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Globe and Mail
3 days ago
- Business
- Globe and Mail
Why HP Stock Sagged by 11% This Week
The combination of an earnings miss and disappointing guidance put the hurt on veteran tech stock HP (NYSE: HPQ) this week. Over the past five trading days the company's share price withered by 11%, according to data compiled by S&P Global Market Intelligence. Revenue and profitability went in opposite directions Just after market close on Wednesday, HP published figures from its fiscal second quarter of 2025, revealing that its net revenue was $13.2 billion. That was 3% higher than in the same period of fiscal 2024. The dynamic was markedly different on the bottom line, as non-GAAP (adjusted) net income sank to $678 million ($0.71 per share) from the year-ago profit of $812 million. Analysts weren't expecting such a steep drop in profitability; on average, they were modeling adjusted net income of $0.79 per share. On the plus side, the company beat the pundit consensus of under $13.1 billion for net revenue. In the earnings release, HP quoted CEO Enrique Lores as saying that during the quarter, the company had "delivered solid revenue growth, led by strong commercial performance in personal systems and continued momentum behind our future-of-work strategy." Earnings guidance trimmed HP is bracing for impact on tariffs, which affect its operations because many of its components are sourced abroad. It lowered its guidance for the entirety of the fiscal year, setting the forecast for adjusted per-share earnings at $3.00 to $3.30. That's down considerably from its previous estimate of $3.45 to $3.75. Free cash flow should come in at $2.6 billion to $3 billion, meanwhile. The PC market hasn't been lively for years, and given the enduring popularity of mobile devices, I don't expect this to change. That market will also be affected by the tariff war if it drags on. None of this makes me confident about HP stock. Should you invest $1,000 in HP right now? Before you buy stock in HP, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and HP 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 $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to171%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 May 19, 2025
Globe and Mail
3 days ago
- Business
- Globe and Mail
Why Canopy Growth Stock Crashed on Friday
Canopy Growth (NASDAQ: CGC) stock collapsed in morning trading Friday, down 20.5% through 11 a.m. ET after the company reported a comically bad earnings miss. Heading into today's report, analysts forecast the Canadian cannabis company would lose $0.20 per share in its fourth quarter of fiscal 2025. Instead, Canopy Growth reported a loss of (better sit down for this) $1.32 per share. Canopy Growth's gigantic Q4 miss Investors were not amused. Canopy management tried to put a brave face on the results, leading off its report by noting Canadian sales, at least, grew 4% year over year, and Canadian medical cannabis sales in particular grew 13%. CEO Luc Mongeau noted further that he has taken "decisive actions to accelerate growth and profitability by unifying our medical cannabis businesses globally" (even though he highlighted cannabis sales in Canada separately). He also argued Canopy has made "marked year-over-year improvement in Adjusted EBITDA and cash flow in FY2025," and remains "committed to achieving positive Adjusted EBITDA in the near-term and positive Free Cash Flow over time." But Canopy is not there yet. Is Canopy Growth stock a sell? Globally, Canopy's sales fell 11% in Q4, and free cash flow was negative $36.2 million. For the full year, sales were down 9% and FCF was negative $176.6 million. Viewed in the most favorable light, therefore, one could argue that at least cash burn is decelerating at Canopy (four quarters of $36.2 million cash burn would imply a FCF run rate of only negative $144.8 million). But sales growth is still negative, and it got even more negative in the year's final quarter. Sorry, folks. I just can't find a reason to want to own Canopy Growth stock until this trend improves. Should you invest $1,000 in Canopy Growth right now? Before you buy stock in Canopy Growth, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Canopy Growth 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 $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to171%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 May 19, 2025
Yahoo
21-05-2025
- Business
- Yahoo
New Fortress Energy (NFE) Plunged by Over 50% This Week. Here is Why.
The share price of New Fortress Energy Inc. (NASDAQ:NFE) fell by 56.6% between May 13 and May 20, 2025, putting it among the . Let's shed some light on the development. A cutaway view of a modern energy infrastructure and its power generation facilities. New Fortress Energy Inc. (NASDAQ:NFE) owns and operates natural gas and LNG infrastructure and an integrated fleet of ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. New Fortress Energy Inc. (NASDAQ:NFE) plunged to a multi-year low this week after a wide earnings miss, struggling with weak performance across all its segments. The company's loss of $0.73 per share was significantly worse than the loss of $0.05 per share that analysts had expected, while its revenue also declined by 31.84% YoY to $470.54 million and missed estimates by almost $144 million. New Fortress has been unable to buy LNG at attractive rates to fuel its power-generating operations in Latin America, hurting profits badly and forcing the company to sell off assets to try to remain afloat. The energy firm revealed that it had long-term debt worth $8.9 billion at the end of the first quarter. Moreover, in another setback for New Fortress Energy Inc. (NASDAQ:NFE), it was revealed this week that the company has been disqualified from an auction held by the Puerto Rican government to secure temporary power generation. While we acknowledge the potential of NFE to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NFE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks to Buy According to Hedge Funds Disclosure: None.
Yahoo
11-05-2025
- Business
- Yahoo
Warner Music Group Corp. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Warner Music Group Corp. (NASDAQ:WMG) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. Results showed a clear earnings miss, with US$1.5b revenue coming in 2.2% lower than what the analystsexpected. Statutory earnings per share (EPS) of US$0.07 missed the mark badly, arriving some 74% below what was expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year. Our free stock report includes 3 warning signs investors should be aware of before investing in Warner Music Group. Read for free now. Following last week's earnings report, Warner Music Group's 17 analysts are forecasting 2025 revenues to be US$6.40b, approximately in line with the last 12 months. Per-share earnings are expected to surge 31% to US$1.12. Before this earnings report, the analysts had been forecasting revenues of US$6.49b and earnings per share (EPS) of US$1.33 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates. Check out our latest analysis for Warner Music Group It might be a surprise to learn that the consensus price target was broadly unchanged at US$33.73, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Warner Music Group, with the most bullish analyst valuing it at US$38.00 and the most bearish at US$28.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Warner Music Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 7.8% 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 9.7% 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 Warner Music Group. The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Warner Music Group. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Warner Music Group's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. With that in mind, we wouldn't be too quick to come to a conclusion on Warner Music Group. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Warner Music Group going out to 2027, and you can see them free on our platform here.. We don't want to rain on the parade too much, but we did also find 3 warning signs for Warner Music Group that you need to be mindful of. 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. 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
