Latest news with #StockStory
Yahoo
5 hours ago
- Business
- Yahoo
Why Boeing (BA) Stock Is Falling Today
What Happened? Shares of aerospace and defense company Boeing (NYSE:BA) fell 3.8% in the afternoon session as investors focused on production delays and potential labor disputes despite reporting better-than-expected second-quarter revenue and a smaller loss. The company posted quarterly revenue of $22.7 billion and a core loss per share of $1.24, both beating analyst forecasts. However, positive sentiment was tempered by significant headwinds. Boeing announced that the certification for its new 777-9 and 737 MAX 7 and 10 models was delayed until 2026, a notable setback. Adding to investor concerns, workers rejected a new contract, raising the possibility of strikes that could disrupt production. These developments overshadowed the improved jet delivery numbers, as analysts had already been revising their earnings expectations downward prior to the report. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Boeing? Access our full analysis report here, it's free. What Is The Market Telling Us Boeing's shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 4 months ago when the stock dropped 10.1% on the news that China imposed a 34% tariff on all U.S. imports amid escalating trade war tensions. This was partly in response to the "reciprocal tariffs" announced by the Trump administration the previous day, with levies on Chinese goods estimated to be as high as 50%. Already facing increased competition from domestic aircraft manufacturers, Boeing risked becoming even less competitive. Also, China has historically been a significant source of demand for Boeing's commercial aircraft, and the new tariffs could delay or derail future orders. For investors, this development raised concerns about Boeing's ability to regain momentum in a market essential to its growth. Boeing is up 32.1% since the beginning of the year, and at $227.05 per share, it is trading close to its 52-week high of $236.41 from July 2025. Investors who bought $1,000 worth of Boeing's shares 5 years ago would now be looking at an investment worth $1,368. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. 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
6 hours ago
- Business
- Yahoo
Nextracker's (NASDAQ:NXT) Q2 Sales Beat Estimates
Solar tracker company Nextracker (NASDAQ:NXT) announced better-than-expected revenue in Q2 CY2025, with sales up 20% year on year to $864.3 million. On the other hand, the company's full-year revenue guidance of $3.33 billion at the midpoint came in 0.6% below analysts' estimates. Its non-GAAP profit of $1.16 per share was 12.6% above analysts' consensus estimates. Is now the time to buy Nextracker? Find out in our full research report. Nextracker (NXT) Q2 CY2025 Highlights: Revenue: $864.3 million vs analyst estimates of $845.1 million (20% year-on-year growth, 2.3% beat) Adjusted EPS: $1.16 vs analyst estimates of $1.03 (12.6% beat) Adjusted EBITDA: $214.8 million vs analyst estimates of $199.6 million (24.9% margin, 7.6% beat) The company slightly lifted its revenue guidance for the full year to $3.33 billion at the midpoint from $3.3 billion Management raised its full-year Adjusted EPS guidance to $4.12 at the midpoint, a 7.2% increase EBITDA guidance for the full year is $780 million at the midpoint, above analyst estimates of $761.3 million Operating Margin: 21.5%, in line with the same quarter last year Free Cash Flow Margin: 8.1%, down from 16.4% in the same quarter last year Backlog: $4.75 billion at quarter end, up 14.5% year on year Market Capitalization: $9.67 billion 'Nextracker delivered another strong quarter across all key financial metrics and saw continued market share momentum,' said Dan Shugar, founder and CEO of Nextracker. Company Overview With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextracker (NASDAQ:NXT) is a provider of solar tracker systems that help solar panels follow the sun. Revenue Growth A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last four years, Nextracker grew its sales at an incredible 25.8% compounded annual growth rate. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a stretched historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Nextracker's annualized revenue growth of 25.2% over the last two years aligns with its four-year trend, suggesting its demand was predictably strong. Nextracker's recent performance shows it's one of the better Renewable Energy businesses as many of its peers faced declining sales because of cyclical headwinds. Nextracker also reports its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Nextracker's backlog reached $4.75 billion in the latest quarter and averaged 42.5% year-on-year growth over the last two years. Because this number is better than its revenue growth, we can see the company accumulated more orders than it could fulfill and deferred revenue to the future. This could imply elevated demand for Nextracker's products and services but raises concerns about capacity constraints. This quarter, Nextracker reported robust year-on-year revenue growth of 20%, and its $864.3 million of revenue topped Wall Street estimates by 2.3%. Looking ahead, sell-side analysts expect revenue to grow 8.5% over the next 12 months, a deceleration versus the last two years. Still, this projection is above average for the sector and indicates the market sees some success for its newer products and services. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating Margin Nextracker has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 16.7%. This result was particularly impressive because of its low gross margin, which is mostly a factor of what it sells and takes huge shifts to move meaningfully. Companies have more control over their operating margins, and it's a show of well-managed operations if they're high when gross margins are low. Looking at the trend in its profitability, Nextracker's operating margin rose by 9.7 percentage points over the last five years, as its sales growth gave it immense operating leverage. In Q2, Nextracker generated an operating margin profit margin of 21.5%, in line with the same quarter last year. This indicates the company's cost structure has recently been stable. Cash Is King Although earnings are undoubtedly valuable for assessing company performance, we believe cash is king because you can't use accounting profits to pay the bills. Nextracker has shown robust cash profitability, enabling it to comfortably ride out cyclical downturns while investing in plenty of new offerings and returning capital to investors. The company's free cash flow margin averaged 10.9% over the last five years, quite impressive for an industrials business. Taking a step back, we can see that Nextracker's margin expanded by 13.7 percentage points during that time. This is encouraging, and we can see it became a less capital-intensive business because its free cash flow profitability rose more than its operating profitability. Nextracker's free cash flow clocked in at $70.07 million in Q2, equivalent to a 8.1% margin. The company's cash profitability regressed as it was 8.3 percentage points lower than in the same quarter last year, but we wouldn't put too much weight on it because capital expenditures can be seasonal and companies often stockpile inventory in anticipation of higher demand, causing quarter-to-quarter swings. Long-term trends carry greater meaning. Key Takeaways from Nextracker's Q2 Results We were impressed by how significantly Nextracker blew past analysts' EPS and EBITDA expectations this quarter. We were also glad it raised its full-year EPS and EBITDA guidance. On the other hand, its backlog missed. Overall, this print was mixed but still had some key positives. Investors were likely hoping for better backlog numbers, and shares traded down 4.5% to $62.06 immediately after reporting. Big picture, is Nextracker 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.
Yahoo
10 hours ago
- Business
- Yahoo
Carrier Global's (NYSE:CARR) Q2 Earnings Results: Revenue In Line With Expectations
Heating, ventilation, air conditioning, and refrigeration company Carrier Global (NYSE:CARR) met Wall Street's revenue expectations in Q2 CY2025, with sales up 3% year on year to $6.11 billion. The company's outlook for the full year was close to analysts' estimates with revenue guided to $23 billion at the midpoint. Its non-GAAP profit of $0.92 per share was 2% above analysts' consensus estimates. Is now the time to buy Carrier Global? Find out in our full research report. Carrier Global (CARR) Q2 CY2025 Highlights: Revenue: $6.11 billion vs analyst estimates of $6.10 billion (3% year-on-year growth, in line) Adjusted EPS: $0.92 vs analyst estimates of $0.90 (2% beat) Adjusted EBITDA: $1.20 billion vs analyst estimates of $1.45 billion (19.6% margin, 17.6% miss) The company reconfirmed its revenue guidance for the full year of $23 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $3.05 at the midpoint Operating Margin: 14.8%, up from 12.2% in the same quarter last year Free Cash Flow Margin: 9.3%, similar to the same quarter last year Organic Revenue rose 6% year on year (2% in the same quarter last year) Market Capitalization: $68.4 billion "We delivered another quarter of strong financial performance," said Carrier Chairman & CEO David Gitlin. Company Overview Founded by the inventor of air conditioning, Carrier Global (NYSE:CARR) manufactures heating, ventilation, air conditioning, and refrigeration products. Revenue Growth Reviewing a company's long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Unfortunately, Carrier Global's 5.5% annualized revenue growth over the last five years was tepid. This fell short of our benchmark for the industrials sector and is a rough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Carrier Global's annualized revenue growth of 5.3% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. 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, Carrier Global's organic revenue averaged 3% year-on-year growth. Because this number is lower than its normal revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results. This quarter, Carrier Global grew its revenue by 3% year on year, and its $6.11 billion of revenue was in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 5.5% over the next 12 months, similar to its two-year rate. This projection doesn't excite us and indicates its newer products and services will not lead to better top-line performance yet. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating Margin Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Carrier Global has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 15.3%. This result was particularly impressive because of its low gross margin, which is mostly a factor of what it sells and takes huge shifts to move meaningfully. Companies have more control over their operating margins, and it's a show of well-managed operations if they're high when gross margins are low. Analyzing the trend in its profitability, Carrier Global's operating margin decreased by 5 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. This quarter, Carrier Global generated an operating margin profit margin of 14.8%, up 2.6 percentage points year on year. The increase was a welcome development and shows its expenses recently grew slower than its revenue, leading to higher efficiency. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Carrier Global's EPS grew at an astounding 18.2% compounded annual growth rate over the last five years, higher than its 5.5% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Carrier Global, its two-year annual EPS growth of 9.3% was lower than its five-year trend. We hope its growth can accelerate in the future. In Q2, Carrier Global reported EPS at $0.92, up from $0.87 in the same quarter last year. This print beat analysts' estimates by 2%. Over the next 12 months, Wall Street expects Carrier Global's full-year EPS of $2.88 to grow 14%. Key Takeaways from Carrier Global's Q2 Results Revenue was in line, but Carrier's EBITDA missed. Looking ahead, its full-year EPS guidance was in line with Wall Street's estimates. Overall, this was a softer quarter. The stock traded down 2.6% to $78.20 immediately following the results. Carrier Global's earnings report left more to be desired. Let's look forward to see if this quarter has created an opportunity to buy the stock. We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. 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
Yahoo
a day ago
- Business
- Yahoo
Why Is 1-800-FLOWERS (FLWS) Stock Soaring Today
What Happened? Shares of e-commerce florist and gift retailer 1-800-FLOWERS (NASDAQ:FLWS) jumped 6.9% in the morning session after the stock continued its rally as it was caught up in a broader 'meme stock' trend, fueled by its high short interest. The move appeared to be driven by market dynamics rather than company-specific news. 1-800-FLOWERS became a target for traders due to its significant short float, which was recently reported to be over 71%. A stock with high short interest was subject to a 'short squeeze,' where a rising price forced investors betting against the stock to buy shares to cover their positions, which further accelerated the price increase. This rally was part of a wider resurgence in so-called meme stocks, as other heavily shorted companies also experienced gains amid a general 'risk-on' environment among traders. Is now the time to buy 1-800-FLOWERS? Access our full analysis report here, it's free. What Is The Market Telling Us 1-800-FLOWERS's shares are extremely volatile and have had 32 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 5 days ago when the stock gained 14.6% following its inclusion in a broader "meme stock" rally targeting heavily shorted companies. The online retailer became a target for retail traders due to its high short interest, which stood at a reported 71.66%. This situation created the potential for a "short squeeze," a technical event where a rising stock price forced traders who bet against the stock (short sellers) to buy shares to cover their positions, pushing the price even higher. Adding to the momentum, the stock experienced a surge in speculative options activity, with traders making bullish bets on the company's short-term price movement. The rally occurred in the absence of any new company-specific financial news or press releases. The move also came amid a positive backdrop for the consumer retail sector, which saw broad gains after upbeat retail sales data eased economic worries. 1-800-FLOWERS is down 12.4% since the beginning of the year, and at $6.84 per share, it is trading 34% below its 52-week high of $10.36 from July 2024. Investors who bought $1,000 worth of 1-800-FLOWERS's shares 5 years ago would now be looking at an investment worth $268.03. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. 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
Datadog (DDOG): 3 Reasons We Love This Stock
Datadog has been treading water for the past six months, recording a small loss of 1.2% while holding steady at $150. The stock also fell short of the S&P 500's 5.4% gain during that period. Is now the time to buy DDOG? Or does the price properly account for its business quality and fundamentals? Find out in our full research report, it's free. Why Is DDOG a Good Business? Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ:DDOG) is a software-as-a-service platform that makes it easier to monitor cloud infrastructure and applications. 1. ARR Surges as Recurring Revenue Flows In While reported revenue for a software company can include low-margin items like implementation fees, annual recurring revenue (ARR) is a sum of the next 12 months of contracted revenue purely from software subscriptions, or the high-margin, predictable revenue streams that make SaaS businesses so valuable. Datadog's ARR punched in at $3.20 billion in Q1, and over the last four quarters, its year-on-year growth averaged 27.2%. This performance was fantastic and shows that customers are willing to take multi-year bets on the company's technology. Its growth also makes Datadog a more predictable business, a tailwind for its valuation as investors typically prefer businesses with recurring revenue. 2. Customer Acquisition Costs Are Recovered in Record Time The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it's the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability. Datadog is extremely efficient at acquiring new customers, and its CAC payback period checked in at 20.4 months this quarter. The company's rapid recovery of its customer acquisition costs indicates it has a highly differentiated product offering and a strong brand reputation. These dynamics give Datadog more resources to pursue new product initiatives while maintaining the flexibility to increase its sales and marketing investments. 3. Excellent Free Cash Flow Margin Boosts Reinvestment Potential If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. Datadog has shown terrific cash profitability, driven by its lucrative business model and cost-effective customer acquisition strategy that enable it to stay ahead of the competition through investments in new products rather than sales and marketing. The company's free cash flow margin was among the best in the software sector, averaging 29.4% over the last year. Final Judgment These are just a few reasons why we're bullish on Datadog. With its shares lagging the market recently, the stock trades at 16.1× forward price-to-sales (or $150 per share). Is now a good time to initiate a position? See for yourself in our in-depth research report, it's free. Stocks We Like Even More Than Datadog Donald Trump's April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. The smart money is already positioning for the next leg up. Don't miss out on the recovery - check 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Sign in to access your portfolio
