Latest news with #GorillaGame:PickingWinnersInHighTechnology
Yahoo
2 days ago
- Business
- Yahoo
10x Genomics (NASDAQ:TXG) Reports Upbeat Q2, Stock Soars
Biotech company 10x Genomics (NASDAQ:TXG) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 12.9% year on year to $172.9 million. On the other hand, next quarter's revenue guidance of $142 million was less impressive, coming in 1.5% below analysts' estimates. Its GAAP profit of $0.28 per share was significantly above analysts' consensus estimates. Is now the time to buy 10x Genomics? Find out in our full research report. 10x Genomics (TXG) Q2 CY2025 Highlights: Revenue: $172.9 million vs analyst estimates of $139.5 million (12.9% year-on-year growth, 24% beat) EPS (GAAP): $0.28 vs analyst estimates of -$0.37 (significant beat) Revenue Guidance for Q3 CY2025 is $142 million at the midpoint, below analyst estimates of $144.2 million Operating Margin: 17.4%, up from -27.3% in the same quarter last year Market Capitalization: $1.58 billion Company Overview Founded in 2012 by scientists seeking to overcome limitations in traditional biological research methods, 10x Genomics (NASDAQ:TXG) develops instruments, consumables, and software that enable researchers to analyze biological systems at single-cell resolution and spatial context. Revenue Growth A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, 10x Genomics grew its sales at an impressive 20.7% compounded annual growth rate. Its growth beat the average healthcare company and shows its offerings resonate with customers. Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. 10x Genomics's recent performance shows its demand has slowed significantly as its annualized revenue growth of 6.5% over the last two years was well below its five-year trend. We can dig further into the company's revenue dynamics by analyzing its most important segment, Consumables. Over the last two years, 10x Genomics's Consumables revenue (recurring orders) averaged 3.7% year-on-year growth. This segment has lagged the company's overall sales. This quarter, 10x Genomics reported year-on-year revenue growth of 12.9%, and its $172.9 million of revenue exceeded Wall Street's estimates by 24%. Company management is currently guiding for a 6.4% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to decline by 7.6% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and indicates its products and services will see some demand headwinds. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating Margin Although 10x Genomics was profitable this quarter from an operational perspective, it's generally struggled over a longer time period. Its expensive cost structure has contributed to an average operating margin of negative 42.4% over the last five years. Unprofitable healthcare companies require extra attention because they could get caught swimming naked when the tide goes out. It's hard to trust that the business can endure a full cycle. On the plus side, 10x Genomics's operating margin rose over the last five years, as its sales growth gave it operating leverage. Zooming in on its more recent performance, we can see the company's trajectory is intact as its margin has also increased by 15.8 percentage points on a two-year basis. This quarter, 10x Genomics generated an operating margin profit margin of 17.4%, up 44.7 percentage points year on year. This increase was a welcome development and shows it was more efficient. 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. Although 10x Genomics's full-year earnings are still negative, it reduced its losses and improved its EPS by 7.4% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability. In Q2, 10x Genomics reported EPS at $0.28, up from negative $0.32 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects 10x Genomics to perform poorly. Analysts forecast its full-year EPS of negative $0.70 will tumble to negative $1.01. Key Takeaways from 10x Genomics's Q2 Results We were impressed by how significantly 10x Genomics blew past analysts' EPS expectations this quarter. We were also excited its revenue outperformed Wall Street's estimates by a wide margin. On the other hand, its revenue guidance for next quarter missed. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 7.9% to $13.79 immediately following the results. 10x Genomics had an encouraging quarter, but one earnings result doesn't necessarily make the stock a buy. Let's see if this is a good investment. If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
2 days ago
- Business
- Yahoo
ICU Medical's (NASDAQ:ICUI) Q2: Beats On Revenue
Medical device company ICU Medical (NASDAQ:ICUI) reported Q2 CY2025 results exceeding the market's revenue expectations , but sales fell by 8% year on year to $548.9 million. Its GAAP profit of $1.43 per share was significantly above analysts' consensus estimates. Is now the time to buy ICU Medical? Find out in our full research report. ICU Medical (ICUI) Q2 CY2025 Highlights: Revenue: $548.9 million vs analyst estimates of $539.7 million (8% year-on-year decline, 1.7% beat) EPS (GAAP): $1.43 vs analyst estimates of -$0.47 (significant beat) Adjusted EBITDA: $100.3 million vs analyst estimates of $90.8 million (18.3% margin, 10.5% beat) EPS (GAAP) guidance for the full year is $7 at the midpoint, beating analyst estimates by 443% EBITDA guidance for the full year is $392.5 million at the midpoint, above analyst estimates of $387.5 million Operating Margin: 1.9%, down from 4.1% in the same quarter last year Free Cash Flow was -$8.49 million, down from $62.67 million in the same quarter last year Market Capitalization: $3.2 billion Vivek Jain, ICU Medical's Chief Executive Officer, said, 'Second quarter results were generally in line with our expectations." Company Overview Founded in 1984 and named for its initial focus on intensive care units, ICU Medical (NASDAQ:ICUI) develops and manufactures medical products for infusion therapy, vascular access, and vital care applications used in hospitals and other healthcare settings. Revenue Growth A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, ICU Medical's 14.2% annualized revenue growth over the last five years was solid. Its growth beat the average healthcare company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. ICU Medical's recent performance shows its demand has slowed as its annualized revenue growth of 1.4% over the last two years was below its five-year trend. This quarter, ICU Medical's revenue fell by 8% year on year to $548.9 million but beat Wall Street's estimates by 1.7%. Looking ahead, sell-side analysts expect revenue to decline by 10.4% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and indicates its products and services will face some demand challenges. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating Margin Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. ICU Medical was profitable over the last five years but held back by its large cost base. Its average operating margin of 3% was weak for a healthcare business. Analyzing the trend in its profitability, ICU Medical's operating margin decreased by 4.6 percentage points over the last five years, but it rose by 4.1 percentage points on a two-year basis. Still, shareholders will want to see ICU Medical become more profitable in the future. In Q2, ICU Medical generated an operating margin profit margin of 1.9%, down 2.2 percentage points year on year. This contraction shows it was less efficient because its expenses increased relative to 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. Sadly for ICU Medical, its EPS declined by 19.1% annually over the last five years while its revenue grew by 14.2%. This tells us the company became less profitable on a per-share basis as it expanded. We can take a deeper look into ICU Medical's earnings to better understand the drivers of its performance. As we mentioned earlier, ICU Medical's operating margin declined by 4.6 percentage points over the last five years. Its share count also grew by 14.9%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. In Q2, ICU Medical reported EPS at $1.43, up from negative $0.88 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects ICU Medical to improve its earnings losses. Analysts forecast its full-year EPS of negative $1.52 will advance to negative $1.02. Key Takeaways from ICU Medical's Q2 Results We were impressed by how significantly ICU Medical blew past analysts' EPS expectations this quarter. We were also excited its full-year EPS guidance outperformed Wall Street's estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The market seemed to be hoping for more, and the stock traded down 1.7% to $128 immediately following the results. Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
4 days ago
- Business
- Yahoo
Why Lantheus (LNTH) Stock Is Falling Today
What Happened? Shares of radiopharmaceutical company Lantheus Holdings (NASDAQ:LNTH) fell 29.8% in the afternoon session after the company reported disappointing second-quarter financial results and slashed its full-year forecast. The radiopharmaceutical company announced quarterly revenue of $378 million and adjusted earnings per share of $1.57, both of which missed analysts' expectations. A key factor in the performance was an 8.3% decrease in sales for its main product, PYLARIFY, which faced increased competition. Compounding the issue, Lantheus lowered its full-year guidance significantly. The company projected full-year revenue between $1.47 billion and $1.51 billion, well below the consensus estimate of $1.57 billion. Similarly, its earnings per share forecast of $5.50 to $5.70 fell far short of the anticipated $6.64. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Lantheus? Access our full analysis report here, it's free. What Is The Market Telling Us Lantheus's shares are somewhat volatile and have had 12 moves greater than 5% over the last year. But moves this big are rare even for Lantheus and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 19 days ago when the stock dropped 4.7% on the news that several negative developments weighed on the sector. Weakness in managed care providers was a significant factor, with companies like Elevance Health and Humana seeing declines due to an analyst downgrade and a lost lawsuit regarding Medicare bonus payments, respectively. Additionally, some pharmaceutical and biotech companies experienced sharp drops following unfavorable news; for instance, Sarepta Therapeutics plunged after a report indicated another patient death tied to its experimental gene therapy, and GSK's blood cancer drug dosage was voted against by the FDA advisory committee. Broader market sentiment, including concerns about rising costs and inadequate pricing for 2025 plans among health insurers, also contributed to the downward pressure on healthcare equities. Lantheus is down 43.3% since the beginning of the year, and at $50.39 per share, it is trading 56.8% below its 52-week high of $116.69 from October 2024. Investors who bought $1,000 worth of Lantheus's shares 5 years ago would now be looking at an investment worth $3,867. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. 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
4 days ago
- Business
- Yahoo
Limbach (LMB) Stock Trades Down, Here Is Why
What Happened? Shares of building systems company Limbach (NASDAQ:LMB) fell 18.5% in the afternoon session after the company reported mixed second-quarter financial results, where a miss on revenue overshadowed a strong earnings beat and an increased full-year outlook. The building systems provider posted adjusted earnings of $0.93 per share, which sailed past Wall Street's estimate of $0.77. However, quarterly revenue of $142.2 million fell short of the $145.68 million that analysts anticipated. This revenue miss seemed to capture investor attention, despite sales growing 16.4% compared to the same period last year. The company also raised its forecast for full-year 2025 revenue. Ultimately, the market appeared to weigh the revenue shortfall more heavily than the strong profitability and improved guidance, which prompted the stock's decline. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Limbach? Access our full analysis report here, it's free. What Is The Market Telling Us Limbach's shares are extremely volatile and have had 35 moves greater than 5% over the last year. But moves this big are rare even for Limbach and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 9 days ago when the stock gained 5.3% on the news that continued positive momentum driven by a series of bullish analyst reports. The construction specialist recently received several favorable actions from Wall Street. For instance, Stifel Nicolaus and Lake Street Capital both increased their price targets on the stock, while Roth Capital reaffirmed a 'buy' rating. This string of positive analyst coverage appeared to be underpinned by the company's solid financial health. Reports highlighted Limbach's remarkable Return on Equity (ROE) compared to its industry peers and its significant net income growth over the past five years. The upward move also followed a strong performance in the previous trading session, suggesting sustained investor confidence. Limbach is up 25.2% since the beginning of the year, but at $111.11 per share, it is still trading 25.7% below its 52-week high of $149.53 from July 2025. Investors who bought $1,000 worth of Limbach's shares 5 years ago would now be looking at an investment worth $25,900. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Yahoo
4 days ago
- Business
- Yahoo
Bentley (NASDAQ:BSY) Posts Q2 Sales In Line With Estimates
Infrastructure design software provider Bentley Systems (NASDAQ:BSY) met Wall Street's revenue expectations in Q2 CY2025, with sales up 10.2% year on year to $364.1 million. Its non-GAAP profit of $0.32 per share was 12% above analysts' consensus estimates. Is now the time to buy Bentley? Find out in our full research report. Bentley (BSY) Q2 CY2025 Highlights: Revenue: $364.1 million vs analyst estimates of $363.4 million (10.2% year-on-year growth, in line) Adjusted EPS: $0.32 vs analyst estimates of $0.29 (12% beat) Adjusted Operating Income: $124.5 million vs analyst estimates of $121.5 million (34.2% margin, 2.5% beat) Operating Margin: 23.2%, down from 24.3% in the same quarter last year Free Cash Flow Margin: 15.7%, down from 58.4% in the previous quarter Net Revenue Retention Rate: 109%, down from 110% in the previous quarter Annual Recurring Revenue: $1.38 billion at quarter end, up 13.4% year on year Market Capitalization: $18 billion CEO Nicholas Cumins said, 'We delivered another strong quarter despite ongoing global uncertainties. This performance underscores the resilience of our business model and the strength of our end markets, driven by secular infrastructure investment. One year into my new role as CEO, engaging with users and colleagues around the world, I am more energized than ever by how our software plays a crucial role in helping infrastructure engineers achieve more with less.' Company Overview Founded by brothers Keith and Barry Bentley, Bentley Systems (NASDAQ:BSY) offers a software-as-a-service platform that addresses the lifecycle of infrastructure projects such as road networks, tunnel systems, and wastewater facilities. Revenue Growth A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, Bentley grew its sales at a 10.1% annual rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the software sector, which enjoys a number of secular tailwinds. Luckily, there are other things to like about Bentley. This quarter, Bentley's year-on-year revenue growth was 10.2%, and its $364.1 million of revenue was in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 9.7% over the next 12 months, similar to its three-year rate. This projection doesn't excite us and suggests its newer products and services will not catalyze better top-line performance yet. At least the company is tracking well in other measures of financial health. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Annual Recurring Revenue While reported revenue for a software company can include low-margin items like implementation fees, annual recurring revenue (ARR) is a sum of the next 12 months of contracted revenue purely from software subscriptions, or the high-margin, predictable revenue streams that make SaaS businesses so valuable. Bentley's ARR punched in at $1.38 billion in Q2, and over the last four quarters, its growth slightly outpaced the sector as it averaged 11.7% year-on-year increases. This performance aligned with its total sales growth and shows the company is securing longer-term commitments. Its growth also contributes positively to Bentley's revenue predictability, a trait long-term investors typically prefer. Customer Retention One of the best parts about the software-as-a-service business model (and a reason why they trade at high valuation multiples) is that customers typically spend more on a company's products and services over time. Bentley's net revenue retention rate, a key performance metric measuring how much money existing customers from a year ago are spending today, was 110% in Q2. This means Bentley would've grown its revenue by 9.5% even if it didn't win any new customers over the last 12 months. Bentley has a decent net retention rate, showing us that its customers not only tend to stick around but also get increasing value from its software over time. Key Takeaways from Bentley's Q2 Results It was encouraging to see Bentley beat analysts' annual recurring revenue, EPS, and EBITDA expectations this quarter. Overall, this print had some key positives. The stock remained flat at $57 immediately after reporting. Is Bentley an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
