Latest news with #Exponent
Yahoo
03-08-2025
- Business
- Yahoo
Results: Exponent, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts
Last week, you might have seen that Exponent, Inc. (NASDAQ:EXPO) released its quarterly result to the market. The early response was not positive, with shares down 5.4% to US$68.33 in the past week. Exponent reported US$133m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.52 beat expectations, being 5.6% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. After the latest results, the three analysts covering Exponent are now predicting revenues of US$530.2m in 2025. If met, this would reflect a modest 2.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 2.3% to US$1.98 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$529.8m and earnings per share (EPS) of US$1.97 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates. View our latest analysis for Exponent There were no changes to revenue or earnings estimates or the price target of US$88.00, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Exponent analyst has a price target of US$100.00 per share, while the most pessimistic values it at US$76.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth. One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Exponent's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.3% growth on an annualised basis. This is compared to a historical growth rate of 6.8% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.8% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Exponent. The Bottom Line The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$88.00, with the latest estimates not enough to have an impact on their price targets. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Exponent analysts - going out to 2027, and you can see them free on our platform here. Even so, be aware that Exponent is showing 1 warning sign in our investment analysis , you should know about... 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.
Yahoo
31-07-2025
- Business
- Yahoo
Exponent's (NASDAQ:EXPO) Q2: Beats On Revenue But Quarterly Revenue Guidance Slightly Misses Expectations
Scientific consulting firm Exponent (NASDAQ:EXPO) reported Q2 CY2025 results exceeding the market's revenue expectations , with sales up 7.2% year on year to $142 million. On the other hand, next quarter's revenue guidance of $131.3 million was less impressive, coming in 1.5% below analysts' estimates. Its GAAP profit of $0.52 per share was 5.6% above analysts' consensus estimates. Is now the time to buy Exponent? Find out in our full research report. Exponent (EXPO) Q2 CY2025 Highlights: Revenue: $142 million vs analyst estimates of $130.8 million (7.2% year-on-year growth, 8.5% beat) EPS (GAAP): $0.52 vs analyst estimates of $0.49 (5.6% beat) Adjusted EBITDA: $36.99 million vs analyst estimates of $35.34 million (26.1% margin, 4.7% beat) Revenue Guidance for Q3 CY2025 is $131.3 million at the midpoint, below analyst estimates of $133.3 million Operating Margin: 12.1%, down from 27% in the same quarter last year Market Capitalization: $3.49 billion 'Second quarter revenues were flat but exceeded expectations, reflecting our team's disciplined execution and resilience in this dynamic environment,' stated Dr. Catherine Corrigan, President and Chief Executive Officer. Company Overview With a team of over 800 consultants holding advanced degrees in 90+ technical disciplines, Exponent (NASDAQ:EXPO) is a science and engineering consulting firm that investigates complex problems and provides expert analysis for clients across various industries. Revenue Growth A company's long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. With $528.2 million in revenue over the past 12 months, Exponent is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. On the bright side, it can grow faster because it has more room to expand. As you can see below, Exponent grew its sales at a decent 6.5% compounded annual growth rate over the last five years. This shows its offerings generated slightly more demand than the average business services company, a useful starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Exponent's recent performance shows its demand has slowed as its annualized revenue growth of 4.2% over the last two years was below its five-year trend. This quarter, Exponent reported year-on-year revenue growth of 7.2%, and its $142 million of revenue exceeded Wall Street's estimates by 8.5%. Company management is currently guiding for a 5% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 3.7% over the next 12 months, similar to its two-year rate. This projection is underwhelming and implies its newer products and services will not catalyze better top-line performance yet. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating Margin Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. Exponent's operating margin might fluctuated slightly over the last 12 months but has generally stayed the same, averaging 24.3% over the last five years. This profitability was elite for a business services business thanks to its efficient cost structure and economies of scale. Looking at the trend in its profitability, Exponent's operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. This quarter, Exponent generated an operating margin profit margin of 12.1%, down 14.9 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Exponent's unimpressive 5.7% annual EPS growth over the last five years aligns with its revenue performance. On the bright side, this tells us its incremental sales were profitable. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. Exponent's flat two-year EPS was subpar and lower than its 4.2% two-year revenue growth. We can take a deeper look into Exponent's earnings to better understand the drivers of its performance. Exponent's operating margin has declined by 10.9 percentage points over the last two years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don't tell us as much about a company's fundamentals. In Q2, Exponent reported EPS at $0.52, down from $0.57 in the same quarter last year. Despite falling year on year, this print beat analysts' estimates by 5.6%. Over the next 12 months, Wall Street expects Exponent's full-year EPS of $2.00 to grow 2.5%. Key Takeaways from Exponent's Q2 Results We were impressed by how significantly Exponent blew past analysts' revenue expectations this quarter. We were also happy its EPS outperformed Wall Street's estimates. On the other hand, its revenue guidance for next quarter slightly missed. Overall, this print had some key positives. The stock remained flat at $69.35 immediately following the results. Is Exponent an attractive investment opportunity at the current price? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.
Irish Times
09-07-2025
- Business
- Irish Times
UK private equity firm behind 3,000 jobs in Ireland raises €1bn for new fund
Exponent, a UK private equity firm that is behind 3,000 jobs in Ireland following a series of deals in recent years, has raised a total of £900 million (€1.04 billion) for its fifth fund. The firm, led by Belfast-born managing partner Richard Lenane, will continue a strategy of earlier funds by focusing its investing in well-established corporate, family and founder-owned businesses, it said in a statement on Wednesday. It opened its latest fund to investors in 2023. 'As a first private equity owner, Exponent identifies the potential to double profits through several revenue-driven growth levers and has an established track record of achieving this with its portfolio companies,' it said. Exponent, which was founded 21 years ago by four former senior directors of London-based buyout firm, 3i, has invested over €1 billion in companies in Ireland since 2012, having upped the scale of deals significantly since it set up an office in Dublin two years ago. READ MORE Last year saw the firm spend €300 million taking over Galway-based generic human and animal drugs maker Chanelle Pharmaceuticals from businessman Michael Burke; pay £300 million to acquire Kingsbridge Healthcare Group, Northern Ireland's biggest private hospital group; and invest in Dublin-based data centre designer Ethos Engineering for an undisclosed sum. These three deals are included in this fifth fund. Exponent also controls Limerick-headquartered H&MV Engineering, a specialist in high-voltage electrical engineering. In 2017, it shelled out a reported €250 million for Enva, DCC's former waste management unit. New York buyout firm I Squared Capital subsequently acquired that business two years ago for the equivalent of about €690 million. Exponent is best known is some quarters for its 2016 acquisition of the Racing Post. The publisher of the horse racing paper had previously changed hands in 2007 in a takeover deal engineered by FL Partners, an Irish private equity firm. It is also a backer of Xeinadin, a provider of accountancy services and business advice for small firms in Britain and Ireland. 'Our ability to identify the potential for revenue-driven profit growth makes us an attractive and trusted partner for corporates, families and founders,' said Mr Lenane. 'Fund V allows us to continue executing this strategy which is underpinned by discipline, subsector expertise and operational rigour.'
Bloomberg
09-07-2025
- Business
- Bloomberg
PE Firm Exponent Raises More Than €1 Billion for Flagship Fund
European private equity firm Exponent has raised more than €1 billion ($1.2 billion) for its latest flagship fund focused on mid-market investments. Exponent Private Equity Partners V has reached a final close that's 20% above its initial target, according to a statement reviewed by Bloomberg News. It secured commitments from global investors including pension funds, endowments, sovereign wealth funds and family offices.
Yahoo
24-06-2025
- Business
- Yahoo
Exponent, Inc. (EXPO): A Bull Case Theory
We came across a bullish thesis on Exponent, Inc. on FluentInQuality's Substack. In this article, we will summarize the bull's thesis on EXPO. Exponent, Inc.'s share was trading at $75.05 as of 19th June. EXPO's trailing and forward P/E ratios were 36.79 and 37.88, respectively, according to Yahoo Finance. A financial consultant discussing strategies with a client in an office overlooking the skyline. Exponent is a unique consulting firm built on technical expertise rather than traditional advisory services. Its value lies in solving high-stakes problems—product failures, catastrophic accidents, and litigation—where the outcome cannot be left to chance. With over 90 scientific and engineering disciplines under one roof, Exponent serves Fortune 100 companies, regulators, and law firms, thriving on trust, reputation, and deep-rooted credibility. Unlike labor-intensive consulting models, Exponent scales through selective hiring and intellectual capital, not headcount expansion. Its experts, often recruited from academia or government, stay for decades, forming long-term relationships with clients who consistently return based on referrals. The firm's reputation acts as a moat, built over decades and fiercely protected, knowing that one misstep could erode its hard-earned trust. Financially, Exponent operates with minimal capital expenditure, premium pricing, and gross margins exceeding 65%, producing revenue per employee among the highest in the industry. The business is debt-free and asset-light, with consistent cash flows and disciplined leadership focused on substance over style. As global complexity increases—whether through EV battery issues, product recalls, or AI liability—Exponent's value proposition only strengthens. It doesn't need to ride tech cycles or chase SaaS metrics; instead, it earns its place by providing clarity in crisis and precision in uncertainty. For long-term investors, Exponent represents a Buffett-style holding: non-cyclical, defensible, and quietly compounding. It offers high-margin, low-drama growth and stands apart in a world driven by hype, selling not opinions, but certainty. Previously, we covered a on Thermo Fisher Scientific Inc. (TMO) by FluentInQuality in March 2025, which highlighted the company's capital efficiency, recurring revenue streams, and critical role in enabling scientific and medical breakthroughs. The company's stock price has depreciated by approximately 25% since our coverage. This is because the thesis didn't play out as expected due to macro pressures and slower growth in key end markets. The thesis still stands as Thermo Fisher's fundamentals remain intact, with strong recurring revenue and long-term demand drivers. FluentInQuality shares a similar conviction in Exponent, Inc., but emphasizes its moat of reputation, asset-light model, and pricing power in high-stakes technical consulting. Exponent, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held EXPO at the end of the first quarter, which was 21 in the previous quarter. While we acknowledge the risk and potential of EXPO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Sign in to access your portfolio
