Latest news with #Earnings
Yahoo
15 hours ago
- Business
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AstraZeneca reports profit jump in second quarter, confirms outlook
Profit and revenue for British-Swedish drug major AstraZeneca were up in the second quarter, the company reported on Tuesday, confirming its fiscal 2025 outlook. Profit before tax climbed 30% to $3.13 billion in the second quarter, up from last year's $2.40 billion, the Cambridge-based firm said. Earnings per share came in at $1.57, up from $1.24 in the same period last year. Core earnings per share stood at $2.17 for the period. Earnings before interest, taxes, depreciation and amortization (EBITDA) climbed 22% to $4.90 billion from last year's $4.03 billion. AstraZeneca said total revenue for the quarter increased 12% to $14.46 billion from last year's $12.94 billion. Revenue, meanwhile, grew 11% at constant exchange rates. Analysts on average expected the company to record revenues of $14.10 billion for the quarter. Analysts' estimates typically exclude special items. Looking ahead, AstraZeneca continues to expect core earnings per share to increase by a low double-digit percentage in the 2025 financial year, and total revenue to increase by a high single-digit percentage.
Yahoo
a day ago
- Business
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Woodward Reports Third Quarter Fiscal Year 2025 Results
Raises 2025 Sales and Earnings Guidance on Strong Year-to-Date Performance and Outlook FORT COLLINS, Colo., July 28, 2025 (GLOBE NEWSWIRE) -- Today, Woodward, Inc. (NASDAQ:WWD) reported financial results for its third quarter of fiscal year 2025. All amounts are presented on an as reported (U.S. GAAP) basis unless otherwise indicated. All per share amounts are presented on a fully diluted basis. All comparisons are made to the same period of the prior year unless otherwise stated. All references to years are references to the Company's fiscal year unless otherwise stated. Third Quarter Overview Third Quarter 2025 Year-to-Date 2025 Net Sales $915M, 8% $2.6B, 4% Net Earnings $108M, 6% $304M, 5% Adjusted Net Earnings1 - $294M, 1% Earnings Per Share (EPS) $1.76, 8% $4.96, 7% Adjusted EPS1 - $4.80, 2% Cash from Operations $126, -18% $238, -20% Free Cash Flow1 $99, -28% $159, -29% "We delivered strong results in the third quarter underpinned by robust demand across our end markets, coupled with disciplined execution by our global teams,' said Chip Blankenship, Chairman and Chief Executive Officer. 'The Aerospace segment generated substantial sales growth and margin expansion, driven by smart defense and commercial services. This was partially offset by lower commercial OEM and defense services, although both achieved sequential improvement. Our Industrial business again delivered double-digit sales growth in oil and gas and marine transportation. This was offset by an expected decrease in China on-highway natural gas truck sales. Based on our strong year-to-date performance and solid fourth quarter outlook, we are raising our full-year sales and earnings guidance. However, given the demands to support higher sales in a dynamic supply chain and production environment, we are lowering our full-year free cash flow guidance. We remain focused on growth, operational excellence, and innovation, which continue to position Woodward to deliver sustained long-term shareholder value.' Third Quarter and Fiscal Year 2025 Company Results Total Company Results(Dollars in millions, except per share amounts) Three Months Ended June 30 Nine Months Ended June 30 2025 2024 Year over Year 2025 2024 Year over Year Income Statement Total Sales $ 915 $ 848 8.0 % $ 2,572 $ 2,470 4.1 % Net Earnings 108 102 6.2 % 304 290 5.1 % Adjusted Net Earnings1 - - - 294 293 0.6 % EPS $ 1.76 $ 1.63 8.0 % $ 4.96 $ 4.65 6.7 % Adjusted EPS1 - - - $ 4.80 $ 4.70 2.1 % EBIT 137 132 4.1 % 394 382 3.0 % Adjusted EBIT1 - - - 381 386 -1.4 % Effective Tax Rate 14.5 % 16.4 % -190 bps 15.8 % 17.8 % -200 bps Adjusted Effective Tax Rate1 - - - 15.5 % 17.8 % -230 bps Cash Flow and Financial Position Cash from Operating Activities $ 126 $ 153 -18.0 % $ 238 $ 297 -20.0 % Capital Expenditures 27 16 67.0 % 79 72 8.8 % Free Cash Flow 99 137 -27.8 % 159 225 -29.2 % Dividends Paid 17 15 10.7 % 48 43 10.9 % Share Repurchases 45 305 - 124 305 - Total Debt - - - 933 923 1.1 % EBITDA1Leverage - - - 1.5x 1.5x - Segment Results Aerospace(Dollars in millions) Three Months Ended June 30 Nine Months Ended June 30 2025 2024 Year over Year 2025 2024 Year over Year Commercial OEM $ 175 $ 190 -7.6 % $ 497 $ 545 -8.8 % Commercial Aftermarket 215 166 30.0 % 581 467 24.4 % Defense OEM 150 97 55.7 % 401 281 42.7 % Defense Aftermarket 55 66 -16.2 % 173 183 -5.7 % Sales 596 518 15.2 % 1,652 1,476 11.9 % Segment Earnings 126 102 23.5 % 345 279 23.6 % Segment Margin % 21.1 % 19.7 % 140 bps 20.9 % 18.9 % 200 bps The increase in Aerospace segment earnings in the third quarter was primarily a result of price realization and volume, partially offset by planned strategic investments in manufacturing capabilities to meet current and future growth, inflation, and unfavorable mix. The increase in Aerospace segment earnings for the nine months ended June 30, 2025, was primarily a result of price realization and volume, partially offset by planned strategic investments in manufacturing capabilities to meet current and future growth, inflation, and unfavorable mix. Industrial (Dollars in millions) Three Months Ended June 30 Nine Months Ended June 30 2025 2024 Year over Year 2025 2024 Year over Year Transportation $ 144 $ 163 -12.0 % $ 402 $ 512 -21.4 % Power Generation 109 110 -0.2 % 326 315 3.5 % Oil and Gas 66 57 16.1 % 193 168 14.7 % Sales 319 330 -3.2 % 920 994 -7.4 % Segment Earnings 48 60 -20.3 % 134 192 -30.3 % Segment Margin % 14.9 % 18.1 % -320 bps 14.5 % 19.3 % -480 bps The decrease in Industrial segment earnings in the third quarter was primarily a result of lower China on-highway volume and inflation, partially offset by price realization. The decrease in Industrial segment earnings in the nine months ended June 30, 2025, was primarily a result of lower China on-highway volume and unfavorable mix, partially offset by price realization. Nonsegment(Dollars in millions) Three Months Ended June 30 Nine Months Ended June 30 2025 2024 Year over Year 2025 2024 Year over Year Nonsegment Expenses $ (36 ) $ (30 ) 21.8 % $ (85 ) $ (89 ) -4.2 % Adjusted Nonsegment Expenses - - - (98 ) (85 ) 15.6 % Fiscal Year 2025 Guidance Woodward, Inc. and SubsidiariesRevised Guidance(In millions, except per share amount and percentages) Prior FY25 Guidance Revised FY25 Guidance April 28, 2025 July 28, 2025 Total Company Sales $3,375 - $3,500 $3,450 - $3,525 Adjusted Effective Tax Rate ~19% ~17% Adjusted Free Cash Flow $350 - $400 $315 - $350 Capital Expenditures ~$115 No change Shares ~61.5 No change Adjusted EPS $5.95 - $6.25 $6.50 - $6.75 Segment Data Aerospace Sales Growth Up 8% to 13% Up 11% to 13% Segment Earnings (% of Sales) 20% - 21% 21% - 21.5% Industrial Sales Growth Down 7% to 9% Down 5% to 7% Segment Earnings (% of Sales) 13% - 14% ~14.5% Conference Call Woodward will hold an investor conference call at 5:00 p.m. ET, July 28, 2025, to provide an overview of the financial performance for its fiscal year 2025 and third quarter ending June 30, 2025, business highlights, and guidance for fiscal 2025. You are invited to listen to the live webcast of our conference call, or a recording, and view or download accompanying presentation slides at our website, You may also listen to the call by dialing 1-800-715-9871 (domestic) or 1-646-307-1963 (international). Participants should call prior to the start time to allow for registration; the Conference ID is 4675940. The call and presentation will be available on the website by selecting 'Investors/Events & Presentations' from the menu and will remain accessible on the company's website for one year. About Woodward, Inc. Woodward is the global leader in the design, manufacture, and service of energy conversion and control solutions for the aerospace and industrial equipment markets. Our purpose is to design and deliver energy control solutions our partners count on to power a clean future. Our innovative fluid, combustion, electrical, propulsion and motion control systems perform in some of the world's harshest environments. Woodward is a global company headquartered in Fort Collins, Colorado, USA. Visit our website at Cautionary Statement Information in this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, including, but not limited to, our focus on growth, operational excellence and innovation, including the outcome of such efforts on our long-term success and shareholder value; statements regarding our business, expectations and guidance for the fourth quarter and fiscal year 2025, our guidance for sales, segment sales growth as compared to the prior fiscal year, adjusted earnings per share, segment earnings margin, adjusted effective tax rate, free cash flow, capital expenditures, and diluted weighted average shares outstanding, as well as our assumptions and expectations regarding our guidance and the factors that may impact guidance, and anticipated trends in our business and markets. Factors that could cause actual results and the timing of certain events to differ materially from the forward-looking statements include, but are not limited to: (1) global economic uncertainty and instability, including a potential global or regional recession, inflation and the impact on customer demand and our costs and expenses; (2) changes in or uncertainty with respect to global trade and economic policy, including tariff levels and retaliatory measures; (3) risks related to constraints and disruptions in the global supply chain and labor markets; (4) Woodward's long sales cycle; (5) risks related to Woodward's concentration of revenue among a relatively small number of customers; (6) Woodward's ability to implement and realize the intended effects of any restructuring efforts; (7) Woodward's ability to successfully manage competitive factors including expenses and fluctuations in sales; (8) changes and consolidations in the aerospace market; (9) Woodward's financial obligations including debt obligations and tax expenses and exposures; (10) risks related to Woodward's U.S. government contracting activities including potential changes in government spending patterns; (11) Woodward's ability to protect its intellectual property rights and avoid infringing the intellectual property rights of others; (12) changes in the estimates of fair value of reporting units or of long-lived assets; (13) environmental risks; (14) Woodward's continued access to a stable workforce and favorable labor relations with its employees; (15) Woodward's ability to manage various regulatory and legal matters; (16) risks from operating internationally; (17) cybersecurity and other technological risks; and other risk factors and risks described in Woodward's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended September 30, 2024, any subsequently filed Quarterly Report on Form 10-Q, as well as its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, which we expect to file shortly, and other risks described in Woodward's filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date hereof and Woodward assumes no obligation to update such statements, except as required by applicable law. Woodward, Inc. and SubsidiariesCondensed Consolidated Statement of Earnings(Unaudited – In thousands) Three Months Ended June 30 Nine Months Ended June 30 2025 2024 2025 2024 Net sales $ 915,446 $ 847,688 $ 2,571,800 $ 2,469,761 Costs and expenses: Cost of goods sold 666,287 617,702 1,892,908 1,801,037 Selling, general, and administrative expenses 88,703 73,812 242,241 229,770 Research and development costs 41,088 38,728 108,525 105,987 Interest expense 11,234 11,516 35,464 34,482 Interest income (838 ) (1,728 ) (3,236 ) (4,494 ) Other (income) expense, net (17,864 ) (14,438 ) (65,755 ) (49,461 ) Total costs and expenses 788,610 725,592 2,210,147 2,117,321 Earnings before income taxes 126,836 122,096 361,653 352,440 Income taxes 18,388 20,021 57,165 62,765 Net earnings $ 108,448 $ 102,075 $ 304,488 $ 289,675 Earnings per share amounts: Basic earnings per share $ 1.82 $ 1.69 $ 5.12 $ 4.80 Diluted earnings per share $ 1.76 $ 1.63 $ 4.96 $ 4.65 Weighted average common shares outstanding: Basic 59,680 60,425 59,442 60,290 Diluted 61,488 62,522 61,374 62,295 Cash dividends paid per share $ 0.28 $ 0.25 $ 0.81 $ 0.72 Woodward, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(Unaudited – In thousands) June 2025 September 2025 Assets Current assets: Cash and cash equivalents $ 473,159 $ 282,270 Accounts receivable 829,581 770,066 Inventories 657,121 609,092 Income taxes receivable 35,883 22,016 Other current assets 65,413 60,167 Total current assets 2,061,157 1,743,611 Property, plant, and equipment, net 942,103 940,715 Goodwill 813,779 806,643 Intangible assets, net 435,057 440,419 Deferred income tax assets 85,714 84,392 Other assets 374,040 353,135 Total assets $ 4,711,850 $ 4,368,915 Liabilities and stockholders' equity Current liabilities: Short-term debt $ 353,000 $ 217,000 Current portion of long-term debt 76,020 85,719 Accounts payable 284,029 287,457 Income taxes payable 35,768 40,692 Accrued liabilities 261,381 292,642 Total current liabilities 1,010,198 923,510 Long-term debt, less current portion 503,851 569,751 Deferred income tax liabilities 127,744 121,858 Other liabilities 601,491 577,380 Total liabilities 2,243,284 2,192,499 Stockholders' equity 2,468,566 2,176,416 Total liabilities and stockholders' equity $ 4,711,850 $ 4,368,915 Woodward, Inc. and SubsidiariesCondensed Consolidated Statements of Cash Flows(Unaudited – In thousands) Nine Months Ended June 30 2025 2024 Net cash provided by operating activities $ 237,976 $ 297,329 Cash flows from investing activities: Payments for purchase of property, plant, and equipment (78,537 ) (72,193 ) Proceeds from sale of assets 41 84 Proceeds from business divestitures 48,043 900 Payments for short-term investments - (6,767 ) Proceeds from sales of short-term investments 2,935 9,737 Net cash used in investing activities (27,518 ) (68,239 ) Cash flows from financing activities: Cash dividends paid (48,195 ) (43,457 ) Proceeds from sales of treasury stock 96,064 90,142 Payments for repurchases of common stock (124,276 ) (304,811 ) Borrowings on revolving lines of credit and short-term borrowings 1,957,900 2,258,600 Payments on revolving lines of credit and short-term borrowings (1,821,900 ) (1,983,800 ) Payments of long-term debt and finance lease obligations (85,719 ) (75,644 ) Net cash used in financing activities (26,126 ) (58,970 ) Effect of exchange rate changes on cash and cash equivalents 6,557 765 Net change in cash and cash equivalents 190,889 170,885 Cash and cash equivalents at beginning of year 282,270 137,447 Cash and cash equivalents at end of period $ 473,159 $ 308,332 Woodward, Inc. and SubsidiariesSegment Net Sales and Net Earnings(Unaudited – In thousands) Three Months Ended June 30 Nine Months Ended June 30 2025 2024 2025 2024 Segment net sales: Aerospace 595,990 517,560 1,651,601 1,475,828 Industrial 319,456 330,128 920,199 993,933 Total consolidated net sales $ 915,446 $ 847,688 $ 2,571,800 $ 2,469,761 Segment earnings*: Aerospace 125,740 101,842 345,081 279,295 As a percent of segment net sales 21.1 % 19.7 % 20.9 % 18.9 % Industrial 47,622 59,717 133,786 191,842 As a percent of segment net sales 14.9 % 18.1 % 14.5 % 19.3 % Total segment earnings $ 173,362 $ 161,559 $ 478,867 $ 471,137 Nonsegment expenses (36,130 ) (29,675 ) (84,986 ) (88,709 ) EBIT $ 137,232 $ 131,884 $ 393,881 $ 382,428 Interest expense, net (10,396 ) (9,788 ) (32,228 ) (29,988 ) Consolidated earnings before income taxes $ 126,836 $ 122,096 $ 361,653 $ 352,440 Payments for property, plant and equipment $ 26,547 $ 15,892 $ 78,537 $ 72,193 Depreciation expense $ 21,482 $ 20,661 $ 63,238 $ 61,494 There were no adjustments to net earnings, earnings per share, adjusted effective tax rate, adjusted nonsegment, and adjusted income tax expense in the three months ended June 30, 2025 or the three months ended June 30, 2024. Woodward, Inc. and SubsidiariesReconciliation of Net Earnings to Adjusted Earnings1(Unaudited – In thousands, except per share amounts) Nine Months Ended June 30 2025 2024 Net Earnings Earnings Per Share Net Earnings Earnings Per Share Net Earnings (U.S. GAAP) $ 304,488 $ 4.96 $ 289,675 $ 4.65 Non-U.S. GAAP Adjustments Product rationalization1 (20,524 ) (0.33 ) - - Non-recurring gain related to a previous acquisition1 - - (4,803 ) (0.08 ) Business development activities1 7,310 0.12 5,902 0.09 Certain non-restructuring separation costs2 - - 2,666 0.05 Tax Effect of Non-U.S. GAAP Net Earnings Adjustments 3,130 0.05 (729 ) (0.01 ) Total non-U.S. GAAP Adjustments (10,084 ) (0.16 ) 3,036 0.05 Adjusted Net Earnings(Non-U.S. GAAP) $ 294,404 $ 4.80 $ 292,711 $ 4.70 Presented in the line item "Other (income) expense, net" in Woodward's Condensed Consolidated Statement of Earnings. Presented in item "Selling, general and administrative" expenses in Woodward's Condensed Consolidated Statement of Earnings. Woodward, Inc. and SubsidiariesReconciliation of Income Tax Expenseto Adjusted Income Tax Expense1(Unaudited – In thousands) Nine Months Ended June 30 2025 2024 Income tax expense (U.S. GAAP) $ 57,165 $ 62,765 Tax Effect of Non-U.S. GAAP Net Earnings Adjustments (3,130 ) 729 Adjusted Income Tax Expense (Non-U.S. GAAP) $ 54,035 $ 63,494 Adjusted Income Tax Rate (Non-U.S. GAAP) 15.5 % 17.8 % Woodward, Inc. and SubsidiariesReconciliation of Net Earning to EBIT1(Unaudited – In thousands) Three Months Ended June 30 2025 2024 Net Earnings (U.S. GAAP) $ 108,448 $ 102,075 Income Tax Expense 18,388 20,021 Interest Expense 11,234 11,516 Interest Income (838 ) (1,728 ) EBIT (Non-U.S. GAAP) 137,232 131,884 Woodward, Inc. and SubsidiariesReconciliation of Net Earning to EBIT1and Adjusted EBIT1(Unaudited – In thousands) Nine Months Ended June 30 2025 2024 Net Earnings (U.S. GAAP) $ 304,488 $ 289,675 Income Tax Expense 57,165 62,765 Interest Expense 35,464 34,482 Interest Income (3,236 ) (4,494 ) EBIT (Non-U.S. GAAP) 393,881 382,428 Total non-U.S. GAAP Adjustments (13,214 ) 3,765 Adjusted EBIT (Non-U.S. GAAP) $ 380,667 $ 386,193 Woodward, Inc. and SubsidiariesReconciliation of Net Earning to EBITDA1(Unaudited – In thousands) Three Months Ended June 30 2025 2024 Net Earnings (U.S. GAAP) $ 108,448 $ 102,075 Income Tax Expense 18,388 20,021 Interest Expense 11,234 11,516 Interest Income (838 ) (1,728 ) Amortization of intangible assets 7,172 8,131 Depreciation Expanse 21,482 20,661 EBITDA (Non-U.S. GAAP) 165,886 160,676 Woodward, Inc. and SubsidiariesReconciliation of Net Earning to EBITDA1and Adjusted EBITDA1(Unaudited – In thousands) Nine Months Ended June 30 2025 2024 Net Earnings (U.S. GAAP) $ 304,488 $ 289,675 Income Tax Expense 57,165 62,765 Interest Expense 35,464 34,482 Interest Income (3,236 ) (4,494 ) Amortization of Intangible Assets 20,858 25,348 Depreciation Expanse 63,238 61,494 EBITDA (Non-U.S. GAAP) 477,977 469,270 Total non-U.S. GAAP Adjustments (13,214 ) 3,765 Adjusted EBITDA (Non-U.S. GAAP) $ 464,763 $ 473,035 Woodward, Inc. and SubsidiariesReconciliation of Non-Segment Expenses to Adjusted Non-Segment Expenses1 (Unaudited – In thousands) Nine Months Ended June 30 2025 2024 Non-Segment Expenses (U.S. GAAP) $ (84,986 ) $ (88,709 ) Product rationalization (20,524 ) - Non-recurring gain related to a previous acquisition - (4,803 ) Business development activities 7,310 5,902 Certain non-restructuring separation costs - 2,666 Adjusted Non-Segment Expenses (Non-U.S. GAAP) $ (98,200 ) $ (84,944 ) Woodward, Inc. and SubsidiariesReconciliation of Cash Flow from Operating Activitiesto Free Cash Flow1 (Unaudited – In thousands) Nine Months Ended June 30 2025 2024 Net cash provided by operating activities (U.S. GAAP) $ 237,976 $ 297,329 Payments for property, plant, and equipment (78,537 ) (72,193 ) Free cash flow (Non-U.S. GAAP) $ 159,439 $ 225,136 1Adjusted and Non-U.S. GAAP Financial Measures: Adjusted net earnings, adjusted earnings per share, adjusted EBIT, adjusted EBITDA, adjusted income tax expense, adjusted effective tax rate, and adjusted nonsegment expenses exclude, as applicable (i) product rationalization, (ii) a non-recurring gain related to a previous acquisition, (iii) costs related to business development activities, and (iv) certain non-restructuring separation costs. The product rationalization adjustment pertains to gains related to the elimination of certain product lines. The Company believes that these excluded items are short‐term in nature, not directly related to the ongoing operations of the business, and therefore, the exclusion of them illustrates more clearly how the underlying business of Woodward is performing. Guidance with respect to non-U.S. GAAP measures as provided in this release excludes, as applicable, (i) product rationalization, and (ii) business development activities. EBIT (earnings before interest and taxes), EBITDA (earnings before interest, taxes, depreciation and amortization), free cash flow, adjusted net earnings, adjusted earnings per share, adjusted EBIT, adjusted EBITDA, adjusted income tax expense, adjusted effective tax rate, and adjusted nonsegment expenses are financial measures not prepared and presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Management uses EBIT and adjusted EBIT to evaluate Woodward's operating performance without the impacts of financing and tax related considerations. Management uses EBITDA and adjusted EBITDA in evaluating Woodward's operating performance, making business decisions, including developing budgets, managing expenditures, forecasting future periods, and evaluating capital structure impacts of various strategic scenarios. Management also uses free cash flow, which is derived from net cash provided by or used in operating activities less payments for property, plant, and equipment in reviewing the financial performance of Woodward's various business segments and evaluating cash generation levels. Securities analysts, investors, and others frequently use EBIT, EBITDA, and free cash flow in their evaluation of companies, particularly those with significant property, plant, and equipment, and intangible assets that are subject to amortization. The use of any of these non-U.S. GAAP financial measures is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. Because adjusted net earnings, adjusted earnings per share, EBIT, EBITDA, adjusted EBIT, and adjusted EBITDA exclude certain financial information compared with net earnings, the most comparable U.S. GAAP financial measure, users of this financial information should consider the information that is excluded. Free cash flow does not necessarily represent funds available for discretionary use and is not necessarily a measure of our ability to fund our cash needs. Woodward's calculations of EBIT, EBITDA, adjusted net earnings, adjusted earnings per share, adjusted EBIT, adjusted EBITDA, adjusted effective tax rate, adjusted nonsegment expenses, and free cash flow may differ from similarly titled measures used by other companies, limiting their usefulness as comparative measures. 2Website, Facebook, LinkedIn: Woodward has used, and intends to continue to use, its Investor Relations website, LinkedIn page, and Facebook page as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Contact: Dan Provaznik Director, Investor
Yahoo
a day ago
- Business
- Yahoo
Diamondback Energy (FANG) Expected to Beat Earnings Estimates: Can the Stock Move Higher?
Diamondback Energy (FANG) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 4. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. Zacks Consensus Estimate This energy exploration and production company is expected to post quarterly earnings of $2.63 per share in its upcoming report, which represents a year-over-year change of -41.8%. Revenues are expected to be $3.37 billion, up 35.9% from the year-ago quarter. Estimate Revisions Trend The consensus EPS estimate for the quarter has been revised 6.83% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Earnings Whisper Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). How Have the Numbers Shaped Up for Diamondback? For Diamondback, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.28%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Diamondback will most likely beat the consensus EPS estimate. Does Earnings Surprise History Hold Any Clue? Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Diamondback would post earnings of $4.09 per share when it actually produced earnings of $4.54, delivering a surprise of +11.00%. Over the last four quarters, the company has beaten consensus EPS estimates three times. Bottom Line An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Diamondback appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. An Industry Player's Expected Results SM Energy (SM), another stock in the Zacks Oil and Gas - Exploration and Production - United States industry, is expected to report earnings per share of $1.23 for the quarter ended June 2025. This estimate points to a year-over-year change of -33.5%. Revenues for the quarter are expected to be $780.12 million, up 22.9% from the year-ago quarter. The consensus EPS estimate for SM Energy has been revised 0.7% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -2.64%. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that SM Energy will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. 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 Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report SM Energy Company (SM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
a day ago
- Business
- Yahoo
Bloom Energy (BE) Jumps 37% on New Deal with AI Firm
We recently published . Bloom Energy Corporation (NYSE:BE) is one of the biggest performers recently. Bloom Energy saw its share prices soar by 37.41 percent last week to finish at $34.34 versus the $24.99 as investor sentiment was boosted by its newly bagged deal with an AI infrastructure company while repositioning portfolios ahead of its earnings release. In a statement earlier last week, Bloom Energy Corporation (NYSE:BE) said it inked a deal with Oracle Corporation to deploy its fuel cell technology at the latter's select cloud infrastructure centers. Bloom Energy Corporation (NYSE:BE) said it will begin to deliver the technology within 90 days. 'Customers expect to run their AI workloads and new AI applications at peak performance. Bloom's fuel cell technology will join OCI's extensive energy portfolio, further supporting our cutting-edge AI infrastructure with reliable, clean power that can be quickly deployed and easily scaled,' said Oracle EVP Mahesh Thiagarajan. Meanwhile, Bloom Energy Corporation (NYSE:BE) is scheduled to release the results of its second-quarter earnings performance after market close on Thursday, July 31. While we acknowledge the potential of BE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Revvity (NYSE:RVTY) Surprises With Q2 Sales
Life sciences company Revvity (NYSE:RVTY) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 4.1% year on year to $720.3 million. The company expects the full year's revenue to be around $2.86 billion, close to analysts' estimates. Its non-GAAP profit of $1.18 per share was 3.4% above analysts' consensus estimates. Is now the time to buy Revvity? Find out in our full research report. Revvity (RVTY) Q2 CY2025 Highlights: Revenue: $720.3 million vs analyst estimates of $712.3 million (4.1% year-on-year growth, 1.1% beat) Adjusted EPS: $1.18 vs analyst estimates of $1.14 (3.4% beat) Adjusted EBITDA: $203.7 million vs analyst estimates of $205.5 million (28.3% margin, 0.9% miss) The company slightly lifted its revenue guidance for the full year to $2.86 billion at the midpoint from $2.85 billion Management lowered its full-year Adjusted EPS guidance to $4.90 at the midpoint, a 1% decrease Operating Margin: 12.6%, in line with the same quarter last year Free Cash Flow Margin: 16%, down from 19.7% in the same quarter last year Organic Revenue rose 3% year on year (-1% in the same quarter last year) Market Capitalization: $12.22 billion 'The power of Revvity's transformation and consistent execution were evident in our second-quarter performance, enabling us to exceed expectations despite the evolving market environment,' said Prahlad Singh, president and chief executive officer of Revvity. Company Overview Formerly known as PerkinElmer until its rebranding in 2023, Revvity (NYSE:RVTY) provides health science technologies and services that support the complete workflow from discovery to development and diagnosis to cure. Revenue Growth A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Revvity's demand was weak over the last five years as its sales fell at a 1.2% annual rate. This was below our standards and is a sign of poor business quality. Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Revvity's revenue over the last two years was flat, sugggesting its demand was weak but stabilized after its initial drop. We can better understand the company's sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Revvity's organic revenue was flat. Because this number aligns with its normal revenue growth, we can see the company's core operations (not acquisitions and divestitures) drove most of its results. This quarter, Revvity reported modest year-on-year revenue growth of 4.1% but beat Wall Street's estimates by 1.1%. Looking ahead, sell-side analysts expect revenue to grow 4.8% over the next 12 months. While this projection implies its newer products and services will fuel better top-line performance, it is still below the sector average. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating Margin Revvity has been an efficient company over the last five years. It was one of the more profitable businesses in the healthcare sector, boasting an average operating margin of 21.6%. Looking at the trend in its profitability, Revvity's operating margin decreased by 18.5 percentage points over the last five years. Even though its historical margin was healthy, shareholders will want to see Revvity become more profitable in the future. In Q2, Revvity generated an operating margin profit margin of 12.6%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Revvity's EPS grew at an unimpressive 1% compounded annual growth rate over the last five years. This performance was better than its 1.2% annualized revenue declines, but we take it with a grain of salt because its operating margin didn't improve and it didn't repurchase its shares, meaning the delta came from reduced interest expenses or taxes. In Q2, Revvity reported EPS at $1.18, down from $1.22 in the same quarter last year. Despite falling year on year, this print beat analysts' estimates by 3.4%. Over the next 12 months, Wall Street expects Revvity's full-year EPS of $4.89 to grow 8.2%. Key Takeaways from Revvity's Q2 Results It was good to see Revvity narrowly top analysts' revenue expectations this quarter. We were also happy its EPS outperformed Wall Street's estimates. On the other hand, its full-year EPS guidance slightly missed. Zooming out, we think this was a mixed quarter. The stock remained flat at $103.70 immediately after reporting. Big picture, is Revvity a buy here and now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. 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
