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Business Wire
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Consensus Cloud Solutions, Inc. Reports Second Quarter 2025 Results; Reaffirms Full Year 2025 Revenue and Adjusted EBITDA Guidance; Raises Full Year 2025 Adjusted Earnings Per Diluted Share Guidance
LOS ANGELES--(BUSINESS WIRE)--Consensus Cloud Solutions, Inc. (NASDAQ: CCSI) today reported financial results for the second quarter of 2025. 'We continued our momentum through Q2 returning to total positive revenue growth ahead of our expectations. Our Corporate revenue growth achieved 6.9% over the prior year quarter, driven primarily by strong usage, improved revenue retention and new customer acquisition. Our SoHo revenue performed as expected. Our operating margins remained robust resulting in strong cash flows from operations and cash balances. After the close of the quarter, we successfully executed a $225 million credit facility which we will use, in part, to retire the 6% senior notes due October 2026,' said Scott Turicchi, CEO of Consensus. SECOND QUARTER UNAUDITED 2025 HIGHLIGHTS Q2 2025 quarterly revenues increased by $0.2 million or 0.3% to $87.7 million compared to $87.5 million for Q2 2024. This increase was primarily due to an increase of $3.6 million or 6.9% in our Corporate business, partially offset by a planned decrease of $3.4 million or 9.4% in our Small office home office ('SoHo') business. Net income (1) decreased to $20.8 million in Q2 2025 compared to $23.9 million for Q2 2024. The decrease was primarily due to the change in foreign exchange gain and loss. Q2 2025 net income margin (1) was 23.7% compared to 27.3% for Q2 2024. Earnings per diluted share (1) decreased to $1.07 or by 13.7% in Q2 2025 compared to $1.24 for Q2 2024. The decrease was primarily due to the item discussed above. Adjusted EBITDA (3)(4) for Q2 2025 of $48.1 million decreased compared to Q2 2024 of $49.1 million primarily driven by an increase in our personnel-related expenses. Q2 2025 Adjusted EBITDA margin (3) was 54.8%, which was above the midpoint of our target Adjusted EBITDA margin (3) range of 50% - 55%, compared to 56.1% in Q2 2024. Adjusted net income (1)(2) in Q2 2025 increased to $28.4 million from $27.6 million in Q2 2024 primarily driven by a favorable reduction in our interest expense (excluding the impact of the extinguishment of debt) due to a lower average outstanding debt balance as a result of our debt repurchases in connection with our debt repurchase program. Adjusted earnings per diluted share (1)(2) for the quarter increased to $1.46 or by 2.1% compared to $1.43 for Q2 2024 primarily due to the item discussed above. Net cash provided by operating activities in Q2 2025 increased to $28.3 million from $24.4 million in Q2 2024. Free cash flow (5) in Q2 2025 increased to $20.3 million from $15.8 million in Q2 2024. The increase in these two items was primarily attributable to a decrease in net cash outflows resulting from changes in our working capital accounts, partially offset by decreased income after excluding noncash items. Key financial results from operations for Q2 2025 versus Q2 2024 are set forth in the following table. Reconciliations of GAAP measures to comparable non-GAAP financial measures accompany this press release. Notes: (1) The effective tax rates were approximately 27.2% for Q2 2025 and 26.5% for Q2 2024. The non-GAAP effective tax rates were approximately 21.0% for Q2 2025 and 21.3% for Q2 2024. The calculation for net income margin is net income divided by revenues. (2) Adjusted net income and Adjusted earnings per diluted share exclude certain non-GAAP items, as defined in the accompanying Reconciliation of GAAP to non-GAAP Financial Measures. Such exclusions totaled $0.39 and $0.19 per diluted share, respectively, for the three months ended June 30, 2025 and 2024. Adjusted net income and Adjusted earnings per diluted share are not meant as a substitute for measures calculated in accordance with GAAP, but are presented solely for informational purposes. Starting in 2025, the Company excludes any foreign exchange gains or losses from Adjusted net income and Adjusted earning per diluted share. The prior year amounts have been adjusted for consistency with the current year. For the three months ended June 30, 2024, such exclusion reduced Adjusted net income by $0.5 million and $0.02 per diluted share, respectively. (3) Adjusted EBITDA is defined as earnings before interest expense; interest income; other (expense) income, net; income tax expense; depreciation and amortization; and other items used to reconcile net income per diluted share to Adjusted earnings per diluted share, as presented in the Reconciliation of GAAP to Adjusted non-GAAP Financial Measures. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenues. Adjusted EBITDA amounts and Adjusted EBITDA margin are not meant as a substitute for measures calculated in accordance with GAAP, but are presented solely for informational purposes. The most directly comparable GAAP financial measure to Adjusted EBITDA and Adjusted EBITDA margin is net income and net income margin. (4) See Net Income to Adjusted EBITDA Reconciliation for the components of Adjusted EBITDA. (5) Free cash flow is defined as net cash provided by operating activities, less purchases of property and equipment. Free cash flow amounts are not meant as a substitute for measures calculated in accordance with GAAP, but are solely for informational purposes. Expand CAPITAL ALLOCATION STRATEGIC INITIATIVES Consensus ended the quarter with $57.9 million in cash and cash equivalents after the cash outlays detailed below. The following table consists of our material capital allocation strategic initiatives (in thousands): Notes: (6) On November 9, 2023, the Company's Board of Directors approved a debt repurchase program, pursuant to which Consensus may reduce, through redemptions, open market purchases, tender offers, privately negotiated purchases or other retirements, a combination of the outstanding principal balance of the 2026 Senior Notes and 2028 Senior Notes. The authorization permits an aggregate principal amount reduction of up to $300 million and expires on November 9, 2026. (7) On March 1, 2022, the Company's Board of Directors approved a share buyback program. Under this program, the Company was authorized to purchase in the public market or in off-market transactions up to $100.0 million worth of the Company's common stock through February 2025. In February 2025, the Company's Board of Directors authorized and approved a three-year extension of the share repurchase program through February 2028. Expand FY 2025 GUIDANCE (i) The following table presents ranges for the Company's 2025 guidance (in millions, except per share amounts). The Adjusted earnings per diluted share range has been increased by approximately $0.22 per share above the previously provided guidance based on year to date 2025 performance: Q3 2025 GUIDANCE (i) The following table presents ranges for the Company's Q3 2025 guidance (in millions, except per share amounts): Notes: (i) Annual and quarterly guidance is provided on a non-GAAP basis, except revenues, only because certain information necessary to calculate the most comparable GAAP measures is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of certain items. Therefore, as a result of the uncertainty and variability of the nature and amount of future adjustments, which could be significant, we are unable to provide a reconciliation of these measures without unreasonable effort. (ii) Annual and quarterly guidance for Adjusted earnings per diluted share excludes share-based compensation, amortization of acquired intangibles, foreign exchange (gain) loss and certain gains or costs related to non-routine and other matters that are nonrecurring, in each case net of tax. The non-GAAP effective tax rate for 2025 and Q3 2025 is expected to be between 20.5% and 22.5%. Expand About Consensus Cloud Solutions Consensus Cloud Solutions, Inc. (NASDAQ: CCSI) is a global leader in digital cloud fax technology. With over 25 years of success with eFax ® at its core, the Company has evolved to be a trusted provider of interoperability solutions, leveraging artificial intelligence and secure data exchange to transform digital information, automate critical workflows, and maximize operational efficiencies. Consensus maintains industry-leading compliance standards, making it a preferred partner for heavily regulated industries including healthcare, the public sector, financial services, insurance, real estate, and manufacturing. For more information about Consensus, visit 'Safe Harbor' Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release are 'forward-looking statements' within the meaning of The Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations or beliefs and are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These factors and uncertainties include, among other items: the Company's ability to grow fax revenues, profitability and cash flows; the Company's ability to identify, close and successfully transition acquisitions; subscriber growth and retention; variability of the Company's revenue based on changing conditions in particular industries and the economy generally; protection of the Company's proprietary technology or infringement by the Company of intellectual property of others; the risk of adverse changes in the U.S. or international regulatory environments, including but not limited to the imposition or increase of taxes or regulatory-related fees; general economic and political conditions, including political tensions and war (such as the ongoing conflict in Ukraine and the Middle East) and the impact of new or additional tariffs or other trade restrictions; and the numerous other factors set forth in Consensus' filings with the Securities and Exchange Commission ('SEC'). For a more detailed description of the risk factors and uncertainties affecting Consensus, refer to the 2024 Annual Report on Form 10-K filed by Consensus on February 20, 2025, and the other reports filed by Consensus from time-to-time with the SEC, each of which is available at The forward-looking statements provided in this press release are subject to change. Although management's expectations may change after the date of this press release, the Company undertakes no obligation to revise or update these statements. About non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Adjusted net income, Adjusted earnings per diluted share, Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow. The presentation of this non-GAAP financial information is not intended to be considered in isolation from, or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our recurring core business operating results. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business. For more information on these non-GAAP financial measures, please see the appropriate GAAP to non-GAAP reconciliation tables included within the attached Exhibit to this Release. December 31, 2024 ASSETS Cash and cash equivalents $ 57,894 $ 33,545 Accounts receivable, net of allowances of $4,837 and $5,774, respectively 24,829 24,921 Prepaid expenses and other current assets 9,701 16,059 Total current assets 92,424 74,525 Property and equipment, net 108,111 100,076 Operating lease right-of-use assets 5,736 6,515 Intangibles, net 40,021 41,213 Goodwill 352,743 345,036 Deferred income taxes 32,832 30,521 Other assets 9,651 4,315 TOTAL ASSETS $ 641,518 $ 602,201 LIABILITIES AND STOCKHOLDERS' DEFICIT Accounts payable and accrued expenses $ 31,602 $ 36,477 Income taxes payable, current 6,653 1,068 Deferred revenue, current 21,399 20,714 Operating lease liabilities, current 2,282 2,150 Current portion of long-term debt — 18,902 Total current liabilities 61,936 79,311 Long-term debt, net of current portion 578,155 574,080 Deferred revenue, noncurrent 1,738 1,913 Operating lease liabilities, noncurrent 10,913 12,018 Liability for uncertain tax positions 14,050 13,218 Deferred income taxes 985 891 Other long-term liabilities 220 233 TOTAL LIABILITIES 667,997 681,664 Commitments and contingencies Common stock, $0.01 par value. Authorized 120,000,000; total issued is 20,731,103 and 20,609,725 shares and total outstanding is 19,092,034 and 19,524,000 shares as of June 30, 2025 and December 31, 2024, respectively 207 206 Treasury stock, at cost (1,639,069 and 1,085,725 shares as of June 30, 2025 and December 31, 2024, respectively) (44,887 ) (32,313 ) Additional paid-in capital 68,770 59,373 Accumulated deficit (41,745 ) (83,678 ) Accumulated other comprehensive loss (8,824 ) (23,051 ) TOTAL STOCKHOLDERS' DEFICIT (26,479 ) (79,463 ) TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 641,518 $ 602,201 Expand CONSENSUS CLOUD SOLUTIONS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED, IN THOUSANDS) Six Months Ended June 30, 2025 2024 Cash flows from operating activities: Net income $ 41,933 $ 50,244 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 9,749 9,930 Amortization of financing costs and discounts 828 937 Non-cash operating lease costs 793 741 Share-based compensation 8,471 8,188 Provision for doubtful accounts 2,275 2,196 Deferred income taxes, net 556 1,233 Loss (gain) on extinguishment of debt 123 (6,555 ) Changes in operating assets and liabilities: Decrease (increase) in: Accounts receivable (2,019 ) (2,057 ) Prepaid expenses and other current assets 6,420 1,536 Other assets 158 753 Increase (decrease) in: Accounts payable and accrued expenses (5,703 ) (1,329 ) Income taxes payable 5,512 2,345 Deferred revenue 316 598 Operating lease liabilities (986 ) (1,133 ) Liability for uncertain tax positions 832 1,439 Other liabilities (16 ) (12 ) Net cash provided by operating activities 69,242 69,054 Cash flows from investing activities: Purchases of property and equipment (15,150 ) (17,479 ) Purchase of investments (5,000 ) — Net cash used in investing activities (20,150 ) (17,479 ) Cash flows from financing activities: Proceeds from the issuance of common stock under employee stock purchase plan 694 747 Repurchase of common stock (12,344 ) (708 ) Taxes paid related to net share settlement (1,174 ) (615 ) Repurchase of debt (15,764 ) (85,525 ) Net cash used in financing activities (28,588 ) (86,101 ) Effect of exchange rate changes on cash and cash equivalents 3,845 (4,988 ) Net change in cash and cash equivalents 24,349 (39,514 ) Cash and cash equivalents at beginning of period 33,545 88,715 Cash and cash equivalents at end of period $ 57,894 $ 49,201 Expand * Starting in 2025, the Company excludes any foreign exchange gains or losses from Adjusted net income and Adjusted earnings per diluted share. The prior year amounts have been adjusted for consistency with the current year. For the three months ended June 30, 2024, such exclusion reduced Adjusted net income by $0.5 million and $0.02 per diluted share, respectively. Expand Adjusted net income as calculated above represents net income and the items used to reconcile GAAP to non-GAAP financial measures, including (1) share-based compensation; (2) foreign exchange loss (gain); (3) amortization; (4) intra-entity transfers; (5) debt extinguishment loss (gain); (6) other benefits or costs related to non-routine and other matters; and (7) income tax impact. Adjusted net income and weighted average diluted shares are then used to calculate Adjusted earnings per diluted share. The Company discloses these measures as a supplemental non-GAAP financial performance measure, as it believes it is a useful metric by which to compare the performance of its business from period to period. The Company also understands that measures are broadly used by analysts, rating agencies and investors in assessing our performance. Accordingly, the Company believes that the presentation of these measures provides useful information to investors. Adjusted net income and Adjusted earnings per diluted share are not calculated in accordance with, or presented as an alternative to, net income or earnings per diluted share, and may be different from similarly or identically named non-GAAP measures used by other companies. In addition, these measures are not based on any comprehensive set of accounting rules or principles. These non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP. Non-GAAP Financial Measures To supplement its unaudited condensed consolidated financial statements, the Company uses the following non-GAAP financial measures: Adjusted net income, Adjusted earnings per diluted share, Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow (collectively the 'non-GAAP financial measures'). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about core operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The Company's non-GAAP financial measures are adjusted for the following items: (1) Share-based compensation. The Company excludes share-based compensation because it is non-cash in nature and because the Company believes that the non-GAAP financial measures excluding this item provides meaningful supplemental information regarding the operational performance of the business. In addition, excluding this item from the non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which similarly exclude this item. (2) Foreign exchange loss (gain). The Company excludes gains or losses associated with foreign exchange. The Company believes that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding the operational performance of the business. In addition, excluding this item from the non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which similarly exclude this item. (3) Amortization. The Company excludes amortization of patents and acquired intangible assets because it is non-cash in nature and because the Company believes that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding the operational performance of the business. In addition, excluding this item from the non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which similarly exclude this item. (4) Intra-entity transfers. The Company excludes certain effects of intra-entity transfers to the extent the related tax asset or liability in the financial statement is not recovered or settled, respectively, during the year. During December 2019, the Company entered into an intra-entity asset transfer that resulted in the recording of a tax benefit and related tax asset representing tax deductible amounts to be realized in future years which is expected to be recovered over a period of up to 20 years. The Company believes that excluding the cumulative future unrealized benefit of the assets transferred in 2019 and amortization of the tax asset in the subsequent years in the non-GAAP financial measures, thereby presenting the tax benefit in the non-GAAP measures in the year of realization, provides meaningful supplemental information regarding operational performance and facilitates comparisons to historical operating results. (5) Debt extinguishment loss (gain). The Company excludes certain gains or losses associated with the retirement of our debt. The Company believes that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding the operational performance of the business. In addition, excluding this item from the non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which similarly exclude this item. (6) Other. The Company excludes certain benefits or costs related to non-routine and other matters. The Company believes that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding the operational performance of the business. In addition, excluding this item from the non-GAAP measures facilitates comparisons to historical operating results. Expand Adjusted EBITDA as calculated above represents earnings before interest expense, interest income, other expense (income), net, income tax expense, depreciation and amortization and the items used to reconcile GAAP to non-GAAP financial measures, including (1) share-based compensation; and (2) other benefits or costs related to non-routine and other matters. The Company discloses Adjusted EBITDA as a supplemental non-GAAP financial performance measure, as it believes it is a useful metric by which to compare the performance of its business from period to period. The Company also understands that measures similar to Adjusted EBITDA are broadly used by analysts, rating agencies and investors in assessing our performance. Accordingly, the Company believes that the presentation of Adjusted EBITDA provides useful information to investors. Adjusted EBITDA is not calculated in accordance with, or presented as an alternative to, net income, and may be different from similarly or identically named non-GAAP measures used by other companies. In addition, Adjusted EBITDA is not based on any comprehensive set of accounting rules or principles. This Adjusted non-GAAP measure has limitations in that it does not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP. Net cash provided by operating activities in Q2 2025 increased to $28.3 million from $24.4 million in Q2 2024. Free cash flow in Q2 2025 increased to $20.3 million from $15.8 million in Q2 2024. The increase in these two items was primarily attributable to a decrease in net cash outflows resulting from changes in our working capital accounts, partially offset by decreased income after excluding noncash items. The term Free cash flow is defined as net cash provided by operating activities, less purchases of property and equipment. The Company discloses Free cash flow as a supplemental non-GAAP financial performance measure, as it believes it is a useful metric by which to compare the performance of its business from period to period. The Company also understands that this non-GAAP measure is broadly used by analysts, rating agencies and investors in assessing the Company's performance. Accordingly, the Company believes that the presentation of this non-GAAP financial measure provides useful information to investors. Free cash flow is not calculated in accordance with, or presented as an alternative to, net cash provided by operating activities, and may be different from non-GAAP measures with similar or even identical names used by other companies. In addition, Free cash flow is not based on any comprehensive set of accounting rules or principles. This non-GAAP measure has limitations in that it does not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP. Key Performance Metrics (Unaudited) The following table sets forth certain key performance metrics for Consensus for the three months ended June 30, 2025 and 2024 (in thousands, except for percentages and Average Revenue per Customer Account): (1) Consensus customers are defined as paying Corporate and SoHo customer accounts. In the current period, we eliminated dormant accounts not contributing to revenue from the number of SoHo customer accounts. The prior year period has been revised for consistency with the current year, and all metrics calculated based on the number of customer accounts (including ARPA and monthly account churn %) are calculated based on the revised number. As a result of this change, the prior year period SoHo customer accounts decreased by 26 thousand. (2) Represents a monthly ARPA for the quarter and is calculated as follows: Monthly ARPA on a quarterly basis is calculated using our standard convention of dividing revenue for the quarter by the average of the quarter's beginning and ending customer base and dividing that amount by 3 months. Consensus believes ARPA provides investors an understanding of the average monthly revenues we recognize per account associated within Consensus' customer base. As ARPA varies based on fixed subscription fee and variable usage components, Consensus believes it can serve as a measure by which investors can evaluate trends in the types of services, levels of services and the usage levels of those services across Consensus' customers. (3) Paid Adds represents paying new Consensus customer accounts added during the periods presented. (4) Monthly churn represents paid monthly SoHo and Corporate customer accounts that were cancelled during each month of the quarter divided by the average number of customers during each month of the same quarter, including the paid adds. The period measured is the quarter and expressed as a monthly churn rate over the quarter period. Expand
Yahoo
a day ago
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- Yahoo
MKSI Q2 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Rise
MKS Inc. MKSI reported second-quarter 2025 adjusted earnings of $1.77 per share, beating the Zacks Consensus Estimate by 9.94%. The figure increased 15.7% year over of $973 million beat the consensus mark by 4.61% and increased 9.7% year over shares jumped 6.6% in pre-market trading. The company lost 14.2% year to date, underperforming the Zacks Computer and Technology sector's 12.2%. MKSI Q2 Top-Line Details Products revenues (87.2% of total revenues) were $848 million, up 10.1% year over year. Services revenues (12.8% of total revenues) increased 6.8% year over year to $125 million. Revenues from the Semiconductor market (44.4% of total revenues) increased 17.1% year over year to $432 million. Electronics & Packaging revenues (27.3% of total revenues) were $266 million, up 16.2% year over year. Specialty Industrial revenues (28.3% of total revenues) declined 4.8% year over year to $275 million. MKS Inc. Price, Consensus and EPS Surprise MKS Inc. price-consensus-eps-surprise-chart | MKS Inc. Quote Revenues from the Vacuum Solutions (41.8% of total revenues) increased 21.5% year over year to $407 million. Photonics Solutions revenues (25% of total revenues) were $243 million, down 4.3% year over year. Materials Solutions revenues (33.2% of total revenues) climbed up 8.4% year over year to $323 million. MKSI's Q2 Operating Details In the second quarter, the adjusted gross margin contracted 70 basis points (bps) on a year-over-year basis to 46.6%.Adjusted EBITDA increased 5.3% year over year to $240 million. Adjusted EBITDA margin contracted 100 bps year over year to 24.7%.Total operating expenses increased 10.6% year over year to $251 million in the reported reported a non-GAAP operating income of $202 million, up 5.2% year over year. The adjusted operating margin contracted 90 bps year over year to 20.8%. MKSI's Balance Sheet As of June 30, 2025, MKS Instruments had cash and cash equivalents of $674 million compared with $655 million as of March of June 30, 2025, long-term debt was $4.36 flow from operations was $165 million in the second quarter of 2025 compared with $141 million reported in the first quarter of cash flow was $136 million compared with $123 million reported in the first quarter of 2025. MKSI Offers Q3 Guidance MKSI expects third-quarter 2025 revenues of $960 million (+/- $40 million).MKS expects gross margin of 46.5% (+/- 1%). The company expects an adjusted EBITDA of $232 million (+/- 24 million). On a non-GAAP basis, MKSI expects earnings of $1.80 (+/- 29 cents) per share. MKSI's Zacks Rank & Stocks to Consider Currently, MKSI carries a Zacks Rank #3 (Hold).OptimizeRx OPRX, StoneCo STNE and Vipshop VIPS are some stocks worth considering in the broader Zacks Computer and Technology sector. Each of the three stocks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks shares have jumped 156.8% year to date. OptimizeRx is set to report its second-quarter 2025 results on Aug. shares have appreciated 68.2% year to date. StoneCo is set to report its second-quarter 2025 results on Aug. shares are up 13.1% year to date. Vipshop is set to report its second-quarter 2025 results on Aug. 14. 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 MKS Inc. (MKSI) : Free Stock Analysis Report OptimizeRx Corp. (OPRX) : Free Stock Analysis Report Vipshop Holdings Limited (VIPS) : Free Stock Analysis Report StoneCo Ltd. (STNE) : 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
Yahoo
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BD Stock Gains in Pre-Market Following Q3 Earnings Beat, Margins Up
Becton, Dickinson and Company BDX, popularly known as BD, delivered adjusted earnings per share (EPS) of $3.68 in the third quarter of fiscal 2025, up 5.1% year over year. The figure topped the Zacks Consensus Estimate by 7.6%. The adjustments include expenses related to purchase accounting adjustments and restructuring costs, among others. GAAP EPS for the quarter was $2.00, reflecting an uptick of 19% from the year-ago figure. BDX's Revenues in Detail BD registered revenues of $5.51 billion in the fiscal third quarter, up 10.4% year over year on a reported basis. The figure surpassed the Zacks Consensus Estimate by 0.5%. At constant exchange rate (CER), revenues climbed 9.9% year over year. Adjusted revenues (which excludes the recognition of accruals relating to the Italian government medical device payback legislation, as well as another legal matter) in the fiscal third quarter was $5.51 billion, up 8.9% year over year on a reported basis, 8.5% at CER and 3% on an organic basis. Robust performance by the BD Medical and BD Interventional segments drove the top-line improvement. Shares of this company gained nearly 9.8% in today's pre-market trading. BD's Segment Details BD's operations consist of three worldwide business segments — BD Medical, BD Life Sciences and BD Interventional. In the quarter under review, BD Medical reported worldwide revenues of $2.93 billion, up 14.4% from the year-ago quarter on a reported basis, 14% at CER and 3.2% on an organic basis. Per management, the segment's organic revenue growth reflected mid-single digit growth in Medication Management Solutions and Pharmaceutical Systems (PS) and low single-digit growth in Medication Delivery Solutions (MDS) business units. This figure compares to our fiscal third-quarter revenue projection of $3.01 billion. Worldwide revenues in the BD Life Sciences segment totaled $1.25 billion, down 0.5% year over year on a reported basis and 1.1% both at CER and on an organic basis. The segment's performance reflected declines in Diagnostic Solutions (DS) and Biosciences (BDB) business units. This was partially offset by low single-digit growth in the Specimen Management business unit. This figure compares to our fiscal third-quarter revenue projection of $1.21 billion. BD Interventional segment generated worldwide revenues of $1.33 billion, up 7.2% from the year-ago quarter on a reported basis and 6.8% both at CER and on an organic basis. The segment's performance reflected double-digit growth in Urology & Critical Care and mid-single-digit growth in Surgery and Peripheral Intervention. This figure compares to our fiscal third-quarter revenue projection of $1.28 billion. BDX's Geographic Results In the third quarter of fiscal 2025, revenues in the United States improved 10% year over year to $3.18 billion. This figure compares to our fiscal third-quarter revenue projection of $3.21 billion. Adjusted revenues in the United States in the fiscal third quarter were $3.18 billion, up 9.8% year over year on a reported basis. International revenues grossed $2.33 billion, up 10.9% from the year-ago quarter on a reported basis and up 9.8% at CER. This figure compares to our fiscal third-quarter revenue projection of $2.28 billion. Adjusted International revenues in the fiscal third quarter were $2.33 billion, up 7.8% year over year on a reported basis and up 6.7% at CER. Becton, Dickinson and Company Price, Consensus and EPS Surprise Becton, Dickinson and Company price-consensus-eps-surprise-chart | Becton, Dickinson and Company Quote BD's Margin Analysis In the quarter under review, BD's gross profit increased 14.2% year over year to $2.63 billion. The gross margin expanded 158 basis points (bps) to 47.8%. We had projected a gross margin of 44.9% in the third quarter of fiscal 2025. Selling and administrative expenses increased 10.4% year over year to $1.32 billion. Research and development expenses decreased 0.7% year over year to $297 million. Adjusted operating expenses of $1.62 billion rose 8.2% year over year. Adjusted operating profit totaled $1.02 billion, reflecting a 25.2% increase from the year-ago quarter. The adjusted operating margin in the fiscal third quarter expanded 219 bps to 18.5%. BDX's Financial Position BD exited third-quarter fiscal 2025 with cash and cash equivalents and short-term investments of $757 million compared with $683 million at the fiscal second-quarter end. Total debt (including current debt obligations) at the end of the fiscal third quarter was $19.34 billion compared with $19.27 billion at the fiscal second-quarter end. Cumulative net cash provided by continuing operating activities at the end of third-quarter fiscal 2025 was $2.08 billion compared with $ 2,67 billion a year ago. Meanwhile, BD has a consistent dividend-paying history, with its five-year annualized dividend growth being 5.39%. BD's Fiscal 2025 Guidance BD has revised its financial outlook for fiscal. BD continues to project its full fiscal year revenues between $21.8 billion and $21.9 billion. The Zacks Consensus Estimate is pegged at $21.83 billion. However, the rate of revenue growth is now projected to be 8.2-8.7% from the comparable fiscal 2024 period, up from the prior outlook of 8-8.5% on a reported basis from the comparable fiscal 2024 period. For fiscal 2025, adjusted revenues at CER are expected to continue to reflect growth in the range of 7.8-8.3% from the comparable fiscal 2024 period. Organic revenue growth is continued to be expected between 3% and 3.5% from the comparable fiscal 2024 period. For the full fiscal year, adjusted EPS is now anticipated to be in the range of $14.30-$14.45 (representing growth of 8.8-10% from the comparable fiscal 2024 period), up from the previous outlook of $14.06-$14.34 (representing growth of 7-9.1% from the comparable fiscal 2024 period). The Zacks Consensus Estimate is pegged at $14.17. Our Take on BDX BD exited the third quarter of fiscal 2025 with better-than-expected results and solid top and bottom-line results. Robust performances by its Medical and Interventional segments and both geographic regions were encouraging. Strength in BD's segments' business units during the reported quarter was also promising. The expansion of both margins bodes well. Per management, BD Excellence operating system is driving continued margin expansion. This looks promising for the stock. Apart from these, there were a few other developments during the recent period, like its definitive agreement to combine BD's BDB and DS business units with Waters Corporation. The transaction is expected to create an innovative life science and diagnostics leader with an industry-leading financial outlook focused on regulated, high-volume testing. BD Medical segment's MDS business unit announced its plans to invest $35 million in Nebraska facility to support new BD PosiFlush Prefilled Flush Syringe production lines, product innovation and operational efficiencies, while the PS business unit announced the first pharma-sponsored combination product clinical trial using the BD Libertas Wearable Injector for subcutaneous delivery of complex biologics. However, BD's lower revenues from its Life Sciences segment were disappointing. BD's Zacks Rank and Stocks to Consider BDX currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader medical space that have announced quarterly results are GE HealthCare Technologies Inc. GEHC, West Pharmaceutical Services, Inc. WST and Boston Scientific Corporation BSX. GE HealthCare, sporting a Zacks Rank #1 (Strong Buy), reported second-quarter 2025 adjusted EPS of $1.06, beating the Zacks Consensus Estimate by 16.5%. Revenues of $5.01 billion outpaced the consensus mark by 0.7%. You can see the complete list of today's Zacks #1 Rank stocks here. GE HealthCare has a long-term estimated growth rate of 5.8%. GEHC's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 12.5%. West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1. West Pharmaceutical has a long-term estimated growth rate of 8.4%. WST's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%. Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy). Boston Scientific has a long-term estimated growth rate of 14%. BSX's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%. 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 Boston Scientific Corporation (BSX) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report West Pharmaceutical Services, Inc. (WST) : Free Stock Analysis Report GE HealthCare Technologies Inc. (GEHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
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Insperity Stock Drops 15% After Reporting Q2 Earnings Miss
Insperity, Inc. NSP reported lower-than-expected second-quarter 2025 results. The stock has declined 15.3% since the earnings release on Aug. 1 in response to dismal earnings and a weak earnings-per-share guidance. Insperity, Inc. Price, Consensus and EPS Surprise Insperity, Inc. price-consensus-eps-surprise-chart | Insperity, Inc. Quote For the third quarter of 2025, NSP's guidance for the bottom line is lowered to 6-49 cents per share from the preceding quarter's view of 29-67 cents per share. The mid-point (27.5 cents) of the guided range is lower than the Zacks Consensus Estimate for earnings of 33 cents per share. For 2025, the company lowered the adjusted earnings per share (EPS) guidance to $1.81-$2.51 from the previous quarter's view of $2.23-$3.28. The mid-point ($2.16) of the company's guidance range is lower than the Zacks Consensus Estimate for earnings of $2.48 per share. Adjusted earnings (excluding 40 cents from non-recurring items) of 26 cents per share missed the consensus estimate by 36.6% and plummeted 69.8% year over year. Revenues of $1.7 billion missed the Zacks Consensus Estimate by a slight margin but increased 3.3% from the year-ago quarter. The company's stock has declined 34.9% over the year-to-date period compared with the 30.3% fall of its industry and the 6.8% rise of the Zacks S&P 500 composite. The average number of worksite employees paid per month increased 1% year over year to 309,115. Revenues per worksite employee (WSEE) per month increased 3% from the year-ago quarter to $1,788. Insperity's Q2 Operating Results Gross profit declined 14% from the year-ago quarter to $223 million. The gross margin was 13.4%, down 280 basis points from the second quarter of 2025. Operating expenses decreased 3% year over year to $230 million. Operating expenses per WSEE per month dropped 15% on a year-over-year basis to $248. NSP reported an operating loss of $7 million against the year-ago quarter's operating income of $23 million. The company witnessed an operating loss per WSEE per month of $8 compared with the year-ago quarter's $25. Adjusted EBITDA for the reported quarter is $32 million, decreasing 51.5% on a year-over-year basis. Balance Sheet & Cash Flow of NSP Insperity exited second-quarter 2025 with cash and cash equivalents of $441 million compared with $551 million in the preceding quarter. The long-term debt was $369 million, flat sequentially. In the reported quarter, NSP distributed $22 million as cash dividends. The capital expenditure totaled $39 million. Insperity's Q3 & 2025 Guidance For the third quarter, Insperity's view for adjusted EBITDA is lowered to $24-$44 million from the $33-$53 million provided in the preceding quarter. For 2025, the guidance for adjusted EBITDA is reduced to $170-$205 million from the preceding quarter's view of $190-$245 million. Insperity carries a Zacks Rank #5 (Sell) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Earnings Snapshot Clean Harbors, Inc. CLH reported mixed second-quarter 2025 results. CLH's earnings of $2.36 per share outpaced the Zacks Consensus Estimate by 1.3% but decreased 4.1% from the year-ago quarter. Total revenues of $1.5 billion missed the consensus estimate by 2% and decreased marginally on a year-over-year basis. The Interpublic Group of Companies, Inc. IPG posted impressive second-quarter 2025 results. IPG's adjusted earnings of 75 cents per share surpassed the Zacks Consensus Estimate by 36.4% and jumped 23% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion beat the consensus estimate by a slight margin but declined 19.8% year over year. Total revenues of $2.5 billion decreased 7.2% year over year and outpaced the Zacks Consensus Estimate of $2.2 billion. 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 Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report Insperity, Inc. (NSP) : Free Stock Analysis Report Clean Harbors, Inc. (CLH) : 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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Sonos' Q3 Earnings Meet Estimates, Revenues Beat, Stock Up
Sonos, Inc. SONO reported third-quarter fiscal 2025 non-GAAP earnings per share (EPS) of 19 cents, meeting the Zacks Consensus Estimate. The company reported EPS of 23 cents in the prior-year quarter. On a GAAP basis, the company reported a loss of 3 cents against EPS of 3 cents in the year-ago quarter. Quarterly revenues declined 13.2% year over year to $344.8 million. However, the figure came above the high end of the company's guidance of $310 million to $340 million, fueled by stronger-than-anticipated sales of portables and components. The Zacks Consensus Estimate for the top line was pegged at $324 million. Following the announcement, shares of the company have jumped around 6.2% in the pre-market trading session today. In the past year, shares have declined 6.2% against the Zacks Audio Video Production industry's growth of 43.8%. Image Source: Zacks Investment Research Sonos' Revenue Details Revenues from Sonos speakers were $253.7 million, down 15.8% year over year. Sonos' system products' revenues of $73.2 million fell 2.7% year over year. Revenues from Partner products and other totaled $17.9 million, down 14.1% year over year. Region-wise, revenues from the Americas of $229.7 million decreased 13.2% year over year. Europe, the Middle East and Africa generated revenues of $97.2 million, down 12.3% year over year. Revenues from the Asia Pacific decreased 17.4% to $17.9 million. Sonos' Margin Performance Non-GAAP gross profit was $154.1 million, down 20.3% on a year-over-year basis. Non-GAAP gross margin contracted 400 basis points to 44.7%. Adjusted operating expenses amounted to $131.1 million, down 15.4% year over year and approximately $9 million below the lower end of our guidance. On a normalized basis (mainly adjusting for variable compensation), non-GAAP operating expenses declined 23%, reflecting the full-quarter impact of the workforce reduction announced last quarter, along with continued benefits from various cost optimization initiatives implemented last summer. Sonos, Inc. Price, Consensus and EPS Surprise Sonos, Inc. price-consensus-eps-surprise-chart | Sonos, Inc. Quote Research and development (R&D) expenses declined 17%, reflecting cost optimization measures implemented in the previous quarter. General and administrative (G&A) expenses were down 16%, primarily due to reductions in headcount and other cost-saving initiatives introduced last year. Sales and marketing expenses decreased 13%, largely due to elevated marketing spend in the prior year related to the launch of Ace. Non-GAAP Adjusted EBITDA totaled $35.6 million, at the upper end of the company's guidance of $12 million to $37 million, driven by higher revenue and reduced operating expenses. Cash Flow & Liquidity In the fiscal third quarter, Sonos had $37.4 million of cash from operations. Free cash flow was $32.7 million, down from $40.3 million reported in the same period last year. As of June 28, cash and cash equivalents were $201.3 million compared with $173.2 million as of March 29, 2025. SONO has no debt. In the third quarter, the company temporarily paused its share repurchase activities. However, returning capital to shareholders continues to be a fundamental aspect of its capital allocation strategy. Sonos has $150 million remaining under its current share repurchase authorization. Sonos' Fiscal Q4 Guidance The outlook is based on current demand trends and assumes no major shifts in consumer spending despite the uncertain global trade environment. Management expects fourth-quarter revenues to range between $260 million and $290 million, implying a year-over-year increase of 2% to 14%. For the fourth quarter, the company projects GAAP gross margin to be between 42% and 44%, and non-GAAP gross margin between 43.7% and 45.5%. GAAP operating expenses are projected in the band of $150 million to $155 million, a 10% to 13% decline from $172 million in the same period a year ago. Non-GAAP operating expenses are expected to be between $130 million and $135 million, down 6% to 9% from $143 million last year, and roughly flat on a sequential basis. Adjusted EBITDA is anticipated to range from a loss of $10 million to a gain of $14 million, suggesting a margin between -4% to 5%. This marks a notable improvement compared to a negative EBITDA $22.6 million in the fourth quarter of the prior year. Sonos' Zacks Rank Sonos currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Recent Performance of Other Companies Sony Group Corporation SONY reported first-quarter fiscal 2025 net income per share (on a GAAP basis) of ¥42.84, up from ¥34.37 in the year-ago quarter. Adjusted net income came in at ¥259 billion compared with ¥210.2 billion in the prior-year quarter. Quarterly total revenues grew 2% year over year to ¥2,621.6 billion, driven by higher revenues in the Game & Network Services (G&NS) and Imaging & Sensing Solutions (I&SS) segments, partially offset by a decline in the Entertainment, Technology & Services (ET&S) segment. Shares of SONY have gained 47.5% in the past year. Dolby Laboratories, Inc. DLB reported third-quarter fiscal 2025 non-GAAP EPS of 78 cents, surpassing the Zacks Consensus Estimate by 8.3%. It reported 71 cents in the prior-year quarter. Total revenues were $315.6 million, up from $288.8 million in the year-ago quarter and surpassing the Zacks Consensus Estimate by 3.9%. This uptick was driven by higher revenues in the Licensing segment and the Product and Services segment. In the past six months, shares have lost 14.4%. IMAX Corporation IMAX reported second-quarter 2025 adjusted earnings of 26 cents per share, which beat the Zacks Consensus Estimate by 36.84% and increased 44.4% year over year. Total revenues of $91.7 million beat the Zacks Consensus Estimate by 0.62% and increased 3.1% year over year. In the past, shares of IMAX have gained 21.2% 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 Dolby Laboratories (DLB) : Free Stock Analysis Report Sonos, Inc. (SONO) : Free Stock Analysis Report IMAX Corporation (IMAX) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
