Latest news with #earnings
Irish Times
9 hours ago
- Business
- Irish Times
Global markets soar amid signs of progress on US trade deals
Global markets soared on Thursday as investors digested US corporate earnings along with signs of progress in tariff negotiations between the US and its trading partners. Dublin Euronext Dublin was up 1.3 per cent, largely boosted by strong performances from the Irish banks. Bank of Ireland and AIB were up 4 per cent and 3 per cent respectively, with the banking sector generally up across Europe. Ryanair continued its recent rise, climbing 0.7 per cent. Its peer airline Wizz Air finished down 0.5 per cent after it missed first-quarter profit estimates. 'There was a bit activity around the airlines due to that news flow, and Ryanair benefited from that,' said a trader. READ MORE Elsewhere, two heavyweights on the index, food giant Kerry Group and Cavan-based insulation specialist Kingspan, both finished up 0.5 per cent. London Britain's FTSE 100 rose to a record close, boosted by upbeat corporate results and optimism over a potential EU-US trade agreement. The benchmark FTSE 100 closed up 0.9 per cent, while the domestically-oriented midcap FTSE 250 gained 0.6 per cent. The personal care and grocery stores index led sectoral gains, up 2.6 per cent, boosted by Reckitt, up 9.9 per cent, after the consumer goods company raised its annual revenue forecast. Healthcare stocks rose 1.9 per cent with AstraZeneca up 2.1 per cent after the drugmaker's rare immune disorder drug succeeded in an advanced trial. GSK added 1.4 per cent after the US Food and Drug Administration on Wednesday extended its review of the drugmaker's blood cancer drug. Media stocks advanced 2.3 per cent, led by ITV which rose 13.3 per cent after the broadcaster's half-year results beat forecasts. Conversely, precious metal miners fell 1.4 per cent, tracking a drop in gold prices. Endeavour Mining fell 1.3 per cent, and Fresnillo was down 2.1 per cent. Europe Shares on the Continent advanced amid reports the European Union and Washington were close to clinching a tariff agreement, close on the heels of a similar deal with Japan. MSCI's gauge of stocks across the globe rose 3.03 points. The pan-European Stoxx 600 index rose 0.23 per cent, while Europe's broad FTSEurofirst 300 index rose 0.2 per cent. The Dax 40 in Frankfurt gained 0.2 per cent, but the Cac 40 in Paris fell 0.4 per cent. New York The S&P 500 and the Nasdaq hit record highs as big technology stocks rose after Google parent Alphabet's robust earnings, while the Dow was weighed down by losses in IBM, UnitedHealth, and Honeywell. In morning trading, the S&P 500 gained 0.25 per cent; and the Nasdaq Composite gained 0.25 per cent. Alphabet rose 1.9 per cent after it raised its 2025 capital spending forecast, shrugging off trade jitters, and reinforcing investors' confidence in AI investments and returns. Losses in UnitedHealth, IBM and Honeywell weighed on the blue-chip Dow, which fell 0.33 per cent – though it remained close to its December 4th record high. UnitedHealth lost 3.7 per cent. The insurer revealed it's co-operating with a Department of Justice probe into its Medicare practices, following reports of both criminal and civil investigations. IBM dropped 8 per cent as its second-quarter results fell flat with investors, hampered by disappointing sales in its core software division. Honeywell, meanwhile, dipped 4.6 per cent despite topping Wall Street's expectations and raising its annual outlook. Electric vehicle maker Tesla tumbled 9 per cent, as CEO Elon Musk warned of 'a few rough quarters' due to cuts in EV incentives. The stock has fallen about 25 per cent for the year so far. Some of Wall Street's heavyweights were starting to feel the sting of Trump's sweeping tariffs. American Airlines fell 9.2 per cent after forecasting a bigger-than-expected third-quarter loss, hurt by sluggish domestic travel demand. – Additional reporting: Agencies
CNN
9 hours ago
- Automotive
- CNN
Tesla's stock is tumbling after Elon Musk failure to shift the narrative
Elon Musk's big promises apparently no longer seem to be enough for many Tesla investors. Shares of Tesla (TSLA) fell 9% on Thursday following another dismal earnings report, released after the bell Wednesday. Tesla's earnings and revenue both fell by double-digit percentages following the biggest sales drop in the company's history. The automaker also faces a number of financial headwinds, including the loss of a $7,500 tax credit for US EV buyers starting in October, and the vanishing market for regulatory credit sales, which has earned Tesla $11 billion since 2019. But Tesla CEO Elon Musk barely talked about that on the earnings call Wednesday, although he did acknowledge the company 'probably could have a few rough quarters.' Instead, he talked about his grand vision for the future, including Tesla's long-promised robotaxi service; and its humanoid robot, Optimus, which is still in development. The lack of details about the company's plans to solve problems in the near term disappointed some investors and analysts. 'Investors have been very forgiving of Tesla for several quarters now, despite obvious headwinds to their business,' Garrett Nelson, analyst at CFRA Research, told CNN Thursday. 'But I think its investors are taking a more realistic view of the story at this point. Some of his brilliance has been his ability to keep investors focused on the long term and ignoring the near term and intermediate term. Now, headwinds are difficult to ignore.' Nelson downgraded the company's stock to a neutral rating in April. But even some of the Tesla bulls on Wall Street are saying that the time for Musk to take action is running out. 'The street is losing some patience,' Wedbush Securities tech analyst Dan Ives told CNN Thursday, although he said he still believes in the autonomous vehicle and artificial intelligence vision laid out by Musk and Tesla. Musk has made big promises about his robotaxi service, including that it would be in service within a year as early as 2019. Tesla's robotaxis finally rolled out in June this year, albeit in a limited portion of Austin, Texas, to friends and fans of the company, and with an employee sitting beside the empty driver's seat. However, that limited rollout wasn't enough to stop Musk from making extraordinary claims on Wednesday that the service would be available to half the nation's population by year's end. To achieve that, Tesla will need to get regulatory permission to operate in two states per week through the rest of the year, including New York, which does not allow autonomous vehicles on its roads. Morningstar analyst Seth Goldstein said that while he does believe Tesla will eventually be successful in its robotaxi venture, 'the software will require further testing' and he does not expect a full robotaxi product until 2028. But Musk has a history of making grand promises that do not pan out. Like the Cybertruck – the only new vehicle Tesla has offered in the last six years. Musk said Tesla was supposed to be delivering 250,000 vehicles annually by this year. But full-year sales of the Cybertruck and Tesla's two other expensive models were less than 80,000. Sales of the three plunged 52% in the most recent quarter. Tesla also started the year forecasting it would achieve higher sales following its first annual sales drop in its history in 2024. But after two quarters of record sales declines, most investors now assume that it will not meet that goal either. And with Musk himself barely mentioning car sales during an hour-long conference call, it doesn't appear that is enough for shareholders any longer. 'We are mixed on Tesla's ability to meet its robotaxi timelines, cost targets, and scale,' wrote Ben Kallo, an analyst for Baird, in a note to clients late Wednesday. 'So far Tesla has received a pass due to how ambitious/revolutionary these products are, but we think continued sluggishness in the auto business could cause more focus on the near term.'
CNN
9 hours ago
- Automotive
- CNN
Tesla's stock is tumbling after Elon Musk failure to shift the narrative
Elon Musk's big promises apparently no longer seem to be enough for many Tesla investors. Shares of Tesla (TSLA) fell 9% on Thursday following another dismal earnings report, released after the bell Wednesday. Tesla's earnings and revenue both fell by double-digit percentages following the biggest sales drop in the company's history. The automaker also faces a number of financial headwinds, including the loss of a $7,500 tax credit for US EV buyers starting in October, and the vanishing market for regulatory credit sales, which has earned Tesla $11 billion since 2019. But Tesla CEO Elon Musk barely talked about that on the earnings call Wednesday, although he did acknowledge the company 'probably could have a few rough quarters.' Instead, he talked about his grand vision for the future, including Tesla's long-promised robotaxi service; and its humanoid robot, Optimus, which is still in development. The lack of details about the company's plans to solve problems in the near term disappointed some investors and analysts. 'Investors have been very forgiving of Tesla for several quarters now, despite obvious headwinds to their business,' Garrett Nelson, analyst at CFRA Research, told CNN Thursday. 'But I think its investors are taking a more realistic view of the story at this point. Some of his brilliance has been his ability to keep investors focused on the long term and ignoring the near term and intermediate term. Now, headwinds are difficult to ignore.' Nelson downgraded the company's stock to a neutral rating in April. But even some of the Tesla bulls on Wall Street are saying that the time for Musk to take action is running out. 'The street is losing some patience,' Wedbush Securities tech analyst Dan Ives told CNN Thursday, although he said he still believes in the autonomous vehicle and artificial intelligence vision laid out by Musk and Tesla. Musk has made big promises about his robotaxi service, including that it would be in service within a year as early as 2019. Tesla's robotaxis finally rolled out in June this year, albeit in a limited portion of Austin, Texas, to friends and fans of the company, and with an employee sitting beside the empty driver's seat. However, that limited rollout wasn't enough to stop Musk from making extraordinary claims on Wednesday that the service would be available to half the nation's population by year's end. To achieve that, Tesla will need to get regulatory permission to operate in two states per week through the rest of the year, including New York, which does not allow autonomous vehicles on its roads. Morningstar analyst Seth Goldstein said that while he does believe Tesla will eventually be successful in its robotaxi venture, 'the software will require further testing' and he does not expect a full robotaxi product until 2028. But Musk has a history of making grand promises that do not pan out. Like the Cybertruck – the only new vehicle Tesla has offered in the last six years. Musk said Tesla was supposed to be delivering 250,000 vehicles annually by this year. But full-year sales of the Cybertruck and Tesla's two other expensive models were less than 80,000. Sales of the three plunged 52% in the most recent quarter. Tesla also started the year forecasting it would achieve higher sales following its first annual sales drop in its history in 2024. But after two quarters of record sales declines, most investors now assume that it will not meet that goal either. And with Musk himself barely mentioning car sales during an hour-long conference call, it doesn't appear that is enough for shareholders any longer. 'We are mixed on Tesla's ability to meet its robotaxi timelines, cost targets, and scale,' wrote Ben Kallo, an analyst for Baird, in a note to clients late Wednesday. 'So far Tesla has received a pass due to how ambitious/revolutionary these products are, but we think continued sluggishness in the auto business could cause more focus on the near term.'
Globe and Mail
9 hours ago
- Business
- Globe and Mail
T-Mobile's Q2 Earnings Beat Estimates on Solid Revenues, Guidance Up
T-Mobile, US, Inc. TMUS reported impressive second-quarter 2025 results, with both top and bottom lines beating the respective Zacks Consensus Estimate. This Bellevue, WA-based wireless service provider reported a top-line expansion backed by industry-leading postpaid customer growth. T-Mobile follows a multi-layer approach to 5G, with dedicated standalone 5G deployed nationwide across 600 MHz, 1.9 GHz and 2.5 GHz bands. TMUS' Net Income Net income in the second quarter was $3.22 billion or $2.84 per share, up from $2.92 billion or $2.49 in the year-ago quarter. The 10.2% year-over-year growth was primarily driven by the top-line expansion. The bottom line exceeded the Zacks Consensus Estimate of $2.69. TMUS' Revenues Net sales were $21.13 billion, up from $19.77 billion in the year-ago quarter, driven by solid growth in service revenues. The top line beat the consensus estimate of $20.97 billion. TMUS' Segment Results in Q2 Total Service revenues were $17.43 billion, up from $16.42 billion in the year-ago quarter. The segment's net sales beat our revenue estimate of $17.08 billion. The 6.1% year-over-year growth was primarily driven by solid demand for postpaid services. Net sales from Postpaid Services contributed $14.07 billion in revenues, up 9.1% year over year. During the quarter, T-Mobile added 1.7 million postpaid net customers and 318,000 postpaid net accounts. Postpaid phone net customer additions were 830,000. The postpaid phone churn rate was 0.9%. 5G broadband net customer additions were 454,000. Postpaid average revenues per account rose to $149.87 from $142.54 in the year-ago quarter. Net sales from Prepaid services were $2.64 billion, up from $2.59 billion in the year-earlier quarter. Prepaid net customer addition was 39,000, with a churn rate of 2.65%. Wholesale and other service revenues decreased to $717 million from $938 million in the year-earlier quarter. Prepaid average revenues per user declined to $34.63 from $35.94 in the year-ago quarter. Equipment revenues were $3.43 billion, up from $3.1 billion in the year-ago quarter. Moreover, the segment's revenues surpassed our estimate of $3.36 billion. This improvement was primarily attributed to a higher average revenue per device sold, owing to an increase in the high-end phone mix. Other revenues were $255 million, up from the prior-year quarter's of $237 million. Other Details for TMUS Total operating expenses increased to $15.91 billion from $15.14 billion in the year-ago quarter. Operating income rose to $5.2 billion from $4.6 billion. T-Mobile recorded core adjusted EBITDA of $8.54 billion compared with $8.02 billion a year ago, backed by solid growth in service revenues. TMUS' Cash Flow & Liquidity In the March quarter, T-Mobile generated $6.99 billion of cash from operating activities compared with $5.52 billion in the prior-year quarter. Adjusted free cash flow was $4.6 billion, up from $4.4 billion in the year-earlier quarter. As of June 30, 2025, the company had $10.25 billion in cash and cash equivalents, with $75.01 billion of long-term debt. During the quarter, it repurchased 10.1 million shares for $2.5 billion. TMUS' Outlook Backed by solid customer addition, the company has upgraded its guidance for 2025. It now expects postpaid net customer additions to be between 6.1 million and 6.4 million, up from 5.5-6 million estimated earlier. Core adjusted EBITDA is estimated to be $33.3-$33.7 billion. It anticipates cash from operating activities in the range of $27.1-$27.5 billion. TMUS expects adjusted free cash flow in the band of $17.6-$18 billion. Capital expenditure is anticipated to be around $9.5 billion. TMUS' Zacks Rank & Stocks to Consider T-Mobile currently carries a Zacks Rank #3 (Hold). Here are some better-ranked stocks that investors may consider. Ubiquiti Inc. UI has a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. In the last reported quarter, it delivered an earnings surprise of 61.29%. Ubiquiti spends significantly on research and development activities for developing innovative products and state-of-the-art technology to expand its addressable market and remain at the cutting edge of networking technology. The company believes its new product pipeline will help to increase average selling prices for high-performance, best-value products, thus raising the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment. Jabil, Inc. JBL currently sports a Zacks Rank #1. In the last reported quarter, it delivered an earnings surprise of 9.44%. Jabil's focus on end-market and product diversification is a key catalyst. The company's target of 'no product or product family should be greater than 5% operating income or cash flows in any fiscal year' is commendable. This initiative should position Jabil well on the growth trajectory. HubSpot Inc. HUBS sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 2.3%. HubSpot delivered an earnings surprise of 10.65%, on average, in the trailing four quarters. It is benefiting from growing user engagement across all segments. Pricing optimization and the transition to a seat pricing model are expected to drive customer growth. HubSpot is benefiting from growing user engagement across all segments. Pricing optimization and the transition to a seat pricing model are expected to drive customer growth. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Jabil, Inc. (JBL): Free Stock Analysis Report T-Mobile US, Inc. (TMUS): Free Stock Analysis Report HubSpot, Inc. (HUBS): Free Stock Analysis Report Ubiquiti Inc. (UI): Free Stock Analysis Report
Globe and Mail
9 hours ago
- Business
- Globe and Mail
Honeywell's Q2 Earnings & Revenues Beat Estimates, 25' View Up
Honeywell International Inc. HON reported second-quarter 2025 adjusted earnings of $2.75 per share, which surpassed the Zacks Consensus Estimate of $2.64. The bottom line increased 10% year over year on an adjusted basis. On a reported basis, the company's earnings were $2.45 per share, up 4% year over year. Total revenues of $10.35 billion beat the consensus estimate of $10.02 billion. The top line increased 8% from the year-ago quarter, driven by strength in the Aerospace Technologies segment. Organic sales increased 5% year over year. Honeywell Q2 Performance by Business Segment Beginning in the second quarter of 2024, the company started operating under the segments discussed below. Aerospace Technologies' quarterly revenues were $4.31 billion, up 11% year over year. Organic sales increased 6% year over year. Strength in both commercial aftermarket and defense and space markets, driven by increased flight activity, augmented the top line. Our estimate for the segment's revenues was $4.28 billion. Industrial Automation revenues declined 5% year over year to $2.38 billion. Organic sales were flat year over year. The sales decline was attributable to softness in the warehouse and workflow solutions business, which was partially offset by growth in the sensing and safety technologies business. Our estimate for segmental revenues was pegged at $2.36 billion. Building Automation revenues totaled $1.83 billion, up 16% year over year. Organic sales increased 8% year over year. The upside was driven by ongoing strength in both the building solutions and building products businesses. Our estimate for the segment's revenues was $1.71 billion. Energy and Sustainability Solutions' revenues increased 15% to $1.84 billion. Organic sales rose 6% year over year. The results were driven by strength across UOP, specialty chemicals and materials businesses. However, weakness in the fluorine products business offset the gains. Our estimate for the segment's revenues was $1.63 billion. Costs & Margins of HON The company's total cost of sales (cost of products and services) was about $6.33 billion, up 8.1% year over year. Selling, general and administrative expenses were $1.43 billion, up 4.9%. Interest expenses and other financial charges were $330 million, reflecting an increase of 32% year over year. Operating income was $2.11 billion, up 7% year over year. The operating income margin was 20.4% compared with 20.7% in the year-ago period. HON's Balance Sheet & Cash Flow Exiting second-quarter 2025, Honeywell had cash and cash equivalents of $10.3 billion compared with $10.6 billion at the end of December 2024. Long-term debt was $30.2 billion, higher than $25.5 billion at 2024-end. In the second quarter, it generated net cash of $1.3 billion from operating activities compared with $1.4 billion in the prior-year quarter. Capital expenditure totaled $303 million compared with $259 million in the previous year quarter. Free cash flow in the quarter was $1 billion, down 8.6% from the year-ago quarter's level. Honeywell's 2025 Guidance For 2025, Honeywell expects sales to be in the range of $40.8-$41.3 billion, higher than $39.6-$40.5 billion projected previously. Organic sales are now expected to increase in the range of 4-5% compared with its earlier projection of 2-5%. HON expects a segment margin of 23.0-23.2% compared with 22.6% in 2024. Adjusted earnings per share (EPS) are expected to be between $10.45 and $10.65, higher than $10.20-$10.50 guided earlier. The metric indicates an increase of 6-8% on a year-over-year basis. It continues to expect operating cash flow in the range of $6.7-$7.1 billion. Free cash flow is still expected to be in the band of $5.4-$5.8 billion. HON's Zacks Rank & Key Picks The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Some better-ranked stocks from the same space are discussed below: Huntington Ingalls Industries HII presently sports a Zacks Rank of 1. HII's earnings surpassed the consensus estimate twice and missed in the other two occasions in the trailing four quarters. The average earnings surprise was 4.2%. In the past 60 days, the Zacks Consensus Estimate for Huntington Ingalls' 2025 earnings has increased 0.8%. Howmet Aerospace HWM currently carries a Zacks Rank #2 (Buy). HWM has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 8.8%. In the past 60 days, the Zacks Consensus Estimate for Howmet Aerospace's 2025 earnings has increased 0.9%. ITT Inc. ITT currently carries a Zacks Rank of 2. ITT has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 1.7%. In the past 60 days, the Zacks Consensus Estimate for ITT's 2025 earnings has increased 0.9%. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> 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 Honeywell International Inc. (HON): Free Stock Analysis Report ITT Inc. (ITT): Free Stock Analysis Report Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis Report Howmet Aerospace Inc. (HWM): Free Stock Analysis Report
