Latest news with #8.4
Yahoo
3 days ago
- Business
- Yahoo
Broadcom Inc (AVGO) Q2 2025 Earnings Call Highlights: Record Revenue and AI Growth Propel ...
Total Revenue: $15 billion, up 20% year-on-year. Adjusted EBITDA: $10 billion, up 35% year-on-year. Semiconductor Revenue: $8.4 billion, up 17% year-on-year. AI Semiconductor Revenue: Over $4.4 billion, up 46% year-on-year. Infrastructure Software Revenue: $6.6 billion, up 25% year-on-year. Gross Margin: 79.4% of revenue. Operating Income: $9.8 billion, up 37% year-on-year. Operating Margin: 65% of revenue. Free Cash Flow: $6.4 billion, representing 43% of revenue. Capital Expenditures: $144 million. Cash and Debt: $9.5 billion in cash and $69.4 billion in gross principal debt. Q3 Revenue Guidance: Approximately $15.8 billion, up 21% year-on-year. Q3 AI Semiconductor Revenue Guidance: $5.1 billion, up 60% year-on-year. Q3 Infrastructure Software Revenue Guidance: Approximately $6.7 billion, up 16% year-on-year. Warning! GuruFocus has detected 5 Warning Signs with RBRK. Release Date: June 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Broadcom Inc (NASDAQ:AVGO) reported a record total revenue of $15 billion for fiscal Q2 2025, marking a 20% year-on-year increase. AI semiconductor revenue reached over $4.4 billion, up 46% year-on-year, continuing a trajectory of nine consecutive quarters of strong growth. Infrastructure software revenue grew by 25% year-on-year to $6.6 billion, driven by the successful integration of VMware and strong VCF sales. The company forecasts AI semiconductor revenue to grow by 60% year-on-year in Q3, marking the tenth consecutive quarter of growth. Broadcom Inc (NASDAQ:AVGO) achieved a gross margin of 79.4% in Q2, better than originally guided, due to favorable product mix. Non-AI semiconductor revenue was down 5% year-on-year, with sectors like industrial and wireless experiencing declines. Free cash flow as a percentage of revenue was impacted by increased interest expenses from debt related to the VMware acquisition. The company anticipates a sequential decline in consolidated gross margin by approximately 130 basis points in Q3 due to a higher mix of XPUs. Broadcom Inc (NASDAQ:AVGO) faces uncertainty regarding potential impacts from changing export control regulations. The transition of VMware customers to a subscription model is ongoing and expected to take another 1.5 years to complete. Q: Can you provide more color on the inference commentary and whether it's more of the XPU side or connectivity side that's driving growth? A: We are seeing increased deployment of XPUs next year, more than we originally thought, along with more networking. It's a combination of both, and we are seeing much more inference now. - Hock Tan, President and CEO Q: Given the positive growth in your AI business, do you see Broadcom sustaining the year-over-year growth rate into fiscal 2026? A: Yes, the growth trajectory we are seeing in fiscal 2025 is expected to sustain into fiscal 2026. We have improved visibility and updates from our hyperscale partners on their AI cluster deployments. - Hock Tan, President and CEO Q: Can you discuss the AI networking performance and the role of Tomahawk in future growth? A: AI networking goes hand-in-hand with AI accelerator cluster deployments. The increased density in scale-up scenarios has surprised us, maintaining AI networking at about 40% of AI revenue. There is strong interest in the new Tomahawk switches, which are expected to drive future growth. - Hock Tan, President and CEO Q: How do you view the competitive landscape with new protocols like NVLink, and what is Broadcom's position on Ethernet for AI networking? A: Ethernet remains the open standard and preferred choice for networking. We believe Ethernet will continue to prevail as it has in traditional networking, and there is no need to create new standards for tasks that can be accomplished with Ethernet. - Hock Tan, President and CEO Q: Can you comment on the progress of converting VMware customers to the subscription model? A: Most VMware contracts are typically three years, and we are more than halfway through the renewals. We expect the conversion process to continue for at least another year to 1.5 years. - Hock Tan, President and CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
08-05-2025
- Business
- Yahoo
Alarm.com (NASDAQ:ALRM) Beats Q1 Sales Targets
Home security and automation software provider (NASDAQ:ALRM) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 7% year on year to $238.8 million. The company expects the full year's revenue to be around $983.5 million, close to analysts' estimates. Its non-GAAP profit of $0.54 per share was 13.8% above analysts' consensus estimates. Is now the time to buy Find out in our full research report. Revenue: $238.8 million vs analyst estimates of $234.3 million (7% year-on-year growth, 1.9% beat) Adjusted EPS: $0.54 vs analyst estimates of $0.47 (13.8% beat) Adjusted EBITDA: $43.54 million vs analyst estimates of $39.83 million (18.2% margin, 9.3% beat) The company slightly lifted its revenue guidance for the full year to $983.5 million at the midpoint from $979.5 million EBITDA guidance for the full year is $191.5 million at the midpoint, in line with analyst expectations Operating Margin: 12.4%, up from 8.4% in the same quarter last year Free Cash Flow Margin: 7.5%, down from 22.3% in the previous quarter Market Capitalization: $2.65 billion Founded in 2000 as a business unit within MicroStrategy, (NASDAQ:ALRM) is a software-as-a-service platform that enables users to control their security systems and smart home appliances from a single app. 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. Unfortunately, 6.9% annualized revenue growth over the last three years was weak. This fell short of our benchmark for the software sector and is a rough starting point for our analysis. This quarter, reported year-on-year revenue growth of 7%, and its $238.8 million of revenue exceeded Wall Street's estimates by 1.9%. Looking ahead, sell-side analysts expect revenue to grow 3.6% over the next 12 months, a deceleration versus the last three years. This projection doesn't excite us and implies its products and services will face some demand challenges. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments. is extremely efficient at acquiring new customers, and its CAC payback period checked in at 15.3 months this quarter. The company's rapid recovery of its customer acquisition costs means it can attempt to spur growth by increasing its sales and marketing investments. We were impressed by how significantly blew past analysts' EBITDA expectations this quarter. We were also glad its full-year EBITDA guidance slightly exceeded Wall Street's estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock remained flat at $55 immediately after reporting. So do we think is an attractive buy at the current price? 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
07-05-2025
- Business
- Yahoo
Sarepta Therapeutics (NASDAQ:SRPT) Surprises With Q1 Sales But Stock Drops 22.8%
Biotech company Sarepta Therapeutics (NASDAQ:SRPT) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 80.2% year on year to $744.9 million. Its non-GAAP loss of $3.42 per share was significantly below analysts' consensus estimates. Is now the time to buy Sarepta Therapeutics? Find out in our full research report. Sarepta Therapeutics (SRPT) Q1 CY2025 Highlights: Revenue: $744.9 million vs analyst estimates of $693.5 million (80.2% year-on-year growth, 7.4% beat) Adjusted EPS: -$3.42 vs analyst estimates of -$0.65 (significant miss) Adjusted EBITDA: -$249.6 million vs analyst estimates of -$371 million (-33.5% margin, 32.7% beat) 2025 guidance: total product revenue lowered to $2.45 billion (from ($3.0 billion prior) while combined R&D and SG&A expense raised to $2.0 billion (from $1.25 billion prior) Operating Margin: -40.3%, down from 8.4% in the same quarter last year Market Capitalization: $6.26 billion 'In the first quarter, we achieved net product revenue of $611.5 million, a 70% increase over the same quarter prior year; our PMO franchise performed well at $236.5 million; and ELEVIDYS achieved $375.0 million, growing at 180% over the same quarter prior year. However, we also faced headwinds in the quarter. While we are taking a variety of actions to address and resolve these challenges, we have adjusted our guidance for 2025 to $2.3 billion to $2.6 billion,' said Doug Ingram, president and chief executive officer, Sarepta Therapeutics. Company Overview Pioneering treatments for a devastating childhood muscle-wasting disease that primarily affects boys, Sarepta Therapeutics (NASDAQ:SRPT) develops and commercializes RNA-targeted therapies and gene therapies for rare genetic disorders, primarily Duchenne muscular dystrophy. Sales Growth Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Luckily, Sarepta Therapeutics's sales grew at an incredible 40.5% compounded annual growth rate over the last five years. Its growth beat the average healthcare company and shows its offerings resonate with customers. Sarepta Therapeutics Quarterly Revenue Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Sarepta Therapeutics's annualized revenue growth of 51.3% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. Sarepta Therapeutics Year-On-Year Revenue Growth We can better understand the company's revenue dynamics by analyzing its most important segment, . Over the last two years, Sarepta Therapeutics's revenue averaged 50.8% year-on-year growth.
Yahoo
21-04-2025
- Business
- Yahoo
Why CoreWeave, Quantum Computing, and Digital Turbine Plunged Today
The market sold off speculative stocks in a big way on Monday as the U.S. economy appeared to be heading toward more turbulence driven by tariffs. The U.S. dollar dropped, yields are up, and business confidence is in freefall. Tech stocks were some of the hardest hit, but it wasn't all tech that was impacted today. Companies with cash flow and great balance sheets are still well positioned. But the more speculative companies were down more than the 3% market drop. Digital Turbine (NASDAQ: APPS) fell as much as 10.9% on Monday, Quantum Computing (NASDAQ: QUBT) was off 10.1%, and CoreWeave (NASDAQ: CRWV) plunged 14.2% at its low. The stocks ended the day down 6.4%, 8.4%, and 9.6%, respectively. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The market overall was down over 3% today, and the reasons had a lot to do with macro factors. Tariffs are clearly having a big impact on investors beyond just the stock market. Today, the dollar index fell 1% and is now down about 10% for the year, giving U.S. consumers less buying power around the world. This is on top of tariffs that will make all goods more expensive. Yields in the U.S. are also up, making it more expensive for companies and the government to borrow money. Higher yields are an economic headwind, but they may be necessary to fight the inflation brought by tariffs. Add all of this up, and investors are selling risky assets like equities today. The big decline in Digital Turbine, Quantum Computing, and CoreWeave was driven by two major factors. First, the stocks are high beta, which is a measure of volatility. When the market falls, they generally magnify the market's move. On top of volatile trading, none of these three companies are profitable. If the economy goes south or the market declines, it could lead to higher losses and a tougher market for raising funds. Investors don't like uncertainty, and the future is especially uncertain for companies that aren't on solid financial footing right now. The market is trying to figure out what the future looks like for the economy and technology companies. The economy looks like it's in for a rough summer as tariffs will cramp consumer spending, and higher borrowing costs will impact companies' expansion plans. But it's the uncertainty that the market doesn't like. Big moves in the dollar and yields indicate investors are shifting how they view safety, and that's causing big shifts in the market. The appetite to take risks on unprofitable companies isn't what it was just a few months ago. That doesn't bode well for the future of these stocks in the market. They need to generate more revenue and start turning a profit to be sustainable in the long term. I think investors can use a time like this to buy high-quality companies that can be aggressive with acquisitions or buybacks in a market decline. That's where I'm seeing opportunities today. Before you buy stock in CoreWeave, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and CoreWeave wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $524,747!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $622,041!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 153% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why CoreWeave, Quantum Computing, and Digital Turbine Plunged Today was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
11-04-2025
- Business
- Yahoo
Cintas Corporation (CTAS) Surged After reporting Strong Results
ClearBridge Investments, an investment management company, released its 'ClearBridge Growth Strategy' first quarter 2025 investor letter. A copy of the letter can be downloaded here. First quarter of 2025 witnessed sharp equities sell off due the shift out of mega caps. There was a relative outperformance of mid cap growth stocks over large and small cap growth during the first quarter correction which indicates the broadening of market, that presents attractive opportunities for high active share managers. In the quarter, the ClearBridge Growth Strategy marginally underperformed its Russell Midcap Growth Index benchmark. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first quarter 2025 investor letter, ClearBridge Growth Strategy emphasized stocks such as Cintas Corporation (NASDAQ:CTAS). Headquartered in Cincinnati, Ohio, Cintas Corporation (NASDAQ:CTAS) provides corporate identity uniforms and related business services. The one-month return of Cintas Corporation (NASDAQ:CTAS) was 5.13%, and its shares gained 21.32% of their value over the last 52 weeks. On April 10, 2025, Cintas Corporation (NASDAQ:CTAS) stock closed at $202.73 per share with a market capitalization of $81.86 billion. ClearBridge Growth Strategy stated the following regarding Cintas Corporation (NASDAQ:CTAS) in its Q1 2025 investor letter: "Two newer positions also held up well: uniform and workplace products provider, Cintas Corporation (NASDAQ:CTAS), and off-price apparel retailer, TJX. Cintas delivered strong quarterly results with organic growth and margin improvement ahead of expectations. The company cited several new business wins driven by cost savings, a value proposition that is particularly salient in today's more uncertain macro environment." A corporate office with staff members wearing company branded uniforms. Cintas Corporation (NASDAQ:CTAS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held Cintas Corporation (NASDAQ:CTAS) at the end of the fourth quarter which was 48 in the previous quarter. In the third quarter of fiscal 2025, Cintas Corporation's (NASDAQ:CTAS) revenue increased 8.4% to $2.61 billion. While we acknowledge the potential of Cintas Corporation (NASDAQ:CTAS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. We covered Cintas Corporation (NASDAQ:CTAS) in another article, where we shared the list of stocks Jim Cramer recently discussed. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
