Latest news with #Gorillas
Yahoo
20 hours ago
- Business
- Yahoo
VeriSign (NASDAQ:VRSN) Reports Q2 In Line With Expectations
Domain name registry operator Verisign (NASDAQ:VRSN) met Wall Street's revenue expectations in Q2 CY2025, with sales up 5.9% year on year to $409.9 million. Its GAAP profit of $2.21 per share was 1.4% above analysts' consensus estimates. Is now the time to buy VeriSign? Find out in our full research report. VeriSign (VRSN) Q2 CY2025 Highlights: Revenue: $409.9 million vs analyst estimates of $411 million (5.9% year-on-year growth, in line) EPS (GAAP): $2.21 vs analyst estimates of $2.18 (1.4% beat) Operating Margin: 68.5%, in line with the same quarter last year Free Cash Flow Margin: 47.5%, down from 71% in the previous quarter Market Capitalization: $27.17 billion Company Overview While the company is not a domain registrar and does not directly sell domain names to end users, Verisign (NASDAQ:VRSN) operates and maintains the infrastructure to support domain names such as .com and .net. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last three years, VeriSign grew its sales at a weak 5.2% compounded annual growth rate. This wasn't a great result compared to the rest of the software sector, but there are still things to like about VeriSign. This quarter, VeriSign grew its revenue by 5.9% year on year, and its $409.9 million of revenue was in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 4% over the next 12 months, similar to its three-year rate. This projection is underwhelming and implies its products and services will see some demand headwinds. 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. Customer Acquisition Efficiency The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments. VeriSign is very efficient at acquiring new customers, and its CAC payback period checked in at 25 months this quarter. The company's rapid recovery of its customer acquisition costs means it can attempt to spur growth by increasing its sales and marketing investments. Key Takeaways from VeriSign's Q2 Results Revenue was in line and EPS exceeded expectations by a small amount. Overall, this quarter didn't have too many surprises. The stock remained flat at $285 immediately after reporting. VeriSign underperformed this quarter, but does that create an opportunity to invest 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. Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Union Pacific (NYSE:UNP) Posts Q2 Sales In Line With Estimates
Freight transportation company Union Pacific (NYSE:UNP) met Wall Street's revenue expectations in Q2 CY2025, with sales up 2.4% year on year to $6.15 billion. Its non-GAAP profit of $3.03 per share was 4.6% above analysts' consensus estimates. Is now the time to buy Union Pacific? Find out in our full research report. Union Pacific (UNP) Q2 CY2025 Highlights: Revenue: $6.15 billion vs analyst estimates of $6.15 billion (2.4% year-on-year growth, in line) Adjusted EPS: $3.03 vs analyst estimates of $2.90 (4.6% beat) Operating Margin: 41%, up from 40% in the same quarter last year Free Cash Flow Margin: 36.3%, up from 5.5% in the same quarter last year Market Capitalization: $138 billion Company Overview Part of the transcontinental railroad project, Union Pacific (NYSE:UNP) is a freight transportation company that operates a major railroad network. Revenue Growth A company's long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, Union Pacific's 3.8% annualized revenue growth over the last five years was sluggish. This was below our standard for the industrials sector and is a rough starting point for our analysis. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Union Pacific's recent performance shows its demand has slowed as its revenue was flat over the last two years. We also note many other Rail Transportation businesses have faced declining sales because of cyclical headwinds. While Union Pacific's growth wasn't the best, it did do better than its peers. This quarter, Union Pacific grew its revenue by 2.4% year on year, and its $6.15 billion of revenue was in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 3% over the next 12 months. Although this projection indicates its newer products and services will catalyze better top-line performance, it is still below average for the sector. 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 Union Pacific has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 40.1%. This result isn't surprising as its high gross margin gives it a favorable starting point. Analyzing the trend in its profitability, Union Pacific's operating margin decreased by 1 percentage points over the last five years. Many Rail Transportation companies also saw their margins fall (along with revenue, as mentioned above) because the cycle turned in the wrong direction. We hope Union Pacific can emerge from this a stronger company, as the silver lining of a downturn is that market share can be won and efficiencies found. This quarter, Union Pacific generated an operating margin profit margin of 41%, up 1.1 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Union Pacific's EPS grew at an unimpressive 7.3% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 3.8% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into Union Pacific's earnings to better understand the drivers of its performance. A five-year view shows that Union Pacific has repurchased its stock, shrinking its share count by 12.4%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Union Pacific, its two-year annual EPS growth of 2.9% was lower than its five-year trend. We hope its growth can accelerate in the future. In Q2, Union Pacific reported EPS at $3.03, up from $2.74 in the same quarter last year. This print beat analysts' estimates by 4.6%. Over the next 12 months, Wall Street expects Union Pacific's full-year EPS of $11.46 to grow 5.7%. Key Takeaways from Union Pacific's Q2 Results It was encouraging to see Union Pacific beat analysts' EPS expectations this quarter. Zooming out, we think this was a decent quarter. The stock remained flat at $229.84 immediately following the results. Is Union Pacific an attractive investment opportunity at the current price? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
a day ago
- Business
- Yahoo
Lake City Bank (LKFN) Reports Earnings Tomorrow: What To Expect
Regional banking company Lakeland Financial (NASDAQGS:LKFN) will be reporting earnings this Friday morning. Here's what investors should know. Lake City Bank beat analysts' revenue expectations by 2.2% last quarter, reporting revenues of $63.8 million, up 5.8% year on year. It was a slower quarter for the company, with a significant miss of analysts' EPS estimates and a slight miss of analysts' tangible book value per share estimates. Is Lake City Bank a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Lake City Bank's revenue to grow 8.6% year on year to $66.14 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.97 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lake City Bank has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.7% on average. Looking at Lake City Bank's peers in the regional banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Popular delivered year-on-year revenue growth of 8.9%, beating analysts' expectations by 3.5%, and City Holding reported revenues up 6.3%, topping estimates by 3%. City Holding traded up 7.5% following the results. Read our full analysis of Popular's results here and City Holding's results here. There has been positive sentiment among investors in the regional banks segment, with share prices up 7.3% on average over the last month. Lake City Bank is up 7.6% during the same time and is heading into earnings with an average analyst price target of $66.40 (compared to the current share price of $64.92). 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. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
What To Expect From Wabash's (WNC) Q2 Earnings
Semi trailers and liquid transportation container manufacturer Wabash (NYSE:WNC) will be reporting results this Friday before market open. Here's what investors should know. Wabash missed analysts' revenue expectations by 7.1% last quarter, reporting revenues of $380.9 million, down 26.1% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts' expectations. Is Wabash a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Wabash's revenue to decline 21.2% year on year to $433.8 million, a further deceleration from the 19.8% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.34 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Looking at Wabash's peers in the heavy machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Greenbrier delivered year-on-year revenue growth of 2.7%, beating analysts' expectations by 7.3%, and PACCAR reported a revenue decline of 15.7%, topping estimates by 2.6%. Greenbrier traded up 21.1% following the results while PACCAR was also up 8.9%. Read our full analysis of Greenbrier's results here and PACCAR's results here. There has been positive sentiment among investors in the heavy machinery segment, with share prices up 7.7% on average over the last month. Wabash is up 2.5% during the same time and is heading into earnings with an average analyst price target of $12.75 (compared to the current share price of $10.86). 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. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. 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
2 days ago
- Business
- Yahoo
Why Is Travel + Leisure (TNL) Stock Rocketing Higher Today
What Happened? Shares of hospitality company Travel + Leisure (NYSE:TNL) jumped 5.7% in the afternoon session after the company reported strong second-quarter 2025 financial results that showed resilient consumer demand in its core Vacation Ownership business. The leisure travel company posted second-quarter revenue of $1.02 billion, which surpassed analyst expectations. While adjusted earnings per share of $1.65 slightly missed consensus estimates, investors focused on the strength in the company's largest segment. Revenue from Vacation Ownership interests (VOIs) grew 6% year-over-year to $853 million. This performance was driven by a 7% increase in Volume Per Guest (VPG), a key metric indicating that customers spent more on average. The company also reaffirmed its full-year guidance, signaling confidence in its outlook. In a sign of its healthy financial position, Travel + Leisure also noted it returned $107 million to shareholders through dividends and stock buybacks during the quarter. Is now the time to buy Travel + Leisure? Access our full analysis report here, it's free. What Is The Market Telling Us Travel + Leisure's shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 12 months ago when the stock dropped 8.4% on the news that the company reported weak second-quarter earnings. The number of tours it conducted fell short of estimates, but it seemed to benefit from some pricing this quarter given its revenue only slightly missed. On the other hand, EPS came in ahead. Overall, it was a mixed but weaker quarter for the company. Travel + Leisure is up 24.4% since the beginning of the year, and at $62.07 per share, has set a new 52-week high. Investors who bought $1,000 worth of Travel + Leisure's shares 5 years ago would now be looking at an investment worth $2,067. 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
