Latest news with #InvestorDay
Globe and Mail
19 hours ago
- Business
- Globe and Mail
Flex Set to Report Q1 Earnings: Is a Beat in the Offing?
Flex Ltd. ( FLEX ) is scheduled to report first-quarter fiscal 2026 results on July 24, before market open. The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $6.25 billion, indicating a fall of approximately 1% from the year-ago quarter's reported figure. The consensus mark for earnings is pegged at 63 cents per share, up 23.5% year over year. For the fiscal first quarter, Flex expects revenues to be between $6 billion and $6.5 billion. Management expects adjusted earnings of 58-66 cents per share, excluding 7 cents for net stock-based compensation expense and 5 cents for net intangible amortization. The company's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters with the average surprise being 16.2%. Shares of the company have gained 80.7% in the past year against the Zacks Electronics - Miscellaneous Products industry 's decline of 7.1%. Factors at Play for FLEX Positive momentum, fueled by its expanding IP portfolio, recent design wins, acquisitions and strong demand in data center, networking and automotive power electronics markets, is likely to have supported Flex's performance in the fiscal first quarter. Flex's strategic initiatives in cloud, power and automotive segments have boosted its fiscal fourth quarter revenues and are expected to have aided its performance in the first quarter. At its last Investor Day held in May, Flex unveiled the next phase of its EMS + Products + Services strategy. This expands on its strong manufacturing and supply chain capabilities by adding proprietary products and value-added services for better integration and customization. The company's power products uniquely position it as the only provider with a comprehensive data center solution—from grid to chip. This strategy is expected to deliver higher customer value, foster deeper partnerships and support margin-enhancing growth, going ahead. Flex continues to benefit from its extensive global footprint of more than 48 million square feet across 110+ sites, enabling efficient, high-scale manufacturing. Strong growth in the Americas, with revenue rising from 38% in fiscal 2020 to 49% in fiscal 2025, reflects its increasing strategic value. For 2026, Flex anticipates data center revenue to grow approximately mid-30%, with power growth expected to exceed that slightly as domestic capacity expands, while cloud growth may be slightly lower due to tough year-over-year comparisons. Flex Ltd. Price and EPS Surprise Flex Ltd. price-eps-surprise | Flex Ltd. Quote For the Reliability Solutions business, management forecasts sales to remain flat to down high-single digits in the fiscal first quarter owing to weakness in the automotive sector, due to tariff-related disruptions adversely impacting customer volumes. Agility Solutions' revenues are anticipated to be down by low-single digits to up mid-single digits, with steady growth expected in cloud markets, balanced against softer enterprise, IT and consumer-related end markets. Uncertain macro environment and changing trade policies act as a burden. Management expects tariff-related costs from raw material sourcing in China and other regions, and plans to pass these costs to customers. However, tariffs are likely to have affected cash flow timing and put slight pressure on margins. While Flex is taking proactive pricing steps to counter these effects, tariffs still pose a major challenge to overall performance. Key Business Highlights In June 2025, Flex joined forces with the Massachusetts Institute of Technology ('MIT') on the Initiative for New Manufacturing (INM) — a cutting-edge Institute-wide project that aspires to rebuild U.S. manufacturing from the core, with sustainability, human experience and advanced technology. As a founding member of the INM Industry Consortium, Flex will work together with MIT researchers, faculty and peer organizations to drive a shared vision of improving manufacturing by harnessing AI, machine learning (ML) and new system-level technologies. In May 2025, Flex's subsidiary JetCool has introduced its advanced SmartPlate System, a self-contained, direct-to-chip liquid cooling solution available on selected Dell PowerEdge servers. This fully sealed system offers immediate improvements in performance and efficiency without altering existing data center setups or requiring facility water. Independent testing confirmed that the SmartPlate System achieves an average of 15% IT power savings, supporting stable performance and higher utilization even under warmer conditions. Flex's Critical Power unit, Anord Mardix, expanded its European operations with a new manufacturing site in Poland, doubling its regional power product capacity to 1.2 million sq. ft. This move supports growing demand for AI-driven data center power solutions. It follows the recent opening of a second facility in Dundalk, Ireland, which doubled capacity there as part of Flex's broader strategy to strengthen global power and data center infrastructure. Flex expanded its multi-year partnership with Arch Systems to accelerate its digital transformation and enhance operational efficiency through advanced data and AI solutions. The collaboration will initially focus on major global sites, integrating Arch's connectivity with Flex's existing systems and MES. The expansion will scale across hundreds of production lines worldwide within the first year. What Our Model Says About Flex Our proven model predicts an earnings beat for FLEX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is exactly the case here. Flex has an Earnings ESP of +2.77% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Other Stocks With Favorable Combination Here are some other companies with the right combination of elements to post an earnings beat in their upcoming releases. Emerson Electric Co. ( EMR ), expected to release earnings on Aug. 6, currently has an Earnings ESP of +0.46% and a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank stocks here. The consensus estimate for Emerson Electric's earnings for the third quarter of fiscal 2025 is pegged at $1.51 per share, indicating year-over-year growth of 5.6%. EMR has a trailing four-quarter average surprise of 3.4%. Illinois Tool Works Inc. ( ITW ), slated to release second-quarter 2025 results on July 30, has an Earnings ESP of +1.44% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for Illinois Tool Works' second-quarter 2025 earnings is pegged at $2.55 per share, suggesting a year-over-year rise of 0.4%. ITW has a trailing four-quarter average surprise of 3%. SAP SE ( SAP ) is scheduled to post results for the second quarter of 2025 on July 22, has an Earnings ESP of +0.05% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for SAP's second-quarter earnings is pegged at $1.63 per share, implying a 38% increase from the year-ago reported actuals. It has a trailing four-quarter average surprise of 10%. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up 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 Illinois Tool Works Inc. (ITW): Free Stock Analysis Report Emerson Electric Co. (EMR): Free Stock Analysis Report SAP SE (SAP): Free Stock Analysis Report Flex Ltd. (FLEX): Free Stock Analysis Report
The Hill
5 days ago
- Business
- The Hill
Airfare by algorithm: Delta leans into AI pricing — but is it a good thing?
What you pay for a Delta Air Lines ticket may soon depend less on timing and more on what an algorithm thinks you're willing to spend. About 3 percent of Delta's domestic ticket prices are now determined by artificial intelligence (AI), with plans to raise that to 20 percent by year's end, President Glen Hauenstein said on an earnings call last week. During an Investor Day presentation in November, Hauenstein described the new AI pricing technology as a 'super analyst,' calling it a 'full reengineering of how we price and how we will be pricing in the future.' That enthusiasm stems from the airline's partnership with Fetcherr, an Israeli tech company that uses AI to process millions of data points instantly 'to set the perfect price every time,' according to a company blog post. Delta's embrace of AI is the latest example of dynamic pricing, where companies adjust prices in real time based on factors like supply, demand and even individual consumer behavior. The concept isn't new, but the technology is making it far more sophisticated. Fetcherr's website says its algorithms tailor prices based on factors like customer lifetime value, past purchase behaviors and 'the real-time context of each booking inquiry,' all of which, the company says, help create 'a truly personalized offer.' In theory, hyperpersonalization meets customers where they are, offering a custom experience every time. But critics warn that the new pricing tactics may exploit rather than benefit consumers. Sen. Ruben Gallego (D-Ariz.) called Delta's practice 'predatory pricing,' in a post online, while accusing the airline of using AI to 'find your pain point' and 'squeeze you for every penny.' Last year, Wendy's planned to test an AI-driven dynamic pricing model that many likened to Uber's surge pricing. The plan faced intense backlash online before the burger chain clarified that menu prices would not increase during its busiest hours. It remains to be seen whether Delta will face similar pushback. Airlines already adjust fares based on seasonality and demand, so travelers may be accustomed to seeing wide price swings, with or without AI. NewsNation reached out to Delta for more details about its AI pricing strategy. In response, a spokesperson pointed to the company's latest earnings call. Early results suggest Delta's AI pricing strategy has successfully driven revenue, but it may still be some time before it's the norm. 'We're in heavy testing phase. We like what we see,' Hauenstein told investors. 'But we're going to take our time and make sure that the rollout is successful.'
Yahoo
7 days ago
- Business
- Yahoo
UBS Reaffirms Buy on Snowflake (SNOW) Amid Strong Data Infrastructure Investment Trends
Snowflake Inc. (NYSE:SNOW) ranks among the . On June 12, UBS reaffirmed its Buy rating on Snowflake Inc. (NYSE:SNOW) with a $265 price target. The rating affirmation comes after UBS analysts attended the Databricks conference in San Francisco, where they spoke with 15 clients and partners and took part in the Investor Day. The firm pointed out that although Snowflake Inc. (NYSE:SNOW) and Databricks are directly competitive, the conference did not spark new concerns about Snowflake's place in the market. According to the firm's perspective, industry-wide investments in the data layer remain strong. Despite their rivalry, both companies stand to gain from this continuing investment trend. According to UBS, the overall mood during the Databricks conference was in favor of the idea that significant investments in data infrastructure would act as a tailwind for Snowflake Inc. (NYSE:SNOW). Snowflake Inc. (NYSE:SNOW) is an American cloud-based data storage company that operates a platform built on Amazon Web Services, Microsoft Azure, and Google Cloud. It also provides Snowflake Cortex with a set of AI capabilities that employ large language models to analyze unstructured data. While we acknowledge the potential of SNOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Read More: and Disclosure: None. Sign in to access your portfolio
Time Out
15-07-2025
- Business
- Time Out
One of Six Flags' iconic theme parks is saying goodbye after 50 years of thrills
Six Flags California's Great America in Santa Clara may soon be history. At Six Flags' Investor Day, CFO Brian Witherow confirmed that the iconic park is slated to close after the 2027 season—unless the company chooses to extend its lease, which, by his own words, is "incredibly unlikely." Translation: come October 2027, after the final Halloween Haunt, the gates may close for good. The timing hits harder knowing the park is about to mark its 50th season in 2026. Since opening in 1976, Great America has been a cornerstone of summer breaks, first dates and dizzying roller coaster memories for generations of Californians. For decades, the park's mix of family-friendly charm and pulse-pounding rides like Gold Striker, RailBlazer and Flight Deck kept fans coming back. It even had its Hollywood moments, popping up in Beverly Hills Cop III and Getting Even with Dad. But nostalgia doesn't pay the bills. Six Flags' leadership was blunt: Great America, along with Maryland's Six Flags America (set to close in 2025), ranks low in profit margins. That's the harsh math behind the decision. On the bright side, fans still have a few summers left to squeeze in those last spins on the Grizzly or soak up the sun in the water park. The park will stay open through its 2027 season, so there's time to plan one more trip—or three. Once it closes, the Santa Clara skyline could lose the familiar silhouette of coaster tracks and drop towers. It's a blow for locals, coaster enthusiasts and anyone who ever spent a childhood afternoon racing from ride to ride. For now, the countdown to goodbye has begun. If Great America really does close its gates in 2027, it'll mark the end of a half-century run—a reminder that even the most beloved institutions aren't immune to shifting economics. Start planning that farewell visit now.
Los Angeles Times
15-07-2025
- Business
- Los Angeles Times
Live from Atlanta: The next front in the war between MLB owners and players
ATLANTA — In 2021, Times columnist Bill Plaschke incurred the wrath of Atlanta by blaspheming the entertainment district surrounding the Braves' ballpark as a 'sterile shopping mall.' The district, called The Battery, prefers the grand descriptor of 'the South's preeminent lifestyle destination.' Let's take a walk around The Battery, so you can understand why it could become one of the flash points in the coming holy war between owners and players. If you leave the ballpark through the right-field gates, you are in The Battery. You'll see a plaza in front of you, and around you places to ride a mechanical bull, go bowling, navigate an escape room or take in a concert. You can eat, drink, shop, dance, stay in a hotel. You can live here, in apartments above the storefronts. You can work here, in office towers housing corporate giants. 'To create an environment where you can spend eight, nine hours at The Battery and the field, and still feel like you have all the time in the world, I think they've done a wonderful job building this place,' Dodgers and former Braves All-Star first baseman Freddie Freeman said. The Braves built all this, not only to lure fans to come early and stay late on game days but to make money from the property 365 days a year rather than 81. On that front, it is a spectacular success: Nine million people come here each year, and the Braves generated $67 million in revenue from The Battery last year. This, according to major league officials, is the template for the modern team. The Angels had planned a ballpark village twice as large as The Battery. Imagine what the Dodgers could build, and how much revenue they could generate, on property twice as large as the Angel Stadium site. And, speaking of revenue, Rob Manfred has something he likes to say to players about it. The MLB commissioner spoke at the Braves' Investor Day last month and said he tells players that their share of the sport's revenue has dropped from 63% in 2002 to 47% today. Baseball is the only major sport in America without a salary cap system, in which owners agree to spend a designated percentage of revenue on player salaries. 'If we had made a deal 10 years ago to share 50-50, you would've made $2.5 billion more than you made,' Manfred said he has told players, in comments first reported by Sports Business Journal. The players and their union rolled their collective eyes at those comments. It is no secret that many owners want a salary cap, and the cost certainty that comes with it. 'It's all tactics,' Dodgers All-Star catcher Will Smith said. 'It's all early negotiating stuff.' Said Arizona Diamondbacks All-Star outfielder Corbin Carroll: 'Owners don't want to put money in our pockets. For them to emphasize how we need this so much, there's a reason for that.' Tony Clark, the union's executive director, said the revenue numbers the league shares with the union are not consistent with Manfred's statements. And, when you consider a percentage of revenue, you have to define what counts as revenue: What goes into the pool to be shared with players? So let's go back to The Battery, and to the revenue opportunities that such ballpark villages create for teams. A report released in April by Klutch Sports, the Los Angeles-based agency, called such villages 'the sports industry's $100+ billion growth engine,' particularly as media revenue wanes. Within the pitch to team owners: Those villages 'generate attractive financial returns that stand outside of league revenue sharing requirements.' Translation: You can make all these millions without sharing any of it with the players. The Braves are building here because the team plays here. That is the new issue looming over the next round of collective bargaining: If a team builds around its ballpark, should that revenue be shared with players? 'Oh yeah,' Athletics All-Star designated hitter Brent Rooker said. 'Revenue is just any dollar that teams bring in that ultimately could be turned around and used to put a better product on the field. It's got to include tickets, TV, concessions, all the things around the stadium. It's got to include all of it.' Is the money a team makes from renting office space outside the ballpark really relevant to the team? Here's what Braves president and chief executive Derek Schiller told ESPN about The Battery: 'You've got a whole other set of revenues from the real estate development that can then be deployed for the baseball team.' I asked Clark whether, if negotiations turn to the possibility of revenue sharing along the lines Manfred discussed, the money from ballpark villages needs to be part of the conversation. 'Yes,' Clark said. He declined to elaborate. Understand this about Clark: He can filibuster a yes or no question into a 45-second monologue without actually answering yes or no. That he would say a clear 'yes' and nothing else leaves no doubt about his position. If the players do ask that owners share revenue from such ballpark villages, the response would be predictable: First, we share baseball revenue from baseball operations, and real estate developments are not baseball operations. Second, if you want to share in the revenue, you can share in the risk too, by helping to fund construction of the ballpark village, say, or by assuming some of the losses when a tenant drops its lease and leaves storefronts or office buildings unoccupied. Said Carroll: 'I think that's a conversation that won't need to happen, because it won't get to that point. A salary cap is a nonstarter from the union's perspective.' Enjoy the All-Star Game Tuesday, because this summer is one of relative peace. The collective bargaining agreement expires after next season, which means the rhetoric between players and owners ought to be flying this time next year. If the owners insist on pushing a salary cap, a lockout almost certainly would follow. And, if the owners push revenue sharing, The Battery could provide the push for the players' pushback.
