Telefonica Eyes Defense Contracts with NATO and EU Allies
The Madrid-based carrier, which supplies network infrastructure to the Spanish army and security forces, can sell its capabilities to 'allied countries, whether within the European Union, within NATO or beyond,' Executive Chairman Marc Murtra said in an interview Wednesday.
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Yahoo
15 minutes ago
- Yahoo
Proto Labs Inc (PRLB) Q2 2025 Earnings Call Highlights: Record Revenue and Strategic Growth ...
Revenue: $135.1 million, a company record, up 6.5% year over year in constant currencies, and up 7% sequentially. CNC Machining Revenue: Grew 20% over the prior year, with a 30% increase in the US. Injection Molding Revenue: Declined 4% year over year. 3D Printing Revenue: Down 1% year over year. Sheet Metal Revenue: Grew 9% year over year. US Revenue: Grew 12% year over year. Europe Revenue: Declined 15% in constant currencies. Non-GAAP Gross Margin: 44.8%, flat sequentially, down 90 basis points year over year. Non-GAAP Operating Expenses: Increased $2.7 million, up 6% consistent with revenue. Adjusted EBITDA: $19.7 million, or 14.6% of revenue. Non-GAAP Earnings Per Share: $0.41, above guidance range, up $0.08 sequentially, and up $0.03 year over year. Cash from Operations: $10.6 million generated during the second quarter. Share Repurchases: $3.1 million returned to shareholders. Cash and Investments: $123.2 million on balance sheet with zero debt. Q3 2025 Revenue Guidance: Expected between $130 million and $138 million, implying 6% growth year over year in constant currencies. Q3 2025 Non-GAAP EPS Guidance: Expected between $0.35 and $0.43. Warning! GuruFocus has detected 7 Warning Signs with PRLB. Release Date: July 31, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Proto Labs Inc (NYSE:PRLB) delivered record revenue of $135.1 million in the second quarter, exceeding expectations. The company saw a 44% growth in customers utilizing their combined offer over the trailing 12 months. Revenue per customer increased by 11% year over year, indicating strong customer engagement. The metal 3D Printing service in Raleigh, North Carolina received ISO 13,485 certification, enhancing credibility in the medical device manufacturing sector. Proto Labs Inc (NYSE:PRLB) continues to generate healthy cash flows, allowing for ongoing investments in growth and innovation. Negative Points Injection Molding revenue declined by 4% year over year, with noted weakness in the medical sector. 3D Printing revenue was down 1% year over year, reflecting continued weakness in prototyping. European revenue declined by 15% in constant currencies, indicating challenges in the region. Tariffs and changing trade policies created short-term margin pressures, impacting profitability. Gross margin was down 90 basis points year over year, driven by higher growth in network revenue and lower US network margins due to tariffs. Q & A Highlights Q: Can you elaborate on the strength you're seeing in CNC, particularly in terms of growth across the factory and network? A: Daniel Schumacher, CFO: We are experiencing similar growth in both the factory and the network, with a 30% CNC growth in the US driving the overall 20% growth for the company. Suresh Krishna, CEO: We've grown revenues with larger accounts due to our go-to-market reorganization, and our production teams have shown agility in responding to customer needs. Q: Is the CNC work leaning more towards production or prototyping? A: Daniel Schumacher, CFO: It is a combination of both production and prototyping. We don't provide a specific split, but both contribute to our revenue growth. Q: Can you provide more details on the Injection Molding business and the factors affecting its performance? A: Daniel Schumacher, CFO: The network is a small portion of our Injection Molding business, with most of it through the factory. We saw some larger production orders last year, particularly in automotive, which impacted year-over-year comparisons. Currently, we are seeing weakness in the medical sector, but we continue to innovate and add capabilities to drive future production growth. Q: What excites you about joining Proto Labs, and what are your initial observations? A: Suresh Krishna, CEO: I'm excited about the opportunity to reaccelerate growth. My focus is on listening to employees, customers, and partners to remove friction and identify future opportunities. I believe there is significant potential to enhance customer and employee experiences. Q: Can you explain the impact of tariffs on gross margins and how it was addressed? A: Daniel Schumacher, CFO: Tariffs impacted our US network margins, particularly on aluminum and steel. We adjusted pricing and fulfillment strategies, and by June, margins returned to normal. The impact was due to a backlog priced at different assumptions, but adjustments have since stabilized margins. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Hypebeast
19 minutes ago
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Designer Debuts Overtake Milan SS26 Schedule & US Tariffs Rattle Brands in This Week's Top Fashion News
Milan Fashion Week, running from September 23 to 29, will feature several highly anticipated creative director debuts for Spring 2026, includingDemnaforGuccion September 23,Simone BellottiforJil Sanderon September 24,Dario VitaleforVersaceon September 26, andLouise TrotterforBottega Venetaon September 28. Later, at 7 pm,Armaniwill celebrate its 50th anniversary on an evening runway at Palazzo Brera — in the heart of Milan's design district. The major milestone for the legendary Italian house will also be preceded by two Emporio Armani shows on September 25. A new trade deal between the US and the EU will impose a 15% tariff on most European goods, a measure that is expected to harm the luxury fashion industry's recovery fromlower sales. This new duty, though lower than the 30% tariff previously threatened by Trump, adds pressure to brands like Gucci,Chanel, andLouis Vuitton, which have already faced a recent decline in consumer demand. With luxury brands having increased prices by an estimated 33% between 2019 and 2023, the new tariff could force them to raise prices further — by an estimated 2% in the US — to maintain profit margins. Some luxury houses are already exploring alternative strategies, such asLVMHopening new factories in the US, to mitigate the tariffs' effect and avoid alienating price-burdened shoppers. adidasis among the sportswear purveyors warning of impending price hikes in the United States, warning that new tariffs could add up to $230 million USD to its costs. The company's CEO, Bjørn Gulden, stated that the tariffs would directly raise the cost of products for the US market and that the company is assessing its product assortment to determine which items will be impacted. While adidas plans to keep prices stable on its well-known models like theSambaandGazelleas long as possible, newer silhouettes are likely to get a price hike. The company is also concerned about how these price hikes will affect consumer demand, especially as other sectors react to similar pressures from trade reforms. Hermèscontinues to defy the luxury slowdown, reporting a 9% sales jump in Q2 2025. While many competitors are seeing dwindling demand, particularly from aspirational shoppers, Hermès' strategy of price increases and maintaining exclusivity has proven successful. TheBirkinbag-maker's sales reached €3.9 billion in Q2, driven largely by its core leather goods division, a category that competitor LVMH is seeing decline in. A global price hike, topped with another 5% increase in the US, is expected to offset the new tariffs. The brand's strong performance, which has led to Hermès's overtaking LVMH as the world's most valuable luxury stock, is attributed to the house's careful approach to production and its loyal customer base. Pharrellhas unveiled a new Louis Vuitton Fall 2026 menswear capsule, a cross-seasonal collection set to hit the shelves in September. The range reimagines the classic 'dandy' through a contemporary, collegiate lens that combines Ivy League aesthetics with a relaxed sensibility. Inspired by university life on both sides of the Atlantic, the collection features an academia-inspired color palette with pops of bold hues and patterns. Outerwear is a key focus for the designer this season, showcasing structured wool blousons, jacquard coats, and camel jackets. The line also introduces new takes on the Louis Vuitton monogram, a tartan-style pattern on flannel and denim, and a reworking of the brand's iconic floral design. American skiing hub, Aspen, Colorado, will be the next location forMonclerGrenoble's outdoor runway presentation. Following up on its March show at the French Alpine ski resort of Courchevel, Aspen will mark the label's first show at a US ski destination. Moncler announced its US-based Grenoble show after its H1'25 earnings report last week, which showed a 1% decline in Q2 revenue, attributed to lower tourist spending in Europe and Japan. While revenue in Europe and the Middle East dropped 8%, sales in the Americas were a stronghold, hence the label's renewed focus on the US. The Moncler Grenoble Fall 2025 show is set to take place on January 31, 2026, at an unrevealed location. LVMH is reportedly in talks to sell theMarc Jacobsbrand for an estimated $1 billion. This potential move is part of a larger strategy by the luxury conglomerate to streamline its portfolio and focus on its most profitable brands amidst a broader slowdown in the luxury market. LVMH's first-half 2025 financial results showed a significant drop in net profit and sales, fueling the decision. Potential buyers for Marc Jacobs, which LVMH has owned since 1997, are said to be brand management firms like Authentic Brands Group, Bluestar Alliance, and WHP Global. This follows LVMH's recent divestment of other contemporary labels likeOff-Whiteand its stake inStella McCartney, signaling a clear shift in the company's business model.
Yahoo
28 minutes ago
- Yahoo
AeroVironment (AVAV) Rides Drone Boom Amid Shifting Defense Priorities
AeroVironment, Inc. (NASDAQ:AVAV) is one of the best military tech stocks to buy now. On July 17, RBC Capital raised its price target on AeroVironment, Inc. (NASDAQ:AVAV) to $300 from $275, maintaining an Outperform rating following meetings with company leadership. At the current share price of $267.92, the new target implies an upside of approximately 12%. A rocket on its way to the sky, representing the power of the company's unmanned aircraft systems. According to a research note, RBC came away optimistic after investor discussions with AeroVironment's management team. The firm highlighted growing confidence in the company's top-line outlook, pointing to signs of a broader shift in the defense market that could benefit drone and missile system manufacturers. AeroVironment management emphasized that the defense sector is experiencing a positive inflection point, with increased funding and interest in unmanned systems across the U.S. and allied nations. Notably, the loitering munition segment, often referred to as 'kamikaze drones', continues to attract attention, even as more competitors enter the space. Management believes the total addressable market is expanding fast enough to support multiple suppliers. AeroVironment has seen growing demand for its tactical drone platforms, especially in regions facing heightened conflict or preparing for asymmetric warfare. Its flexible systems are valued for their ease of deployment and precision strike capabilities. AeroVironment develops tactical drones and precision munitions used in frontline military operations and battlefield intelligence. While we acknowledge the potential of AVAV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
