Latest news with #analystexpectations
Yahoo
4 days ago
- Business
- Yahoo
Celsius Stock Soars After a Breakthrough Quarter
Key Points Celsius stock opened 19% higher on Thursday after the company posted blowout financial results. Revenue soared 84% for the company, fueled almost entirely by the addition of Alani Nu to the Celsius portfolio. The bigger surprise is the bottom line, with second-quarter earnings nearly doubling analyst expectations. 10 stocks we like better than Celsius › There were signs that Celsius Holdings (NASDAQ: CELH) was ready to turn the corner in the second quarter that it reported on Thursday morning. After three rough quarters of negative top-line growth, the closing of its transformative acquisition of Alani Nu at the start of April guaranteed a sharp reversal on the top line for the three subsequent months. The bigger mystery for the lifestyle brand behind functional sparkling beverages was going to be the bottom line, and that turned out to be the even bigger positive surprise. Shares of Celsius opened sharply higher on Thursday following the head-turning report. It was a great quarter, but it's also important to frame the big jumps -- in terms of both financials and the stock's reaction -- in a proper manner. Let's crack open a can and dive into this well-received performance. Sparkling with a twist of sublime Celsius was already one of this year's biggest surprises, soaring 62% heading into Thursday's quarterly update. After a brutal 2024, the shares were up sharply despite a weak trail of recent financial results. Most of this year's gain was attributed to just two events, and none of them are related to the legacy business of its namesake product line. The first pop happened in February, when Celsius announced the $1.8 billion acquisition of Alani Nu. It was the right deal at the time. With its own business fading in the previous year, Alani Nu gave it another lifestyle beverage brand that was on the rise. Third-party retail sell-through tracking data showed that Alani Nu's year-over-year sales were up 78% in the month before the deal was announced. It's like an old high school friend showing up at a class reunion with someone clearly out of their league on their arm. The price was even better. Somehow Celsius was able to seal the deal for a net price that valued Alani Nu at a compelling 3 times trailing sales and just 12 times earnings before interest, taxes, depreciation, and amortization (EBITDA) -- and in an important footnote -- adjusted for what would've been the synergies of a corporate combination. The lifeless Celsius was trading at an enterprise value multiple of 4.4 times trailing sales and 37 times EBITDA. The second pop came in May when Celsius announced that the acquisition had closed at the start of April, guaranteeing the new trophy spouse's presence for all of the second quarter. Canned laughter all the way to the bank Celsius was obviously going to get a boost in non-organic revenue growth on Thursday. No one was expecting $739.3 million in revenue, an 84% year-over-year burst. Analysts were only modeling a 64% jump. Alani Nu's revenue contribution clocked in at $301.2 million, accounting for 89% for the total $337.3 million top-line increase. There are a few significant things worth breaking down here. Alani Nu's year-over-year retail sales soared 129% in the second quarter, so business has been accelerating since the deal was announced earlier this year. However, equally notable is that the original Celsius business still eked out a 3% uptick in sales. This ends the brand's streak of three quarters of declining revenue. There was also no sandbagging here, as this year's growth is comped against the last time that Celsius delivered sales growth. Let's close on the bottom line where the fireworks really shine and go "kaboom." Celsius got a great deal in the acquisition, seemingly because Alani Nu was having some operational hiccups. Celsius received a $150 million tax benefit as a dowry, lowering the net price of the deal to $1.65 billion. The projected adjusted EBITDA multiple on Alani Nu was based on how Celsius could realize cost-saving synergies in the combination. It didn't take long to clean up the combined entity. Analysts were modeling an adjusted profit of $0.24 a share for the quarter, a dip from the $0.28 a share that Celsius earned on its own a year earlier. The actual adjusted profit this time around was $0.47 a share, a 68% gain and nearly double the market's expectations. It's more than sweetened bubbles for the effervescent beverage stock. Its combined market share of the domestic retail sales market has grown from 15.5% to 17.3%. The narrative suddenly turns bullish, especially with the next three quarters having favorable comps against the three periods of negative revenue growth for Celsius on its own. Remember the $1.65 billion net price for Alani Nu? An hour into Thursday's trading day, Celsius stock is up just over 20% -- an increase in Celsius' market cap of nearly $2.5 billion. Once a beverage goes flat it's hard to get the fizz back, but that doesn't seem to apply to Celsius stock right now. Should you buy stock in Celsius right now? Before you buy stock in Celsius, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Celsius 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 $635,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,099,758!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 181% 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 » *Stock Advisor returns as of August 4, 2025 Rick Munarriz has positions in Celsius. The Motley Fool has positions in and recommends Celsius. The Motley Fool has a disclosure policy. Celsius Stock Soars After a Breakthrough Quarter was originally published by The Motley Fool 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
01-08-2025
- Business
- Yahoo
Why Kimberly-Clark (KMB) Stock Is Trading Up Today
What Happened? Shares of household products company Kimberly-Clark (NYSE:KMB) jumped 4.8% in the afternoon session after the company reported mixed second-quarter results that featured the strongest sales volume growth in five years and an earnings-per-share figure that surpassed analyst expectations. Investors looked past a headline revenue figure that missed expectations, which the company attributed to recent business divestitures. Instead, market participants focused on a 3.9% rise in organic sales, a key metric that shows the health of the core business. This growth was fueled by the strongest increase in sales volume in five years, suggesting robust consumer demand. Furthermore, the company's adjusted earnings per share of $1.92 comfortably surpassed analyst forecasts. The strong underlying performance and profit beat signaled that the company's strategic plans found success. After the initial pop the shares cooled down to $129.88, up 4.2% from previous close. Is now the time to buy Kimberly-Clark? Access our full analysis report here, it's free. What Is The Market Telling Us Kimberly-Clark's shares are not very volatile and have only had 1 move 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. Kimberly-Clark is down 0.6% since the beginning of the year, and at $129.88 per share, it is trading 12.5% below its 52-week high of $148.35 from September 2024. Investors who bought $1,000 worth of Kimberly-Clark's shares 5 years ago would now be looking at an investment worth $856.73. 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. 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
Globe and Mail
01-08-2025
- Business
- Globe and Mail
CSW Industrials (CSWI) Q1 Revenue Up 17%
Key Points Revenue rose 16.6% in Q1 fiscal 2026, but missed analyst expectations by 17.5% (GAAP). Adjusted earnings per share (Non-GAAP) grew 2.5%, but were 10.1% below estimates. Organic growth declined 2.8%, and gross margin (GAAP) shrank to 43.8% due to cost inflation and product mix. These 10 stocks could mint the next wave of millionaires › CSW Industrials (NYSE:CSW), an industrials company specializing in heating, ventilation, air conditioning, and refrigeration (HVAC/R), plumbing, and building products, reported its earnings for the quarter ended June 30, 2025, on July 31, 2025. The most notable news was that revenue reached a record $263.6 million in the fiscal first quarter, up 16.6% from the prior year, but still fell well below analyst estimates. Adjusted earnings per share (EPS) came in at $2.85, also missing consensus. Despite record headline numbers driven by acquisitions, underlying organic sales fell 2.8%, and profit margins narrowed. The quarter showed mixed results amid ongoing integration costs, tariff headwinds, and softness in key sectors. Metric Q1 fiscal 2026(Quarter Ended June 30, 2025) Q1 fiscal 2026 Estimate Q1 fiscal 2025(Quarter Ended June 30, 2024) Y/Y Change EPS (Non-GAAP) $2.85 $3.17 $2.78 2.5% Revenue $263.6 million $319.35 million $226.2 million 16.6% Operating Income $54.9 million $55.1 million -0.4% EBITDA $68.7 million $65.3 million 5.2% Free Cash Flow $57.7 million $59.6 million -3.2% Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q4 2025 earnings report. Business overview and recent focus CSW Industrials operates across three main segments: Contractor Solutions, Engineered Building Solutions, and Specialized Reliability Solutions. Its products include HVAC/R components, specialty lubricants, and safety solutions, targeting end markets such as HVAC/R, plumbing, general industrial, architectural building products, energy, mining, and rail. The company has recently focused on expanding its reach in value-added HVAC/R and plumbing products through acquisitions. The ability to balance organic growth, effective acquisition integration, and margin management remains a key success factor for the business. Quarter highlights: Results, drivers, and segment details The quarter saw reported revenue up 16.6% from the prior year, with growth from the acquisition of Aspen Manufacturing, PSP Products, and PF WaterWorks more than offsetting a decline in organic revenue. However, organic revenue actually declined by 2.8%, with softness in major end markets dampening underlying performance even as acquired businesses contributed top-line growth. Gross profit grew by 7.5%, but gross margin fell sharply compared to last year. The margin drop, from 47.5% to 43.8%, resulted from lower-margin contributions from acquired businesses and ongoing tariff and input cost pressures. Operating expenses increased due to the broader company scope and integration efforts, but represented a slightly lower share of revenue, reflecting attention to cost control. Operating income came in essentially flat with last year, while EBITDA rose 5.3%. Despite these records, the margin contraction is noteworthy. Free cash flow, which measures cash left after capital expenditures and is an important indicator of financial flexibility, fell 3.2% from the prior year. The company borrowed $135 million to help fund acquisitions but paid back $40 million, leaving net leverage at a low 0.2 times EBITDA. Performance varied across business segments. In Contractor Solutions, revenue rose 22.6%, with growth from acquisitions more than offsetting a decline in organic revenue; organic revenue dropped 4.6%. Operating profit in the segment grew, but gross margin shrank to 43.8% due to acquisition mix and sales mix/volume leverage. Specialized Reliability Solutions revenue was flat, but operating income tumbled 26.7% as commodity costs and one-time consolidation expenses weighed on profitability. The Engineered Building Solutions division posted a modest revenue increase, but its operating income fell, reflecting tariff impacts and ongoing investment in sales and research and development. The quarterly dividend remained steady at $0.27 per share. Products and acquisitions: Expanding capabilities This period saw the continued integration of Aspen Manufacturing, a producer of air handlers and evaporator coils for HVAC/R systems. These components are used chiefly for repair and replacement in building climate control systems. The acquisition emphasizes US-based manufacturing, which can help limit the effect of international tariffs on imported goods. CSW Industrials' acquisition strategy in the HVAC/R and plumbing categories is designed to strengthen its portfolio of niche, value-added products. The company has further raised research and development spending in Engineered Building Solutions, working on new fire and smoke protection solutions and related architectural products, though these investments contributed to near-term margin pressure. Financial outlook and investor considerations Management reaffirmed its outlook for fiscal 2026, expecting full-year organic revenue growth and adjusted EBITDA growth for each segment. For fiscal 2026, consolidated earnings per share are also expected to rise, though growth will trail EBITDA gains due to a higher share count, interest costs from acquisition funding, and increased amortization. Leaders cited ongoing risks tied to tariffs, input inflation, and the challenge of restoring profitability in newly acquired units with thinner margins. No specific quarterly guidance was provided. The quarterly dividend was held steady at $0.27 per share. Looking ahead, investors may want to watch for improvement in organic sales growth, gross and EBITDA margin recovery, and successful integration of recently acquired operations -- all of which are likely to shape the company's performance in the coming quarters. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,049%* — a market-crushing outperformance compared to 182% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of July 29, 2025
Wall Street Journal
30-07-2025
- Business
- Wall Street Journal
Meta Posts 22% Revenue Growth as Ad Business Continues to Fuel AI Ambitions
Meta Platforms META -0.68%decrease; red down pointing triangle posted 22% revenue growth in the second quarter, showing its core ad business remains strong at a time when the company is investing billions of dollars into artificial intellilgence. Sales came in at $47.5 billion, ahead of analyst expectations. Net income for the April-to-June period was $18.3 billion, also ahead of market expectations.
Yahoo
23-07-2025
- Business
- Yahoo
AT&T's Discount Bundles Fuel Subscriber Gains, Tax Savings To Supercharge Fiber Expansion
AT&T Inc. (NYSE:) announced strong financial results for its fiscal second quarter of 2025 on Wednesday, surpassing analyst expectations for both revenue and earnings. The telecom giant reported operating revenues of $30.80 billion, marking a 3.5% increase compared to the same period last year and exceeding the consensus estimate of $30.45 billion. Adjusted earnings per share (EPS) stood at $0.54, also beating the analyst forecast of $0.52. Key Performance Indicators The positive results were largely driven by significant growth in wireless phone subscribers, which AT&T attracted through various perks and incentives to draw customers away from company reported 401,000 postpaid phone net additions, a slight decrease from 419,000 in the prior year but still a robust performance. This contrasts sharply with rival Verizon Communications (NYSE:VZ), which saw a net loss of 9,000 postpaid phone connections in its latest quarter, falling short of analyst predictions for a gain of 13,000. AT&T's postpaid phone churn, a measure of customer attrition, increased slightly to 0.87% from 0.70% a year ago, while prepaid churn was 2.64%, up from 2.57%. Despite this, the postpaid phone-only Average Revenue Per User (ARPU) grew by 1.1% year-over-year to $57.04. In its Consumer Wireline segment, AT&T continued to expand its fiber optic footprint, adding 243,000 AT&T Fiber net subscribers and 203,000 AT&T Internet Air net additions. Financial Highlights AT&T demonstrated solid improvements across several metrics. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased to $11.7 billion from $11.3 billion in the year-ago quarter. The company's net income rose to $4.9 billion from $3.9 billion previously, reflecting enhanced profitability. Operating cash flow also saw a healthy increase, reaching $9.8 billion compared to $9.1 billion in the same quarter last year, contributing to a free cash flow of $4.4 billion, up from $4.0 billion. Capital expenditures for the quarter were $4.9 billion. View more earnings on T Looking at segment performance, the Mobility segment's operating income grew 3.2% year-over-year to $6.93 billion, maintaining a strong margin of 31.7%, though slightly down from 32.8% a year ago. The Consumer Wireline segment showed significant improvement, with its operating margin expanding to 9.5% from 5.5%. Conversely, the Business Wireline segment reported an operating margin loss of 4.7%, a decline from a 2.1% positive margin in the previous year. Overall, operating income for the company was $6.5 billion, compared to $5.8 billion in the year-ago quarter. Future Outlook and Strategic Investments AT&T reiterated its full-year 2025 financial outlook, anticipating consolidated service revenue growth in the low-single-digit range. The company expects Mobility service revenue to grow by 3% or more, an increase from its prior guidance of the higher end of 2%-3%. Consumer fiber broadband revenue growth is projected to remain in the mid-teens, and adjusted EPS is forecast to be between $1.97 and $2.07, aligning with the analyst consensus estimate of $2.06. The company reaffirmed its long-term financial targets, committing to a low-single-digit annual growth rate for consolidated service revenue in 2026 and 2027. Adjusted EBITDA is expected to grow by at least 3% annually over the same period, with adjusted EPS accelerating to double-digit growth by 2027. A significant driver for AT&T's updated outlook is the anticipated cash tax savings of $6.5 billion to $8.0 billion between 2025 and 2027 due to provisions in the One Big Beautiful Bill Act. This includes estimated savings of $1.5 billion to $2.0 billion in 2025 and $2.5 billion to $3.0 billion in both 2026 and 2027. These savings will enable AT&T to increase its annual capital investments to a range of $23 billion to $24 billion from 2026 to 2027. Consequently, free cash flow is now projected to exceed $18 billion in 2026 and $19 billion in 2027. AT&T plans to strategically allocate these tax savings. A substantial $3.5 billion will be invested to accelerate its fiber internet rollout, aiming for an annual build-out rate of 4 million locations by the end of 2026. This accelerated deployment is expected to expand AT&T's in-region fiber footprint to approximately 50 million customer locations by 2030. Including the acquisition of Lumen's Mass Markets fiber assets, its Gigapower joint venture, and other open-access partners, AT&T anticipates reaching over 60 million fiber locations. The acquisition of Lumen's mass markets fiber business is still on track to close in the first half of 2026, as per a Reuters report. Additionally, AT&T intends to contribute $1.5 billion of these savings to its employee pension plan by the end of 2026, which would boost its funding level to approximately 95%. The remaining tax savings will provide increased financial flexibility for further strategic investments, capital returns, and debt reduction. Price Action: Following these announcements, AT&T's stock was trading lower by 2.84% to $26.64 in premarket trading on Wednesday. UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? AT&T (T): Free Stock Analysis Report This article AT&T's Discount Bundles Fuel Subscriber Gains, Tax Savings To Supercharge Fiber Expansion originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
