Latest news with #earnings report
Yahoo
3 days ago
- Business
- Yahoo
Earnings Miss: PVA TePla AG Missed EPS By 33% And Analysts Are Revising Their Forecasts
Explore PVA TePla's Fair Values from the Community and select yours It's shaping up to be a tough period for PVA TePla AG (ETR:TPE), which a week ago released some disappointing second-quarter results that could have a notable impact on how the market views the stock. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at €61m, statutory earnings missed forecasts by an incredible 33%, coming in at just €0.13 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. After the latest results, the eleven analysts covering PVA TePla are now predicting revenues of €260.3m in 2025. If met, this would reflect a reasonable 2.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to nosedive 21% to €0.81 in the same period. Before this earnings report, the analysts had been forecasting revenues of €262.9m and earnings per share (EPS) of €0.83 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year. Check out our latest analysis for PVA TePla Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 5.8% to €23.01, suggesting the revised estimates are not indicative of a weaker long-term future for the business. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values PVA TePla at €29.00 per share, while the most bearish prices it at €15.50. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await PVA TePla shareholders. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that PVA TePla's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.7% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.8% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than PVA TePla. The Bottom Line The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that PVA TePla's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple PVA TePla analysts - going out to 2027, and you can see them free on our platform here. It might also be worth considering whether PVA TePla's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
3 days ago
- Automotive
- Yahoo
Lithia Motors, Inc. (LAD): I Actually Bought A Car At Lithia, Says Jim Cramer
We recently published . Lithia Motors, Inc. (NYSE:LAD) is one of the stocks Jim Cramer recently discussed. Lithia Motors, Inc. (NYSE:LAD) is a car retailer that rang the opening bell on the day this program was aired. The firm's shares have lost 9.7% year-to-date. However, the shares have gained 8.7% since the firm's investor presentation and earnings report at July end. The results saw Lithia Motors, Inc. (NYSE:LAD)'s earnings per share of $9.24 beat analyst estimates of $10.24 but miss revenue estimates of $9.69 billion by posting $9.58 billion. As the firm rang the opening bell, Cramer recalled that he had bought a car with Lithia Motors, Inc. (NYSE:LAD): 'By the way I actually bought a car at Lithia, so I'm like a, Lithia's a metaphor, it's a town. . .that's where Brian Deboer's from, he lived very close to my daughter. But my daughter did not live in the same style of Brian Doboer, the CEO of Lithia. . .she lived in a tent, she lived outside. Copyright: sonyae / 123RF Stock Photo River Road Small-Mid Cap Value Fund discussed Lithia Motors, Inc. (NYSE:LAD) in its Q4 2024 investor letter. Here is what the firm said: 'Another top contributor during the quarter was Lithia Motors, Inc. (NYSE:LAD) one of the largest global automotive retailers operating in North America and the United Kingdom. In late June, the auto industry was impacted by a cyberattack on CDK Global's dealership management system, which runs all back-office functions at Lithia as well as over 85% of all franchised dealers in the United States. In its Q2 2024 earnings release, LAD reported a -6.4% decline in same-store sales, driven primarily by a -4.7% decline in new vehicle units as LAD was not able to process sale transactions late in the quarter due to the CDK outage. Despite lower same-store sales, LAD outperformed expectations as its cost reduction initiatives and a shift in capital allocation resulted in sequential margin improvement and a lower share count. The company achieved its $150MM in annualized cost savings target ahead of schedule and now expects to double these savings by the end of 2024 through further inventory optimization and reductions. This will result in the all-important SG&A as a percentage gross profit declining to the mid-60s range and in line with LAD's long-term target. Acquisitions have added $27B in annualized revenues since 2020, ahead of LAD's goal of adding $25B in acquired revenues by 2025. Given the current high private market multiples for auto dealerships, LAD's management has shifted its capital allocation toward share repurchases, buying back 2.9% of the company in Q2. With low net leverage of 2.3x and year-to-date free cash flow of $740MM, we expect management to continue repurchasing shares aggressively. During the quarter, we added to the position prior to its Q2 results.' While we acknowledge the potential of LAD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
4 days ago
- Business
- Yahoo
1 Troubling Number Super Micro Computer Investors Can't Afford to Ignore
Key Points Super Micro's narrowing gross profit margin has been negating the company's sales growth. Low margins can be a sign of underlying problems. The stock has fallen since its latest earnings report and appears modestly valued, based on its expected future earnings. 10 stocks we like better than Super Micro Computer › Shares of Super Micro Computer (NASDAQ: SMCI) plunged last week after the company reported its latest earnings numbers. The business, also known as Supermicro, has benefited from strong growth in tech by providing servers, storage systems, and other necessary infrastructure for companies that are investing in artificial intelligence (AI) and upgrading their computing capabilities. In recent years, Supermicro has seen its sales explode due to the soaring demand it has experienced for its servers and AI infrastructure. And in just five years, this once-small stock with a market cap of about $1 billion in 2020, has grown to be worth nearly $30 billion today. At its peak, its valuation was nearly $70 billion. The company has been struggling of late, but the big problem isn't a new one. And its lack of earnings growth stems from one number that investors simply can't afford to ignore: its gross profit. Gross profit declined last quarter On Aug. 5, Supermicro reported its fiscal fourth-quarter numbers for the period ended June 30, and sales rose by 8% to $5.8 billion. The company's slowing growth is a problem, but a bigger one is that its gross profit declined, from $546 million to $544 million. Gross profit is what a company has left from revenue after accounting for cost of sales. Although it wasn't a huge drop in gross profit this past quarter, this is not the type of trend you expect from a growth stock. A decline in gross profit is concerning because it can mean a company is relying heavily on discounted prices to move products, perhaps due to intense competition or limited demand. Either way, it's not a great situation to be in. And in Supermicro's case, its narrowing gross margin negated the revenue growth the company achieved in the latest quarter. If that trend continues, that means even if its sales take off, that may not necessarily lead to a big increase in the bottom line. Supermicro is forecasting more growth in the year ahead For the full fiscal year, net sales totaled $22 billion, up 47% year over year. For the current fiscal year, it is projecting net sales of $33 billion, implying a faster growth rate, at 50%. That appears to be optimistic, given the uncertainty in the markets these days due to tariffs and rapidly changing macroeconomic conditions. But even if that growth materializes, it may not necessarily result in positive earnings growth. Consider that while sales rose at a high rate in the past fiscal year, net income fell by 9%. It all comes back to those thin gross profit margins. If the company's margins were wider than the 11% it has been averaging, there would have been more in gross profit to help cover its rising operating expenses. And that's why until its margins improve, the business may face an uphill battle in growing its earnings. Investors should tread carefully with Supermicro Supermicro does have a lot of long-term potential due to AI, but the tech stock is by no means a slam-dunk buy, even though it appears cheap, trading at a forward price-to-earnings multiple of only 16 (based on analyst estimates). Unless you have a high risk tolerance, I think you may be better off taking a wait-and-see approach with Supermicro. Should you invest $1,000 in Super Micro Computer right now? Before you buy stock in Super Micro Computer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Super Micro Computer 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 $649,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,113,059!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 185% 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 13, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 1 Troubling Number Super Micro Computer Investors Can't Afford to Ignore was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Spirit Airlines warns it might not be able to survive the next year
warns it could be out of business within a year. In its latest earnings report, the discount carrier said its financials needed to improve dramatically or it needed to find additional financing. Otherwise, 'there is substantial doubt' it can survive. Spirit Airlines has warned it could be grounded permanently if its financial results don't improve and it's unable to raise cash. In its quarterly earnings report this week, the carrier, which emerged from bankruptcy just five months ago, said demand continues to be weak and market conditions are still problematic. As a result, it may find itself in default. 'Because of the uncertainty of successfully completing the initiatives to comply with the minimum liquidity covenants and of the outcome of discussions with Company stakeholders, management has concluded there is substantial doubt as to the Company's ability to continue as a going concern within 12 months from the date these financial statements are issued,' Spirit said in the report. Spirit was a leader in the low-cost carrier market, but has faced substantial headwinds in recent years. A failed takeover attempt by JetBlue last year led to the bankruptcy filing. Passenger tastes, meanwhile, have shifted, with less interest in discount airlines and a greater affinity for upmarket options, such as paying for extra legroom in coach. Less than three weeks ago, Spirit announced it would furlough 270 pilots on Nov. 1 and demote 140 from captain to first officer on Oct. 1. That was latest in a line of furloughs for Spirit. The airline furloughed 186 pilots in 2024 and about 330 in January of this year. Spirit emerged from Chapter 11 in March. Prior to that filing, made last October, Spirit had not posted an annual profit since before COVID. To attract higher-paying customers, the company has launched a business-class option and blocked off middle seats. This story was originally featured on Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Citi Reaffirms Ardagh Metal Packaging (AMBP) Buy After Q2 Earnings Beat
Ardagh Metal Packaging S.A. (NYSE:AMBP) is one of the best NYSE penny stocks to invest in now. On July 24, Citi reaffirmed its 'Buy' rating on Ardagh with a maintained price target of $5.00 per share. The reaffirmation followed Ardagh's Q2 2025 earnings report that exceeded expectations. Ardagh's EBITDA for the quarter came in at $210 million, beating analyst consensus estimates of $201 million and the company's own guidance of $195–$205 million. Likewise, revenue surpassed the $1.35 billion consensus estimate, reaching $1.46 billion. So did the quarter's EPS, which touched $0.08 against the estimated $0.07. Following the stellar performance, Ardagh revised its full-year 2025 EBITDA guidance upwards to between $705 and $725 million, from a previous range of $695-$720 million. The consensus estimate is $720 million. Before the earnings report, Citi had anticipated a 15% year-over-year increase in Ardagh's second-quarter EBITDA to approximately $204 million. The analysts had also anticipated that the company would raise its full-year EBITDA guidance to $705–$725 million due to 'strong demand in North America, ongoing volume growth in Europe, and modest upside from foreign exchange movements.' Ardagh Metal Packaging S.A. (NYSE:AMBP) is a Luxembourg-based manufacturer of metal beverage cans for global brands in beer, carbonated soft drinks, energy drinks, and other categories. It operates production facilities across Europe, the United States, and Brazil, where it supplies lightweight, recyclable aluminum packaging to major beverage companies. While we acknowledge the potential of AMBP 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 NEXT: 11 Best Low-Priced Stocks to Buy Right Now and 11 Best Canadian Gold Stocks to Buy According to Hedge Funds. Disclosure: None. This article is originally published at Insider Monkey. 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
