Latest news with #Earnings
Globe and Mail
28-05-2025
- Business
- Globe and Mail
Dear GameStop Stock Fans, Mark Your Calendars for June 9
GameStop (GME) shares have rallied significantly in the build up to the company's Q1 results that are expected to be released on June 9. Consensus is for the gaming merchandise retailer to earn $0.08 per share in its first quarter – up sharply from $0.12 share of loss in the same quarter last year. At the time of writing, GameStop stock is up some 60% versus its year-to-date low. Q1 Earnings Are Particularly Significant for GameStop Stock GME's first-quarter earnings will be closely watched as they'll provide early insights into its Bitcoin (BTCUSD) strategy and whether it's positively impacting the company's financials. The retailer's board approved a plan to invest in Bitcoin in late March. GameStop even raised $1.5 billion through a convertible debt offering this year, with some of the proceeds earmarked for BTC purchases. Investors will, therefore, scrutinize how Bitcoin holdings have so far influenced GME's cash flow, profitability, and balance sheet. All in all, the upcoming release could shape the sentiment around GameStop stock for the remainder of 2025. Is It Worth Buying GME Shares in 2025? While the recently embraced Bitcoin strategy could generate outsized returns for GameStop stock moving forward, the retailer remains a risky investment in 2025 as its core business continues to shrink. In its latest reported quarter, GME saw its revenue tank a little over 28% on a year-on-year basis. Additionally, the NYSE-listed firm currently has a trailing price-earnings multiple of more than 100x, far above industry norms, indicating a big disconnect between the company's valuation and its fundamentals. Caution is warranted in buying GME shares as the retailer lacks a clear growth strategy. Wall Street Is Bearish on GameStop Investors should note that Wall Street remains bearish on GameStop stock this year as well. The one analyst tracked by Barchart currently holds a ' Strong Sell ' rating with a price target of $13.50, indicating potential downside of more than 60% from current levels.
Yahoo
22-05-2025
- Business
- Yahoo
Dell Technologies (DELL) Reports Next Week: Wall Street Expects Earnings Growth
Wall Street expects a year-over-year increase in earnings on higher revenues when Dell Technologies (DELL) reports results for the quarter ended April 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 29. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This computer and technology services provider is expected to post quarterly earnings of $1.70 per share in its upcoming report, which represents a year-over-year change of +33.9%. Revenues are expected to be $23.1 billion, up 3.9% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.14% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Dell Technologies, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +5.02%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Dell Technologies will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Dell Technologies would post earnings of $2.53 per share when it actually produced earnings of $2.68, delivering a surprise of +5.93%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Dell Technologies appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Computer - Micro Computers industry, HP (HPQ) is soon expected to post earnings of $0.80 per share for the quarter ended April 2025. This estimate indicates a year-over-year change of -2.4%. This quarter's revenue is expected to be $13.36 billion, up 4.3% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for HP has been revised 8.7% up to the current level. Nevertheless, the company now has an Earnings ESP of -1.25%, reflecting a lower Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that HP will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. 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 Dell Technologies Inc. (DELL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
22-05-2025
- Business
- Yahoo
The Returns On Capital At Lebtech Berhad (KLSE:LEBTECH) Don't Inspire Confidence
What financial metrics can indicate to us that a company is maturing or even in decline? Typically, we'll see the trend of both return on capital employed (ROCE) declining and this usually coincides with a decreasing amount of capital employed. This indicates to us that the business is not only shrinking the size of its net assets, but its returns are falling as well. Having said that, after a brief look, Lebtech Berhad (KLSE:LEBTECH) we aren't filled with optimism, but let's investigate further. We've discovered 3 warning signs about Lebtech Berhad. View them for free. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Lebtech Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.0031 = RM363k ÷ (RM160m - RM43m) (Based on the trailing twelve months to December 2024). So, Lebtech Berhad has an ROCE of 0.3%. In absolute terms, that's a low return and it also under-performs the Construction industry average of 8.2%. See our latest analysis for Lebtech Berhad Historical performance is a great place to start when researching a stock so above you can see the gauge for Lebtech Berhad's ROCE against it's prior returns. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of Lebtech Berhad. In terms of Lebtech Berhad's historical ROCE movements, the trend doesn't inspire confidence. To be more specific, the ROCE was 1.3% five years ago, but since then it has dropped noticeably. Meanwhile, capital employed in the business has stayed roughly the flat over the period. Since returns are falling and the business has the same amount of assets employed, this can suggest it's a mature business that hasn't had much growth in the last five years. So because these trends aren't typically conducive to creating a multi-bagger, we wouldn't hold our breath on Lebtech Berhad becoming one if things continue as they have. All in all, the lower returns from the same amount of capital employed aren't exactly signs of a compounding machine. It should come as no surprise then that the stock has fallen 21% over the last five years, so it looks like investors are recognizing these changes. Unless there is a shift to a more positive trajectory in these metrics, we would look elsewhere. If you want to know some of the risks facing Lebtech Berhad we've found 3 warning signs (1 is significant!) that you should be aware of before investing here. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Sign in to access your portfolio
Bloomberg
21-05-2025
- Automotive
- Bloomberg
European Stocks Recoup Losses as Bonds Come Off Session Lows
European stocks recouped losses from earlier in the day to close flat, after bonds came off session lows and several companies delivered good earnings. The Stoxx Europe 600 Index closed 0.1% higher, having earlier shed as much as 0.8%. The losses came after Moody's Ratings stripped the US government of its top credit rating soured investor sentiment and trade tensions continued to weigh. While auto and energy shares lagged, telecoms, travel and leisure stocks made gains. A large quantity of European shares were also trading ex-dividend.
Yahoo
20-05-2025
- Business
- Yahoo
Wall Street Cuts Virtu Financial's Outlook: How to Play the Stock?
Virtu Financial, Inc. VIRT, a prominent name in the financial services space, is under scrutiny as analysts trim their earnings projections for 2025 and 2026. While the company extended its streak of earnings beat in the first quarter, sentiment has weakened due to downward revisions in forward estimates. The Zacks Consensus Estimate for Virtu Financial's 2025 and 2026 adjusted earnings now stands at $3.97 and $3.83 per share, respectively, reflecting week-over-week declines of 0.5% and 1%. Though 2025 estimates still imply 11.8% year-over-year growth, the forecast for 2026 points to a 3.4% decline. Despite a solid earnings track record, including four consecutive quarterly beats averaging a 20.2% surprise, the stock faces growing headwinds. Virtu Financial, Inc. price-eps-surprise | Virtu Financial, Inc. Quote The Zacks Consensus Estimate for Virtu Financial's 2025 and 2026 adjusted net trading income is pegged at $1.68 billion and $1.67 billion, respectively. (See the Zacks Earnings Calendar to stay ahead of market-making news.) Before digging deeper, let's take a quick look at Virtu's latest earnings report. Virtu Financial witnessed a strong first quarter, with adjusted earnings per share (EPS) of $1.30 beating the Zacks Consensus Estimate by 9.2% and marking a 71.1% jump year over year. The upside was driven by higher commissions and growth in technology services revenues, along with improved performance across both the Market Making and Execution Services segments amid elevated trading activity. Interest and dividend income rose 2.9% to $109.1 million, while adjusted EBITDA climbed 57.7% year over year to $319.9 million. However, expenses remained a pressure point. Total operating expenses surged 22.1% to $614.1 million, exceeding expectations of $555.6 million. Virtu Financial's stock has rallied 18.1% year to date, outperforming the broader industry's 2.4% decline. In comparison, peers like Tradeweb Markets Inc. TW is up 11.1% and CME Group Inc. CME has gained 19.7%. The S&P 500, by contrast, is up just 0.6% YTD. Image Source: Zacks Investment Research At current price levels, Virtu Financial now appears overvalued. Its forward P/E ratio stands at 12.60X, above its five-year median of 8.99X and slightly higher than the peer group average of 12.13X. For context, Tradeweb trades at a lofty 40.77X and CME Group at 24.61X. While Virtu Financial's valuation is nowhere near those levels, its premium to its historical average suggests limited upside in the near term. Image Source: Zacks Investment Research Virtu Financial's Execution Services segment continues to benefit from the ITG acquisition, which has expanded its client base and enhanced revenue diversity. The firm is leveraging its technology stack, including POSIT Alert, Triton Valor EMS and proprietary execution algorithms, for global equity trading. The company's balance sheet remains a relative bright spot. Efforts to reduce leverage have paid off, with total debt declining from $1.9 billion in 2019 to $1.7 billion as of March 31, 2025. Cash and equivalents totaled $723.7 million, with just $112.1 million in short-term borrowings. Its debt-to-capital of 54.3% sits below the industry average of 55.5%. Shareholder returns are another plus. Virtu Financial offers a dividend yield of 2.3%, higher than the industry average of 1.7%, and remains committed to its quarterly dividend of 24 cents per share. In first-quarter 2025, the company repurchased $48.1 million in shares, with $373.8 million still authorized for future buybacks as of April 17, 2025. Although adjusted net trading income from the Market Making segment increased in 2024 and the first quarter of 2025, as the market is resuming normalcy, it is likely to witness poor volume growth. The segment's brokerage, exchange, clearance fees and payments for order flow expenses escalated 67.7% year over year in the first quarter of 2025. Free cash flow is also showing signs of stress. After falling 42.3% to $642 million in 2022 and another 35.3% to $416 million in 2023, the metric briefly improved in 2024 but turned negative again in first-quarter 2025. As market volatility subsides, Virtu Financial's performance may weaken due to declining liquidity demand and fewer trading opportunities. Adding to investor caution, the average Wall Street price target of $40 implies a potential 3.5% downside from current levels. Virtu Financial has proven its resilience through its strong earnings beat streak and well-managed balance sheet. However, declining forward estimates, high-cost pressures and falling free cash flow raise concerns. With the stock already trading above historical valuation norms and the market environment turning less favorable, investors may want to be cautious. With a Zacks Rank #3 (Hold), Virtu Financial appears fairly valued for now. It may not offer significant upside in the near term, but it remains a stable pick for investors seeking exposure to the financial services space with a moderate risk profile. Those looking for strong growth or deep value opportunities, however, may want to wait for a better entry point. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 CME Group Inc. (CME) : Free Stock Analysis Report Tradeweb Markets Inc. (TW) : Free Stock Analysis Report Virtu Financial, Inc. (VIRT) : 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
