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Reuters
01-07-2025
- Business
- Reuters
Pricing Algorithms and Collusion Practical Law The Journal
Companies are increasingly using pricing algorithms and other AI systems to develop and improve their ability to promptly respond to market conditions, innovate product offerings, and set prices. Algorithmic pricing systems differ from traditional, manual price-setting practices as they can almost immediately: Assimilate and process significant amounts of information relating to competitor prices, demand, the price and availability of substitutes, and even customer personal data. Respond to changes in the market or competitor pricing. Set prices to achieve a business objective consistently across all sales. This increased capacity to process mass amounts of information and data to execute price changes can allow companies to compete more effectively by responding to changes in the market quickly. However, the use of AI in pricing systems has raised concerns, particularly in relation to antitrust and competition laws, including because: AI systems could facilitate or discretely give effect to price-fixing arrangements. AI systems could make detection of price-fixing arrangements harder. The proliferation of AI systems could result in supracompetitive prices for products. Background on Algorithmic Pricing Systems Although there is no firm definition of an intelligent machine, the term AI is widely used to refer to software systems that can replicate some functions typically associated with human thought processes, like learning and making decisions or predictions about future behavior. AI systems are distinct from systems that only perform repetitive tasks involving data processing that are difficult or time consuming for humans to perform.
Yahoo
30-06-2025
- Business
- Yahoo
5 Must-Read Analyst Questions From ScanSource's Q1 Earnings Call
ScanSource's first quarter saw revenue fall short of Wall Street expectations, yet the market responded positively due in part to the company's strong non-GAAP earnings and robust margin management. Management attributed these results to the ongoing shift toward higher-margin, recurring revenue streams, especially through its Intelisys & advisory segment and the integration of recent acquisitions. CEO Mike Baur explained, 'Our results demonstrate our hybrid distribution success with our focus on specialty technologies and Intelisys & advisory recurring revenue.' The company's improved free cash flow and disciplined expense controls helped offset softer demand conditions. Is now the time to buy SCSC? Find out in our full research report (it's free). Revenue: $704.8 million vs analyst estimates of $777.9 million (6.3% year-on-year decline, 9.4% miss) Adjusted EPS: $0.86 vs analyst estimates of $0.78 (11% beat) Adjusted EBITDA: $33.55 million vs analyst estimates of $33.93 million (4.8% margin, 1.1% miss) The company dropped its revenue guidance for the full year to $3 billion at the midpoint from $3.3 billion, a 9.1% decrease EBITDA guidance for the full year is $142.5 million at the midpoint, above analyst estimates of $138.5 million Operating Margin: 3.3%, in line with the same quarter last year Market Capitalization: $947.9 million 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. Greg Burns (Sidoti): Asked for detail on product category performance within Specialty Technology. CEO Mike Baur explained the shift to segment-based reporting, stating the company will prioritize segment trends over individual technology breakdowns. Greg Burns (Sidoti): Inquired about Brazil's underperformance. CFO Steve Jones attributed this primarily to foreign exchange pressures and currency volatility, rather than operational issues within the region. Keith Housum (Northcoast Research): Asked if competitive pricing among resellers is pressuring margins. Baur stated the market remains rational, with over half of projects registered for special pricing, and said there is no unusual margin pressure currently. Keith Housum (Northcoast Research): Queried about SG&A reductions. Jones confirmed headcount adjustments have been completed and expects roughly $10.5 million in annualized savings, with the full benefit reflected in coming quarters. Logan Katzman (Raymond James): Sought clarity on gross margin trends following acquisitions. Jones explained margin profiles differ by segment, with recurring revenue businesses supporting higher margins even as hardware mix fluctuates. Looking ahead, the StockStory team will focus on (1) the integration and performance of Resourcive and Advantix in expanding high-margin, recurring revenue, (2) the company's ability to sustain operational efficiency and realize SG&A savings, and (3) signs of a demand rebound in the technology distribution market, especially in North America. Monitoring the ongoing mix shift to advisory and connectivity services will also be critical for assessing long-term growth resilience. ScanSource currently trades at $41.95, up from $36.03 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). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. 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 Comfort Systems (+782% 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
29-06-2025
- Business
- Yahoo
The 5 Most Interesting Analyst Questions From Shoals's Q1 Earnings Call
Shoals' first quarter results drew a significant positive response from the market, as management attributed the outperformance to strong bookings, the ramp-up of new products, and success in expanding its customer base. CEO Brandon Moss highlighted that "momentum continues with approximately $91 million in new orders," pointing to a healthy backlog and a book-to-bill ratio above 1.0. Despite a decline in revenue compared to the prior year, Shoals' leadership credited the performance to ongoing commercial initiatives, increased engagement with both new and returning customers, and meaningful traction in its battery energy storage solutions segment. Is now the time to buy SHLS? Find out in our full research report (it's free). Revenue: $80.36 million vs analyst estimates of $74.23 million (11.5% year-on-year decline, 8.3% beat) Adjusted EPS: $0.03 vs analyst estimates of $0.04 (in line) Adjusted EBITDA: $12.79 million vs analyst estimates of $12.16 million (15.9% margin, 5.2% beat) The company reconfirmed its revenue guidance for the full year of $430 million at the midpoint EBITDA guidance for the full year is $107.5 million at the midpoint, above analyst estimates of $103.8 million Operating Margin: 5.4%, down from 12.8% in the same quarter last year Backlog: $645.1 million at quarter end, up 4.9% year on year Market Capitalization: $814.1 million 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. Michael Fairbanks (JPMorgan): asked about the evolving competitive landscape amidst tariffs. CEO Brandon Moss explained that while tariffs create some market shifts, most customer conversations focus on Shoals' quality and service rather than just domestic sourcing. Brian Lee (Goldman Sachs): questioned the timeframe for margin recovery and the drivers behind returning to 40%+ gross margins. CFO Dominic Bardos detailed the mix of operational efficiency, new product contributions, and targeted commercial strategies that should support margin improvement. Colin Rusch (Oppenheimer): inquired about international expansion and supply chain cost savings. Moss highlighted longer development timelines abroad but emphasized the similarities in product requirements, and noted ongoing automation and process initiatives to improve efficiency. Philip Shen (ROTH Capital Partners): asked about bookings velocity and the impact of tariffs on battery storage projects. Moss reported strong bookings and minimal current impact from tariffs, with storage growth driven by both market expansion and Shoals' low starting market share. Derek Soderberg (Cantor Fitzgerald): probed growth drivers in commercial and industrial (C&I) markets. Moss described increased quoting and bookings activity, driven by Shoals' solutions for projects with labor and supply chain constraints. Looking ahead, StockStory analysts will be watching (1) the pace of backlog conversion into revenue as project execution ramps up, (2) progress toward improved gross margins as operational initiatives take hold, and (3) traction in international and energy storage markets, particularly following new product launches and strategic partnerships. The impact of evolving trade policy and tariffs on Shoals' competitive positioning will also be a key area to monitor. Shoals currently trades at $4.89, up from $3.77 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies 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 Growth Stocks for this month. 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.
Yahoo
21-06-2025
- Business
- Yahoo
Will geopolitics actually have a market impact this time?
-- Markets are once again shrugging off geopolitical uncertainty, raising the question, will it be different this time? According to Deutsche Bank, the answer is: not a dramatic escalation in the Middle East, including Israeli strikes on Iranian nuclear sites, the global market response has been modest. The reaction has so far been limited to commodities and regional jumped more than 7% on Friday, gold hit a record high, and Middle Eastern equities fell. But elsewhere, investors remained calm. The MSCI World Index slipped just over 1% after setting a record the previous day. U.S. high-yield credit spreads widened by just 2 basis points. Inflation expectations, while up on the day, were still lower over the what would cause geopolitics to have a wider market impact?'Historically, it's only been when it's affected macro variables like growth and inflation,' Deutsche Bank strategist Henry Allen wrote in a note. 'But so far at least, we're yet to see that.'That's in sharp contrast to shocks such as the 1970s oil embargo, the Gulf War in 1990, or Russia's invasion of Ukraine in 2022, all of which triggered inflation spikes and forced central banks to respond. Today, oil prices remain below their 2024 average, and markets are not pricing in a broader economic shock. Still, risks are mounting. Analyst pointed to two potential flashpoints: the looming July 9 deadline on U.S. tariffs, and the chance of a deeper oil supply disruption. Either could rekindle inflation fears and challenge expectations for interest rate cuts. Related articles Will geopolitics actually have a market impact this time? Meet the nine private humanoid robot firms shaping the future Tesla plans $8 billion U.S. investment this fiscal year 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
