Market Signal Briefing

Company Announcement
No. 16/2025

Copenhagen, 11 November 2025

Interim report, 1 January – 30 September 2025

Scandinavian Tobacco Group A/S Reports Third Quarter 2025 Results and Narrows Expectation Ranges for Full-Year.
 

For the third quarter 2025, reported net sales were DKK 2.4 billion with organic net sales in line with last year. EBITDA before special items was DKK 519 million with an EBITDA margin of 22.0% compared with 23.4% last year. Free cash flow before acquisitions was DKK 173 million and the adjusted EPS were DKK 3.4. The results support the full-year expectations.

The reported net sales were negatively impacted by exchange rate developments. Organic growth was positive in the product categories Handmade Cigars and Next Generation Products, whereas Machine-Rolled Cigars & Smoking Tobacco delivered negative organic growth. The underlying business trends remain largely unchanged, though the decline rate in handmade cigars show early signs of stabilising.

The EBITDA margin before special items continued to recover in the third quarter compared with the first two quarters of the year leaving the margin for the first nine months of the year at 19.9% (22.0%). The decline in the margin compared with last year is driven by a combination of product and market mix and investments in stabilising our market shares in machine-rolled cigars in key European markets. Free cash flow before acquisitions for the first nine months improved to DKK 448 million primarily driven by changes in working capital and lower investments offsetting the decrease in EBITDA.

Third Quarter 2025

Reported net sales decreased by 3.0% to DKK 2.4 billion (DKK 2.4 billion)Organic net sales growth was slightly up by 0.3% (-0.1%)EBITDA margin before special items was 22.0% (23.4%)Adjusted EPS were DKK 3.4 (DKK 4.1)Free cash flow before acquisitions was DKK 173 million (DKK 275 million). Return on Invested Capital (ROIC) was 8.3% (9.8%). First nine months 2025

Reported net sales decreased by 0.8% to DKK 6.7 billion (DKK 6.7 billion)Organic net sales growth was negative by 4.0% (0.9%)EBITDA margin before special items was 19.9% (22.0%)Adjusted EPS were DKK 8.2 (DKK 9.9)Free cash flow before acquisitions was DKK 448 million (DKK 327 million) CEO Niels Frederiksen commented: “In the third quarter we saw early signs of stable sales but continued margin compression, driven by market and product mix as well as a more intense promotion environment. I am pleased that we have grown both the handmade and the nicotine pouch business in the quarter, but our market share performance in machine-rolled cigars has been negatively impacted by instability created by the roll out of our global SAP solution. On 20 November we will launch our next 5-year strategy and I look forward to sharing details on the Group’s ambitions and how we intend to create meaningful value for our stakeholders for the years ahead”.   

Financial expectations for full year 2025

The financial expectations for full year 2025 have been narrowed to reflect increased full-year visibility with less than two months to go and to reflect the USD development. The biggest uncertainties to the expectations are US consumer sentiment, down trading and retailer decisions on inventory levels across our product categories as well as the development of the USD, which can impact reported net sales.

Guidance and assumptions are based on no impact from potential new acquisitions and at exchange rates as of the reporting date.  A 10% change in the USD/DKK exchange rate would impact group net sales by approximately 5 percentage points with EBITDA margins being only marginally impacted.

For further information, please contact:
Torben Sand, Director of IR & Communication, phone +45 5084 7222, [email protected].
Eliza Dabbagh, IR & Communications, phone +45 5080 7619, [email protected].

A conference call will be held on 12 November 2025 at 10.00 CEST. Dial-in information and an accompanying presentation will be available at investor.st-group.com/investor around 09:00 CEST.

Launch of Five-Year Strategy and Capital Markets Day - 20 November 2025
The five-year strategy Rolling Towards 2025 is coming to an end and as communicated, Scandinavian Tobacco Group will launch its updated five-year strategy on 20 November 2025, CET 14.00-16.30. The Group management will host a livestreamed virtual Capital Market Event. Link for more detail and registration:

https://www.st-group.com/investor/capital-markets-day-2025/

Interim report Q3 2025

NEW YORK, Nov. 11, 2025 (GLOBE NEWSWIRE) -- ONNIT, the Unilever-owned health and wellness brand best known for its flagship nootropic Alpha Brain®, has migrated its five-figure subscriber base to Ordergroove and Shopify with a 99.6% success rate and no downtime.

ONNIT now operates on a best-in-class tech stack that gives the brand the scale and flexibility to go beyond “subscribe and save” and unlock new avenues for profitable recurring revenue. The integration of Ordergroove and Shopify creates a unified foundation that combines world-class commerce with enterprise-grade subscriptions, improving performance, simplifying operations, and delivering more engaging customer experiences.

Building on its new tech foundation, ONNIT rolled out a refreshed brand experience with conversion-focused UX and made subscriptions the centerpiece of its growth strategy. It also frees up valuable resources that used to be focused on maintaining their homegrown subscription system, lowering total cost of ownership and increasing speed to market.

ONNIT joins an impressive roster of Unilever brands powered by Ordergroove, including OLLY, Tatcha, Kate Somerville, Living Proof, and Blueair.

Prior to this shift, ONNIT’s homegrown system supported its early subscription success, but the brand needed a more scalable solution to deliver the loyalty-driven experiences it envisioned. Today, Ordergroove and Shopify enable ONNIT to focus on data-driven strategies such as prepaid models and A/B-tested promotions that boost lifetime value, while freeing internal resources to deliver more personalized and customizable subscriber experiences.

“Our customers are at the heart of everything we do, and moving to Ordergroove and Shopify gives us the ability to uplevel their experience and ensure they always have the ONNIT products they rely on, exactly when they need them,” said Danae Young-Lagoeiro, Director of Retention. “Our new tech stack allows us to offer more flexibility, introduce new innovations, and build the kind of long-term relationships that fuel loyalty and growth.”

Ordergroove gives ONNIT the tools to grow faster, reduce churn, and scale efficiently, including:

Prepaid subscriptions: Drive predictable revenue and long-term commitment, while giving subscribers the flexibility to choose how they payFlexible promotions and A/B testing: Optimize enrollment and retention with data-driven insights that translate into profitable and sustainable growthSeamless Shopify integration: Combine the global leader in commerce with enterprise-grade subscriptions to simplify operations, accelerate launches, and deliver best-in-class subscriber experiencesScalable architecture: Confidently support subscriber growth and new product launches without straining internal resources, ensuring stability as the business expands "ONNIT's migration showcases exactly what happens when forward-thinking brands combine Shopify's commerce infrastructure with best-in-class subscription technology—they unlock growth that was previously impossible with legacy systems,” said Josh Rice, VP of Sales at Shopify. “This partnership exemplifies how enterprise brands are choosing integrated, scalable solutions over custom builds to drive profitable recurring revenue and deliver the personalized experiences today's subscribers demand."

“ONNIT is a proven leader in health and wellness, and innovating their subscription strategy underscores their commitment to putting customer experience at the center of growth,” said Greg Alvo, CEO and Founder of Ordergroove. “This migration signals how leaders in every category are elevating subscriptions from a convenience feature to a strategic growth driver.”

ONNIT’s migration highlights a broader shift in commerce, where enterprise brands are transitioning away from custom-built systems and toward integrated, industry-leading platforms that can scale efficiently and drive profitable growth.

ABOUT ORDERGROOVE
Ordergroove enables subscription and membership experiences for the world’s largest and most innovative brands and retailers, including L’Oréal, Dollar Shave Club, La Colombe Coffee, Bonafide Health, PetSmart, and The Honest Company. As a market leader in subscription and membership technology, the company’s proprietary Relationship Commerce platform is shifting consumer interactions from one-and-done transactions to frictionless and highly profitable recurring relationships. Ordergroove technology uses artificial intelligence, analytics, and unmatched consumer expertise to empower top brands to transform their commerce experiences while making their consumers’ lives easier. To learn more, visit www.ordergroove.com.

ABOUT ONNIT
ONNIT is a cutting-edge supplement brand dedicated to Total Human Optimization: enhancing physical, mental, and recovery performance through science-backed innovation. Founded in Austin, Texas, ONNIT empowers people to perform at their best with products like Alpha BRAIN®, a leading nootropic for focus and cognitive support, and Total Human®, a complete daily system for simplified, effective wellness. Greatness isn’t given; it’s forged. At ONNIT, every product is built to help you unlock your full potential. Begin your Total Human Optimization journey at ONNIT.com.

ABOUT SHOPIFY
Shopify is a leading global commerce company that provides essential internet infrastructure for commerce, offering trusted tools to start, scale, market, and run a retail business of any size. Shopify makes commerce better for everyone with a platform and services that are engineered for speed, customization, reliability, and security, while delivering a better shopping experience for consumers online, in store, and everywhere in between. Shopify powers millions of businesses in more than 175 countries and is trusted by brands such as Aldo, BarkBox, BevMo, Carrier, David’s Bridal, JB Hi-Fi, Mejuri, Meta, SKIMS, Supreme, and many more.

BigBear.ai Holdings, Inc. (BBAI) Q3 2025 Earnings Call November 10, 2025 4:30 PM EST

Company Participants

Sean Ricker - CFO & Principal Accounting Officer
Kevin McAleenan - CEO & Director

Presentation

Operator

Greetings, and welcome to BigBear.ai Holdings, Inc. Third Quarter 2025 Earnings Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Chief Financial Officer, Sean Ricker.

Thank you, sir. Please go ahead.

Sean Ricker
CFO & Principal Accounting Officer

Good afternoon and thank you all for joining us today for our third quarter 2025 earnings call. I'm Sean Ricker, CFO of BigBear.ai and I'm joined today by our CEO, Kevin McAleenan. Statements made in today's call that are not historical facts are considered forward-looking statements and are made pursuant to the safe harbor provisions of the federal securities laws. Actual results may differ materially from those projected in the forward-looking statements. Please see today's press release and our SEC filings for a description of some of the factors that may cause actual results to differ materially from those in the forward-looking statements.

We have posted charts on our website today that we plan to address during the call to supplement our comments. These charts also include information regarding non-GAAP measures that may be used in today's call. Please access our website at www.bigbear.ai and click on the Investor Relations link to view and follow the charts.

With that, I'd like to turn the call over to Kevin.

Kevin McAleenan
CEO & Director

Good afternoon. It's good to be back speaking with our shareholders and analysts about our progress today. Three months ago, I told you BigBear was going on offense, taking advantage of our positioning in the market and our increased capital to grow organically and to strengthen our position

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SummaryCavco Industries delivered strong Q2 results with 9.6% YoY revenue growth, driven by factory-built housing and strategic production adjustments.CVCO's acquisition of American Homestar expands its presence in high-growth southern regions, boosting market share to 15% and retail locations to 100.Despite a premium 22x forward P/E, CVCO's robust EPS outlook, debt-free balance sheet, and active buyback program support further upside potential.Compared to peers, CVCO stands out with superior growth and profitability, benefiting from macroeconomic tailwinds and a diversified geographic footprint. timnewman/E+ via Getty Images

Introduction: A One-Stop Shop for Affordable Homes - Cavco’s Growth Story Strengthens Cavco Industries (CVCO) is the third-largest factory-built homes designer, manufacturer, and seller. Cavco is heavily focused on the South and Farwest, where the demand is high

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Kitco News

The Leading News Source in Precious Metals

Kitco NEWS has a diverse team of journalists reporting on the economy, stock markets, commodities, cryptocurrencies, mining and metals with accuracy and objectivity. Our goal is to help people make informed market decisions through in-depth reporting, daily market roundups, interviews with prominent industry figures, comprehensive coverage (often exclusive) of important industry events and analyses of market-affecting developments.

Steven Madden (SHOO - Free Report) reported $667.88 million in revenue for the quarter ended September 2025, representing a year-over-year increase of 6.9%. EPS of $0.43 for the same period compares to $0.91 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $698.91 million, representing a surprise of -4.44%. The company delivered an EPS surprise of -2.27%, with the consensus EPS estimate being $0.44.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Steven Madden performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Revenue- International: $255.88 million compared to the $182.76 million average estimate based on two analysts. The reported number represents a change of +110.8% year over year.Revenue- Domestic: $411.99 million versus the two-analyst average estimate of $515.62 million. The reported number represents a year-over-year change of -18.1%.Revenue- Direct-to-Consumer: $221.5 million versus the three-analyst average estimate of $173.97 million. The reported number represents a year-over-year change of +76.5%.Revenue- Total Wholesale: $442.7 million versus $476.94 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -10.7% change.Total Revenue- Net Sales: $664.2 million versus the three-analyst average estimate of $650.91 million. The reported number represents a year-over-year change of +6.3%.Total Revenue- Wholesale Accessories/Apparel: $176.15 million compared to the $189.17 million average estimate based on three analysts. The reported number represents a change of -10.3% year over year.Total Revenue- Licensing fee income: $3.68 million compared to the $3.72 million average estimate based on three analysts. The reported number represents a change of +4.9% year over year.Total Revenue- Wholesale Footwear: $266.54 million versus $287.43 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -11% change.Income from operations- Wholesale: $55.72 million compared to the $66.36 million average estimate based on two analysts.Income from operations- Direct-to-Consumer: $-4.44 million compared to the $-7.44 million average estimate based on two analysts.Income from operations- Wholesale Accessories/Apparel: $15.6 million compared to the $21.07 million average estimate based on two analysts.Income from operations- Wholesale Footwear: $40.11 million compared to the $45.29 million average estimate based on two analysts.View all Key Company Metrics for Steven Madden here>>>

Shares of Steven Madden have returned +9.9% over the past month versus the Zacks S&P 500 composite's +4.4% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.

From a technical perspective, Axcelis Technologies (ACLS - Free Report) is looking like an interesting pick, as it just reached a key level of support. ACLS recently overtook the 50-day moving average, and this suggests a short-term bullish trend.

The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it's the first marker of an up or down trend.

ACLS could be on the verge of another rally after moving 7.4% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.

The bullish case solidifies once investors consider ACLS's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 4 higher, while the consensus estimate has increased too.

Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on ACLS for more gains in the near future.

Cantaloupe (CTLP - Free Report) reported $80.85 million in revenue for the quarter ended September 2025, representing a year-over-year increase of 14.1%. EPS of $0.06 for the same period compares to $0.04 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $81.64 million, representing a surprise of -0.96%. The company delivered an EPS surprise of -25%, with the consensus EPS estimate being $0.08.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Cantaloupe performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Revenues- Subscription and transaction fees- Transaction fees: $48.06 million versus $50.79 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +10.2% change.Revenues- Equipment sales: $10.53 million versus $7.99 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +49.5% change.Revenues- Subscription and transaction fees: $70.33 million versus the two-analyst average estimate of $73.45 million. The reported number represents a year-over-year change of +10.2%.Revenues- Subscription and transaction fees- Subscription fees: $22.27 million versus $22.82 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +10.3% change.View all Key Company Metrics for Cantaloupe here>>>

Shares of Cantaloupe have returned -0.3% over the past month versus the Zacks S&P 500 composite's +4.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

Q2: 2025-11-10 Earnings SummaryEPS of -$0.28 beats by $0.03

 |

Revenue of

$1.57M

(-94.63% Y/Y)

misses by $4.73M

Roivant Sciences Ltd. (ROIV) Guggenheim Securities 2nd Annual Healthcare Innovation Conference November 11, 2025 8:00 AM EST

Company Participants

Richard Pulik - Chief Financial Officer

Conference Call Participants

Yatin Suneja - Guggenheim Securities, LLC, Research Division

Presentation

Yatin Suneja
Guggenheim Securities, LLC, Research Division

All right. Good morning, everyone. Welcome to Guggenheim Healthcare Innovation Conference. My name is Yatin Suneja, one of the biotech analysts here at Guggenheim. It is my pleasure to welcome Roivant Sciences here with me. From the company, we have the Chief Financial Officer, Richard Pulik. Richard, why don't you make some opening comments. You did the earnings call yesterday. There were some incremental updates. Why don't you just make some comments, and then we'll go into the Q&A.

Richard Pulik
Chief Financial Officer

Great. First of all, it's great to see everybody here, especially surprised to see people from the audience given some of the travel issues. So nice to see that there's actually some bodies here. Look, we've had incredible momentum since we read out the brepo dermatomyositis data and also the Graves' data. I think people are finally starting to see brepo as an asset that will be a large commercial asset that we plan to file next year and launch in '27. So I think there's been a lot of excitement around that from the KOL community, from patients. And I think the data speaks to itself that this is an incredibly devastating disease that impacts both skin and muscle, and we have data now with an oral solution that showed very strong efficacy across 10 endpoints that were statistically significant. It's probably in my 25-year career in health care, one of the cleanest trials I've seen.

And so I think that's brought a lot of excitement into the brepo story

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After reaching an important support level, Unity Software Inc. (U - Free Report) could be a good stock pick from a technical perspective. U surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.

The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.

Shares of U have been moving higher over the past four weeks, up 16.1%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that U could be poised for a continued surge.

Looking at U's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 1 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.

Investors may want to watch U for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

For the quarter ended September 2025, Interpublic Group (IPG - Free Report) reported revenue of $2.14 billion, down 4.8% over the same period last year. EPS came in at $0.73, compared to $0.70 in the year-ago quarter.

The reported revenue represents a surprise of -2.34% over the Zacks Consensus Estimate of $2.19 billion. With the consensus EPS estimate being $0.71, the EPS surprise was +2.82%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Interpublic performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Revenue before billable expenses- International: $736.3 million versus the three-analyst average estimate of $770.9 million. The reported number represents a year-over-year change of -5%.Revenue before billable expenses- Domestic (United States): $1.4 billion versus the three-analyst average estimate of $1.42 billion. The reported number represents a year-over-year change of -4.7%.Revenue before billable expenses- International- Latin America: $88 million versus the two-analyst average estimate of $106.1 million. The reported number represents a year-over-year change of -21.4%.Revenue before billable expenses- International- Other: $142.1 million versus $136.93 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +5.4% change.Revenue before billable expenses- International- Continental Europe: $180 million compared to the $185.68 million average estimate based on two analysts. The reported number represents a change of +1.4% year over year.Revenue before billable expenses- International- United Kingdom: $181.4 million versus the two-analyst average estimate of $187.13 million. The reported number represents a year-over-year change of -6.4%.Revenue before billable expenses- International- Asia Pacific: $144.8 million compared to the $150.95 million average estimate based on two analysts. The reported number represents a change of -7.7% year over year.View all Key Company Metrics for Interpublic here>>>

Shares of Interpublic have returned -4.3% over the past month versus the Zacks S&P 500 composite's +4.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Synopsys (SNPS - Free Report) .

Synopsys currently has an average brokerage recommendation (ABR) of 1.82, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 22 brokerage firms. An ABR of 1.82 approximates between Strong Buy and Buy.

Of the 22 recommendations that derive the current ABR, 15 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 68.2% and 4.6% of all recommendations.

Brokerage Recommendation Trends for SNPS

Check price target & stock forecast for Synopsys here>>>

While the ABR calls for buying Synopsys, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is SNPS Worth Investing In?Looking at the earnings estimate revisions for Synopsys, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $12.83.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Synopsys. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Synopsys.

Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.

The Zacks Premium service makes this easier. It features daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All of these can help you quickly identify what stocks to buy, what to sell, and what are today's hottest industries.

Also included in Zacks Premium is the Focus List. This is a long-term portfolio of top stocks that have all the traits to beat the market.

Breaking Down the Zacks Focus ListIf you could, wouldn't you jump at the chance for access to a curated list of stocks to kickstart your investing journey?

Enter the Zacks Focus List. It's a portfolio made up of 50 stocks that are set to beat the market over the next 12 months; each company selected serves as a foundation for long-term investors looking to create an individual portfolio.

What makes the Focus List even more helpful is that each selection is accompanied by a full Zacks Analyst Report, which explains the reasoning behind every stock's selection and why we believe it's a good pick for the long-term.

The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.

Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.

Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.

Earnings estimate revisions are very important, since investors also need to take into consideration what a company will earn in the future.

The stocks that receive positive changes to earnings estimates are more likely to receive even more upward changes in the future. Take this example: if an analyst raised their estimates last month, they'll probably do so again this month, and other analysts will follow.

Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank is a unique, proprietary stock-rating model that utilizes changes to a company's quarterly earnings expectations to help investors build a winning portfolio.

The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise. Each one is given a raw score, which is recalculated every night and compiled into the Rank. Then, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell," using this data.

The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.

Since stock prices respond to revisions, it can be very profitable to buy stocks with rising earnings estimates. By buying Focus List stocks, then, you're likely getting into companies whose future earnings estimates will be raised, potentially leading to price momentum.

Focus List Spotlight: Alphabet (GOOGL - Free Report) Alphabet is one of the most innovative companies in the modern technological age. Over the last few years, the company has evolved from primarily a search-engine provider to cloud computing, ad-based video and music streaming, autonomous vehicles, healthcare and others. In the online search arena, Google has a monopoly with roughly 90% of the online search volume and market. Over the years, the company has witnessed increase in search queries, resulting from ongoing growth in user adoption and usage, primarily on mobile devices, continued growth in advertiser activity, and improvements in ad formats.

Since being added to the Focus List on May 19, 2025 at $166.19 per share, shares of GOOGL have increased 74.56% to $290.1. The stock is currently a #3 (Hold) on the Zacks Rank.

For fiscal 2025, 16 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.47 to $10.46. GOOGL boasts an average earnings surprise of 18.7%.

Moreover, analysts are expecting GOOGL's earnings to grow 30.1% for the current fiscal year.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in COGT over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

After reaching an important support level, PagSeguro Digital Ltd. (PAGS - Free Report) could be a good stock pick from a technical perspective. PAGS surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.

The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.

Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

PAGS has rallied 7.1% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests PAGS could be on the verge of another move higher.

The bullish case only gets stronger once investors take into account PAGS's positive earnings estimate revisions. There have been 3 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on PAGS for more gains in the near future.

After reaching an important support level, Palantir Technologies Inc. (PLTR - Free Report) could be a good stock pick from a technical perspective. PLTR surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.

The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.

Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

PLTR has rallied 9.3% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests PLTR could be on the verge of another move higher.

The bullish case solidifies once investors consider PLTR's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 9 higher, while the consensus estimate has increased too.

Investors may want to watch PLTR for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

Nvidia (NVDA - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, NVDA broke through the 20-day moving average, which suggests a short-term bullish trend.

A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.

Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

Shares of NVDA have been moving higher over the past four weeks, up 5.7%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that NVDA could be poised for a continued surge.

Once investors consider NVDA's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 3 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

Investors may want to watch NVDA for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

The midstream energy space is generally less vulnerable to fluctuations in oil and natural gas prices. Despite this, the outlook for the Zacks Oil and Gas - Pipeline MLP industry is gloomy now. With the conservative spending of exploration and production companies, demand for transportation and storage assets is not going to be lucrative.

Despite these developments, players like Delek US Holdings, Inc. (DK - Free Report) , Energy Transfer LP (ET - Free Report) and Plains All American Pipeline LP (PAA - Free Report) are well-positioned to sail through the prevailing uncertainties.

About the Industry
The Zacks Oil and Gas - Pipeline MLP industry comprises master limited partnerships (or MLPs) that primarily transport oil, natural gas, refined petroleum products and natural gas liquids (NGL) to consumers in North America. Apart from transporting the commodities, the partnerships have huge capacities to store oil, natural gas and petrochemical products.  The partnerships thus provide midstream services to producers and consumers of the commodities. The firms generate stable fee-based revenues from all these transportation and storage assets. The services provided by the MLPs entail the gathering and processing of commodities. The integrated midstream energy players also generate cashflows from ownership interests in fractionators and condensate distillation facilities.

What's Shaping the Future of Oil & Gas - Production & Pipelines Industry?
High Debt Load: The industry is inherently capital-intensive, as evident in the debt-to-capitalization ratio of 55.7%, where borrowing is a common practice to finance large infrastructure projects. However, elevated leverage can constrain financial flexibility, hindering midstream energy companies' capacity to invest in new developments, navigate economic downturns, or address unforeseen costs.

Shift to Renewables: Energy majors will increasingly face challenges in providing sustainable energy to the world while reducing greenhouse gas emissions. Thus, to address the issues of climate change, there will be a gradual shift from fossil fuels to renewable energy. This will lower the demand for the partnerships’ pipeline and storage networks for oil and natural gas.

Explorers’ Conservative Capital Spending: Oil and gas exploration and production companies are facing heightened pressure from investors to focus on stockholders’ returns rather than production. This is hindering the production growth of commodities, thereby denting the demand for pipeline and storage assets.

Zacks Industry Rank Indicates Weak Prospects
The Zacks Oil and Gas - Pipeline MLP industry is a six-stock group within the broader Zacks Oil - Energy sector. The industry currently carries a Zacks Industry Rank #190, which places it in the bottom 22% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s position in the bottom 50% of the Zacks-ranked industries forms an unfavorable earnings outlook for the constituent stocks in aggregate. Before we present a few stocks that you may want to consider, let’s look at the industry’s recent stock market performance and its valuation picture.

Industry Underperforms Sector, S&P 500
The Zacks Oil and Gas - Pipeline MLP industry has underperformed the broader Zacks Oil - Energy sector and the Zacks S&P 500 Composite over the past year. The industry has declined 4.3% in the past year against the broader sector’s 7.6% gain and the S&P 500's 17.8% rise.

One-Year Price Performance

Industry's Current Valuation
Since midstream-focused oil and gas partnerships use fixed-rate debt for the majority of their borrowings, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt.

On the basis of the trailing 12-month enterprise value-to-EBITDA (EV/EBITDA), the industry is currently trading at 10.49X, lower than the S&P 500’s 18.55X. It is, however, significantly above the sector’s trailing 12-month EV/EBITDA of 5.26X.

Over the past five years, the industry has traded as high as 12.57X and as low as 8.02X, with a median of 10.37X.

Trailing 12-Month Enterprise Value-to EBITDA (EV/EBITDA) Ratio

3 Oil & Gas Pipeline MLPs to Gain
Delek US Holdings is well poised to gain from its refining business since oil prices will likely continue to be softer, backed by increasing global oil inventories, per data from the U.S. Energy Information Administration. The bottom line of DK, carrying a Zacks Rank #3 (Hold), is likely to see growth of almost 40% in 2025.

Price and Consensus: DK

Energy Transfer has a stable business model with its huge pipeline network of natural gas, oil and refined petroleum products across 125,000 miles. The partnership has midstream assets in all the key basins in the United States, generating stable fee-based revenues.

Energy Transfer, with a Zacks Rank of 3, has offered a higher dividend yield than the composite stocks belonging to the industry over the past three consecutive years. For this year, the partnership is likely to see earnings growth of 7%.

Price and Consensus: ET

Plains All American Pipeline also enjoys stable fee-based revenues, banking on its oil and natural gas pipeline network and storage assets. Over the past seven days, the #3 Ranked stock has witnessed upward earnings estimate revisions for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.

Price and Consensus: PAA

Gold Technical Analysis
The gold market has shown itself to be a little bit more bullish in the early hours here on Tuesday, although not as momentum driven as Monday. The question now is, can we continue to go higher? It does look like there is an area right around $4,150 that extends to the $4,200 level that I think will be defended. We’ll have to wait and see whether or not we can get above that area. I suspect, based on the price action so far during the day, it’s probably going to lead to a bit of a pullback.

The question at this point in time is whether we are forming the classic parabolic move to the upside, followed by a sell-off with distribution due to the massive amount of volume, a secondary attempt to break higher, and then failure. If we do, in fact, get that, it’s a good sign that maybe the bullish run for gold is over. On the other hand, once we get past the $4,200 level, then we start to talk about another leg higher.

SummaryMicrosoft Corporation delivered strong Q1 FY' 26 results, with revenue and EPS surpassing estimates, yet shares fell ~7% post-earnings.MSFT's cloud and AI infrastructure demand remains robust, driving significant capital investment and positioning the company for accelerated growth in coming quarters.The strategic OpenAI partnership and major government AI adoption initiatives provide long-term growth catalysts and reinforce Azure's competitive edge.Despite recent stock weakness, MSFT's fundamentals and valuation support a Strong Buy rating, presenting an attractive entry point for long-term investors. tupungato/iStock Editorial via Getty Images

Microsoft Corporation (NASDAQ:MSFT) released its Q1 FY'26 earnings on October 29, 2025, and the numbers looked pretty solid. Revenue came in at $77.67 billion, outpacing estimates by 3.03%. Meanwhile, diluted EPS was $4.13 for

Analyst’s Disclosure:I/we have a beneficial long position in the shares of MSFT, GOOGL, AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways Ondas Holdings will report Q3 2025 results on Nov. 13, with a projected loss of 5 cents per share.Revenues are estimated at $7.37 million, signaling a 398% year-over-year increase.Defense partnerships and OAS demand are expected to drive revenue and backlog expansion.
Ondas Holdings Inc. ((ONDS - Free Report) ) will release results for the third quarter of 2025 on Nov. 13.

ONDS’ earnings beat the Zacks Consensus Estimate in the last quarter while missing in the previous three quarters, with an average negative surprise of 17.95%.

Let us see how ONDS is expected to fare in terms of revenues and earnings this time.

The Zacks Consensus Estimate for the third-quarter 2025 bottom line stands at a loss of 5 cents, unchanged in the past 30 days. The Zacks Consensus Estimate for revenues is pegged at $7.37 million, indicating a 398% jump from the year-ago actual.

Image Source: Zacks Investment Research

Earnings Whispers for ONDSOur proven model does not predict an earnings beat for Ondas Holdings this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.

ONDS currently has a Zacks Rank #2 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Factors Shaping ONDS Q3 ResultsContinued momentum in the Ondas Autonomous Systems (“OAS”) business division is likely to have buoyed the top-line performance. In the second quarter of 2025, ONDS’ revenues jumped more than 500% year over year to $6.3 million, driven almost entirely by OAS, which contributed $6.1 million compared with just $0.3 million a year earlier. The OAS had a backlog of $22 million at the end of the second quarter.

Ondas Holdings is expanding its footprint with new defense and homeland security customers across Europe, the Middle East and the United States. ONDS has been witnessing growing traction for both its Optimus System and Iron Drone Radar system and expects the Mistral partnership to boost U.S. government adoption of these two platforms.

The company’s recent partnership and investment in Rift Dynamics represents a key step toward localization efforts and capability expansion across European defense markets. Rift’s Wasp platform (a modular, low-cost, mass producible drone platform) complements Ondas Holdings' Optimus and Iron Drone Raider, boosting OAS’ defense portfolio. ONDS expects this partnership to help it gain share in the growing $1 billion-plus market for one-way attributable drones highlighted in the One Big Beautiful Bill and in ongoing “Replicator-2” initiatives.

In October, ONDS expanded the Rift partnership to include Nammo Raufoss AS, which is a provider of advanced munitions. Nammo has a solid manufacturing presence in the United States. As part of the deal, both companies will team up on a fully integrated Wasp drone with munition payloads and this will be sold entirely by Ondas Holdings' American Robotics in the United States.

In September, ONDS launched Ondas Capital. This new business division is solely focused on boosting the deployment of unmanned/autonomous systems to Allied defense and security markets.

Looking ahead, Ondas Holdings expects revenues for the full year to be at least $25 million, with at least $20 million coming from the OAS business unit. Management anticipates second-half bookings to surpass the $23 million attained in the first half, resulting in continued backlog expansion into 2026.

Nonetheless, heavy dependence on the OAS division for revenue growth in the increasingly crowded drone space is a concern.

If a single large customer delays, reduces or cancels, revenues would decline materially. Management acknowledged that revenues will fluctuate from quarter to quarter for OAS as it expands its client base. Moreover, revenues will vary as these customers enter fleet programs and recurring service agreements.While OAS dominates near-term revenues, Ondas Networks continues to build long-term value as a foundational enabler for next-generation rail communications.

Update on Inorganic ExpansionThe focus on M&A is expected to broaden capabilities and strengthen portfolio offerings.

It recently announced plans to acquire Sentry CS Ltd. Israel-based Sentry CS develops Cyber-over-RF and Protocol-Manipulation counter-UAS technology. Before that, it acquired a controlling interest in Insight Intelligent Sensors and in 4M Defense Ltd. Insight Intelligent Sensors specializes in the development of AI-driven electro-optical sensing systems. At the same time, 4M Defense is a smart demining company. 4M defense’s platform boasts advanced demining capabilities, like robotic systems with terrestrial and subsurface AI-powered intelligence tech.

In August, it entered into a definitive agreement to acquire a controlling 51% interest in Israel-based S.P.O Smart Precision Optics. This company is a manufacturer of advanced precision optical components and systems. It also announced the acquisition of Apeiro Motion, which develops advanced ground robotics, fiber optic communications systems and mission-critical automation technologies.

ONDS Stock SurgesONDS’ shares have skyrocketed 618.2% over the past six months, outperforming the Communication-Network software industry’s decline of 10.2%. The S&P 500 composite and the Zacks Computer and Technology sector have risen 17.7% and 30.3%, respectively, in the same time frame.

Image Source: Zacks Investment Research

ONDS’ Price Performance vs. PeersAeroVironment ((AVAV - Free Report) ), Draganfly ((DPRO - Free Report) ) and Unusual Machines ((UMAC - Free Report) ) stocks are up 99.7%, 343.5% and 115.4%, respectively, over the same time frame.

Draganfly is a Canada-based drone solutions and systems developer. The company’s drones include Commander 3XL, Heavy Lift Drone, Commander 2 and Draganfly Medical Response Drone. Unusual Machines is well-positioned within the evolving drone industry through its focus on manufacturing and selling (through B2B sales and a curated retail channel) small drones and essential components. The FPV segment is UMAC’s core operational area within the drone industry.

AeroVironment is a well-known name in drone technology. The company has been developing uncrewed aircraft and ground robot systems, loitering munitions systems and related services for the U.S. Department of Defense (including Army, Marine Corps, Special Operations Command, Air Force and Navy), other federal agencies and international allied governments. The acquisition of BlueHalo (May 2025) has added space technologies, counter-UAS, electronic warfare and cyber solutions to the portfolio.

Key Valuation Metric for ONDSONDS stock is trading at a substantial premium, with a forward 12-month price/sales of 29.85X compared with the industry’s 1.93X.

Image Source: Zacks Investment Research

In comparison, AVAV, DPRO and UMAC trade at multiples of 7.66X, 3.83X and 19.66X, respectively.

How to Approach ONDS Before Q3 Earnings ReleaseOndas Holdings’ operational momentum, underpinned by surging OAS revenues, an expanding $22 million backlog, and higher penetration across defense and homeland security markets, bodes well. With full-year revenue guidance of at least $25 million and second-half bookings expected to top the first half, ONDS remains a compelling high-growth play.

SoftBank Group's $5.8 billion sale of its Nvidia stake jolted stock markets on Tuesday, stoking fears that the frenzy around artificial intelligence may have peaked, especially after recent warnings from Wall Street bank chiefs and a famed short seller.

, /PRNewswire/ -- A class-action lawsuit has been filed against James Hardie Industries plc (NYSE: JHX), the dominant producer of fiber cement building materials in the U.S., alleging the company committed securities fraud by misleading investors about inventory levels and customer demand in its crucial North American segment.

Hagens Berman is investigating the alleged claims and urges investors in James Hardie who suffered significant losses to contact the firm now.

Read more about the issue facing JHX investors, Alleged Inventory Deception: Investors Claim James Hardie Concealed Weak Demand.

Class Period: May 20, 2025 – Aug. 18, 2025
Lead Plaintiff Deadline: Dec. 23, 2025
Visit:www.hbsslaw.com/investor-fraud/jhx
Contact the Firm Now: [email protected]
                                       844-916-0895

The James Hardie Industries (JHX) Securities Class Action

The lawsuit, Laborers' District Council & Contractors' Pension Fund of Ohio v. James Hardie Industries PLC., et al., 25-cv-13018 (N.D. Ill.), filed on behalf of all investors who purchased or acquired James Hardie common stock—which converted from American Depositary Shares on July 1, 2025—between May 20, 2025, and August 18, 2025 (the "Class Period"), seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5.

The action centers on James Hardie's North America Fiber Cement segment, which the company states generates about 80% of its total earnings. The plaintiffs allege that despite the company starting to observe significant inventory destocking by its North American channel partners in April and early May 2025, management publicly denied the trend and assured investors of the segment's sustained strength.

Specifically, the complaint highlights statements made by company executives on or around May 20 and 21, 2025, which it claims falsely represented that customer demand remained robust and expressly denied that inventory destocking was occurring. The plaintiffs contend that these assurances concealed an underlying problem: sales were artificially inflated by "inventory loading by channel partners, with the hallmarks of fraudulent channel stuffing," rather than genuine, sustainable customer demand.

This alleged deception came to a head on August 19, 2025, when James Hardie belatedly disclosed a sharp decline in performance. The company reported that sales in the North America Fiber Cement division had dropped by 12%, attributing the decline to the very customer destocking it had previously denied, which management now admitted had been discovered "in April through May."

Company CEO and Executive Director Aaron Erter sought to frame the downturn as a "normalization of channel inventories," but cautioned that the impact was expected to affect sales for at least the next two quarters.

The market's reaction was severe and swift. Following the disclosure, James Hardie's common stock dropped by over 34%.

The plaintiffs argue that this precipitous decline—and the significant losses suffered by investors—was a direct result of the defendants' alleged wrongful acts and omissions during the Class Period. The lawsuit aims to recover damages on behalf of the Class Members who were financially injured by the sudden reversal of the company's reported financial health.

Hagens Berman's Investigation on Behalf of Investors

Hagens Berman is actively investigating the alleged claims.

"We want to know if James Hardie's sales were fueled by unsustainable sales practices and whether senior management was aware of the problem," said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in James Hardie and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »

If you'd like more information and answers to frequently asked questions about the James Hardie case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding James Hardie should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

SOURCE Hagens Berman Sobol Shapiro LLP

Analyst’s Disclosure:I/we have a beneficial long position in the shares of CNA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.