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Yahoo
03-07-2025
- Business
- Yahoo
The Top 5 Analyst Questions From EPAM's Q1 Earnings Call
EPAM's first quarter results were well received by the market, driven by a combination of strong double-digit revenue growth and continued expansion in advanced AI-related services. Management attributed the performance to higher client engagement across core verticals, meaningful progress in cross-selling, and increased demand for digital transformation, particularly in AI-native projects. CEO Arkadiy Dobkin noted that supplier consolidation trends have helped EPAM regain business from clients seeking quality and execution, stating, 'We are encouraged to see EPAM benefit from supplier consolidation activity in our core portfolio,' and highlighted that organic growth exceeded initial expectations. Is now the time to buy EPAM? Find out in our full research report (it's free). Revenue: $1.30 billion vs analyst estimates of $1.28 billion (11.7% year-on-year growth, 1.6% beat) Adjusted EPS: $2.41 vs analyst estimates of $2.27 (6.1% beat) Adjusted EBITDA: $189.5 million vs analyst estimates of $184.1 million (14.6% margin, 3% beat) Revenue Guidance for Q2 CY2025 is $1.33 billion at the midpoint, above analyst estimates of $1.30 billion Management raised its full-year Adjusted EPS guidance to $10.83 at the midpoint, a 2.1% increase Operating Margin: 7.6%, down from 9.5% in the same quarter last year Constant Currency Revenue rose 12.6% year on year (-4.3% in the same quarter last year) Market Capitalization: $10.14 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Bryan Bergin (TD Cowen) asked about the confidence behind raised organic growth guidance and the visibility into second-half demand. CEO Arkadiy Dobkin and CFO Jason Peterson said performance in the first half was better than expected, but visibility for the second half remains limited. Ramsey El-Assal (Barclays) questioned the trajectory of free cash flow and whether recent headwinds were temporary. Peterson explained that Q1 is seasonally low due to bonus payments and milestone billing, and cash flow conversion should normalize, though days sales outstanding may stay slightly elevated. Maggie Nolan (William Blair) inquired about plans to improve gross margin over the year. Peterson cited seasonal benefits, improved utilization, and a renewed focus on operational efficiency but acknowledged that acquisition-related headwinds and wage inflation would persist. David Grossman (Stifel) sought details on client cohort growth, especially outside the top 20 clients. Dobkin explained that returning clients and M&A were driving new customer growth, with improvements accumulating each quarter. Jamie Friedman (Susquehanna) probed into the shift toward fixed-price contracts and its impact on risk and margins. Peterson noted that the change reflects evolving pricing models and shorter-term contracts, especially from acquisitions, but risk is managed through structured arrangements and productivity gains from AI. In the coming quarters, we will be watching (1) the pace of AI-related deal expansion and whether early-stage projects convert to larger, multi-year programs, (2) improvements in utilization and gross margin as EPAM executes on operational efficiency initiatives, and (3) the impact of leadership transition on strategic execution. Additionally, tracking the effect of macroeconomic conditions and client budget trends will be important for assessing the sustainability of growth. EPAM currently trades at $179.03, up from $159.44 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Yahoo
29-06-2025
- Business
- Yahoo
5 Insightful Analyst Questions From Enovis's Q1 Earnings Call
Enovis Corporation's first quarter results prompted a negative market reaction, as investors weighed both solid top-line growth and concerns about margin pressures. Management attributed the quarter's revenue gains to strong performance in the Reconstruction (Recon) segment—particularly in U.S. extremities and international markets—along with healthy contributions from Prevention & Recovery (P&R) products. CEO Matthew Trerotola highlighted the impact of recent product launches, noting that the company delivered 'well above market rates in the U.S.' and benefited from expanding its global position. However, ongoing investments in research and supply chain adjustments, as well as the effects of new tariffs, weighed on operating margins. Is now the time to buy ENOV? Find out in our full research report (it's free). Revenue: $558.8 million vs analyst estimates of $558.9 million (8.3% year-on-year growth, in line) Adjusted EPS: $0.81 vs analyst estimates of $0.74 (8.9% beat) Adjusted EBITDA: $99.2 million vs analyst estimates of $98.78 million (17.8% margin, in line) The company lifted its revenue guidance for the full year to $2.24 billion at the midpoint from $2.21 billion, a 1.4% increase Management lowered its full-year Adjusted EPS guidance to $3.03 at the midpoint, a 4.7% decrease EBITDA guidance for the full year is $390 million at the midpoint, below analyst estimates of $409 million Operating Margin: -8.4%, down from -6.8% in the same quarter last year Organic Revenue rose 9.1% year on year (4.8% in the same quarter last year) Market Capitalization: $1.84 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Vik Chopra (Wells Fargo) asked about which tariff mitigation actions would be most durable, with CEO Matthew Trerotola pointing to shifting sourcing out of China as the most sustainable approach. Vijay Kumar (Evercore ISI) questioned if strong gross margin gains were sustainable. CFO Ben Berry responded that favorable business mix and new products were key, with only temporary headwinds expected from tariffs. Robert Marcus (JPMorgan) inquired about free cash flow progression and leverage, with Berry noting seasonality and confirming expectations for improved cash flow and leverage in the 3-3.5x range by year-end. Young Li (Jefferies) sought clarification on why the P&R growth outlook remained conservative despite a strong start. Trerotola explained that the segment faces the greatest tariff impact and diverse end-market risks, warranting a cautious full-year approach. Russell Yuen (William Blair) asked about pricing trends under inflation and tariff scenarios, with Trerotola highlighting a stable pricing environment in P&R but some downward pressure in Recon, partially offset by richer product mix. In the quarters ahead, the StockStory team will be watching (1) the rate and effectiveness of Enovis's tariff mitigation and supply chain diversification, (2) the commercial uptake and surgeon adoption of newly launched Recon and P&R products, and (3) the company's ability to sustain gross margin improvements despite ongoing cost pressures. Execution on integration synergies and cash flow conversion will also be important indicators of operational progress. Enovis currently trades at $32.26, down from $34.14 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. 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
Yahoo
06-06-2025
- Business
- Yahoo
Guess? Inc (GES) Q1 2026 Earnings Call Highlights: Strong Wholesale Growth Amidst Margin Pressures
Total Revenue: $648 million, a 9% increase in US dollars; 12% increase in constant currency. Gross Margin: 39.9%, 200 basis points lower than last year. Adjusted Operating Loss: $26 million with a margin of -4%. Adjusted Loss Per Share: $0.44. European Wholesale Growth: Mid-teen growth rate. Americas Wholesale Revenue: Increased by 63% to $101 million. Asia Revenue Decline: 20% decrease in US dollars; 16% decrease in constant currency. Inventory: $638 million, up 15% in US dollars. Cash Position: $151 million at quarter end. Dividend: Quarterly cash dividend of $0.30 per share. Full Year Revenue Growth Outlook: 5.5% to 7.4%. Full Year Adjusted EPS Outlook: $1.32 to $1.64. Warning! GuruFocus has detected 6 Warning Sign with IDT. Release Date: June 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Guess? Inc (NYSE:GES) reported Q1 operating results ahead of expectations, driven by the successful integration of rag & bone and strong performance in the European and Americas wholesale businesses. The acquisition of rag & bone contributed significantly to the company's top-line growth, adding 9 percentage points to constant currency growth. The European wholesale business posted mid-teen growth, benefiting from reliable product deliveries despite supply chain challenges. The Americas wholesale business delivered double-digit top-line growth, surpassing expectations. The company is implementing strategic initiatives to improve retail productivity, including a new customer loyalty program in Europe that has shown positive results. The company's gross margin declined by 200 basis points compared to the previous year, primarily due to business mix and lower royalty income. The Asian market, particularly Greater China, continues to face significant headwinds, with revenues declining by over 20%. Licensing revenue declined, with royalties from fragrances and footwear decreasing. The European retail stores experienced a constant currency comp decrease of 4% due to a decline in store traffic. The Americas Retail business faced traffic headwinds, resulting in a net 10% constant currency comp sales decline for the quarter. Q: Can you discuss the organic growth expectations for the rag & bone brand and the trajectory of the Americas Retail business for the year? A: Carlos Alberini, CEO, highlighted that rag & bone has exceeded expectations, with plans to grow from $250 million to over $320 million annually. This growth is driven by new store openings, same-store sales growth, and expansion into new markets. For the Americas Retail business, despite traffic challenges, improvements in product assortment and pricing have led to better-than-expected performance, particularly in women's apparel. Q: How do you foresee the operating margin outlook for the second half of the year? A: Dennis Secor, Interim CFO, explained that the year's growth curve is an inverted bell curve, with high growth in Q1, moderation in Q2 and Q3, and significant improvement in Q4 due to currency tailwinds and retail improvements. The fourth quarter is expected to see high single to approaching 10% growth, leveraging fixed cost bases. Q: What is the strategy for managing inventory levels, especially considering the current tariffs and supply chain challenges? A: Carlos Alberini, CEO, stated that inventory levels are intentionally higher to mitigate supply chain disruptions, particularly in Europe. The company plans to streamline inventory ownership over the medium term, expecting to reduce levels once supply chain issues normalize. Q: Can you provide an update on the Guess Jeans brand? A: Carlos Alberini, CEO, reported that Guess Jeans is performing well, particularly in Europe, with a focus on improving product offerings and expanding distribution. The brand is also leveraging social media and marketing initiatives to appeal to younger consumers, with plans to open new stores in key markets like Los Angeles and Tokyo. Q: How is the company addressing the challenges in the Asian market, particularly in China? A: Carlos Alberini, CEO, mentioned that the company is contracting operations in China, including reducing headcount and closing stores, while seeking a third-party partner to take over the business. The goal is to eliminate losses in the region and focus on more profitable markets. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
03-06-2025
- Business
- Yahoo
The Campbell's Co (CPB) Q3 2025 Earnings Call Highlights: Strong Meals & Beverages ...
Organic Net Sales Growth: 1% driven by volume growth. Net Sales Growth: 4% reflecting organic growth and contribution from Rao's. Adjusted EBIT: Increased 2% versus prior year. Adjusted EPS: Down 3% to $0.73. Meals & Beverages Organic Net Sales: Increased 6% for the quarter. Snacks Organic Net Sales: Declined 5% driven by lower volume and mix. Operating Cash Flow Year-to-Date: $872 million. Capital Expenditures Year-to-Date: $296 million. Net Debt-to-Adjusted EBITDA Leverage Ratio: 3.6 times. Cost Savings Program: $110 million of total savings delivered. Warning! GuruFocus has detected 5 Warning Signs with CPB. Release Date: June 02, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. The Campbell's Co (NASDAQ:CPB) exceeded third-quarter earnings expectations, driven by strong performance in the Meals & Beverages division. Organic net sales growth of 1% was achieved, marking five consecutive quarters of flat or positive volume across the enterprise. The company's soup portfolio continued strong performance, with Campbell's total wet soup growing dollar-share by 0.4 points. The Meals & Beverages division saw a 6% increase in organic net sales, led by volume and mix growth. The integration of Sovos Brands into Campbell's ERP system is expected to unlock additional back-office savings. The Snacks business faced mixed performance due to continued category softness and an increasingly competitive environment. Adjusted EPS was down 3% compared to the prior year, impacted by higher adjusted interest expense. The company expects adjusted earnings to be at the low end of the guidance range due to slower-than-anticipated recovery in the Snacks business. Snacks organic net sales decreased by 5%, driven by lower volume and mix. The company faces potential headwinds from tariffs, estimated to impact fiscal '25 adjusted EPS by up to 3 to 5 cents per share. Q: How much of the pressure in the Snacks segment is due to overall category trends versus Campbell's in-market execution, and what steps is the company taking to address these issues? A: Mick Beekhuizen, CEO, explained that about two-thirds of the pressure is due to worsening aggregate categories, while one-third is due to in-market performance. The company is focusing on innovation, distribution expansion, and price pack architecture to address these challenges. They are also working on reigniting core brands like Goldfish with advertising and strategic promotional activities. Q: What are the key factors to consider for fiscal '26, especially regarding the need for reinvestment in the Snacks segment? A: Mick Beekhuizen, CEO, noted that the recovery of the Snacks business is now expected in fiscal '26. The company plans to invest more in marketing and brand support, potentially increasing spending from the current 9% to 10% range. Additionally, incentive compensation may pose a headwind next year. Q: How sustainable is the trend of increased at-home cooking and eating, and what factors are driving this trend? A: Mick Beekhuizen, CEO, expressed optimism about the sustainability of this trend, driven by consumer focus on value, quality, and convenience. The Meals & Beverages portfolio is well-positioned to capitalize on this trend, with both mainstream and premium offerings. However, he cautioned that Q3 results might not be repeated as the company exits the soup season. Q: Is there an expectation for increased promotional activities in light of competitive pressures in categories like RTS, premium pasta sauce, or snacks? A: Mick Beekhuizen, CEO, indicated that the focus is not on increasing promotional activities but rather on ensuring that existing promotions are strategically timed and effective. The company is also working on price pack architecture to ensure competitive starting price points in the market. Q: What needs to happen from a category perspective in Snacks to see improvements, and how does consumer perception of "worth it" play into this? A: Mick Beekhuizen, CEO, highlighted that improving consumer confidence would benefit the Snacks category. The focus is on meeting consumer needs for value, better-for-you options, and indulgence. Innovation, such as the Milano White Chocolate launch, is key to driving growth by enhancing consumer experiences. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
31-05-2025
- Business
- Yahoo
Laurentian Bank of Canada (LRCDF) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...
Total Revenue: $242.5 million, down 4% year-over-year and 3% quarter-to-quarter. Net Income (Reported): $32.3 million. Diluted EPS (Reported): $0.69. Net Income (Adjusted): $34 million, down 16% year-over-year and 14% quarter-to-quarter. Diluted EPS (Adjusted): $0.73, decreased by 19% year-over-year and 6% quarter-to-quarter. Efficiency Ratio (Adjusted): 75.2%, increased by 140 basis points year-over-year and 90 basis points sequentially. Net Interest Margin: Stable at 1.85% quarter-over-quarter, up 5 basis points year-over-year. Net Interest Income: Up by $2.6 million or 1% year-over-year; down by $4 million or 2% sequentially. Other Income: $60.3 million, down 17% year-over-year and 4% sequentially. Non-Interest Expenses: $182.3 million, down 2% year-over-year and 1% sequentially. CET1 Ratio: Increased by 10 basis points to 11% sequentially. Commercial Loan Growth: Increased by about $300 million year-over-year and sequentially. Inventory Financing Utilization Rate: 46%, below historical averages. Residential Mortgage Loans: Down 4% year-over-year and 1% sequentially. Allowances for Credit Losses: $204.3 million, down $2.6 million compared to last quarter. Provisions for Credit Losses: $16.7 million, decreased by $1.2 million year-over-year; up $1.5 million sequentially. Gross Impaired Loans: Increased by $104.6 million year-over-year; relatively stable sequentially. Warning! GuruFocus has detected 3 Warning Signs with LRCDF. Release Date: May 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Laurentian Bank of Canada (LRCDF) has made significant progress in executing its strategic plan, focusing on technology investments to improve efficiency and customer experience. The bank's commercial loan portfolio grew by 1% compared to the previous quarter, with commercial assets now comprising 49% of the total portfolio. The bank maintained a stable net interest margin of 1.85% quarter over quarter, indicating consistent financial performance. Laurentian Bank of Canada (LRCDF) reported a strong commercial banking net promoter score, reflecting high customer satisfaction. The bank's CET1 ratio increased by 10 basis points to 11% sequentially, indicating a solid capital position and readiness for future growth opportunities. Total revenue for the quarter was $242.5 million, down 4% compared to last year and 3% quarter to quarter. Net income decreased by 16% compared to last year and 14% compared to the previous quarter, reflecting financial challenges. The bank's efficiency ratio increased by 140 basis points compared to last year, driven by elevated expenses related to technology investments. Other income decreased by 17% year over year, primarily due to lower fees and securities brokerage commissions. The provisions for credit losses increased sequentially, reflecting higher provisions on performing loans amid uncertain macroeconomic conditions. Q: Is there anything unusual in this quarter's results that we should be aware of? A: Eric Provost, President and CEO, stated that there were no unusual elements in the quarter. The focus remains on specialized sectors, particularly commercial, with a strong unfunded pipeline in commercial real estate and good performance in inventory finance. Q: Can you provide details on the growth and diversification of the inventory finance sector? A: Eric Provost explained that the bank has added about 100 new dealers this quarter, growing the dealer base by 6% year over year. The growth is primarily in new sectors like agriculture, construction, and IT, which positions the bank well for future growth. Q: What is the outlook for the bank's capital levels and potential deployment? A: Yvan Deschamps, CFO, mentioned that the bank's capital ratio is at 11%, with plans to manage above 10%. The bank expects to deploy capital in inventory financing and commercial real estate as these sectors normalize and grow. Q: How is the bank progressing with its technology investments and efficiency improvements? A: Eric Provost noted that significant progress has been made in technology investments aimed at improving efficiency. The bank expects to see momentum in efficiency ratios starting in 2026, with a focus on simplifying technology infrastructure and processes. Q: What is the current status of the bank's digital offerings and funding strategy? A: Eric Provost stated that while there is no immediate plan for a major digital product launch, the bank is focused on foundational investments and exploring partnerships to enhance digital offerings. The goal is to improve customer experience and differentiate in the market. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. 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
