Guidance and Outlook - Hasbro raised its full-year revenue guidance, now expecting mid-single-digit growth on a constant currency basis, up from slight growth expectations [10]. - Adjusted operating margin is now anticipated to be between 22% and 23%, and adjusted EBITDA is expected to be in the range of $1.17-$1.2 billion, an increase from prior estimates [10]. Balance Sheet Highlights - As of June 29, 2025, cash and cash equivalents were $546.9 million, down from $626.8 million a year ago, while inventories increased to $417.1 million from $357.6 million [9]. - Long-term debt decreased to $3.32 billion from $3.46 billion year over year [9]. Market Sentiment - Estimates for Hasbro have trended upward recently, contributing to a Zacks Rank of 1 (Strong Buy), indicating expectations for above-average returns in the coming months [11][13].
MGM Resorts' Q2 Earnings Beat Estimates, Revenues Rise Y/Y
ZACKS· 2025-07-31 14:26
Core Insights - MGM Resorts International reported strong second-quarter 2025 results, with earnings and revenues exceeding expectations, although the bottom line saw a decline [1][10] - The company's performance was bolstered by significant contributions from the BetMGM venture, Regional Operations, and MGM China, with EBITDA growth from these segments being crucial [1][10] Financial Performance - Earnings per share (EPS) for the quarter was 79 cents, surpassing the Zacks Consensus Estimate of 58 cents, but down from 86 cents in the prior-year quarter [3][10] - Quarterly revenues reached $4.41 billion, exceeding the consensus mark by 2.4% and reflecting a year-over-year increase of 1.8% [3][10] - Consolidated adjusted EBITDA rose by 2% year over year to $647.5 million [4][10] Segment Performance - MGM China's net revenues increased by 9% year over year to $1.11 billion, driven by higher casino revenues and an increase in main floor table games drop [5] - Adjusted property EBITDAR for MGM China was $301.3 million, up from $293.9 million in the prior-year quarter [6] - Domestic operations on the Las Vegas Strip reported net revenues of $2.11 billion, a decline of 4% year over year, attributed to room remodels and decreased table games hold [7] - Regional Operations saw net revenues of $964.6 million, an increase from $927.1 million in the prior-year quarter, supported by higher casino revenues [8] - MGM Digital segment reported net revenues of $163.9 million, up from $143.3 million in the prior-year quarter, primarily due to brand expansion [9] Future Outlook - The company anticipates continued strength in Las Vegas, with capital investments and solid convention bookings expected to drive growth in the fourth quarter of 2025 and into 2026 [2] - The BetMGM venture is on track to achieve its $500 million EBITDA goal, and the MGM Digital segment is projected to become profitable in the coming years [2][10] Balance Sheet and Share Repurchase - MGM Resorts ended the second quarter with cash and cash equivalents of $1.96 billion, down from $2.42 billion at the end of 2024, while long-term debt decreased to $6.21 billion from $6.36 billion [12] - In Q2 2025, MGM repurchased nearly 8 million shares for a total of $217 million, with approximately $2.1 billion available under its share repurchase program as of June 30, 2025 [12]
Starbucks Q3 Earnings Miss Estimates, Revenues Rise Y/Y, Stock Up
ZACKS· 2025-07-30 15:45
Core Insights - Starbucks Corporation (SBUX) reported mixed results for the third quarter of fiscal 2025, with earnings per share (EPS) missing estimates while net revenues exceeded expectations [1][4] - The company made a one-time investment impacting EPS by 11 cents, and the overall performance reflected progress in its turnaround strategy [1][3] Financial Performance - EPS for the quarter was 50 cents, missing the Zacks Consensus Estimate of 65 cents by 23.1%, and down 46.2% from 93 cents in the prior-year quarter [4] - Net revenues reached $9.46 billion, beating the consensus mark of $9.3 billion by 1.7%, and increased 3.8% from $9.11 billion in the prior-year quarter [4] - Global comparable store sales declined 2% year over year, with a 2% decrease in comparable transactions partially offset by a 1% increase in average tickets [5] Segment Analysis - North America segment net revenues were $6.93 billion, up 2% year over year, with comparable store sales also declining 2% [7] - International segment net revenues increased 9% year over year to $2.01 billion, with comparable store sales at breakeven compared to a 7% decline in the prior-year quarter [8] - Channel Development segment net revenues rose 10% year over year to $483.8 million, driven by contributions to the Global Coffee Alliance [10] Margin and Cost Analysis - Non-GAAP operating margin contracted 660 basis points to 10.1% year over year, primarily due to investments in the "Back to Starbucks" initiative and inflation [6] - Operating margin in North America fell 770 basis points to 13.3%, while the International segment's margin contracted 200 basis points to 13.6% [8][9] - The Channel Development segment's operating margin decreased 860 basis points to 45.1% due to higher global product costs [11] Cash and Dividend Information - As of the end of the fiscal third quarter, the company had cash and cash equivalents of $4.17 billion, up from $3.29 billion at the end of fiscal 2024 [12] - Management declared a quarterly cash dividend of 61 cents per share, payable on August 29, 2025 [13]
Build-A-Bear Workshop(BBW) - 2025 Q4 - Earnings Call Transcript
2025-03-13 13:00
Financial Data and Key Metrics Changes - Total revenues for fiscal year 2024 reached $496.4 million, an increase of 3.6% year-over-year [28] - Pre-tax income grew by 5.1% to $67.1 million, marking a record for the company [28] - Adjusted EPS increased by 10.2% to $3.77 [28] - For Q4, total revenues were $150.4 million, up 5.7%, with net retail sales increasing by 4.7% [25][28] - Gross margin improved to 56.6%, a 20 basis points increase from the previous year [26] Business Line Data and Key Metrics Changes - The commercial revenue segment, which includes wholesale sales and international franchise revenue, rose by 20.5% compared to the prior year [26] - Store traffic increased by 3%, significantly outpacing the national average decline of nearly 1% [25][26] - The company opened 24 new locations in 2024, contributing to a total of 64 new locations opened over the year [64] Market Data and Key Metrics Changes - The company expanded its global footprint by over 100 additional locations in the past two years, primarily through partner-operated models [8] - The largest unit expansion occurred in Italy, with 13 partner-operated locations now established [11] Company Strategy and Development Direction - The company is focused on three key initiatives: expanding experiential retail locations, advancing digital transformation, and increasing investments to drive profitable growth [8][15] - Plans to open at least 50 new net locations in 2025, with a majority being partner-operated internationally [30][64] - The introduction of a new retail experience in ICON Park, Orlando, is set to enhance the brand's presence in tourist destinations [13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for fiscal year 2025, anticipating continued revenue growth despite potential tariff impacts [6][30] - The company has successfully navigated previous economic challenges, including the retail apocalypse and COVID-19 [19] - Positive early reactions to spring and Easter offerings were noted, alongside strong social media engagement [20] Other Important Information - The Board of Directors increased the quarterly dividend by 10% to $0.22 per share [23] - The company returned $42 million to shareholders through dividends and share repurchases during the year [23] Q&A Session Summary Question: Overall consumer environment and business reaction to a slowdown - Management noted positive quarter-to-date results, with traffic outpacing national levels, and highlighted the toy industry's recession-resistant nature [36][37] Question: Progress in e-commerce - Management acknowledged the need for improvement in e-commerce and emphasized the importance of an integrated omnichannel strategy [38] Question: Tariff impacts and dependence on China - The company has diversified its supply chain, reducing dependency on China to less than 50% of inventory shipped to North America [46] Question: Future of same-day delivery partnerships - Management highlighted the importance of partnerships like Uber for enhancing customer convenience, especially during peak seasons [50][52] Question: Plans for MiniBeans product line expansion - The MiniBeans collection has sold over 1.25 million units, and the company plans to extend its reach into wholesale retail locations [57][59] Question: Inventory levels and expansion - Management indicated that inventory levels would rise to support new store openings, but overall growth would be managed carefully [70] Question: Revenue guidance and macroeconomic headwinds - Management provided mid-single-digit revenue growth guidance, accounting for potential macroeconomic challenges while remaining optimistic about store performance [75][76]