Latest news with #revenueDecline
Yahoo
12-07-2025
- Business
- Yahoo
Bear of the Day: DXC Technology (DXC)
DXC Technology (DXC) has struggled to gain traction in recent years, as persistent revenue declines and a sluggish business transformation have weighed heavily on both its fundamentals and its stock price. Once a major player in IT services, the company has seen its sales fall steadily, leading to stagnation and underperformance in a sector that's otherwise full of innovation and growth. The stock has dropped nearly 30% year-to-date and is down more than 65% since 2021, reflecting a prolonged period of investor disappointment. Analyst sentiment has continued to deteriorate as well, pushing DXC down to a Zacks Rank #5 (Strong Sell) rating. While management has laid out a strategy to pivot away from legacy infrastructure services and toward higher-growth digital and cloud offerings, the turnaround has been slow to materialize. There may be potential in the longer term, but for now, the company remains in a difficult position. Until investors see clear signs of stabilization and renewed growth, DXC is a stock best left on the sidelines. Image Source: Zacks Investment Research DXC Technology's prolonged decline in revenue continues to be a major overhang for the stock. Annual sales have dropped significantly—from approximately $22 billion in 2018 to just $12.8 billion over the trailing twelve months, a nearly 42% decline that reflects the company's struggle to transition away from its legacy business model. Unfortunately, the outlook doesn't suggest a turnaround is imminent. Analysts expect revenue to decline another 4.5% in the current fiscal year, followed by an additional 2.8% decline next year, indicating that demand for DXC's core offerings remains under pressure despite management's transformation efforts. Adding to the bearish case, analyst sentiment around profitability has worsened. Over the past 60 days, consensus earnings estimates have been revised downward—current year EPS estimates have fallen by 7.9%, while next year's projections have dropped by 9.3%. This steady erosion of expectations signals broad skepticism among analysts and institutional investors about the company's near-term ability to stabilize or grow earnings. Image Source: Zacks Investment Research Technical weakness is compounding DXC Technology's fundamental challenges, with selling pressure intensifying in recent sessions. On Friday, the stock was hit particularly hard, closing sharply lower with bearing mometnum pickin up. Shares are now hovering just above a critical support level near $14.20. If DXC fails to hold this level, it could trigger a technical breakdown, opening the door to another wave of selling. A decisive move below this support zone would confirm the downtrend and could send the stock cascading to new multi-year lows. With no strong bullish catalysts in sight, the path of least resistance appears to be lower unless a significant reversal develops soon. Image Source: TradingView Given its declining fundamentals, weakening technical setup, and continued negative analyst sentiment, DXC remains a high-risk name with limited near-term upside. Until the company proves it can stabilize revenue and execute its transformation strategy more effectively, investors are likely better off staying on the sidelines. 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 DXC Technology Company. (DXC) : 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
Forbes
27-06-2025
- Business
- Forbes
What's Next For Seagate Stock?
MINNEAPOLIS, MN - JANUARY 03: A general view of the Seagate Technology company offices on January ... More 03, 2024 in Minneapolis, Minnesota. (Photo by AaronP/Bauer-Griffin/GC Images) Note: STX's fiscal year concludes in June Seagate (NASDAQ: STX) has achieved an impressive 60% year‑to‑date increase, significantly exceeding the S&P 500's 4% rise. This upswing owes to structural improvements within the business, alongside robust market dynamics and focused execution in advanced technologies such as HAMR (Heat Assisted Magnetic Recording). The company is capitalizing on a resurgence in the data‑storage market, benefiting from elevated demand fueled by generative AI. Reflecting back to FY 2022, STX's value has more than doubled, supported by: We will explore these factors in greater detail. While STX stock has provided substantial returns, those in search of growth with reduced volatility compared to individual stocks might consider the High Quality portfolio, which has surpassed the S&P 500 with returns exceeding 91% since its inception. Separately, see – What's Happening With BBAI Stock? What's Behind The Revenue Performance? Seagate's revenue plummeted dramatically from $11.66 billion in FY 2022 to $6.55 billion in FY 2024—a 44% decline—largely due to weak demand in consumer PCs and external HDDs, Covid-related disruptions in Asia, component shortages, and persistent inflationary pressures. However, in the first nine months of FY 2025, revenue skyrocketed 42% year-over-year to $6.7 billion, propelled by strong demand from data-center and cloud customers. The explosive growth in AI applications is increasingly driving the desire for high-capacity drives. In spite of SSDs capturing market share due to speed and efficiency, their higher cost per terabyte continues to make HDDs indispensable for large-scale storage. Seagate has wisely focused on enterprise-grade, high-capacity HDDs while reducing its production of lower-capacity consumer drives and limiting SSD exposure. Instead of vertically integrating NAND, it procures from partners like Kioxia, allowing for a streamlined focus on cost-effective bulk storage solutions. This tactic has led to steady, sustainable growth in Seagate's key markets. What's Contributing To The Higher Valuation For STX Stock? Seagate stock has seen a substantial rise in valuation multiples, with its price-to-sales (P/S) ratio increasing from 1.2x in FY 2022 to 3.2x today. Currently trading at approximately $136, STX stock's trailing P/S multiple of 3.2x exceeds its four-year average of 2.2x and is also notably higher than Western Digital's (NASDAQ: WDC) historical average (1.15x). Several critical factors are propelling this continuous growth: Yet, There Are Risks Despite the optimistic outlook, there are significant risks. In periods of market downturn, STX has consistently lagged behind the S&P 500—declining 58.2% during the inflation-induced selloff in 2022 (from $116.02 on Jan 4 to $48.49 on Nov 3, as opposed to a 25.4% S&P decline), but it fully recovered by May 27, 2025, and surged to $136.31 by June 24. During the COVID crash, STX fell 35.6% compared to a 33.9% decrease in the S&P. In the 2008 financial crisis, the stock plummeted 89.1% while the S&P dropped 56.8%. Although Seagate benefits from AI/cloud-driven storage needs, it continues to confront risks, including technological shifts, capacity constraints, regulatory or supply chain challenges, pricing pressures, and reputational issues. Investor confidence is presently reflected in premium multiples (3x P/S), but with minimal cushion, a downturn could have a significant impact, particularly in contrast to competitors like WDC, which trades closer to 1x in challenging times. Investing in a singular stock carries inherent risks. We utilize a risk assessment framework when constructing the 30-stock Trefis High Quality (HQ) Portfolio, which has a proven history of comfortably outperforming the S&P 500 over the past 4 years. Why is this the case? As a collective, HQ Portfolio stocks have yielded superior returns with reduced risks compared to the benchmark index; providing a smoother ride, as highlighted in HQ Portfolio performance metrics.
Yahoo
16-05-2025
- Business
- Yahoo
Marie Claire owner Future set for lower revenues amid ‘challenging' backdrop
Media and comparison website group Future has said it expects revenues to decline this financial year in the face of 'ongoing macroeconomic uncertainty'. The and Marie Claire owner said it is adopting a 'more cautious view' for the second half of the year in the face of 'challenging' market conditions. The group said its US direct digital advertising business witnessed a 'weaker performance' in March but returned to growth last month. Future added that foreign exchange rates are representing a 'headwind' for the company based on current rates. It came as revenues dipped by 3% to £378.4 million for the half-year to March 31. This was driven by a slight organic decline, alongside foreign exchange impacts and the closure of a number of publications, including the print edition of Total Film magazine last year. The company's consumer business saw flat organic revenues after declines linked to digital advertising offset stronger magazine growth. Elsewhere, revenues dipped 1% as car quotes declined, although it saw 10% growth away from care insurance. It came amid the first update from new boss Kevin Li Ying, who took over at the end of March. Mr Li Ying said: 'Today's half-year results reflect the strength of our diversified proposition, delivering a resilient performance in what remains a challenging macroeconomic environment. 'We are building the business for tomorrow whilst delivering on today, ensuring we attract and reach a valuable audience through our powerful brands and drive effective monetisation to deliver growth. 'Whilst the wider macroeconomic environment remains challenging, the quality of our content and intent-driven audience, and the uniqueness of our tech stack, underpinned by our strong financial characteristics, position us well to deliver long-term growth in what is an ever-evolving media landscape.'
The Independent
16-05-2025
- Business
- The Independent
Marie Claire owner Future set for lower revenues amid ‘challenging' backdrop
Media and comparison website group Future has said it expects revenues to decline this financial year in the face of 'ongoing macroeconomic uncertainty'. The and Marie Claire owner said it is adopting a 'more cautious view' for the second half of the year in the face of 'challenging' market conditions. The group said its US direct digital advertising business witnessed a 'weaker performance' in March but returned to growth last month. Future added that foreign exchange rates are representing a 'headwind' for the company based on current rates. It came as revenues dipped by 3% to £378.4 million for the half-year to March 31. This was driven by a slight organic decline, alongside foreign exchange impacts and the closure of a number of publications, including the print edition of Total Film magazine last year. The company's consumer business saw flat organic revenues after declines linked to digital advertising offset stronger magazine growth. Elsewhere, revenues dipped 1% as car quotes declined, although it saw 10% growth away from care insurance. It came amid the first update from new boss Kevin Li Ying, who took over at the end of March. Mr Li Ying said: 'Today's half-year results reflect the strength of our diversified proposition, delivering a resilient performance in what remains a challenging macroeconomic environment. 'We are building the business for tomorrow whilst delivering on today, ensuring we attract and reach a valuable audience through our powerful brands and drive effective monetisation to deliver growth. 'Whilst the wider macroeconomic environment remains challenging, the quality of our content and intent-driven audience, and the uniqueness of our tech stack, underpinned by our strong financial characteristics, position us well to deliver long-term growth in what is an ever-evolving media landscape.'
Yahoo
08-05-2025
- Business
- Yahoo
Warner Bros. Discovery (NasdaqGS:WBD) Reports Lower Q1 Revenue But Reduces Net Loss
Warner Bros. Discovery recently reported a decline in revenue for Q1 2025, along with an improved net loss. Despite the drop in revenue to USD 8,979 million from USD 9,958 million a year ago, the company's share price saw a 6% increase over the past month. This movement may have been supported by the broader market rally, as significant developments such as the U.S.-U.K. trade deal spurred a sense of optimism across global markets. Additionally, the announcement of Dr. John C. Malone's transition to Chair Emeritus might have also provided strategic reassurance to investors. Every company has risks, and we've spotted 1 warning sign for Warner Bros. Discovery you should know about. Find companies with promising cash flow potential yet trading below their fair value. The recent developments at Warner Bros. Discovery, including revenue decline and leadership transition, could influence the company's strategic focus on international expansion and integration of sports and news. Over the past year, the company's shares have seen a total return of 9.74%, suggesting resilience amid challenges. However, when compared to the US entertainment industry, which returned a substantial 53.2% over the same period, the company's performance might appear subdued. The recent price increase of 6% could indicate investor confidence in the company's efforts to boost subscriber engagement and direct-to-consumer revenue through initiatives like streaming expansion. Despite these positive moves, the share price is still traded at a 36.1% discount to the analyst consensus price target of US$13.19, indicating room for potential upward movement if the company achieves its forecasted revenue and earnings goals. The expected international expansion and corporate restructuring may gradually improve revenue and stabilize earnings, but challenges such as ad sales decline and ARPU pressures remain risks that could impact these forecasts. As such, investors might want to closely monitor these strategic efforts to gauge their success in enhancing shareholder value. Evaluate Warner Bros. Discovery's historical performance by accessing our past performance report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:WBD. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
