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Is Silver the next commodity to face tariffs? Here's what to watch for next week.

Is Silver the next commodity to face tariffs? Here's what to watch for next week.

Globe and Mail3 days ago
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Abbott Reports 10.5% EPS Growth for Fiscal Q2
Abbott Reports 10.5% EPS Growth for Fiscal Q2

Globe and Mail

time25 minutes ago

  • Globe and Mail

Abbott Reports 10.5% EPS Growth for Fiscal Q2

Key Points Q2 revenue beat expectations at $11.14 billion, up 7.4% year over year. Adjusted EPS exceeded estimates, reaching $1.26 for Q2 2025, representing 10.5% growth year over year. Medical Devices achieved strong double-digit growth, while the Diagnostics segment in China saw ongoing pressure. These 10 stocks could mint the next wave of millionaires › Abbott Laboratories (NYSE:ABT), a global healthcare company known for its medical devices, diagnostics, nutrition, and pharmaceuticals, reported fiscal 2025 earnings on Thursday, July 17, that narrowly topped analysts' consensus estimates. Q2 revenue climbed to $11.14 billion, surpassing the analyst estimate of $11.06 billion, and adjusted earnings per share came in at $1.26, beating the consensus by $0.01. These results reflect robust year-over-year growth, especially in the company's Medical Devices segment, which reported year-over-year sales growth of 13.4%, but also highlight continued headwinds in its Diagnostics business, mainly in China. Overall, the company achieved margin expansion and affirmed management's full-year outlook despite tariff pressures and competitive and regulatory challenges overseas. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Change (YOY) Adjusted EPS $1.26 $1.25 $1.14 10.5% Revenue $11.14 billion $11.06 billion $10.38 billion 7.4% Adj. operating margin 22.9% 21.9% 100 bps Net earnings $2.21 billion $2.00 billion 10.5% Source: Abbott Laboratories. Note: Analysts' consensus estimates for the quarter provided by FactSet. YOY = Year over year. bps = basis points. Understanding Abbott Laboratories' Business Abbott Labs operates across four main segments: medical devices, diagnostics, nutrition, and pharmaceuticals. Its product range includes continuous glucose monitors for diabetes care, implantable heart devices, laboratory diagnostic analyzers, and nutritional products such as Ensure and Glucerna. The company serves customers in over 160 countries, generating a significant portion of sales internationally. The company's ongoing strategy centers on technological innovation, shown in products like its FreeStyle Libre system for continuous glucose monitoring, and compliance with evolving global health regulations. Its global footprint supports market access and supply chain resilience. Success depends on delivering new technology, defending market share, and adapting to changing healthcare policies and competitive pressures. Second-Quarter Highlights The Medical Devices segment was the standout performer. Sales for the segment reached $5.37 billion, up 13.4%, with especially strong contributions from Diabetes Care, Heart Failure, Structural Heart, and Electrophysiology subsegments. Continuous glucose monitoring systems, like the FreeStyle Libre, generated $1.9 billion in revenue -- up 21.4% on a reported basis -- helped by robust adoption in both the U.S. and international markets. New launches, such as Navitor for heart valves and AVEIR leadless pacemakers, also fueled growth. Diagnostics segment sales came in at $2.17 billion, declining 1% from last year. The primary factor was a sharp drop in COVID-19 testing sales, now down to $55 million from $102 million a year earlier. Core Laboratory Diagnostics grew slightly, but ongoing price cuts from China's volume-based procurement program pressured overall segment results. While diagnostics achieved roughly 7% growth outside China in Q1 2025, this did not fully make up for the shortfall in that market. CEO Robert Ford noted the challenge, highlighting that recent changes in Chinese procurement have led to lower prices without offsetting volume gains -- a departure from past patterns. Nutrition revenue was $2.21 billion, up 2.9% on a reported basis. Adult Nutrition -- driven by Ensure and Glucerna brands -- grew 6.1% on a reported basis, while Pediatric Nutrition organic sales remained nearly flat, reflecting a continuing squeeze in international pediatric sales, which fell 5.7%. The adult product growth offset ongoing softness in pediatric lines. Pharmaceutical sales, mostly in established branded generics outside the United States, rose 6.9% on a reported basis, with double-digit gains in emerging markets across Asia, Latin America, and the Middle East. Adjusted operating margin rose to 22.9%, a 100 basis point increase from the prior year. Management cautioned that tariffs introduced in 2025 posed a 'few hundred million dollar' headwind for the second half of the year, but indicated that mitigation strategies -- such as adjusting manufacturing footprints and leveraging foreign exchange rates -- remain in progress. Net earnings reached $2.21 billion. Abbott Laboratories also maintained a quarterly dividend of $0.59 per share, extending its streak of increases to 53 consecutive years. Future Outlook and What to Watch Looking ahead, management reaffirmed its full-year guidance despite new tariff costs. For fiscal 2025, it projects organic sales growth (excluding COVID-19 testing-related sales) of 7.5% to 8.0%, and full-year adjusted EPS in the $5.10–$5.20 range. Third-quarter 2025 adjusted EPS is expected to be between $1.28 and $1.32. Abbott also guided to an adjusted operating margin of 23.5%, implying further focus on efficiency and cost controls. Management sees new product launches and recovery in underperforming segments as growth drivers for the back half of 2025. Investors should closely monitor the ongoing impact of global tariffs, continued performance in the Diagnostics segment -- especially in China -- and the pace at which the company launches new products in its medical devices pipeline. International pediatric nutrition trends also bear watching, given ongoing weakness. Planned mitigation efforts around tariffs and supply chain reshuffling, along with the evolving clinical and regulatory landscape, are likely to influence the company's performance as 2025 progresses. Note: Revenue and net income are presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,059%* — a market-crushing outperformance compared to 180% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 14, 2025

DELL's Margins Under Pressure: Will ISG Strength Drive a Rebound Ahead?
DELL's Margins Under Pressure: Will ISG Strength Drive a Rebound Ahead?

Globe and Mail

time25 minutes ago

  • Globe and Mail

DELL's Margins Under Pressure: Will ISG Strength Drive a Rebound Ahead?

Dell Technologies DELL is suffering from a decline in gross margin, which contracted 80 basis points (bps) year over year to 21.6% in the first quarter of fiscal 2026. The dip was primarily driven by a more competitive pricing environment, particularly in the Client Solutions Group segment, and an unfavorable geographical mix within traditional servers. However, Dell's ISG (Infrastructure Solutions Group) segment played a key role in supporting overall gross margin performance. In the first quarter of fiscal 2026, ISG revenues grew 12% year over year to $10.3 billion, with servers and networking revenue reaching a record $6.3 billion, up 16% year over year. The company also saw robust demand for AI servers, which drove higher revenues and gross margin dollars. In the fiscal first quarter of 2026, Dell's AI-optimized server momentum saw an increase of $12.1 billion in orders. The flagship PowerEdge XE9680 experienced strong demand, contributing to the momentum in the AI space. The company shipped $1.8 billion worth of AI servers in the fiscal first quarter, and the AI server backlog remained healthy at $14.4 billion. Building on this momentum, Dell expects gross margin dollars to increase 10% quarter over quarter in the second quarter of fiscal 2026, driven by strong performance in ISG, particularly AI servers, and continued improvement in storage profitability. The company also expects to ship $7 billion worth of AI servers in the second quarter of fiscal 2026, which is expected to contribute significantly to gross margin growth. DELL Faces Stiff Competition From HPE and SMCI DELL is facing stiff competition in the server space against the likes of Hewlett Packard HPE and Super Micro Computers SMCI. Hewlett Packard is benefiting from robust demand for its AI-optimized servers, leading to significant revenue growth in its server segment. The company's multi-billion-dollar investment plan across expanding networking capabilities will diversify the business beyond the server and hardware storage markets, ultimately boosting margins in the long run. Super Micro Computer is evolving from just a server and hardware vendor into a full IT solutions provider. Products like DCBBS (Data Center Building Block Solutions) bundle hardware, software, cooling, networking and support into complete systems. This strategy increases revenue per deal and improves margins. It also makes customers more likely to stay with Super Micro Computer for future upgrades. DELL's Share Price Performance, Valuation and Estimates DELL's shares have gained 7.3% year to date, underperforming the broader Zacks Computer & Technology sector's return of 8.4%. DELL Stock Performance Image Source: Zacks Investment Research DELL stock is trading at a significant discount, with a forward 12-month Price/Sales of 12.36X compared with the Computer & Technology sector's 27.64X. DELL has a Value Score of B. Price/Sales (F12M) The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is pegged at $2.28 per share, which has increased by a couple of pennies in the past 30 days. This indicates a year-over-year increase of 20.63%. The consensus mark for 2025 earnings is pegged at $9.44 per share, which increased by a penny in the past 30 days. This suggests 15.97% year-over-year growth. DELL currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dell Technologies Inc. (DELL): Free Stock Analysis Report Super Micro Computer, Inc. (SMCI): Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report

Rivian Announces New East Coast Headquarters in Atlanta
Rivian Announces New East Coast Headquarters in Atlanta

Globe and Mail

time25 minutes ago

  • Globe and Mail

Rivian Announces New East Coast Headquarters in Atlanta

Rivian, Georgia Governor Brian Kemp, and Atlanta Mayor Andre Dickens today announced the American electric vehicle company will establish a new East Coast Headquarters in Atlanta, Georgia as part of its landmark investment in the state. The office will open in late 2025, followed by further expansion in 2026 as construction accelerates at the company's new manufacturing site in Social Circle, just outside the city. Rivian will occupy the top floor and lobby of Portman Holdings' Junction Krog District building at 667 Auburn Ave NE, adjacent to the famous Eastside Trail of the Atlanta Beltline—easily accessible by public transportation. Rivian expects to employ around 100 people at the site by the end of 2025, with around 500 people at the new headquarters when fully built. 'We are excited to establish our East Coast head office in Atlanta,' said Rivian Founder and CEO RJ Scaringe. 'Atlanta embodies so much that makes Georgia great—top talent, exceptional creativity, and a desire to always be moving forward.' 'Georgia is a prime location for any company headquarters, and we're glad to see Rivian will soon join the growing list of brands not only operating in our state but also wholly or partially based in our capital city,' said Governor Brian Kemp. 'They recognize the unmatched value of Georgia's talent and the location of their East Coast Headquarters in Atlanta is the latest demonstration of their commitment to the Peach State. I look forward to that commitment translating to new jobs and opportunities for hardworking Georgians.' 'Atlanta continues to lead in EV innovation and technology integration, and Rivian's growing presence here reinforces our city's role in shaping our future economy. The opening of this new office and event space reflects how Atlanta continues to engage the community in bold, creative ways,' said Mayor Andre Dickens. 'Thank you to the Rivian team for investing in our city and calling Atlanta home.' Rivian has invested significantly in the Peach State, beginning with its plans to build a 7,500-person manufacturing facility in Stanton Springs North, near Social Circle. Since then, the company has continued to develop strong relationships in the state and plans to establish partnerships with universities, technical colleges, and local, regional, and state institutions as it scales. About Rivian: Rivian (NASDAQ: RIVN) is an American automotive manufacturer that develops and builds category-defining electric vehicles and accessories. The company creates innovative and technologically advanced products that are designed to excel at work and play with the goal of accelerating the global transition to zero-emission transportation and energy. Rivian vehicles are built in the United States and are sold directly to consumer and commercial customers. The company provides a full suite of services that address the entire lifecycle of the vehicle and stay true to its mission to keep the world adventurous forever. Whether taking families on new adventures or electrifying fleets at scale, Rivian vehicles all share a common goal—preserving the natural world for generations to come.

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