Core Insights - Toast (TOST) reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, and showing significant growth from $0.07 per share a year ago, representing an earnings surprise of +4.17% [1] - The company achieved revenues of $1.63 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.60% and increasing from $1.31 billion year-over-year [2] - Toast has outperformed consensus revenue estimates three times over the last four quarters, indicating a positive trend in revenue performance [2] Earnings Outlook - The future performance of Toast's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $1.6 billion, while the estimate for the current fiscal year is $0.94 on revenues of $6.08 billion [7] Industry Context - The Internet - Software industry, to which Toast belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable environment for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Company Performance - Toast (TOST) closed at $36.70, down 1.26% from the previous session, underperforming the S&P 500's gain of 0.58% [1] - Over the past month, Toast shares have depreciated by 9.16%, while the Computer and Technology sector gained 6.37% and the S&P 500 gained 3.68% [1] Upcoming Earnings - Toast is expected to report an EPS of $0.24, reflecting a growth of 242.86% year-over-year [2] - Revenue is projected to be $1.59 billion, up 21.56% from the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at $0.94 per share, indicating a growth of 3033.33% from the previous year [3] - Revenue for the fiscal year is projected at $6.07 billion, representing a 22.34% increase from the prior year [3] Analyst Estimates and Stock Performance - Recent analyst estimate revisions are crucial as they reflect near-term business trends, with positive revisions indicating a favorable business outlook [3] - The Zacks Consensus EPS estimate has decreased by 5.12% in the past month, and Toast currently holds a Zacks Rank of 3 (Hold) [5] Valuation Metrics - Toast has a Forward P/E ratio of 39.4, which is a premium compared to the industry average Forward P/E of 29.68 [6] - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 85, placing it in the top 35% of over 250 industries [6]

Core Viewpoint - Toast (TOST) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance and Outlook - For Toast, the upgrade reflects an improvement in its underlying business, which is expected to drive stock price appreciation [5]. - The Zacks Consensus Estimate for Toast indicates an expected earnings of $0.97 per share for the fiscal year ending December 2025, with a 5.1% increase in estimates over the past three months [8]. Zacks Rating System - The Zacks Rank system classifies stocks based on earnings estimates into five groups, with only the top 20% receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - The upgrade of Toast to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Group 1 - Toast's stock closed at $39.95, down 2.06% from the previous day, underperforming the S&P 500 which lost 0.05% [1] - Over the past month, Toast's stock has decreased by 5.14%, while the Computer and Technology sector gained 5.42% and the S&P 500 gained 3.44% [1] Group 2 - Analysts forecast Toast to report an EPS of $0.25, a 257.14% increase from the same quarter last year, with revenue expected to be $1.59 billion, reflecting a 21.87% year-over-year increase [2] - For the entire fiscal year, earnings are projected at $0.97 per share and revenue at $6.07 billion, indicating increases of 3133.33% and 22.44% respectively from the previous year [3] Group 3 - Recent modifications to analyst estimates for Toast are crucial as they indicate changing near-term business trends, with positive revisions seen as a favorable sign for the business outlook [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Toast at 3 (Hold), with the consensus EPS estimate remaining unchanged over the past month [6] Group 4 - Toast is trading at a Forward P/E ratio of 42.05, which is higher than the industry average Forward P/E of 32 [7] - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 68, placing it in the top 28% of over 250 industries [7]

Group 1: Earnings Performance - Toast reported quarterly earnings of $0.24 per share, matching the Zacks Consensus Estimate, and showing a significant increase from $0.02 per share a year ago [1] - The company posted revenues of $1.55 billion for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 1.10% and up from $1.24 billion year-over-year [2] - Over the last four quarters, Toast has surpassed consensus EPS estimates two times and revenue estimates three times [2][1] Group 2: Stock Performance and Outlook - Toast shares have increased approximately 35.3% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.6% [3] - The future stock price movement will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][3] - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $1.57 billion, and for the current fiscal year, it is $0.95 on revenues of $6.01 billion [7] Group 3: Industry Context - The Internet - Software industry, to which Toast belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Toast's stock performance [5]

Core Viewpoint - The market anticipates Toast (TOST) to report a significant year-over-year increase in earnings driven by higher revenues, with actual results being crucial for near-term stock price movements [1][2]. Earnings Expectations - Toast is expected to report quarterly earnings of $0.24 per share, reflecting a year-over-year increase of +1100% [3]. - Revenue projections stand at $1.53 billion, which is a 23.4% increase compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4]. - A positive Earnings ESP of +1.70% suggests that analysts have recently become more optimistic about Toast's earnings prospects [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [10]. - Toast currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat despite the positive Earnings ESP [12]. Historical Performance - In the last reported quarter, Toast was expected to post earnings of $0.19 per share but exceeded expectations with earnings of $0.20, resulting in a surprise of +5.26% [13]. - Over the past four quarters, Toast has beaten consensus EPS estimates three times [14]. Conclusion - While Toast does not appear to be a compelling candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [17].

Company Performance - Toast (TOST) stock closed at $47.31, reflecting a +1.7% change from the previous day's closing price, outperforming the S&P 500 which gained 0.14% [1] - The stock has increased by 9.85% over the past month, surpassing the Computer and Technology sector's gain of 7.37% and the S&P 500's gain of 5.35% [1] Upcoming Earnings - Analysts expect Toast to report earnings of $0.24 per share, indicating a year-over-year growth of 1100% [2] - Revenue is anticipated to be $1.53 billion, representing a 23.44% increase from the same quarter last year [2] Full-Year Estimates - Zacks Consensus Estimates project earnings of $0.95 per share and revenue of $6.01 billion for the full year, reflecting year-over-year changes of +3066.67% and +21.2%, respectively [3] - Recent changes in analyst estimates suggest positive sentiment regarding Toast's business and profitability [3] Valuation Metrics - Toast has a Forward P/E ratio of 49.07, which is a premium compared to the industry average Forward P/E of 29.16 [6] - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 79, placing it in the top 32% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), indicates that Toast currently has a Zacks Rank of 4 (Sell) [5] - The Zacks Rank system has shown an average annual return of +25% for 1 ranked stocks since 1988 [5]

Group 1 - Toast's stock price decreased by 2.84% to $43.03, underperforming the S&P 500's daily loss of 0.11% [1] - Over the past month, Toast's shares increased by 3.02%, while the Computer and Technology sector and the S&P 500 gained 8.76% and 5.17%, respectively [1] Group 2 - Toast is expected to report an EPS of $0.23, reflecting a significant increase of 1050% compared to the same quarter last year [2] - The projected revenue for the upcoming earnings release is $1.53 billion, which is a 23.45% increase from the previous year [2] Group 3 - For the entire fiscal year, earnings are projected at $0.95 per share, representing a 3066.67% increase, and revenue is expected to be $6 billion, up 21.06% from the prior year [3] - Recent changes to analyst estimates for Toast can indicate short-term business trends, with positive revisions suggesting an optimistic outlook [3] Group 4 - The Zacks Rank system, which evaluates estimate changes, has shown a correlation with stock price performance, with stocks rated 1 historically producing an average annual return of +25% since 1988 [4][5] - Currently, Toast holds a Zacks Rank of 3 (Hold) [5] Group 5 - Toast's Forward P/E ratio is 46.72, indicating a premium compared to the industry average Forward P/E of 29.16 [6] - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 40, placing it in the top 17% of over 250 industries [6] Group 6 - The Zacks Industry Rank assesses the performance of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Group 1 - Speculation regarding a potential acquisition of Olo by Oracle has led to a rise in Oracle's stock price, which increased by over 3% compared to the S&P 500's 0.6% gain [1] - Olo is reportedly exploring a sale and is working with a financial advisor to gauge interest from potential buyers, including Oracle and Toast [2][3] - The situation is still in its early stages, and no official comments have been made by Olo, Oracle, or Toast regarding the potential sale [3] Group 2 - Oracle has a history of acquisitions in the restaurant technology space, having purchased Micros Systems for $5.3 billion in 2014, indicating its capability to pursue similar deals [4] - Olo's market capitalization is approximately $1.2 billion, which may be a significant investment for a buyer without substantial financial resources [4] - The speculation surrounding Olo's potential sale presents an interesting development for investors in Oracle, Toast, and Olo [5]