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Yahoo
19-05-2025
- Business
- Yahoo
The Two Words That Sum Up First-Quarter Earnings
First-quarter earnings season is winding down this week. Most market watchers would agree that one issue has loomed large over this round of results. Of the 451 companies in the S&P 500 that hosted earnings calls between March 15 and May 15, 381—or 84%—have mentioned 'uncertainty,' according to a recent analysis from FactSet Research. The only other time in the last 10 years that more executives have discussed uncertainty was during the depths of Covid-19 lockdowns in the first quarter of 2020, when 393 did so. = President Donald Trump trade policy has been a big reason for the unease: 'Tariff' has been mentioned on 91% of earnings calls in the last two months, more than any other quarter in the last decade, according to a separate FactSet report published Friday. The effects of trade policy, however, are yet to to be seen, Deutsche Bank analysts noted Monday, as most U.S. companies didn't see much tariff impact in the first quarter. 'In many cases, it was too early to see a direct impact and trends which had been in place previously largely continued,' they wrote. That's one reason first-quarter earnings have handily exceeded expectations. The S&P 500 is on track to post a second consecutive quarter of double-digit earnings growth. The Trump administration's decision to pause nearly all of the tariffs announced in early April could mean "tariffs" and "uncertainty" continue to dominate the conversation in the next round of earnings calls starting in July. Investors and executives are hoping that bilateral deals like the one struck earlier this month with the U.K. will provide some clarity. Read the original article on Investopedia
Yahoo
19-05-2025
- Business
- Yahoo
The Two Words That Sum Up First-Quarter Earnings
First-quarter earnings season is winding down this week. Most market watchers would agree that one issue has loomed large over this round of results. Of the 451 companies in the S&P 500 that hosted earnings calls between March 15 and May 15, 381—or 84%—have mentioned 'uncertainty,' according to a recent analysis from FactSet Research. The only other time in the last 10 years that more executives have discussed uncertainty was during the depths of Covid-19 lockdowns in the first quarter of 2020, when 393 did so. = President Donald Trump trade policy has been a big reason for the unease: 'Tariff' has been mentioned on 91% of earnings calls in the last two months, more than any other quarter in the last decade, according to a separate FactSet report published Friday. The effects of trade policy, however, are yet to to be seen, Deutsche Bank analysts noted Monday, as most U.S. companies didn't see much tariff impact in the first quarter. 'In many cases, it was too early to see a direct impact and trends which had been in place previously largely continued,' they wrote. That's one reason first-quarter earnings have handily exceeded expectations. The S&P 500 is on track to post a second consecutive quarter of double-digit earnings growth. The Trump administration's decision to pause nearly all of the tariffs announced in early April could mean "tariffs" and "uncertainty" continue to dominate the conversation in the next round of earnings calls starting in July. Investors and executives are hoping that bilateral deals like the one struck earlier this month with the U.K. will provide some clarity. Read the original article on Investopedia
Yahoo
06-05-2025
- Automotive
- Yahoo
Why EVgo Stock Rocketed Over 30% Higher Today
Key Points EVgo is steadily growing its charging network. Record revenue is moving it closer to achieving positive adjusted EBITDA. A record quarter helped shares of EVgo (NASDAQ: EVGO) surge higher by more than 30% Tuesday morning. That spike came after revenue at the electric vehicle (EV) charger company came in 36% higher year over year. Its first-quarter results also topped analyst expectations. After installing 180 new charging stalls, the company ended the first quarter with 4,240 operating EV stalls. Investors liked what they heard, sending shares higher by 35.7% as of 11:30 a.m. ET. 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 » Image source: EVgo. An uphill battle for EVgo The company reported an adjusted operating loss of $5.9 million with revenue of $75.3 million. Wall Street analysts were expecting a $6.6 million loss on sales of $71.5 million, according to FactSet Research. Maybe more important for investors, though, was reaffirmed company guidance for up to $10 million in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) this year. So far, that metric has never been in positive territory for the company. "We anticipate being minimally impacted by tariffs, and we remain focused on achieving adjusted EBITDA breakeven in 2025 while investing in growth, including our next-generation charging experience," stated EVgo CEO Badar Khan. The company is growing strongly despite increasing macro headwinds. EV sales growth rates have slowed in the United States. The Trump administration has also said it plans to end EV subsidies put in place during Joe Biden's term. The stock's massive move in response to EVgo's quarterly results likely came due to its sharp drop in recent months. Even with today's jump, EVgo shares have been cut in half over the last six months. The good news is that operating profit looks attainable despite the ongoing headwinds. If EV adoption does continue to grow, even more slowly, EVgo should reach operating profitability soon. That's enough for some investors to jump aboard today. Should you invest $1,000 in EVgo right now? Before you buy stock in EVgo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and EVgo 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 $611,589!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $697,613!* Now, it's worth noting Stock Advisor's total average return is 894% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks »
CBS News
27-04-2025
- Business
- CBS News
Norfolk Southern's derailment insurance payments provide boost but even without that profits were up
Norfolk Southern's quarterly profits were again inflated by insurance payments related to its disastrous 2023 derailment in eastern Ohio, but even without that, the railroad's profits still grew. The Atlanta-based railroad reported a major rebound in its results Wednesday with $750 million profit, or $3.31 per share, in the first quarter. Last year, the first quarter results of $53 million, or 23 cents per share, were held down by the $600 million class action settlement the railroad agreed to pay residents near the East Palestine derailment. Since last year's second quarter, Norfolk Southern has been consistently collecting more in insurance payments than it was spending on the derailment cleanup and response, so its bottom line has received a boost each of the last several quarters. In the first quarter, the insurance payments boosted the railroad's net income by $141 million. Without that, it would have earned $609 million, or $2.69 per share, compared to $2.49 per share last year. Wall Street analysts focus on ongoing operations, which strips out the insurance windfall, and by that measure, the railroad beat the average estimate reported by FactSet Research by 3 cents per share. The railroad has received close to $1 billion in insurance payments to date to help cover the roughly $2 billion it has spent since the East Palestine derailment. Chief Financial Officer Jason Zampi said he expects less than $100 million in remaining insurance payments to come in. The railroad's revenue was essentially flat at just under $3 billion, but it was able to continue cutting expenses as part of its larger effort to get more efficient, even as it dealt with roughly $35 million of winter storm-related costs. Norfolk Southern CEO Mark George said the railroad overcame disruptive winter weather during the first three months of the year to improve service and efficiency. The railroad also delivered about 1% more shipments in the quarter because consistent service is helping it win new business. Norfolk Southern's main competitor in the East, CSX railroad, posted a 1% decline in volume during the quarter as two major construction projects and the storms disrupted its network, so it appears that some shipments shifted between the two railroads. "Our service performance is increasing our customers' confidence in Norfolk Southern and allowing us to gain share," George said in a statement. He still predicts that Norfolk Southern will generate another $150 million of productivity improvements this year while seeing revenue grow roughly 3%, although the overall economy could derail that if it takes a downturn after President Donald Trump's tariffs all take effect. George said the railroad is hearing fears about the possibility of a recession later this year, so Norfolk Southern is keeping a close eye on volume, but companies haven't started to cut shipments yet. "There's no way to predict where we go right now. We're in a really uncertain spot," George said. "But we haven't seen negative trends yet that really alarm us." Edward Jones analyst Jeff Windau said the economic environment and Trump's trade policy seem to be changing daily, so that makes it hard for businesses to plan. "The rails are going to be impacted by the overall economy. But they're still seeing some good opportunities. And they're still able to deliver on their expectations," Windau said. "So far, things seem to be going OK yet this year." The Atlanta-based railroad is one of the biggest in the nation, with tracks throughout the Eastern United States. A year ago, Norfolk Southern was also in the midst of a fight with an outside investor that wanted to fire management and overhaul the railroad's operations. That investor, Ancora Holdings, won three board seats, and Norfolk Southern later changed CEOs after the board learned that former CEO Alan Shaw had an inappropriate relationship with a subordinate. Shares of the company rose about 3% in early trading before settling back down a bit. The stock was trading up about 1.6% at $223.47 around midday.
Yahoo
24-04-2025
- Business
- Yahoo
Norfolk Southern's derailment insurance payments provide boost but even without that profits were up
Norfolk Southern's quarterly profits were again inflated by insurance payments related to its disastrous 2023 derailment in eastern Ohio, but even without that, the railroad's profits still grew. The Atlanta-based railroad reported a major rebound in its results Wednesday with $750 million profit, or $3.31 per share, in the first quarter. Last year, the first quarter results of $53 million, or 23 cents per share, were held down by the $600 million class action settlement the railroad agreed to pay residents near the East Palestine derailment. Since last year's second quarter, Norfolk Southern has been consistently collecting more in insurance payments than it was spending on the derailment cleanup and response, so its bottom line has received a boost each of the last several quarters. In the first quarter, the insurance payments boosted the railroad's net income by $141 million. Without that, it would have earned $609 million, or $2.69 per share, compared to $2.49 per share last year. Wall Street analysts focus on ongoing operations, which strips out the insurance windfall, and by that measure the railroad beat the average estimate reported by FactSet Research by 3 cents per share. The railroad has received close to $1 billion in insurance payments to date to help cover the roughly $2 billion it has spent since the East Palestine derailment. Chief Financial Officer Jason Zampi said he expects less than $100 million in remaining insurance payments to come in. The railroad's revenue was essentially flat at just under $3 billion, but it was able to continue cutting expenses as part of its larger effort to get more efficient even as it dealt with roughly $35 million of winter storm related costs. Norfolk Southern CEO Mark George said the railroad overcame disruptive winter weather during the first three months of the year to improve service and efficiency. The railroad also delivered about 1% more shipments in the quarter because consistent service is helping it win new business. Norfolk Southern's main competitor in the East, CSX railroad, posted a 1% decline in volume during the quarter as two major construction projects and the storms disrupted its network, so it appears that some shipments shifted between the two railroads. 'Our service performance is increasing our customers' confidence in Norfolk Southern and allowing us to gain share,' George said in a statement. He still predicts that Norfolk Southern will generate another $150 million of productivity improvements this year while seeing revenue grow roughly 3% although the overall economy could derail that if it takes a downturn after President Donald Trump's tariffs all take effect. George said the railroad is hearing fears about the possibility for a recession later this year so Norfolk Southern is keeping a close eye on volume, but companies haven't started to cut shipments yet. 'There's no way to predict where we go right now. We're in a really uncertain spot,' George said. 'But we haven't seen negative trends yet that really alarm us.' Edward Jones analyst Jeff Windau said the economic environment and Trump's trade policy seem to almost be changing daily, so that makes it hard for businesses to plan. 'The rails are going to be impacted by the overall economy. But they're still seeing some good opportunities. And they're still able to deliver on their expectations,' Windau said. 'So far things seem to be going OK yet this year.' The Atlanta-based railroad is one of the biggest in the nation with tracks throughout the Eastern United States. A year ago, Norfolk Southern was also in the midst of a fight with an outside investor that wanted to fire management and overhaul the railroad's operations. That investor, Ancora Holdings, won three board seats, and Norfolk Southern later changed CEOs after the board learned that former CEO Alan Shaw had an inappropriate relationship with a subordinate. Shares of the company rose about 3% in early trading before settling back down a bit. The stock was trading up about 1.6% at $223.47 around midday. Sign in to access your portfolio
