Will Strategic Use of ADESA Infrastructure Support Carvana's Goal?
Carvana's Price Performance, Valuation and Estimates
Carvana has outperformed the Zacks Internet-Commerce industry year to date. CVNA shares have surged 70.9% compared with the industry's growth of 9.5%.
YTD Price Performance
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From a valuation perspective, Carvana appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 3.61, higher than its industry's 2.17.
Image Source: Zacks Investment Research
EPS Estimates Revision
The Zacks Consensus Estimate for 2025 and 2026 EPS has moved down 7 cents and 5 cents, respectively, in the past 30 days.
Image Source: Zacks Investment Research
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Philip Morris (PM) Up 5% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Philip Morris (PM). Shares have added about 5% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Philip Morris due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts. Philip Morris Q2 Earnings Beat Estimates, FY25 EPS View Raised Philip Morris International reported second-quarter 2025 results, with both top and bottom lines increasing year over year. Net sales missed the Zacks Consensus Estimate, while earnings beat the same. Second-quarter adjusted earnings were $1.91, which increased 20.1% year over year. Excluding currency effects, the adjusted EPS jumped 18.9%. The bottom line beat the Zacks Consensus Estimate of $1.85. Net revenues of $10,140 million increased 7.1% on a reported basis and 6.8% on an organic basis. Revenues missed the Zacks Consensus Estimate of $10,255 million. The increase in organic revenues was backed by positive pricing variance (mainly driven by elevated combustible tobacco pricing) and favorable volume/mix (attributable to increased smoke-free product volumes), partially offset by lower cigarette volumes and an unfavorable cigarette mix. Philip Morris' Quarterly Performance: Key Metrics and Insights During the second quarter, Philip Morris' net revenues from combustible products grew 2.1% year over year and increased 2% organically, despite a return to expected volume declines. Growth was driven by continued strong pricing, partially offset by unfavorable mix dynamics. Revenues from the smoke-free business increased 15.2% (up 14.5% on an organic basis) and formed 41% of the company's total revenues. Within the smoke-free business, inhalable smoke-free products ('SFP') were driven by strength in IQOS, while oral SFP was fueled by increased shipment volumes of ZYN. Total shipment volumes (including heated tobacco units, oral SFP and cigarettes) increased 1.2% to 200.1 billion units in the second quarter. The adjusted operating income ascended 16.1% (up 14.9% on an organic basis) to $4,246 million, driven by improved pricing variance and a positive volume/mix, somewhat negated by increased marketing, administration and research costs. Decoding Philip Morris' Region-Wise Performance Following the sale of Vectura Group Ltd. on Dec. 31, 2024, the company revised its segment reporting to integrate ongoing Wellness and Healthcare results into the Europe segment. Its second-quarter 2025 financial results reflect this updated segment structure. Net revenues in the European region grew 8.7% (up 7.3%) on an organic basis to $4,234 million. This was a result of positive pricing variance and favorable volume/mix. Total HTU and cigarette shipment volumes in the region decreased 2.4% to 55.1 billion units. In the SSEA, CIS & MEA regions, net revenues increased 5.6% (up 4.9% organically) to $2,926 million on improved pricing variance and favorable volume. Total cigarette and HTU shipment volume in the region rose 1.1% to 95.3 billion units. In the EA, AU & PMI GTR regions, net revenues grew 2.1% (up 1.6% organically) to $1,708 million on favorable volume/mix. Total cigarette and HTU shipment volume in the region rose 3.6% to 28.3 billion units. Revenues in the Americas rose 12.7% (up 17% on an organic basis) to $1,272 million. This was a result of the positive volume/mix and predominantly driven by nicotine pouches in the United States. Total cigarette and HTU shipment volumes in the Americas increased 1.6% to 15.3 billion units. Philip Morris: Other Updates The company ended the quarter with cash and cash equivalents of $4,138 million, long-term debt of $42,431million and a total shareholder deficit of $10,012 million. Philip Morris announced its quarterly dividend of $1.35 per share ($5.40 on an annualized basis). However, the company stated that it would not make share repurchases in 2025. Here's What to Expect From Philip Morris in 2025 Adjusted EPS for 2025 is now envisioned in the $7.43-$7.56 range, indicating 13-15% growth. Earlier, the metric was expected in the $7.36-$7.49 per share range, implying 12-14% growth. Adjusted EPS, excluding currency, is likely to be in the $7.33-$7.46 band, indicating a year-over-year increase of 11.5-13.5%. For full-year 2025, PM expects reported EPS in the band of $7.24-$7.37 compared with $4.52 in 2024. The total international industry volume for cigarettes and HTUs (excluding China and the United States) is likely to decline nearly 1% in 2025. The total cigarette and smoke-free product shipment volume for Philip Morris is expected around 1%, driven by a smoke-free product volume increase of 12-14%, partly offset by cigarette volume declines, which are now forecasted to be around 2%. Nicotine pouch shipment volumes in the United States are expected to be between 800 million and 840 million cans for 2025. For 2025, PM expects net revenues to increase 6-8% on an organic basis. The operating income on an organic basis is likely to rise 11-12.5%. Management expects an operating cash flow of more than $11.5 billion in 2025. Capital expenditures are likely to be nearly $1.6 billion, primarily implying investments to support the smoke-free business. For the third quarter of 2025, Philip Morris envisions adjusted EPS in the range of $2.08-$2.13, including a projected favorable currency impact of 5 cents. How Have Estimates Been Moving Since Then? Since the earnings release, investors have witnessed a downward trend in estimates revision. VGM Scores Currently, Philip Morris has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Philip Morris has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. 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 Philip Morris International Inc. (PM) : 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
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Coca-Cola (KO) Up 2.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Coca-Cola (KO). Shares have added about 2.2% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Coca-Cola due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Coca-Cola Beats on Earnings in Q2, But Falls Short on Revenues Coca-Cola has reported second-quarter 2025 results, with the bottom line surpassing the Zacks Consensus Estimate. Meanwhile, the top line missed the consensus mark. The company's revenues and earnings per share (EPS) improved year over year. The results have benefited from continued business momentum, aided by enhanced pricing across markets. This quarter's results once again highlight the strength of KO's resilient, all-weather reported a comparable EPS of 87 cents in the second quarter, up 4% from the year-ago period. Comparable EPS also beat the Zacks Consensus Estimate of 83 cents. Unfavorable currency translations hurt the comparable EPS by 5 percentage points. Comparable currency-neutral earnings per share rose 9% year over of $12.54 billion grew 1% year over year but missed the Zacks Consensus Estimate of $12.59 billion. Organic revenues rose 5% from the prior-year quarter, led by growth across all segments, except for Bottling Investments. Coca-Cola's reported revenues benefited from growth across most operating segments, except for Latin America and Bottling Investments. The improved price/mix in the quarter was offset by lower concentrate sales and adverse currency rates. For the second quarter of 2025, KO gained a global value share in the total non-alcoholic ready-to-drink beverages the reported quarter, concentrate sales were down 1% year over year, while the price/mix improved 6%. The price/mix benefited from pricing actions across the marketplace and a favorable mix. The impacts of high-inflation markets were lower in second-quarter 2025 compared with the same period last year. In the second quarter, concentrate sales were in line with unit case volume. Coca-Cola's total unit case volume fell 1% year over year in the second quarter, led by declines in Mexico, India and Thailand, which more than offset growth in Central Asia, Argentina and to the cluster-category performance, the unit case volume dipped 1% year over year for the sparkling soft drinks category. The trademark Coca-Cola's unit volume dropped 1%, led by a decline in Latin America, offset by growth in EMEA. 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The tea volume was flat, backed by growth in EMEA, offset by declines in North dollar terms, the operating income surged 63% year over year to $4.28 billion, including a 6-point impact of currency headwinds. Comparable operating income rose 8.5% year over year to $4.38 billion. Comparable currency-neutral operating income advanced 15% on strong organic revenue growth across most segments, effective cost management and the timing of marketing investments. The operating margin of 34.1% in the second quarter expanded significantly from 21.3% in the prior-year quarter. The comparable operating margin expanded 193 bps to 34.7%. The comparable currency-neutral operating margin expanded 325 bps to 36%. Peek Into KO's Segmental Details Reported revenues rose 3% year over year each for North America and the Asia Pacific, and improved 5% for EMEA. However, revenues declined 4% for Latin America and 8% for Bottling Investments. Organic revenues improved 13% year over year in Latin America, 3% in North America, 4% in EMEA and 5% in the Asia Pacific. Meanwhile, organic revenues were down 2% in Bottling Investments. KO's Guidance for 2025 Management has reiterated its organic revenues guidance for 2025 and updated its EPS view. It anticipates organic revenue growth of 5-6% for 2025. Comparable net revenues are expected to include a 1-2% currency headwind based on current rates and hedge positions (compared with 2-3% currency headwind expected earlier). The guidance also includes a 1% negative impact of acquisitions, divestitures and structural changes. The company anticipates an underlying effective tax rate of 20.8% for currency-neutral EPS for 2025 is expected to increase 8% year over year, at the mid-point of the prior-mentioned 7-9%. The company anticipates comparable EPS growth of 3% for 2025 from the $2.88 reported in 2024. The revised guidance is at the high end of the prior mentioned 2-3%. Comparable EPS growth is expected to include currency headwinds of 5% (compared with 5-6% headwind mentioned earlier). The EPS guidance also includes a 1% negative impact of acquisitions, divestitures and structural changes compared with a marginal impact mentioned earlier. Management envisions an adjusted free cash flow of $9.5 billion for 2025, including $11.7 billion in cash flow from operations. Capital expenditure is likely to be $2.2 third-quarter 2025, comparable revenues are expected to include a 1% currency headwind. Comparable EPS is estimated to include a 5-6% currency headwind. How Have Estimates Been Moving Since Then? Since the earnings release, investors have witnessed a downward trend in fresh estimates. VGM Scores At this time, Coca-Cola has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock has a grade of F on the value side, putting it in the lowest quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Coca-Cola has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Performance of an Industry Player Coca-Cola is part of the Zacks Beverages - Soft drinks industry. Over the past month, PepsiCo (PEP), a stock from the same industry, has gained 3.5%. The company reported its results for the quarter ended June 2025 more than a month ago. PepsiCo reported revenues of $22.73 billion in the last reported quarter, representing a year-over-year change of +1%. EPS of $2.12 for the same period compares with $2.28 a year ago. For the current quarter, PepsiCo is expected to post earnings of $2.27 per share, indicating a change of -1.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for PepsiCo. Also, the stock has a VGM Score of D. 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 CocaCola Company (The) (KO) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
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Pegasystems (PEGA) Down 10.7% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Pegasystems (PEGA). Shares have lost about 10.7% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Pegasystems due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers. PEGA Q2 Earnings Surpass Estimates, Revenues Increase Y/Y Pegasystems reported second-quarter 2025 non-GAAP earnings of 28 cents per share, which beat the Zacks Consensus Estimate by 16.67% and increased 7.7% year over year. Revenues of $384.5 million beat the Zacks Consensus Estimate by 4.27% and increased 9.5% year over strong second-quarter 2025 performance is driven by its unique AI strategy, led by the Pega Blueprint platform. Growth was fueled by AI-integrated workflows, rising cloud subscriptions and disciplined execution, resulting in higher ACV, backlog and margin gains. By following the Rule of 40 and targeting a growing market, the company is well-positioned for long-term growth in AI and cloud solutions. PEGA's Quarterly Performance Subscription services revenues, comprising Pega Cloud and Maintenance, generated $246 million (contributing 64% to total revenues), up 14.7% on a year-over-year license revenues (20.8% of the total revenues) were $80 million, a decline of 5.5% year over Subscription revenues, consisting of both subscription services and subscription licenses, rose 9% year over year to $326 million (contributing 84.8% to total revenues).Consulting revenues (15% of the total revenues) were $57.8 million. The reported figure is up 11.1% year over license revenues (0.2% of the total revenues) were $0.7 million, surging 1,875% year over year. This segment remains a negligible contributor compared to Cloud's Annual Contract Value (ACV) increased 28% year over year to 761 and Subscription license, collectively referred to as Client Cloud ACV, rose 6% year over year to 753 company reported that Total ACV increased 16% year over year on a reported and constant-currency basis, reaching $1.514 company's backlog grew by 31% year over year on a reported basis and 27% on a constant currency basis, underscoring the sustained demand for its services and products and future revenue visibility. Pegasystems' Q2 Operating Results In the second quarter of 2025, the gross margin contracted 90 basis points (bps) year over year to 71.5%.Total operating expenses increased 6.8% year over year to $257.7 million. As a percentage of revenues, operating expenses decreased to 1.7%.The company reported an operating income of $17.3 million, up 33.3% year over year. The operating margin expanded 80 bps from the year-ago quarter to 4.5%. PEGA's Balance Sheet & Cash Flow As of June 30, 2025, cash and cash equivalents and marketable securities were $411.6 million compared with $371.7 million as of March 31, to date, operating cash flow rose over 32% year over year to $290 million, while free cash flow grew 31% to approximately $286 million. How Have Estimates Been Moving Since Then? Since the earnings release, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -36.84% due to these changes. VGM Scores At this time, Pegasystems has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Pegasystems has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. 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 Pegasystems Inc. (PEGA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
