The 5 top-rated dividend stocks by analystsConnectOne Bancorp NASDAQ: CNOB reported stronger second-quarter 2026 earnings, with management citing continued margin expansion, balance sheet growth and benefits from its Long Island acquisition completed a little over a year ago.
Chairman and Chief Executive Officer Frank Sorrentino said the company’s operating performance “continued to accelerate” during the quarter, pointing to “strong revenue and earnings, healthy deposit and loan growth, continued margin expansion, and accelerating financial returns.” He said the bank remains focused on client relationships, core deposit growth and disciplined loan growth.
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Senior Executive Vice President and Chief Financial Officer Bill Burns said net income available to common shareholders was $40.2 million, or $0.80 per share, up from $36.3 million, or $0.72 per share, in the first quarter. Operating pre-provision net revenue improved to 1.94%, compared with 1.81% in the prior quarter and 1.52% a year earlier.
Margin Expansion Continues ConnectOne’s net interest margin widened for the seventh consecutive quarter, reaching 3.42%. Burns said the three-basis-point sequential increase followed wider gains in the two previous quarters and was driven largely by adjustable-rate loan repricing.
Year to date, about $700 million of loan balances came up for repricing, or roughly $100 million per month. Burns said approximately 20% of those loans paid off, while the remaining 80% were retained at a weighted average rate increase of 255 basis points.
Burns maintained prior guidance for a year-end spot margin of 3.50%, citing some pressure from rising deposit costs. However, he said management still expects wider margins through the rest of 2026 and into 2027, with loan repricing expected to outweigh higher funding costs.
In response to an analyst question, Burns said deposit costs have risen slightly, with certificate of deposit rates around 4%. He said growth in non-interest-bearing demand deposits could help offset pressure from higher-cost funding.
Loan and Deposit Growth Remain Solid Loans grew at an annualized rate of about 5% on a period-end basis, while average loan balances increased at a 10% annualized pace. Burns said the growth contributed to stronger net interest income.
Client deposits, defined as total deposits less brokered deposits, grew 8% annualized on a point-to-point basis. Non-interest-bearing demand deposits grew at a 20% annualized rate. Burns said deposit growth came from commercial and retail accounts as well as municipalities, including in Southeast Florida.
During the question-and-answer session, management said it still expects mid-single-digit loan growth for 2026. Sorrentino said loan pipeline activity in the “top of the funnel” supports expectations that momentum will continue in the second half of the year.
Sorrentino also discussed the company’s Florida operations, saying the market remains a growth opportunity for ConnectOne. He said the bank’s Florida presence is approaching $700 million in footings and that about half of the growth is coming from clients with ties to New York and New Jersey who are expanding into Florida.
Non-Interest Income Rises as Expenses Stay Controlled Non-interest income increased to $7.9 million, up more than $1 million sequentially, driven by higher Small Business Administration loan sale gains. Burns said the company expects higher levels of non-interest income in the second half of the year.
Sorrentino said SBA and BoeFly are contributing to the bank’s non-interest income trajectory, while the company’s residential build-out is gaining momentum.
Operating expenses declined slightly to $55.3 million from $55.7 million in the first quarter. The efficiency ratio improved to 42.7%, compared with 45.4% in the prior quarter and 49.2% a year earlier.
Sorrentino said ConnectOne is using technology to improve efficiency, including a partnership with nCino that deploys digital agents and business intelligence into its loan platform. He said the effort has reduced time spent on some manual processes by more than 50%, allowing employees to spend more time on clients and revenue growth.
Credit Metrics Affected by Rent-Stabilized Loan Relationship Credit quality was a major focus of the call, particularly a $63.8 million relationship secured by New York City rent-stabilized multifamily properties that management flagged in the prior quarter.
Burns said the borrower’s issues centered on administrative matters, including delays in the New York State tax abatement process. During the second quarter, ConnectOne received payments that brought $20 million of the exposure current. The remaining $44 million was moved to non-accrual status, followed by a $13.8 million charge-off based on conservative valuations.
Burns clarified during the Q&A that, after the charge-off, the remaining outstanding exposure was about $30 million. He said management hopes to resolve the credit over the next year while continuing to work with the client.
The charge-off was partially offset by a $9.2 million release of reserves previously allocated to the rent-stabilized subsegment, including the specific relationship. The net effect added $4.6 million to provision expense, bringing total provision for loan losses to $8.3 million, compared with $5.2 million in the first quarter.
Non-performing assets increased to 0.55% of total assets from 0.29% in the prior quarter, and annualized charge-offs were 56 basis points, above what Burns described as a typical level of about 20 basis points. He said the increase was “substantially attributable” to the one relationship.
Management emphasized that broader credit trends remain stable. Total criticized and classified loans fell to 1.89% of total loans from 2.26%, while 30- to 89-day delinquencies declined to three basis points of total loans. Burns said there was no other area of the portfolio that was a particular concern.
The rent-stabilized portfolio represents about 5% of total loans and has declined approximately 10% year over year. Burns said ConnectOne is actively exploring a potential bulk sale to further reduce exposure, depending on market conditions.
Capital Builds as Buybacks Remain Opportunistic Tangible book value per share increased 3.1% sequentially to $24.66 and was up 12.4% year over year. The tangible common equity ratio rose to 8.78%, up 70 basis points from last June, when the First of Long Island merger closed.
ConnectOne repurchased 90,000 shares year to date at an average price of $26.21, though it did not repurchase shares during the second quarter. Burns said 550,000 shares remain under the current authorization and that the company will continue to repurchase shares opportunistically.
The board declared a common dividend of $0.195 per share, unchanged from the prior quarter. Burns said the dividend payout ratio remains in the mid-20% range, giving the company flexibility around dividends and buybacks.
Sorrentino said the company remains focused on organic growth rather than near-term bank acquisitions, though he said ConnectOne would continue to be opportunistic if future opportunities arise.
About ConnectOne Bancorp (NASDAQ:CNOB)ConnectOne Bancorp is a New Jersey‐based bank holding company whose primary subsidiary, ConnectOne Bank, offers a suite of commercial banking services to small and medium‐sized businesses, professionals and individuals. Established in 2005 and headquartered in Englewood Cliffs, New Jersey, the company seeks to deliver customized lending and deposit solutions through a network of branches across northern New Jersey and the New York metropolitan area.
The company's lending portfolio centers on commercial real estate financing, construction lending, owner‐occupied real estate loans and working capital lines of credit.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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The market expects Euronet Worldwide (EEFT - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis electronic payments and transactions processor is expected to post quarterly earnings of $2.97 per share in its upcoming report, which represents a year-over-year change of +16%.
Revenues are expected to be $1.15 billion, up 6.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.65% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Euronet Worldwide?For Euronet Worldwide, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.57%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Euronet Worldwide will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Euronet Worldwide would post earnings of $1.42 per share when it actually produced earnings of $1.58, delivering a surprise of +11.27%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Euronet Worldwide doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Financial Transaction Services industry, Visa (V - Free Report) , is soon expected to post earnings of $3.23 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +8.4%. Revenues for the quarter are expected to be $11.37 billion, up 11.8% from the year-ago quarter.
The consensus EPS estimate for Visa has been revised 0.4% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.12%.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that Visa will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Marathon Petroleum (MPC - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this refiner have returned +28.1% over the past month versus the Zacks S&P 500 composite's +0.4% change. The Zacks Oil and Gas - Refining and Marketing industry, to which Marathon Petroleum belongs, has gained 18.6% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Marathon Petroleum is expected to post earnings of $14.67 per share, indicating a change of +270.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +28.3% over the last 30 days.
The consensus earnings estimate of $35.82 for the current fiscal year indicates a year-over-year change of +234.8%. This estimate has changed +11% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $27.84 indicates a change of -22.3% from what Marathon Petroleum is expected to report a year ago. Over the past month, the estimate has changed +5.7%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. 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 Marathon Petroleum.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Marathon Petroleum, the consensus sales estimate of $34.83 billion for the current quarter points to a year-over-year change of +2.1%. The $144.74 billion and $131.44 billion estimates for the current and next fiscal years indicate changes of +7% and -9.2%, respectively.
Last Reported Results and Surprise HistoryMarathon Petroleum reported revenues of $34.57 billion in the last reported quarter, representing a year-over-year change of +8.5%. EPS of $1.65 for the same period compares with -$0.24 a year ago.
Compared to the Zacks Consensus Estimate of $30.35 billion, the reported revenues represent a surprise of +13.88%. The EPS surprise was +129.17%.
Over the last four quarters, Marathon Petroleum surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Marathon Petroleum is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Marathon Petroleum. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Acadia Pharmaceuticals (ACAD - Free Report) closed the last trading session at $24.96, gaining 6.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $32.67 indicates a 30.9% upside potential.
The mean estimate comprises 21 short-term price targets with a standard deviation of $6.14. While the lowest estimate of $17.00 indicates a 31.9% decline from the current price level, the most optimistic analyst expects the stock to surge 80.3% to reach $45.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for ACAD, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in ACADThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 3.9%, as two estimates have moved higher compared to no negative revision.
Moreover, ACAD currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much ACAD could gain, the direction of price movement it implies does appear to be a good guide.
Wall Street expects a year-over-year increase in earnings on higher revenues when Edison International (EIX - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis electric power provider is expected to post quarterly earnings of $1.02 per share in its upcoming report, which represents a year-over-year change of +5.2%.
Revenues are expected to be $4.72 billion, up 3.9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 6.66% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Edison International?For Edison International, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +4.66%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Edison International will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Edison International would post earnings of $1.32 per share when it actually produced earnings of $1.42, delivering a surprise of +7.58%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Edison International appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Utility - Electric Power industry, OGE Energy (OGE - Free Report) , is soon expected to post earnings of $0.57 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +7.6%. Revenues for the quarter are expected to be $781.11 million, up 5.3% from the year-ago quarter.
The consensus EPS estimate for OGE Energy has been revised 8% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -2.00%.
When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that OGE Energy will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Visteon (VC - Free Report) came out with quarterly earnings of $1.91 per share, missing the Zacks Consensus Estimate of $2.23 per share. This compares to earnings of $2.39 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -14.35%. A quarter ago, it was expected that this auto parts supplier would post earnings of $1.96 per share when it actually produced earnings of $1.65, delivering a surprise of -15.82%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Visteon, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $960 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.32%. This compares to year-ago revenues of $969 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Visteon shares have added about 8.5% since the beginning of the year versus the S&P 500's gain of 9.6%.
What's Next for Visteon?While Visteon has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Visteon was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.36 on $929.44 million in revenues for the coming quarter and $8.67 on $3.8 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 37% of the 250 plus Zacks industries. 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.
Another stock from the same industry, OPENLANE (OPLN - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4.
This used and salvaged vehicle auctioneer is expected to post quarterly earnings of $0.31 per share in its upcoming report, which represents a year-over-year change of -6.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
OPENLANE's revenues are expected to be $521.51 million, up 8.3% from the year-ago quarter.
Vistra Corp. (VST - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this company have returned +2.4% over the past month versus the Zacks S&P 500 composite's +0.4% change. The Zacks Utility - Electric Power industry, to which Vistra belongs, has gained 2.5% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Vistra is expected to post earnings of $2.43 per share for the current quarter, representing a year-over-year change of +140.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.6%.
For the current fiscal year, the consensus earnings estimate of $9.35 points to a change of +77.8% from the prior year. Over the last 30 days, this estimate has changed +2.7%.
For the next fiscal year, the consensus earnings estimate of $11.01 indicates a change of +17.8% from what Vistra is expected to report a year ago. Over the past month, the estimate has changed +0.4%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Vistra is rated Zacks Rank #1 (Strong Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Vistra, the consensus sales estimate for the current quarter of $6.42 billion indicates a year-over-year change of +51%. For the current and next fiscal years, $23.86 billion and $25.79 billion estimates indicate +34.5% and +8% changes, respectively.
Last Reported Results and Surprise HistoryVistra reported revenues of $5.64 billion in the last reported quarter, representing a year-over-year change of +43.4%. EPS of $2.87 for the same period compares with $0.46 a year ago.
Compared to the Zacks Consensus Estimate of $5.45 billion, the reported revenues represent a surprise of +3.54%. The EPS surprise was +29.86%.
Over the last four quarters, Vistra surpassed consensus EPS estimates three times. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Vistra is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Vistra. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Building a successful investment portfolio takes skill and hard work, no matter if you're a growth, value, income, or momentum-focused investor.
But how do you find the right combination of stocks? Funding your retirement, your kids' college tuition, or your short- and long-term savings goals certainly requires significant returns.
Enter the Zacks Rank.
What is the Zacks Rank?A unique, proprietary stock-rating model, the Zacks Rank uses earnings estimate revisions, or changes to a company's earnings expectations, to help investors create a winning portfolio.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise.
Agreement is the extent to which all brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of analysts revising their estimates higher, the better chance the stock will outperform.
Magnitude is the size of the recent change in the consensus estimate for the current and next fiscal years.
Upside is the difference between the most accurate estimate, which is calculated by Zacks, and the consensus estimate.
Surprise is made up of a company's last few quarters' earnings per share surprises; companies with a positive earnings surprise are more likely to beat expectations in the future.
These four factors are assigned a raw score that's recalculated every night, which is then compiled into the ranking system. Stocks are classified into five groups using this data, ranging from "Strong Buy" to "Strong Sell."
The Power of Institutional InvestorsThe Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors.
These professionals manage the trillions of dollars invested in hedge funds, mutual funds, and investment banks, and studies have shown that they can and do move the market because of the large amounts of money they invest with. Thus, the market tends to move in the same direction as institutional investors.
In order to determine the fair value of a company and its shares, institutional investors design valuation models that focus on earnings and earnings estimates. Because if you raise earnings estimates, it then creates a higher fair value for a company and its stock price.
Institutional investors will use these changes to help in their decision-making, typically buying stocks with rising estimates and selling those with falling estimates. Higher earnings expectations can translate into a rise in stock price and bigger gains for the investor.
Because it can take a long time for an institutional investor to build a position--sometimes weeks, if not months--retail investors who get in at the first sign of upward revisions have a distinct advantage over these larger investors, and can benefit from the expected institutional buying that will follow.
Not only can the Zacks Rank help you take advantage of trends in earnings estimate revisions, but it can also provide a way to get into stocks that are highly sought after by professionals.
How to Invest with the Zacks RankThe Zacks Rank is known for transforming investment portfolios. In fact, a portfolio of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 32 years, with an average annual return of +23.94%.
Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.
Let's take a look at Vistra Corp. (VST - Free Report) , which was added to the Zacks Rank #1 list on July 21, 2026. Vistra Corp. is an integrated retail electricity and power generation company that operates across competitive U.S. power markets. The company sells electricity and natural gas to residential, commercial, and industrial customers while running a diversified fleet that generates, hedges, and supplies power to its retail brands. Vistra is a Delaware corporation and operates from Irving, TX.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.26 to $9.35 per share. VST also boasts an average earnings surprise of 16.4%.
Earnings are forecasted to see growth of 77.8% for the current fiscal year, and sales are expected to increase 34.5%.
VST has been moving higher over the past four weeks as well, up 2.4% compared to the S&P 500's gain of 0.4%.
Bottom LineWith a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Vistra Corp. should be on investors' shortlist.
If you want even more information on the Zacks Ranks, or one of our many other investing strategies, check out the Zacks Education home page.
Discover Today's Top StocksOur private Zacks #1 Rank List, based on our quantitative Zacks Rank stock-rating system, has more than doubled the S&P 500 since 1988. Applying the Zacks Rank in your own trading can boost your investing returns on your very next trade. See Today's Zacks #1 Rank List >>
Vistra Corp. (VST - Free Report) closed the last trading session at $166.74, gaining 2.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $223.63 indicates a 34.1% upside potential.
The mean estimate comprises 16 short-term price targets with a standard deviation of $31.82. While the lowest estimate of $181.00 indicates an 8.6% increase from the current price level, the most optimistic analyst expects the stock to surge 78.7% to reach $298.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for VST, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in VSTThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 2.7%, as two estimates have moved higher compared to no negative revision.
Moreover, VST currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much VST could gain, the direction of price movement it implies does appear to be a good guide.
Key Takeaways SEIC beat Q2 earnings estimates as revenues rose 14.7% and operating income increased 33% y/y.SEIC's AUM climbed 17.2% y/y to $606.7 billion, while client AUA rose 19.7%.SEI Investments repurchased 1.3 million shares for $112.4 million during the quarter. SEI Investments Co.’s (SEIC - Free Report) second-quarter 2026 adjusted earnings per share of $1.66 surpassed the Zacks Consensus Estimate of $1.45. The bottom line reflected a rise of 38.3% from the prior-year quarter.
Results were aided by higher revenues and a rise in assets under management (AUM). However, higher expenses acted as a spoilsport.
Results excluded certain non-recurring items. After considering these, net income attributable to SEI Investments was $195.7 million, down 13.8% from the year-ago quarter.
SEIC’s Revenues & AUM Improve, Expenses RiseTotal quarterly revenues were $641.6 million, up 14.7% year over year. The rise was driven by higher asset management, administration and distribution fees, as well as information processing and software servicing fees. The top line beat the Zacks Consensus Estimate of $637.9 million.
Total expenses were $444.6 million, up 8.2% year over year. The increase was due to a rise in almost all cost components, except for consulting, outsourcing and professional fees, facilities, supplies and other costs, and depreciation charges.
Operating income (GAAP) rose 33% year over year to $197 million.
As of June 30, 2026, AUM was $606.7 billion, reflecting a rise of 17.2% from the prior-year quarter. Client assets under administration (AUA) were $1.36 trillion, up 19.7%. Client AUA did not include $14.3 billion related to Funds of Funds assets reported as of June 30, 2026.
SEI Investments’ Share Repurchase UpdateIn the reported quarter, the company bought back 1.3 million shares for $112.4 million at an average price of $86.92 per share.
Our View on SEICSEI Investments’ global presence, diverse product offerings, solid balance sheet, expanding margins and a robust AUM balance are expected to keep supporting the top line. However, elevated operating expenses and continued investment in technology and integration initiatives are concerning.
Currently, SEI Investments carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Another Asset ManagerBlackRock’s (BLK - Free Report) second-quarter 2026 adjusted earnings of $13.91 per share handily surpassed the Zacks Consensus Estimate of $12.72. The figure reflects a 15% rise from the year-ago quarter.
BLK’s results benefited from a rise in revenues. The AUM balance witnessed robust year-over-year growth to record levels, driven by net inflows. However, higher expenses created a headwind.
An Upcoming Asset Manager ReleaseInvesco (IVZ - Free Report) is scheduled to announce second-quarter 2026 numbers on July 28.
Over the past seven days, the Zacks Consensus Estimate for IVZ’s quarterly earnings has been revised upward to 67 cents. The figure implies a rise of 86.1% from the prior-year quarter’s actual.
Norfolk Southern Corp (NSC) released its 8-K filing on July 23, 2026, revealing positive financial results for the second quarter of 2026. The company reported
Norfolk Southern (NSC - Free Report) came out with quarterly earnings of $3.52 per share, beating the Zacks Consensus Estimate of $3.23 per share. This compares to earnings of $3.29 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +8.98%. A quarter ago, it was expected that this railroad would post earnings of $2.51 per share when it actually produced earnings of $2.65, delivering a surprise of +5.58%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Norfolk Southern, which belongs to the Zacks Transportation - Rail industry, posted revenues of $3.47 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.42%. This compares to year-ago revenues of $3.11 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Norfolk Southern shares have added about 14.6% since the beginning of the year versus the S&P 500's gain of 9.6%.
What's Next for Norfolk Southern?While Norfolk Southern has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Norfolk Southern was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.34 on $3.33 billion in revenues for the coming quarter and $12.24 on $12.79 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Rail is currently in the bottom 24% of the 250 plus Zacks industries. 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.
Another stock from the same industry, Canadian Pacific Kansas City (CP - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on July 29.
This railroad is expected to post quarterly earnings of $0.89 per share in its upcoming report, which represents a year-over-year change of +9.9%. The consensus EPS estimate for the quarter has been revised 0.7% lower over the last 30 days to the current level.
Canadian Pacific Kansas City's revenues are expected to be $2.91 billion, up 9% from the year-ago quarter.
For the quarter ended June 2026, Norfolk Southern (NSC - Free Report) reported revenue of $3.47 billion, up 11.4% over the same period last year. EPS came in at $3.52, compared to $3.29 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $3.32 billion, representing a surprise of +4.42%. The company delivered an EPS surprise of +8.98%, with the consensus EPS estimate being $3.23.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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 Norfolk Southern performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Railway Operating Ratio: 67.6% versus the three-analyst average estimate of 66.7%.Revenue ton miles: 49.7 billion compared to the 48.58 billion average estimate based on two analysts.Carloads (Units) - Volume - Merchandise: 610.7 thousand compared to the 612.51 thousand average estimate based on two analysts.Carloads (Units) - Volume - Intermodal: 1.06 million versus the two-analyst average estimate of 1.07 million.Revenue per Carload (Unit) - Total: $1,861.00 versus the two-analyst average estimate of $1,765.63.Railway operating revenues- Merchandise- Agriculture, forest and consumer products: $673 million versus $674.63 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.3% change.Railway operating revenues- Coal: $424 million versus the two-analyst average estimate of $393.37 million. The reported number represents a year-over-year change of +7.3%.Railway operating revenues- Merchandise- Chemicals: $646 million versus $585.34 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +18.3% change.Railway operating revenues- Intermodal: $908 million versus $821.41 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +22.2% change.Railway operating revenues- Merchandise- Automotive: $334 million versus the two-analyst average estimate of $332.44 million. The reported number represents a year-over-year change of +3.4%.Railway operating revenues- Merchandise: $2.13 billion versus the two-analyst average estimate of $2.08 billion. The reported number represents a year-over-year change of +8.2%.Railway operating revenues- Merchandise- Metals and construction: $480 million versus the two-analyst average estimate of $491.94 million. The reported number represents a year-over-year change of +4.8%.View all Key Company Metrics for Norfolk Southern here>>>
Shares of Norfolk Southern have returned +8.9% over the past month versus the Zacks S&P 500 composite's +0.4% 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.
Saia transitions from heavy capital expansion to harvesting, positioning for increased free cash flow and potential capital returns. With capex forecasted at $350–$400 million for 2026, even modest reductions directly and significantly boost FCF, enabling buybacks or dividends. SAIA's valuation appears rich, but industry peers are similarly priced; a conservative price target of $446.34 implies 4.7% upside.
Wall Street expects a year-over-year increase in earnings on higher revenues when Saia (SAIA - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis trucking company is expected to post quarterly earnings of $3.34 per share in its upcoming report, which represents a year-over-year change of +25.1%.
Revenues are expected to be $958.29 million, up 17.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.5% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Saia?For Saia, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Saia will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Saia would post earnings of $1.82 per share when it actually produced earnings of $1.86, delivering a surprise of +2.20%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Saia doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Transportation - Truck industry, ArcBest (ARCB - Free Report) , is soon expected to post earnings of $2.3 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +69.1%. Revenues for the quarter are expected to be $1.19 billion, up 16.8% from the year-ago quarter.
The consensus EPS estimate for ArcBest has been revised 16.6% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.33%.
When combined with a Zacks Rank of #1 (Strong Buy), this Earnings ESP makes it difficult to conclusively predict that ArcBest will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Fortive Corporation remains rated "Hold" due to fair absolute valuation despite consistent revenue and profitability growth. FTV's Intelligent Operating Solutions and Advanced Healthcare Solutions segments delivered robust organic growth, aided by pricing, volume, and productivity initiatives. Management guides for FY26 adjusted EPS of $2.90–$3.00, with adjusted operating cash flow projected to rise to $1.21 billion.
, /PRNewswire/ -- Payoneer Global Inc. (NASDAQ: PAYO) ("Payoneer" or the "Company"), the global financial technology company powering business growth across borders, will report its Second Quarter 2026 financial results on Thursday, August 6, 2026, before the market opens.
On June 15, 2026, Payoneer announced that it had entered into a definitive agreement under which Neon Maple Parent Inc., a corporation incorporated pursuant to the laws of Canada ("Nuvei") will acquire Payoneer. Under the terms of the agreement, Nuvei will acquire all of the issued and outstanding shares of common stock of Payoneer Global Inc. for $7.40 per share in cash, representing a total transaction equity value of approximately $2.75 billion. The transaction is expected to close in mid-2027, subject to approval by Payoneer's shareholders, receipt of required regulatory approvals, and other customary closing conditions. In light of the announced transaction, Payoneer will not host a conference call or webcast to review its financial results.
About Payoneer
Payoneer is the financial platform for cross-border business and global payments. Payoneer empowers millions of businesses with the financial tools and services they need to grow and transact globally with confidence. Payoneer makes it easier for businesses, particularly in emerging markets, to connect to the global economy, pay and get paid across borders, manage their funds across multiple currencies, and grow their businesses.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Except for historical information contained in this press release, the matters discussed herein contain forward-looking statements that involve risks and uncertainties. Such statements are provided under the "safe harbor" protection of the Act. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "shall," "should," "expects," "plans," "positioning," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements include, but are not limited to, statements about transition and the impact of recent changes to our executive management team; statements regarding the expectations of demand for our products and cash flow generation; statements about improvements to and expansion of our products and platform, and launching new products; statements about future operating results, including revenue, volume, growth opportunities, variability of expenses, ability to realize efficiencies, future spending and incremental investments, business trends, our ability to deliver profits, and growth and value for shareholders; and assumptions regarding foreign exchange rates.
Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements regarding the transactions (the "Transaction") contemplated by the Agreement and Plan of Merger, dated as of June 12, 2026, by and among the Company, Nuvei and Panda Acquisition Sub Inc. (the "Merger Agreement"), including the expected time period to consummate the Transaction. All such forward-looking statements are based upon current plans, estimates, expectations and ambitions that are subject to risks, uncertainties and assumptions, many of which are beyond the control of the Company, that could cause actual results to differ materially from those expressed in such forward-looking statements. Key factors that could cause actual results to differ materially include, but are not limited to, the expected timing and likelihood of completion of the Transaction, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the Transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement; the possibility that the Company's stockholders may not approve the Transaction; the risk that the parties may not be able to satisfy the conditions to the Transaction in a timely manner or at all; risks related to disruption of management time from ongoing business operations due to the Transaction; the risk that any announcements relating to the Transaction could have adverse effects on the market price of the Company's common stock; the risk that the Transaction and its announcement could have an adverse effect on the parties' business relationships and business generally, including the ability of the Company to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers, and on their operating results and businesses generally; the risk of unforeseen or unknown liabilities; customer, stockholder, partner, regulatory and other stakeholder approvals and support; the risk of unexpected future capital expenditures; the risk of potential litigation relating to the Transaction that could be instituted against the Company or its directors and/or officers; the risk associated with third party contracts containing material consent, anti-assignment, transfer or other provisions that may be related to the Transaction which are not waived or otherwise satisfactorily resolved; the risk of various events that could disrupt operations, including severe weather, such as droughts, floods, avalanches and earthquakes, cybersecurity attacks, wars, security threats and governmental response to them, and technological changes; the risks of labor disputes, changes in labor costs and labor difficulties; and the risks resulting from other effects of industry, market, economic, legal or legislative, political or regulatory conditions outside of the Company's control. All such factors are difficult to predict and are beyond our control, including those detailed in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2025 (and which is available at: https://www.sec.gov/Archives/edgar/data/1845815/000110465926020487/payo-20251231x10k.htm), quarterly reports on Form 10-Q and other documents subsequently filed by the Company with the Securities Exchange Commission ("SEC") (and that are available at https://www.sec.gov/edgar/search/#/ciks=0001845815&entityName=Payoneer%2520Global%2520Inc.%2520(PAYO)%2520(CIK%25200001845815).
The Company's forward-looking statements are based on assumptions that the Company believes to be reasonable but that may not prove to be accurate. Other unpredictable or unknown factors not discussed in this communication could also have material adverse effects on forward-looking statements. The Company does not assume an obligation to update any forward-looking statements, except as required by applicable law. These forward-looking statements speak only as of the date hereof.
Additional Information and Where to Find It
In connection with the Transaction, the Company will file with the SEC a proxy statement on Schedule 14A. The definitive proxy statement will be sent to the stockholders of the Company seeking their approval of the Transaction and other related matters.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT ON SCHEDULE 14A WHEN IT BECOMES AVAILABLE, AS WELL AS ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTION OR INCORPORATED BY REFERENCE INTO THE PROXY STATEMENT, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION REGARDING THE COMPANY, THE TRANSACTION AND RELATED MATTERS. Investors and security holders may obtain free copies of these documents, including the proxy statement, and other documents filed with the SEC by the Company through the website maintained by the SEC at https://www.sec.gov/edgar/browse/?CIK=1845815&owner=exclude.
Copies of documents filed with the SEC by the Company will be made available free of charge by accessing the Company's website at https://investor.payoneer.com/financials/sec-filings.
Participants in the Solicitation
The Company, Nuvei and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of the Company in connection with the Transaction under the rules of the SEC. Information about the interests of the directors and executive officers of the Company and other persons who may be deemed to be participants in the solicitation of stockholders of the Company in connection with the Transaction and a description of their direct and indirect interests, by security holdings or otherwise, will be included in the proxy statement related to the Transaction, which will be filed with the SEC. Information about the directors and executive officers of the Company and their ownership of the Company common stock is also set forth in the Company's definitive proxy statement in connection with its 2026 Annual Meeting of Stockholders, as filed with the SEC on April 27, 2026 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001845815/000110465926049462/tm261500-1_def14a.htm and in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001845815/000110465926020487/payo-20251231x10k.htm). Information about the directors and executive officers of the Company, their ownership of the Company common stock, and the Company's transactions with related persons is set forth in the sections entitled "Directors, Executive Officers and Corporate Governance," "Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters," and "Certain Relationships and Related Transactions, and Director Independence" included in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2025, which was filed with the SEC on February 26, 2026 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001845815/000110465926020487/payo-20251231x10k.htm), and in the sections entitled "Information Regarding the Board of Directors and Corporate Governance," "Security Ownership of Certain Beneficial Owners and Management," "Certain Relationships and Related Party Transactions," and "Independence of the Board of Directors" included in the Company's definitive proxy statement in connection with its 2026 Annual Meeting of Stockholders, as filed with the SEC on April 27, 2026 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001845815/000110465926049462/tm261500-1_def14a.htm. Additional information regarding the interests of such participants in the solicitation of proxies in respect of the Transaction will be included in the proxy statement and other relevant materials to be filed with the SEC when they become available. These documents can be obtained free of charge from the SEC's website at www.sec.gov.
No Offer or Solicitation
This press release is not intended to and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities or the solicitation of any vote of approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
The PNC Financial Services Group, Inc (PNC - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, PNC broke through the 20-day moving average, which suggests 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.
The 20-day moving average can show signals that are similar to other SMAs as well. 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 PNC have been moving higher over the past four weeks, up 5.3%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that PNC could be poised for a continued surge.
The bullish case only gets stronger once investors take into account PNC's positive earnings estimate revisions. There have been 6 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors should think about putting PNC on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Apple Hospitality REIT (APLE - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.
Apple Hospitality REIT is one of 879 individual stocks in the Finance sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Apple Hospitality REIT is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for APLE's full-year earnings has moved 7.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, APLE has returned 43% so far this year. At the same time, Finance stocks have gained an average of 6.2%. This shows that Apple Hospitality REIT is outperforming its peers so far this year.
Another Finance stock, which has outperformed the sector so far this year, is Banco Macro (BMA - Free Report) . The stock has returned 8.3% year-to-date.
For Banco Macro, the consensus EPS estimate for the current year has increased 11% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Apple Hospitality REIT is a member of the REIT and Equity Trust - Other industry, which includes 90 individual companies and currently sits at #56 in the Zacks Industry Rank. This group has gained an average of 14.3% so far this year, so APLE is performing better in this area.
Banco Macro, however, belongs to the Banks - Foreign industry. Currently, this 85-stock industry is ranked #88. The industry has moved +17.2% so far this year.
Going forward, investors interested in Finance stocks should continue to pay close attention to Apple Hospitality REIT and Banco Macro as they could maintain their solid performance.
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider Advance Auto Parts?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Advance Auto Parts (AAP - Free Report) earns a #2 (Buy) right now and its Most Accurate Estimate sits at $0.88 a share, just 21 days from its upcoming earnings release on August 13, 2026.
AAP has an Earnings ESP figure of +8.04%, which, as explained above, is calculated by taking the percentage difference between the $0.88 Most Accurate Estimate and the Zacks Consensus Estimate of $0.81. Advance Auto Parts is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
AAP is part of a big group of Retail and Wholesale stocks that boast a positive ESP, and investors may want to take a look at Cracker Barrel Old Country Store (CBRL - Free Report) as well.
Cracker Barrel Old Country Store is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on September 16, 2026. CBRL's Most Accurate Estimate sits at -$0.20 a share 55 days from its next earnings release.
The Zacks Consensus Estimate for Cracker Barrel Old Country Store is -$0.33, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +38.78%.
AAP and CBRL's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
The market expects Virtu Financial (VIRT - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis high-speed trading company is expected to post quarterly earnings of $1.67 per share in its upcoming report, which represents a year-over-year change of +9.2%.
Revenues are expected to be $639.48 million, up 12.6% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 9.64% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Virtu Financial?For Virtu Financial, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.25%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Virtu Financial will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Virtu Financial would post earnings of $1.66 per share when it actually produced earnings of $2.24, delivering a surprise of +34.94%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Virtu Financial appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
NEW YORK, July 23, 2026 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP announces that a shareholder has filed a securities class action lawsuit on behalf of investors (the “Class”) who purchased or acquired the common stock of Peabody Energy Corporation (“Peabody Energy” or the “Company”) (NYSE: BTU) between October 14, 2024 and May 4, 2026, inclusive.
Should You Join The Peabody Energy Class Action Lawsuit:
Do you, or did you, own shares of Peabody Energy Corporation (NYSE: BTU)?Did you purchase your shares between October 14, 2024 and May 4, 2026, inclusive?Did you lose money in your investment in Peabody Energy Corporation? What To Do Next:
Investors are encouraged to act promptly and submit a form at Peabody Energy Corporation Shareholder Class Action Lawsuit or contact Investor Relations Manager Peter Allocco at (212) 951-2030 or [email protected].
If you wish to serve as lead plaintiff for the Class, you must file papers by August 24, 2026. A lead plaintiff is a representative party acting on other class members’ behalf in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About The Lawsuit:
The lawsuit alleges that defendants made materially false and misleading statements and omissions regarding the Company’s business operations, growth prospects, and financial stability. As a result of these alleged misrepresentations, Peabody Energy common stock traded at artificially inflated prices during the Class Period. When the truth was disclosed, investors allegedly suffered significant losses.
About Bernstein Liebhard:
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for sixteen consecutive years.
, /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Peabody Energy Corporation ("Peabody" or the "Company") (NYSE: BTU). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Peabody and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until August 24, 2026, to ask the Court to appoint you as Lead Plaintiff for the class if you purchased or otherwise acquired Peabody securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On March 30, 2026, Peabody issued a press release lowering guidance pertaining to its Centurion mine's expected first quarter 2026 output ahead of the Company's full earnings release. Among other things, Peabody announced that sales volume from the Centurion mine was expected to deliver approximately 250,000 tons in the first quarter due to mining commissioning challenges (compared to previous estimates of around 700,000 tons).
On this news, Peabody's stock price fell $3.82 per share, or 9.67%, to close at $35.68 per share on March 30, 2026.
Then, on May 5, 2026, Peabody issued a press release disclosing the Company's failure to ramp-up output at the Centurion mine by the adverted-to March 2026 deadline and cutting guidance accordingly.
On this news, Peabody's stock price fell $1.52 per share, or 5.73%, to close at $25.00 per share on May 5, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Time-Sensitive: Peabody Energy's Inflated Metallurgical Coal Segment Guidance for 2026 Allegedly Concealed Known Operational Failures at Centurion Mine
, /PRNewswire/ -- SueWallSt alerts investors in Peabody Energy Corporation (NYSE: BTU) of a pending securities class action. Class Period: October 14, 2024 through May 4, 2026. Find out if you may qualify to recover losses or contact Joseph E. Levi, Esq. at [email protected] | (888) SueWallSt.
Peabody's full-year 2026 metallurgical coal segment volume guidance was set at 10.3 to 11.3 million tons with costs targeted at $113 per tonne. That guidance was slashed by 1 million tons and costs ballooned to $123 to $133 per ton after concealed problems surfaced. The Court has set August 24, 2026 as the deadline to apply for lead plaintiff appointment.
"Investors deserve transparency about material risks that could affect their investments. When a company issues volume and cost guidance while aware of significant commissioning obstacles, shareholders are entitled to know the full picture before making investment decisions." -- Joseph E. Levi, Esq.
The Alleged Volume Guidance Inflation
The lawsuit asserts that management repeatedly reaffirmed met coal segment targets knowing that Centurion's ramp-up faced serious impediments. As late as February 2026, the Company projected Centurion would deliver 3.5 million tons for the full year and touted an acceleration of the longwall start-up timeline to February 2026 from the original March target. These projections allegedly formed the backbone of segment-wide volume guidance that investors relied upon when purchasing BTU shares at prices reaching $39.50.
Seaborne Met Coal Guidance: What Was Allegedly Omitted
The action claims that when management issued its 10.3 to 11.3 million ton met segment target, it failed to disclose several material facts:
The Company was deploying 8-year-old mining equipment that had never been tested under full underground load conditions Electrical systems combining updated technology with aging hardware had not been validated in operational settings Mechanical risks with conveyors and chutes were foreseeable given the equipment's extended storage period Centurion's contribution of 3.5 million tons represented roughly one-third of total met segment volume, making any shortfall devastating to the overall target Floor softening and moisture accumulation risks in the longwall area were known geological characteristics of the mine site The $113 per tonne cost target depended entirely on achieving volume levels that the equipment condition made uncertain The $29 Per Ton Cost Explosion
As alleged, the gap between projected and actual costs reveals the depth of the guidance failure. Management targeted $113 per tonne for met coal costs in 2026. First quarter actual costs came in at $142 per ton, a 25.7% overshoot driven primarily by depressed Centurion volumes. The met segment recorded an adjusted EBITDA loss of $7 million for Q1 2026, reduced by approximately $80 million from Centurion's ramp-up failures alone, including $10 million of additional commissioning costs that were never contemplated in original guidance.
Why Guidance Accuracy Allegedly Matters to Shareholders
Volume and cost guidance are not aspirational targets. As pleaded in the complaint, investors and analysts built financial models, set price targets, and made purchase decisions based on management's specific numerical projections. When the Company reaffirmed full-year met segment volume guidance even in its March 30 disclosure, only to cut it weeks later, the lawsuit contends this compounded the misleading nature of earlier statements.
Submit your information here or call (888) SueWallSt.
WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.
Frequently Asked Questions About the BTU Lawsuit
Q: Who is eligible to join the BTU investor lawsuit? A: Investors who purchased BTU stock or securities between October 14, 2024 and May 4, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.
Q: What specific misstatements does the BTU lawsuit allege? A: The complaint alleges Peabody Energy, James C. Grech, Mark A. Spurbeck, and Marc E. Hathhorn made materially false or misleading statements regarding the Centurion mine ramp-up timeline, metallurgical coal segment volume guidance, and cost targets during the class period. When the true operational state was revealed, the stock price declined sharply.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What if I already sold my BTU shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.
Q: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution.
Q: What if I missed the lead plaintiff deadline? A: The deadline applies only to investors seeking lead plaintiff appointment. Class members who miss it can still participate in any settlement or recovery.
Q: What documents do I need to make a claim? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (888) SueWallSt
Fax: (212) 363-7171
Attorney Advertising. Prior results do not guarantee similar outcomes.
Key Takeaways VRSK is set to report Q2'26 results on July 29, with EPS expected to rise 3.2% y/y. Verisk's underwriting growth is expected to benefit from pricing, renewals, AI and client wins.VRSK's claims revenues are projected to grow on contract renewals and AI-backed solution adoption. Verisk (VRSK - Free Report) is scheduled to release second-quarter 2026 results on July 29, before market open.
VRSK surpassed the Zacks Consensus Estimate for earnings in the trailing four quarters, delivering an average surprise of 6.3%.
VRSK’s Q2 ExpectationsThe Zacks Consensus Estimate for revenues is pinned at 802.4 million, suggesting 3.9% year-over-year growth. The consensus mark for underwriting revenues is set at $571.5 million, marking 3.9% year-over-year growth. VRSK is likely to have achieved this momentum in this segment on the back of strong pricing realization and multi-year contract renewals.
Sustained growth in catastrophe and risk solutions and life business, accompanied by client wins and contract extensions, is anticipated to have aided the segment. Growth acceleration is likely to have been achieved by contributory data programs and the rapid adoption of AI-driven innovations.
For the claims segment, the Zacks Consensus Estimate for revenue is pinned at $235 million, indicating a 5.4% year-over-year rally. Strong value realization in contract renewals, fueled by improved data insights and a growing ecosystem, is expected to have driven this segment’s growth. Revenue growth is anticipated to have been bolstered by the rapid client adoption of new AI-backed solutions.
For EPS, the consensus estimate is $1.94, increasing 3.2% year over year. The aforesaid expectation of segmental growth, accompanied by prudent expense management supporting operational efficiency, is anticipated to have improved the bottom line.
What Our Model Says About VRSKOur proven model does not conclusively predict an earnings beat for Verisk this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
VRSK has an Earnings ESP of 0.00% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to ConsiderHere are a few stocks from the broader Business Services sector that, according to our model, have the right combination of elements to beat earnings estimates this season.
Clean Harbors (CLH - Free Report) : The Zacks Consensus Estimate for second-quarter 2026 revenues is set at $1.6 billion, indicating a 4.8% increase from the year-ago quarter’s actual. For earnings, the consensus mark is pegged at $2.73 per share, suggesting 15.7% growth from the year-ago quarter’s reported number. The company beat the Zacks Consensus Estimate in the past four quarters, the average negative surprise being 0.02%.
It has an Earnings ESP of +3.82% and a Zacks Rank of 2 at present.
CLH is scheduled to declare second-quarter 2026 results on July 29.
Duolingo (DUOL - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is pegged at $297.4 million, indicating a 17.9% year-over-year jump. For earnings, the consensus mark is pegged at 61 cents per share, suggesting a 33% decline from that reported in the year-ago quarter. The company beat the Zacks Consensus Estimate in the past four quarters, the average surprise being 32.3%.
DUOL currently has an Earnings ESP of +9.02% and a Zacks Rank #2. The company is scheduled to declare second-quarter 2026 results on Aug. 5.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Valero Energy (VLO - Free Report) Valero Energy Corporation, through its subsidiaries, is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products. The company is headquartered in San Antonio, TX. It was founded in 1980 and is one of the largest independent refiners and marketers of petroleum products in the United States.
VLO is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Oils-Energy stock. VLO has a Momentum Style Score of A, and shares are up 28.3% over the past four weeks.
For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $4.42 to $32.68 per share. VLO boasts an average earnings surprise of +28%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, VLO should be on investors' short list.
Wall Street expects a year-over-year increase in earnings on higher revenues when Valero Energy (VLO - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis oil refiner is expected to post quarterly earnings of $9.81 per share in its upcoming report, which represents a year-over-year change of +330.3%.
Revenues are expected to be $35.95 billion, up 20.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 34.24% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Valero Energy?For Valero Energy, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.96%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that Valero Energy will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Valero Energy would post earnings of $3.07 per share when it actually produced earnings of $4.22, delivering a surprise of +37.46%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Valero Energy doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerCVR Energy (CVI - Free Report) , another stock in the Zacks Oil and Gas - Refining and Marketing industry, is expected to report earnings per share of $0.18 for the quarter ended June 2026. This estimate points to a year-over-year change of +178.3%. Revenues for the quarter are expected to be $2.17 billion, up 23.1% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for CVR has been revised 24.8% down to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that CVR will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service 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, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Five Below (FIVE - Free Report) Five Below, Inc. is a Pennsylvania-based specialty value retailer offering trend-right merchandise priced mostly at $5 and below, with a select range priced above $5. The chain targets pre-teens, teens and value-focused families with an edited assortment that includes certain brands and licensed merchandise.
FIVE is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. FIVE has a Growth Style Score of A, forecasting year-over-year earnings growth of 36.1% for the current fiscal year.
For fiscal 2027, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.92 to $9.08 per share. FIVE boasts an average earnings surprise of +70.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, FIVE should be on investors' short list.
RTX Corp (NYSE:RTX, XETRA:5UR) shares rose about 8% in early trading Thursday after the aerospace and defense company reported better-than-expected second quarter results and raised its full-year 2026 outlook.
The company reported adjusted earnings per share of $1.89 on revenue of $24.7 billion for the quarter, ahead of analyst expectations for adjusted EPS of $1.66 on revenue of $22.88 billion, according to consensus estimates.
Adjusted EPS increased 21% from the prior-year period, while sales rose 14% year over year and 16% organically.
Following the strong quarter, RTX raised its full-year 2026 adjusted earnings outlook to a range of $7.10 to $7.25 per share, up from its previous forecast of $6.70 to $6.90 per share.
The company also increased its adjusted sales guidance to $95 billion to $96 billion, compared with its prior outlook of $92.5 billion to $93.5 billion, and raised its organic sales growth forecast to 8% to 9% from 5% to 6%.
The company now expects full-year free cash flow of $8.50 billion to $8.75 billion, compared with its previous guidance of $8.25 billion to $8.75 billion.
RTX reported second quarter operating cash flow of $3.5 billion and free cash flow of $2.9 billion.
The company’s backlog reached $289 billion at the end of the quarter, including $170 billion in commercial orders and $119 billion in defense.
“RTX delivered very strong second quarter results with 16% organic sales growth, including double-digit commercial aftermarket and defense growth, margin expansion across all three segments, and $2.9 billion of free cash flow,” RTX CEO Chris Calio said in a statement.
“Demand remains robust, and our backlog is up 22% year over year.”
Calio added that the company was raising its full-year outlook based on its first-half performance and backlog, highlighting its focus on executing its order book, expanding capacity and introducing new technologies.
The company also announced an agreement to sell Raytheon’s Blue Canyon Technologies business for $620 million.
From a technical perspective, Lamb Weston (LW - Free Report) is looking like an interesting pick, as it just reached a key level of support. LW recently overtook the 200-day moving average, and this suggests a long-term bullish trend.
The 200-day simple moving average helps traders and analysts determine overall long-term market trends for stocks, commodities, indexes, and other financial instruments. The indicator moves higher or lower along with longer-term price moves, serving as a support or resistance level.
Over the past four weeks, LW has gained 5%. The company is currently ranked a Zacks Rank #3 (Hold), another strong indication the stock could move even higher.
Looking at LW's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 3 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors may want to watch LW for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
Hamilton Lane (HLNE - Free Report) closed the last trading session at $81.14, gaining 10% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $126.71 indicates a 56.2% upside potential.
The average comprises seven short-term price targets ranging from a low of $94.00 to a high of $174.00, with a standard deviation of $27.24. While the lowest estimate indicates an increase of 15.9% from the current price level, the most optimistic estimate points to a 114.4% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for HLNE, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why HLNE Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 1.5%, as one estimate has moved higher compared to no negative revision.
Moreover, HLNE currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much HLNE could gain, the direction of price movement it implies does appear to be a good guide.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cactus, Inc. (WHD - Free Report) Along with its consolidated affiliates, Cactus Inc is involved in manufacturing, designing and selling wellhead and pressure control equipment. The products are being utilized by customers for drilling and completing onshore oil and natural gas wells. The equipment are also used by upstream energy companies during production phases in oil and gas wells. Thus, Cactus, headquartered in Houston, TX, generates significant cashflow from selling and renting wellhead and pressure control equipment.
WHD is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Oils-Energy stock. WHD has a Momentum Style Score of B, and shares are up 9.8% over the past four weeks.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.12 to $2.92 per share. WHD boasts an average earnings surprise of +8.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, WHD should be on investors' short list.
Progressive (PGR - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this insurer have returned -7.2%, compared to the Zacks S&P 500 composite's +0.4% change. During this period, the Zacks Insurance - Property and Casualty industry, which Progressive falls in, has gained 1.7%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Progressive is expected to post earnings of $3.64 per share for the current quarter, representing a year-over-year change of -10.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
For the current fiscal year, the consensus earnings estimate of $17.56 points to a change of -3.8% from the prior year. Over the last 30 days, this estimate has changed +3.2%.
For the next fiscal year, the consensus earnings estimate of $16.2 indicates a change of -7.7% from what Progressive is expected to report a year ago. Over the past month, the estimate has changed -1.5%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Progressive is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Progressive, the consensus sales estimate of $23.23 billion for the current quarter points to a year-over-year change of +4.5%. The $92.14 billion and $97.53 billion estimates for the current and next fiscal years indicate changes of +6% and +5.8%, respectively.
Last Reported Results and Surprise HistoryProgressive reported revenues of $23.01 billion in the last reported quarter, representing a year-over-year change of +6.4%. EPS of $4.85 for the same period compares with $4.88 a year ago.
Compared to the Zacks Consensus Estimate of $23.09 billion, the reported revenues represent a surprise of -0.37%. The EPS surprise was +3.19%.
Over the last four quarters, Progressive surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Progressive is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Progressive. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Can Medpace Stock Keep up this Pace?Medpace NASDAQ: MEDP reported double-digit growth in second-quarter revenue and earnings, while management described the business environment as strong and said lower cancellations helped drive record net bookings.
CEO August Troendle said on the company’s second-quarter 2026 earnings call that cancellations were “well-behaved” in the period and supported a record quarter for net bookings. He added that requests for proposals increased both sequentially and year over year, producing what he called “high-quality opportunities.”
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“Overall, the environment remains constructive into July,” Troendle said. “We are making good progress in positioning the business for 2027.”
Second-Quarter Revenue Rises 17.2% CFO Kevin Brady said Medpace generated second-quarter revenue of $707.3 million, up 17.2% from the year-ago period. Revenue for the first six months of 2026 was $1.41 billion, an increase of 21.7%.
EBITDA for the quarter rose 17.6% to $153.4 million from $130.5 million in the second quarter of 2025. EBITDA margin was 21.7%, compared with 21.6% a year earlier. Year-to-date EBITDA was $302.8 million, up 21.5%, with the EBITDA margin flat at 21.4%.
Brady said the year-to-date margin reflected the impact of higher reimbursable costs, offset primarily by lower employee-related costs.
Net income increased 34.5% to $121.4 million from $90.3 million in the prior-year quarter. Brady attributed the stronger net income growth relative to EBITDA growth primarily to a lower effective tax rate and higher interest income. Diluted earnings per share were $4.25, compared with $3.10 in the second quarter of 2025.
For the first six months of 2026, net income was $245.2 million, up 19.7% from $204.9 million in the comparable prior-year period. Year-to-date diluted EPS was $8.53, compared with $6.79.
Bookings Reach Record Level as Cancellations Improve Net new business awards entering backlog increased 28.2% year over year to $795.7 million, producing a net book-to-bill ratio of 1.13. Ending backlog as of June 30 was approximately $3 billion, up 4.9% from the prior year. Brady said Medpace expects roughly $1.96 billion of backlog to convert to revenue over the next 12 months.
Backlog conversion in the second quarter was 24.1% of beginning backlog. Brady also said Medpace’s top five and top 10 customers represented approximately 31% and 40%, respectively, of revenue over the last 12 months.
In response to analyst questions, Troendle said the improvement in net bookings from the first quarter was driven more by reduced cancellations than by gross bookings. He said cancellations had fallen to a “very good level,” though not an unusually low one.
“Cancellations are always a wild card,” Troendle said, adding that the company has limited ability to predict them. He said Medpace has been careful about what it recognizes in backlog when programs include interim analyses, regulatory decisions or other points that could affect whether a study continues.
Therapeutic Mix Shifts Back Toward Oncology Troendle said recent growth among Medpace’s top customers had been driven “quite a bit” by metabolic work, including large programs within the company’s top five customers. However, he said the mix of new opportunities has shifted in recent quarters.
“Oncology has come back quite a bit in terms of both our award notifications” and bookings, Troendle said. He said oncology represented more than half of overall bookings and award notifications in the second quarter, while cardiometabolic had “dropped off quite a bit” in new award notifications.
Troendle said he expects the company’s therapeutic mix to move back toward historical averages over the next year or so, with oncology regaining a larger position in the mix. He said some of the very large metabolic programs are reducing, and new opportunities in that area are not as large as they were a year ago.
Management also addressed questions about backlog conversion and whether metabolic programs were responsible for a higher burn rate. Troendle said he would “challenge the very premise” that metabolic programs were the primary driver of increased conversion, noting that Medpace often limits backlog recognition beyond interim decision points across many types of programs, including oncology.
Cash Flow, Buybacks and 2026 Guidance Medpace generated $162 million in cash flow from operating activities in the quarter, and Brady said net days sales outstanding were negative 59.6 days. The company ended the quarter with $502.7 million in cash.
During the second quarter, Medpace repurchased approximately 706,000 shares for $294.7 million. As of June 30, the company had $527 million remaining under its share repurchase authorization.
Medpace updated its full-year 2026 guidance. The company now expects:
Total revenue: $2.805 billion to $2.885 billion, representing growth of 10.9% to 14% over 2025 revenue of $2.53 billion. EBITDA: $618 million to $642 million, representing growth of 10.8% to 15.1% compared with 2025 EBITDA of $557.7 million. Net income: $494 million to $514 million. Diluted EPS: $17.25 to $17.95. Brady said the guidance assumes a full-year effective tax rate of 19% to 19.5%, interest income of $21.1 million and no additional share repurchases. The forecast is based on foreign exchange rates as of June 30, 2026.
Management Points to Stronger Funding Environment On the broader market backdrop, Troendle said the environment has strengthened over the last several quarters. He said clients with recent funding are generating more opportunities and moving forward with programs.
Asked about competition and pricing, Troendle said he did not see notable changes in competitive dynamics. He said the profile of opportunities has moved back toward oncology being the largest category, compared with the metabolic drivers seen about a year ago.
Troendle also said the company had implemented changes intended to improve win rates after recognizing that its win rate in 2025 had been lower than in prior years. He declined to provide details on those competitive changes but said they may have influenced the company’s strong win rate in the first quarter.
On labor, Troendle said Medpace is “in a good place,” helped by continued low employee turnover. He said the company expects high-single-digit employee growth this year and suspects that trend will continue next year. Employee growth has been strongest in the U.S., followed by Asia Pacific, including India.
About Medpace (NASDAQ:MEDP)Medpace Holdings, Inc NASDAQ: MEDP is a global contract research organization (CRO) that provides comprehensive clinical development services to biotechnology, pharmaceutical and medical device companies. The company supports clinical trials across all phases (I–IV), offering end-to-end solutions designed to streamline the development process and accelerate the delivery of new therapies to market.
Medpace's core service offerings include clinical pharmacology, regulatory affairs consulting, project management, central laboratory services, imaging, data management and biostatistics, pharmacovigilance and medical writing.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Medpace Right Now?Before you consider Medpace, you'll want to hear this.
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Wall Street analysts expect KLA (KLAC - Free Report) to post quarterly earnings of $1.00 per share in its upcoming report, which indicates a year-over-year increase of 6.4%. Revenues are expected to be $3.61 billion, up 13.7% from the year-ago quarter.
Over the last 30 days, there has been an upward revision of 1.3% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Bearing this in mind, let's now explore the average estimates of specific KLA metrics that are commonly monitored and projected by Wall Street analysts.
Analysts' assessment points toward 'Revenues- Specialty Semiconductor Process' reaching $159.85 million. The estimate indicates a change of +12.7% from the prior-year quarter.
Analysts forecast 'Revenues- Service' to reach $806.64 million. The estimate indicates a change of +14.8% from the prior-year quarter.
The consensus among analysts is that 'Revenues- Product' will reach $2.69 billion. The estimate points to a change of +8.9% from the year-ago quarter.
Analysts predict that the 'Revenues- Semiconductor Process Control' will reach $3.27 billion. The estimate suggests a change of +13.5% year over year.
Based on the collective assessment of analysts, 'Revenues- PCB and Component Inspection' should arrive at $175.04 million. The estimate points to a change of +13.6% from the year-ago quarter.
The average prediction of analysts places 'Geographic Revenues- China' at $1.05 billion. The estimate points to a change of +9.6% from the year-ago quarter.
It is projected by analysts that the 'Geographic Revenues- Rest of Asia' will reach $143.66 million. The estimate indicates a year-over-year change of +78.3%.
Analysts expect 'Geographic Revenues- North America' to come in at $377.17 million. The estimate indicates a change of +34.1% from the prior-year quarter.
The consensus estimate for 'Geographic Revenues- Europe & Israel' stands at $197.33 million. The estimate indicates a change of +57.8% from the prior-year quarter.
According to the collective judgment of analysts, 'Geographic Revenues- Taiwan' should come in at $1.32 billion. The estimate indicates a change of +51.1% from the prior-year quarter.
The combined assessment of analysts suggests that 'Geographic Revenues- Korea' will likely reach $678.09 million. The estimate points to a change of +41.8% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Geographic Revenues- Japan' of $380.19 million. The estimate suggests a change of +0.8% year over year.
View all Key Company Metrics for KLA here>>>
KLA shares have witnessed a change of -10.7% in the past month, in contrast to the Zacks S&P 500 composite's +0.4% move. With a Zacks Rank #3 (Hold), KLAC is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Modine’s $4B AI Coup Freezes Out the CompetitionGentherm NASDAQ: THRM raised its full-year 2026 outlook after reporting record quarterly product revenue and stronger-than-expected automotive demand in the second quarter, executives said on the company’s earnings call.
President and Chief Executive Officer Bill Presley said the thermal management technology company delivered “an excellent first half” through commercial execution and operational discipline. He said the company continued to outperform light vehicle production while expanding its technology into markets beyond automotive, including furniture and medical products.
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Chief Financial Officer Jon Douyard said second-quarter revenue rose 11% year over year to $416 million. Excluding foreign currency translation, revenue increased 9.5%, driven by higher automotive volumes. Automotive Climate and Comfort Solutions revenue increased 14.1%, or 12.7% excluding foreign exchange.
Automotive Growth Outpaces Market Presley said Gentherm secured approximately $690 million in automotive new business awards during the second quarter, bringing year-to-date awards to more than $1 billion. He said the awards were in line with company expectations and reflected customer demand for Gentherm’s technologies.
During the question-and-answer session, Presley said the awards were “pretty well distributed” and were not driven by a single region, program or customer. He said the company remains confident that 2026 will be another strong year for new business awards.
Douyard said automotive growth was broad-based across regions and product categories. He highlighted strong performance in China, where the company benefited from domestic Chinese OEM program launches and higher take rates from global OEM customers. Lumbar and Massage Comfort Solutions revenue grew 38% year over year.
Responding to a question from Stifel analyst Nathan Jones, Douyard said Gentherm remains confident that its automotive business can grow at a mid-single-digit rate above the market over time, though he noted that performance may not be linear each year.
Margins Affected by Timing, Inventory and Warranty Accruals Gentherm reported adjusted EBITDA of $48.8 million, equal to 11.7% of sales, compared with 12.2% in the prior-year quarter. Douyard said operating leverage and operational excellence initiatives were offset by expected headwinds from inflation recovery timing, planned footprint-related inventory reductions and warranty accruals in both the automotive and medical businesses.
On a GAAP basis, diluted earnings per share were $0.14. Douyard said that figure was affected by approximately $0.55 per share of merger and restructuring expenses. Adjusted diluted earnings per share were $0.75, up from $0.54 a year earlier.
In response to a question from Seaport Research Partners analyst Glenn Chin, Presley said the warranty accruals were tied in part to a specific automotive product with a specific customer. He said the company made mechanical robustness improvements late last year and decided to take an accrual after seeing increased claims in the first half. Presley said the company does not view the issue as part of the ongoing run rate.
Company Raises 2026 Guidance Gentherm raised its 2026 full-year guidance for revenue, adjusted EBITDA and adjusted free cash flow. Douyard said the updated guidance excludes any impact from the planned combination with Modine Performance Technologies.
At the midpoint, Gentherm now expects 2026 revenue of $1.6 billion, representing roughly 5% growth for the year. Douyard said that compares with a forecasted decline in light vehicle production of approximately 3%, positioning the company for mid- to high-single-digit revenue growth over market.
The company expects adjusted EBITDA of $185 million to $200 million, implying a midpoint margin of approximately 12%. Douyard said margins are expected to remain lower in the third quarter before rebounding in the fourth quarter. Gentherm also projected adjusted free cash flow of $85 million to $100 million, with capital expenditures of $45 million to $55 million.
Douyard said adjusted free cash flow was approximately $16 million year to date, in line with expectations and historical seasonality, while capital expenditures were $14 million, down $9.5 million from the prior year. The company ended the quarter with net leverage of 0.3 times and liquidity of $502 million.
Expansion Beyond Light Vehicles Presley said Gentherm is making progress in applying its core technologies outside the light vehicle market. During the quarter, the company’s products were selected by two North American-based furniture brands in the home and office market. Presley said Gentherm has deployed its core technologies with five new customers in less than a year and has visibility to $50 million to $100 million of revenue in that market by 2028.
In the Q&A session, Presley said the latest data and discussions with manufacturers indicate the total addressable market for Gentherm in home and office is more than $500 million. He said the company remains confident in its 2028 revenue target for that market.
In medical products, Presley said Gentherm received FDA 510(k) clearance for ThermAffyx, a solution that combines conductive air-free patient warming with securement technology for robotic surgical procedures. He said the company is actively commercializing ThermAffyx and expects initial sales in the third quarter.
Gentherm also completed the acquisition of Innovative Medical Equipment on July 1. Douyard said the purchase price was $34 million. IME provides the ThermaZone Therapy device, a non-opioid thermal therapy solution for pain management and recovery using controlled hot and cold therapy. Douyard said IME is projected to generate approximately $17 million of full-year 2026 revenue with 20% EBITDA margins.
Presley said IME serves more than 200 Veterans Health Administration hospitals and clinics, while Gentherm has access to hospital channels through partnerships, distributors and group purchasing organizations. He said the two businesses create “a very, very strong cross-selling opportunity.”
Modine Deal and Capital Allocation Gentherm continues to work toward completing its planned combination with Modine Performance Technologies. Douyard said the company expects the transaction to close early in the fourth quarter after completing many key sign-to-close deliverables.
Presley said the combination would create a global leader in thermal and precision flow management solutions and diversify Gentherm’s end-market exposure. He said the company’s light vehicle mix would decline from approximately 97% today to roughly 63%, while expanding exposure to commercial vehicle, off-highway and power generation markets.
Douyard said Gentherm secured $800 million of committed financing through a $550 million five-year revolving credit facility and a $250 million term loan to support the Modine transaction. Upon closing, the company expects net leverage of approximately one turn.
The company also announced a new stock repurchase authorization of up to $400 million over three years. Douyard said Gentherm expects to repurchase shares after the Modine transaction closes and will continue to prioritize organic investment, share repurchases and strategic acquisitions aligned with its core technology platforms.
About Gentherm (NASDAQ:THRM)Gentherm Incorporated NASDAQ: THRM is a global developer and supplier of advanced thermal management technologies for automotive, specialty vehicle, medical, consumer and industrial markets. The company's core focus lies in delivering integrated heating and cooling systems designed to enhance energy efficiency, comfort and safety across a wide range of applications. Gentherm's product portfolio includes seat thermal systems, heated and ventilated seating surfaces, steering wheel heaters, battery thermal management solutions, and climate systems for electric vehicles.
In the automotive sector, Gentherm partners with leading original equipment manufacturers to engineer and manufacture high-performance thermal solutions that meet stringent industry demands for reduced weight, lower energy consumption and improved passenger comfort.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Gentherm Right Now?Before you consider Gentherm, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Gentherm wasn't on the list.
While Gentherm currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Click the link to see MarketBeat's list of seven stocks and why their long-term outlooks are very promising.
Alliant Energy (LNT - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis electric and gas utility parent company is expected to post quarterly earnings of $0.66 per share in its upcoming report, which represents a year-over-year change of -2.9%.
Revenues are expected to be $1 billion, up 4.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Alliant Energy?For Alliant Energy, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.54%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Alliant Energy will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Alliant Energy would post earnings of $0.82 per share when it actually produced earnings of $0.82, delivering no surprise.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Alliant Energy doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Utility - Electric Power industry, NorthWestern (NWE - Free Report) , is soon expected to post earnings of $0.42 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +5%. Revenues for the quarter are expected to be $386.22 million, up 12.7% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for NorthWestern has been revised 6.4% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.
When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that NorthWestern will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Key Takeaways Rollins missed Q2 earnings and revenue estimates despite year-over-year growth in both metrics.ROL cited weaker residential demand, while commercial and termite operations posted solid growth.Rollins is adjusting operations as demand softens and maintains a strong balance sheet. Rollins, Inc. (ROL - Free Report) reported unimpressive second-quarter 2026 results, with both earnings and revenues missing the Zacks Consensus Estimate.
ROL’s adjusted earnings of 32 cents per share missed the Zacks Consensus Estimate by 5.9% but rose 6.7% year over year. Total revenues of $1.08 billion fell short of the consensus estimate by 1.7% but increased 7.9% from the year-ago quarter.
The quarter was affected by slower growth in parts of the residential pest control business, although commercial and termite operations continued to post healthy gains.
ROL’s shares have declined 25.1% over the past year compared with a 24.4% decline in the industry. The Zacks S&P 500 composite has risen 20.8% over the same time frame.
ROL's Quarterly Performance Reflects Mixed Demand TrendsResidential revenues increased 6.6% year over year to $485.8 million. Commercial revenues climbed 8.6% to $347.9 million, while termite and ancillary revenues rose 10.5% to $234.2 million. Franchise and other revenues declined 7.4% to $10.7 million.
Management attributed the softer residential performance to weaker consumer-initiated demand across search, digital media and inbound calls, which reduced lead volumes during the quarter. However, relationship-based channels, including home builders and door-to-door sales, delivered solid organic growth.
Rollins Faces Margin Pressure Despite Revenue GrowthOperating income increased 1.5% year over year to $201.4 million. However, the operating margin contracted 110 basis points to 18.7% as costs remained aligned for a stronger demand environment entering the peak season.
Adjusted operating income rose 2% to $209.9 million, while the adjusted operating margin declined 110 basis points to 19.5%. Adjusted EBITDA increased 2.2% to $236.3 million, with the adjusted EBITDA margin contracting 120 basis points to 21.9%.
ROL Management Takes Steps to Improve ExecutionManagement noted that demand trends softened during the quarter while the company's cost structure remained positioned for stronger growth, weighing on profitability.
To address these challenges, Rollins has implemented organizational and operational changes aimed at improving local execution, strengthening accountability and better aligning resources with current demand conditions. Management also indicated that lead volumes improved toward the end of June and continued into the first few weeks of July.
Rollins Maintains Healthy Cash GenerationThe company generated operating cash flow of $172.5 million during the quarter, down 1.5% from the prior-year period. Free cash flow totaled $166.1 million, declining 1.2% year over year.
During the quarter, Rollins invested $117 million in acquisitions, spent $6.4 million on capital expenditures and paid dividends totaling $88.1 million, reflecting its continued focus on growth investments and shareholder returns.
ROL Balance Sheet Remains StrongRollins exited the quarter with cash and cash equivalents of $109.1 million compared with $100 million at year-end 2025. Long-term debt totaled $487.1 million, essentially unchanged from year-end 2025.
The company reiterated that its balance sheet remains strong and provides ample financial flexibility to pursue acquisitions, invest in long-term growth initiatives and maintain its balanced capital allocation strategy.
Rollins currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings SnapshotsWEX Inc. (WEX - Free Report) reported better-than-expected second-quarter 2026 results. WEX’s adjusted earnings per share of $5.35 outpaced the Zacks Consensus Estimate by 5.3% and increased 35.4% from the year-ago quarter. WEX’s revenues of $753.5 million surpassed the consensus estimate by 1.8% and improved 14.2% year over year.
Waste Connections, Inc. (WCN - Free Report) posted impressive second-quarter 2026 results. WCN’s adjusted earnings of $1.50 per share outpaced the consensus mark by 11.1% and rose 16.3% from the year-ago quarter. WCN’s total revenues of $2.56 billion surpassed the consensus mark by 1.1% and increased 6.4% year over year.
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Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Sonic Automotive (SAH - Free Report) Sonic Automotive is one of the leading automotive retailers in the United States. Apart from selling new and used cars and light trucks, the company offers warranties, service contracts, vehicle financing and insurance. Further, it provides maintenance and repair services, and sells replacement parts and aftermarket automotive products. Each sale of a new or used vehicle comes with financing and insurance options and helps the firm earn financing fees and insurance and other aftermarket product commissions. Each of the company’s franchised dealerships include a fully integrated service and parts department.
SAH is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 14.55; value investors should take notice.
For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.14 to $6.93 per share. SAH boasts an average earnings surprise of +5.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, SAH should be on investors' short list.
Wall Street expects a year-over-year decline in earnings on higher revenues when Sonic Automotive (SAH - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis auto dealer is expected to post quarterly earnings of $1.75 per share in its upcoming report, which represents a year-over-year change of -20.1%.
Revenues are expected to be $3.78 billion, up 3.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.35% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Sonic Automotive?For Sonic Automotive, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that Sonic Automotive will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Sonic Automotive would post earnings of $1.46 per share when it actually produced earnings of $1.62, delivering a surprise of +10.96%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Sonic Automotive doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Automotive - Retail and Whole Sales industry, Lithia Motors (LAD - Free Report) , is soon expected to post earnings of $8.67 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -15.3%. Revenues for the quarter are expected to be $9.64 billion, up 0.6% from the year-ago quarter.
The consensus EPS estimate for Lithia Motors has remained unchanged over the last 30 days. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.31%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Lithia Motors will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring 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, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: BILL Holdings (BILL - Free Report) BILL Holdings, Inc. primarily serves small and midsize businesses through its AI-powered financial operations platform that connects customers with their suppliers and clients.
BILL is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Computer and Technology stock. BILL has a Momentum Style Score of A, and shares are up 25.2% over the past four weeks.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.05 to $2.64 per share. BILL also boasts an average earnings surprise of +21.7%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, BILL should be on investors' short list.
Wall Street expects a year-over-year increase in earnings on higher revenues when Federal Signal (FSS - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis company that makes products ranging from street sweepers to toll booth technology for government, industrial and commercial customers is expected to post quarterly earnings of $1.28 per share in its upcoming report, which represents a year-over-year change of +9.4%.
Revenues are expected to be $669.62 million, up 18.6% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.13% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Federal Signal?For Federal Signal, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.55%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Federal Signal will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Federal Signal would post earnings of $0.89 per share when it actually produced earnings of $1.18, delivering a surprise of +32.58%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Federal Signal appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAnother stock from the Zacks Automotive - Domestic industry, Paccar (PCAR - Free Report) , is soon expected to post earnings of $1.33 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -2.9%. Revenues for the quarter are expected to be $7.1 billion, up 2% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Paccar has been revised 2.6% up to the current level. Nevertheless, the company now has an Earnings ESP of -0.05%, reflecting a lower Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Paccar will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
California Public Employees Retirement System reduced its holdings in Okta, Inc. (NASDAQ:OKTA – Free Report) by 2.0% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 291,645 shares of the company’s stock after selling 5,813 shares during the quarter. California Public Employees Retirement System owned 0.16% of Okta worth $22,955,000 at the end of the most recent quarter.
Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Kera Capital Partners Inc. lifted its position in shares of Okta by 18.4% during the 1st quarter. Kera Capital Partners Inc. now owns 6,394 shares of the company’s stock valued at $503,000 after acquiring an additional 993 shares during the last quarter. Assetmark Inc. lifted its holdings in shares of Okta by 81.1% during the first quarter. Assetmark Inc. now owns 719 shares of the company’s stock valued at $57,000 after purchasing an additional 322 shares during the last quarter. Bessemer Group Inc. boosted its position in shares of Okta by 2.1% in the 1st quarter. Bessemer Group Inc. now owns 32,752 shares of the company’s stock valued at $2,576,000 after purchasing an additional 682 shares during the period. SteelPeak Wealth LLC increased its stake in Okta by 2.8% in the 1st quarter. SteelPeak Wealth LLC now owns 5,166 shares of the company’s stock worth $407,000 after purchasing an additional 140 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC increased its stake in Okta by 71.9% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 3,553,091 shares of the company’s stock worth $281,209,000 after purchasing an additional 1,485,963 shares in the last quarter. 86.64% of the stock is owned by institutional investors and hedge funds.
Analyst Upgrades and Downgrades A number of analysts have commented on OKTA shares. Canaccord Genuity Group upped their price objective on shares of Okta from $95.00 to $115.00 and gave the company a “buy” rating in a research note on Friday, May 29th. Raymond James Financial downgraded shares of Okta from a “buy” rating to a “strong sell” rating in a research report on Monday, July 6th. Arete Research set a $127.00 price target on shares of Okta and gave the company a “buy” rating in a report on Tuesday, May 26th. KeyCorp upped their price target on shares of Okta from $130.00 to $175.00 and gave the company an “overweight” rating in a research report on Friday, July 10th. Finally, Jefferies Financial Group raised shares of Okta from a “buy” rating to a “buy” rating in a research note on Monday, July 6th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $121.81.
View Our Latest Research Report on Okta
Insider Buying and Selling at Okta In related news, Director Shellye L. Archambeau sold 2,500 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $85.00, for a total value of $212,500.00. Following the completion of the sale, the director owned 9,192 shares of the company’s stock, valued at approximately $781,320. The trade was a 21.38% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Larissa Schwartz sold 2,463 shares of the stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $120.00, for a total value of $295,560.00. Following the completion of the transaction, the insider owned 25,241 shares in the company, valued at $3,028,920. This represents a 8.89% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 174,224 shares of company stock worth $22,534,353 over the last quarter. Insiders own 4.61% of the company’s stock.
Trending Headlines about Okta Here are the key news stories impacting Okta this week:
Positive Sentiment: Okta is being highlighted by multiple outlets as a strong momentum stock, suggesting investor interest remains high despite the pullback. Article Title Positive Sentiment: Analysts continue to point to Okta as a beneficiary of rising enterprise AI adoption, which is supporting demand for cybersecurity, identity protection, and zero-trust tools. Article Title Positive Sentiment: Recent commentary around the AI era of cybersecurity, including the OpenAI hack discussion, reinforces the broader theme that spending on security may rise alongside AI investment. Article Title Neutral Sentiment: Okta remains one of the more widely watched stocks on Zacks, and that attention may help keep trading volume and volatility elevated. Article Title Negative Sentiment: The recent drop appears tied to no fresh negative company announcement, making the move more consistent with a post-rally cooling-off period and broader software-sector caution. Article Title Negative Sentiment: Some market participants are also worried that enterprise tech budgets could shift toward AI infrastructure, which may weigh on software spending expectations across the sector. Article Title Okta Stock Down 3.5% OKTA stock opened at $136.69 on Thursday. The company has a 50 day moving average of $121.98 and a two-hundred day moving average of $95.28. The company has a market cap of $23.76 billion, a price-to-earnings ratio of 99.05, a PEG ratio of 5.10 and a beta of 0.77. Okta, Inc. has a 12-month low of $62.66 and a 12-month high of $157.00.
Okta (NASDAQ:OKTA – Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The company reported $0.91 earnings per share for the quarter, topping analysts’ consensus estimates of $0.85 by $0.06. Okta had a net margin of 8.24% and a return on equity of 4.15%. The business had revenue of $765.00 million for the quarter, compared to the consensus estimate of $751.84 million. During the same period in the prior year, the business posted $0.86 earnings per share. Okta’s revenue for the quarter was up 11.2% compared to the same quarter last year. Okta has set its FY 2027 guidance at 3.790-3.870 EPS and its Q2 2027 guidance at 0.950-0.970 EPS. On average, research analysts anticipate that Okta, Inc. will post 1.75 EPS for the current year.
About Okta (Free Report)
Okta, Inc is a publicly traded provider of identity and access management solutions, headquartered in San Francisco, California. Founded in 2009 by Todd McKinnon and Frederic Kerrest, the company completed its initial public offering in April 2017. Under the leadership of McKinnon as chief executive officer and Kerrest as chief operating officer, Okta has grown into a leading vendor in the cybersecurity space, focusing on secure user authentication, single sign-on and lifecycle management for digital identities.
At the core of Okta’s offering is the Okta Identity Cloud, a suite of cloud-native services that enable organizations to manage user access across web and mobile applications, on-premises systems and APIs.
Featured Articles Five stocks we like better than Okta Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play Want to see what other hedge funds are holding OKTA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Okta, Inc. (NASDAQ:OKTA – Free Report).
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Key Takeaways KMI expects 2026 adjusted EBITDA over 5% above budget and adjusted EPS over 12% above plan.Natural gas projects make up 92% of KMI's $9.6 billion backlog, with additions expected to outpace burn.KMI has room to fund more projects, with each 0.1 turn of leverage adding about $850 million of capacity. Kinder Morgan, Inc. (KMI - Free Report) used its second-quarter 2026 earnings call to make a forward-looking case centered less on the quarter’s beat and more on the scale of natural gas infrastructure demand ahead.
Management’s message was that rising liquefied natural gas (“LNG”) exports, power demand and data center-related load growth are expanding the company’s project runway while leaving balance sheet flexibility intact.
KMI Raises the Bar for 2026Chief executive officer Kimberly Dang said Kinder Morgan outperformed both last year and its internal budget in the first half, prompting a higher outlook for 2026. The company now expects full-year adjusted EBITDA to finish more than 5% above budget and adjusted EPS to land more than 12% above its original plan.
That updated stance followed adjusted EPS of $0.37, up 32% year over year and above the Zacks Consensus Estimate of $0.31. Revenues rose to $4.48 billion from $4.04 billion and topped the Zacks Consensus Estimate of $4.29 billion.
Chief financial officer David Michels added that second-quarter adjusted EBITDA climbed 12% to $2.199 billion, while net debt to adjusted EBITDA ended the quarter at 3.6 times, below the company’s 3.8 times budget and at the low end of its target range.
Kinder Morgan Sees Demand Outrunning Backlog BurnExecutive chairman Richard Kinder framed the broader story around natural gas demand growth and the need for new midstream infrastructure backed by long-term contracts. He said the company expects to make final investment decisions on substantial additional projects during the rest of 2026.
Dang said the backlog slipped to $9.6 billion from roughly $10.1 billion because Kinder Morgan placed more than $650 million of projects into service, but she also noted nearly $400 million of projects have contingent board approval and are close to contract execution.
She also pointed to an opportunity set above $10 billion and said management expects project additions in the second half to more than offset roughly $1 billion scheduled to enter service in that period. Natural gas projects account for about 92% of the existing backlog.
KMI Leans Into Power and LNG Build-OutPresident Dax Sanders said natural gas transport volumes increased 7% in the quarter, supported by LNG deliveries on Tennessee Gas Pipeline, higher intrastate demand, stronger power demand on El Paso and greater exports to Mexico. Gathering volumes rose 26%, with KinderHawk in the Haynesville up 54%.
Management repeatedly tied future expansion to power generation and LNG. Sanders said Kinder Morgan is developing projects tied to more than 10 Bcf per day of gas demand in power and about 3 Bcf per day in LNG.
Dang also highlighted Wood Mackenzie’s outlook for U.S. gas demand to exceed 160 Bcf per day by 2035, with growth driven mainly by LNG exports and electricity demand. Her emphasis suggested KMI sees structural, not temporary, support for its core franchise.
Kinder Morgan Q&A Focuses on CapEx CapacityA Wells Fargo analyst pressed management on whether Kinder Morgan may need to move beyond its usual roughly $3 billion annual growth capital pace if power-related opportunities keep expanding. Dang answered that the current backlog already drives leverage lower over time and that the company has room to fund incremental spending while staying within its leverage framework.
She quantified that flexibility by saying each 0.1 turn of leverage represents about $850 million of capacity, implying meaningful room to fund more projects before reaching 4 times debt to EBITDA.
That exchange mattered because it showed management is not signaling capital restraint as the main bottleneck. The gating factor appears to be contract timing and customer commitments rather than balance sheet capacity.
KMI Uses Q&A to Sharpen Project TimelineAnalyst questions also drew out more detail on individual growth projects. On Western Gateway, Sanders said Kinder Morgan and Phillips 66 have made significant progress on agreements and could reach FID in the next month or two.
On Permian Link, Natural Gas Pipelines President Sital Mody said customer discussions are continuing and targeted the project for a 2030 in-service date, while stressing that contract support remains the key trigger for sanctioning.
Mody also described Tennessee’s Project 219 South as starting with a smaller brownfield-oriented case that can scale if market demand warrants. That answer showed Kinder Morgan is designing projects with optionality rather than committing immediately to the largest configurations.
Kinder Morgan Leaves an Expansion-First ImpressionThe call’s overall tone was confident and disciplined. Management emphasized that all business segments contributed to growth, but the center of the discussion stayed on gas infrastructure, backlog conversion and the ability to fund expansion internally.
Just as important, executives were careful not to overpromise on timing. Across multiple Q&A exchanges, they stressed the size of the opportunity set while keeping the focus on contract execution, permitting and customer negotiations.
What Zacks Signals Say on KMIKMI carries a Zacks Rank #3 (Hold), along with a Value Score of D, Growth Score of C, Momentum Score of D and VGM Score of D. In Zacks terms, the rank suggests a more neutral near-term earnings revision outlook than a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Style Scores point to a mixed profile, with the Growth Score standing above the stock’s Value, Momentum and VGM readings. Zacks’ framework generally favors Rank #1 or #2 stocks paired with an A or B Style Score, while Rank #3 names can be held but do not carry the same expected near-term performance profile. The Zacks Rank can also change as analysts revise estimates following the just-reported results.
NEW YORK--(BUSINESS WIRE)--Eversource, National Grid, EnergyHub, Sunrun, and The Mobility House — leaders in grid flexibility and smart charging technology — today announced a joint effort to test vehicle-to-grid (V2G) capabilities in Massachusetts. Under this effort, qualifying residential customers of Eversource and National Grid in Massachusetts will be able to enroll their V2G-capable electric vehicles (EVs) in ConnectedSolutions. The existing ConnectedSolutions program uses flexible capaci.
The market expects Eversource Energy (ES - Free Report) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis New England power provider is expected to post quarterly earnings of $0.92 per share in its upcoming report, which represents a year-over-year change of -4.2%.
Revenues are expected to be $3.04 billion, up 7.1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.75% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Eversource?For Eversource, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.14%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Eversource will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Eversource would post earnings of $1.59 per share when it actually produced earnings of $1.73, delivering a surprise of +8.81%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Eversource doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsWEC Energy Group (WEC - Free Report) , another stock in the Zacks Utility - Electric Power industry, is expected to report earnings per share of $0.81 for the quarter ended June 2026. This estimate points to a year-over-year change of +6.6%. Revenues for the quarter are expected to be $2.07 billion, up 3.1% from the year-ago quarter.
The consensus EPS estimate for WEC Energy has been revised 5.3% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.83%.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that WEC Energy will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Why the Comcast Spin-Off Won't Fix What's Actually BrokenComcast NASDAQ: CMCSA executives said the company’s second-quarter results reflected progress in wireless, streaming and studios, while broadband and theme parks remained under pressure amid competitive and macroeconomic challenges.
On the company’s earnings call, Chairman and Co-CEO Brian Roberts and Co-CEO Mike Cavanagh also emphasized the strategic separation Comcast announced three weeks earlier, saying the company is moving toward creating two focused businesses with investment-grade financial profiles.
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Comcast Highlights Separation Plans Comcast’s NBCUniversal Split Puts Broadband Back in FocusRoberts said feedback from employees, partners and other constituencies has been “overwhelmingly positive” since the separation announcement. He said the structure is intended to give both businesses “the focus and agility to win in markets that are changing fast.”
Cavanagh said Comcast is working through details of the transaction with a goal of completing the separation in approximately one year. He said a key focus is the balance sheet and capital structure, with the intention of setting up both companies with “strong investment-grade profiles” and financial flexibility to pursue growth strategies.
3 Low P/E Stocks: Separating Multibaggers From a Value TrapCFO Jason Armstrong said Comcast paused share repurchases as of July 1 and expects to remain paused through the separation. He said the priority is ensuring both businesses are well-capitalized with favorable investment-grade ratings.
Second-Quarter Results Reflect Growth and Investment Pressures Armstrong said second-quarter revenue increased 5% on a pro forma basis, partly benefiting from Telemundo and Peacock’s airing of the FIFA World Cup. Adjusted EBITDA declined 5%, which he attributed to investment in Comcast’s Connectivity & Platforms business and the first year of NBA rights costs in Content & Experiences. Adjusted earnings per share were $1.04.
Comcast generated $4.6 billion of free cash flow in the quarter and returned $2.1 billion to shareholders, including $900 million in share repurchases before the July pause. Armstrong noted that Comcast issued updated pro forma schedules reflecting the removal of Sky Germany after the sale of that business on May 31.
In Connectivity & Platforms, Cavanagh said results were broadly in line with prior commentary. He described Comcast as being nearly a year into a deliberate broadband pivot focused on simplified pricing and packaging, improved customer experience and a stronger push into wireless.
Armstrong said broadband subscriber losses improved by 34,000 year over year to a loss of 167,000. However, broadband average revenue per user declined 3.8%, reflecting simplified pricing, lower everyday price points and the impact of free wireless lines. Connectivity & Platforms EBITDA declined 5.8%.
Armstrong said Comcast expects “modest improvements” beginning in the third quarter as the company laps early go-to-market investments and more free wireless lines convert to paid relationships.
Wireless Posts Record Additions as Broadband Competition Remains Intense Wireless was a major focus of management’s remarks. Cavanagh said Comcast crossed 10 million wireless lines for the first time in the quarter, calling it a meaningful milestone. Armstrong said the company ended the quarter with 10.2 million total lines, representing 17% penetration of Comcast’s domestic residential broadband customer base and 7% of the total wireless line opportunity in its footprint.
Comcast added 448,000 net wireless lines in the quarter, its best quarter on record. Armstrong said roughly half of residential postpaid phone connects came from customers taking a free line, while premium unlimited plans accounted for about 30% of postpaid phone connects.
Steve Croney, CEO of Connectivity and Platforms, said the free-line offer is driving awareness and allowing customers to trial the product. He said a “significant majority” of customers rolling off free lines are converting to paid, consistent with expectations.
On broadband competition, Croney said the market remains intense, citing continued fiber expansion, fixed wireless aggressiveness and satellite as an emerging competitor. Armstrong said Comcast is not currently seeing Starlink as a meaningful competitive factor in its markets, but expects satellite to become more competitive over time, particularly in rural and underserved areas.
Armstrong said Comcast’s strategy is to improve its competitive position through its network, Wi-Fi product and customer experience. He added that Comcast already works with Starlink in Comcast Business by combining Comcast’s managed connectivity portfolio with satellite capabilities for enterprise customers.
Business services revenue grew 3.7% and EBITDA increased 5%, though Armstrong said both benefited from a non-recurring item tied to a long-term fiber lease renewal. Excluding that benefit, underlying revenue and EBITDA growth were just under 3%. He said enterprise solutions continue to drive growth, with larger customers seeking more complex connectivity, security and managed services.
Peacock Reaches Profitability; Media and Studios Strengthen Comcast’s media segment delivered stronger results, with Cavanagh saying it generated mid-single-digit EBITDA growth. Armstrong said media revenue increased 25% and EBITDA increased 4%, even as the company absorbed first-year NBA rights costs.
Peacock reached profitability for the first time, generating $189 million of EBITDA in the quarter, according to Armstrong. Peacock revenue increased 54%, with distribution revenue up more than 50% and advertising revenue up nearly 70%. Paid subscribers rose by 2 million sequentially to 48 million, and Armstrong said Peacock had 7 million more paid subscribers than a year earlier.
Cavanagh said Peacock’s profitability is an important milestone but added that results will vary by quarter because of sports schedules and content timing. He said the company expects Peacock profitability to continue improving on an annual basis.
Management pointed to the FIFA World Cup, NBA playoffs and “Love Island” as engagement and advertising drivers. Cavanagh said the World Cup delivered the biggest Spanish-language sporting event in U.S. media history for Telemundo and Peacock, while “Love Island” was the top overall streaming title in the U.S. this summer.
Studios also had a strong quarter. Armstrong said Studios revenue increased 25% and EBITDA rose by $141 million year over year, driven by releases including the “Super Mario Galaxy” movie, “Obsession” and international distribution of “Michael.” Cavanagh also highlighted “Minions & Monsters,” “Disclosure Day” and “The Odyssey” as contributors to the studio slate’s momentum.
Parks Face Attendance Pressure, but Long-Term Outlook Unchanged Theme parks revenue increased 3%, while EBITDA declined 5%. Armstrong said the EBITDA decline was primarily driven by continued pressure at Osaka, where China-related travel restrictions are affecting attendance. U.S. parks partially offset that pressure.
Cavanagh said the Orlando market softened beginning in June, and that trend has continued into the third quarter. He attributed the weakness mainly to attendance rather than per-capita spending, citing weaker consumer sentiment and higher travel costs as possible factors.
Epic Universe continues to perform in line with expectations, according to Cavanagh, who said guest response remains strong and the park is helping strengthen Orlando as a multi-destination resort. He said the broader softness does not change Comcast’s long-term view of the parks business.
Executives also discussed Sky’s proposed acquisition of ITV’s media and entertainment business. Cavanagh said the deal would strengthen Sky’s long-term position in the U.K. by combining Sky’s premium content, connectivity and sports leadership with ITV’s reach and digital user base.
Roberts closed his prepared remarks by saying Comcast is positioned for an AI-driven technology cycle that will require more data, bandwidth, lower latency and smarter networks. He said the company’s network roadmap includes multi-gig, symmetrical and low-latency capabilities, which he believes will support Comcast’s long-term competitive position.
About Comcast (NASDAQ:CMCSA)Comcast Corporation NASDAQ: CMCSA is a diversified global media and technology company headquartered in Philadelphia, Pennsylvania. Its principal operations are organized around Comcast Cable, which provides broadband internet, video, voice and wireless services to residential and business customers in the United States under the Xfinity and Comcast Business brands, and NBCUniversal, a media and entertainment group that develops, produces and distributes content across broadcast and cable networks, film, and streaming platforms.
NBCUniversal's assets include the NBC broadcast network, a portfolio of cable channels, Universal Pictures and other film and television production businesses, and the Peacock streaming service.
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Using the word “independent” multiple times to describe NBCUniversal‘s forthcoming independence, Comcast Co-CEOs Brian Roberts and Mike Cavanagh said they are already talking with potential partners.
Speaking to Wall Street investors on Comcast’s second-quarter earnings call Thursday, the execs said NBCU has started to explore its options. In an apparent reference to this month’s edition of the annual Allen & Co. Sun Valley event for media and tech execs, Roberts said, “We just came from one of the conferences, and there’s just great ideas, and I’m excited about the road ahead to expand the partnerships we’ve already got.”
Cavanagh added that NBCU is “in a great position to partner with others.”
The comments were the first in an earnings context by Comcast execs since the company announced its plan to split into two separate companies. One, anchored by NBCUniversal and Sky, will focus on entertainment content, while the other will operate the legacy cable TV, broadband and wireless networks. The separation is expected to be completed by next summer.
Asked about whether NBCU will have enough scale to be a viable player, or whether it might instead merge or acquire another company in the sector, Cavanagh called it “an extremely valuable collection of assets.” He said NBCU and Sky “do have the heft and the relationships and the operational capabilities to continue to be a major player, as an independent.” The split, he added, will “give it the focus and opportunity and platform to invest behind the growth opportunities that it has in its own businesses, and the spaces around these businesses that offer growth, and where the business has the right to play.”
The exec name-checked various networks and studio operations, throwing in viewership stats and reach metrics.
Sports is a key element in the mix, Cavanagh said, noting this year’s Super Bowl, Winter Olympics and World Cup coverage, plus ongoing deals with the NFL, NBA and others. “Our relationships with our leagues go way beyond our financial terms of our deals,” he maintained. “We’ve built very longstanding relationships that are growing their audiences, elevate the presentation of their sports for the long term, and expand the value of their rights, frankly. And then we do that through the world-class production that we are known for, great distribution across both broadcast and streaming, and the ability to reach fans at scale.”
Ultimately, Cavanagh said, “We do feel really good about the business that we have. We do think that these assets are incredibly valuable. We love the fact that they operate well together.” At the same time, he continued, “As an independent, we take all these great assets and we are willing to partner with others. So other strategies are a little more walled gardens. Our approach is to build great businesses that serve our own platforms, but look for opportunities to partner or bundle, and exhibit other people’s IP in our parks, and create IP in our studios that go to other platforms. I think that’s a good strategy for the collection of assets we have, and I think it presents a path for growth in this business over time.”
Roberts said said “being independent” will enable NBCU to “partner well, and to bring to life people’s dreams and content, and sporting events, and the like.”
For the quarter ended June 2026, Comcast (CMCSA - Free Report) reported revenue of $29.94 billion, down 1.2% over the same period last year. EPS came in at $1.04, compared to $1.25 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $29.18 billion, representing a surprise of +2.62%. The company delivered an EPS surprise of +7.22%, with the consensus EPS estimate being $0.97.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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 Comcast performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Additions / (Losses) - Total Domestic Wireless Lines: 448 thousand versus the four-analyst average estimate of 401.29 thousand.Total Domestic Wireless Lines: 10.19 million compared to the 10.14 million average estimate based on four analysts.Total Domestic Video Customers: 10.67 million versus the four-analyst average estimate of 10.67 million.Net Additions / (Losses) - Total Domestic Broadband Residential Customers: -167 thousand versus the four-analyst average estimate of -161.46 thousand.Revenue- Connectivity & Platforms- Total: $19.8 billion versus $19.72 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -2.9% change.Revenue- Content & Experiences- Total: $10.73 billion versus the six-analyst average estimate of $9.8 billion. The reported number represents a year-over-year change of +1%.Revenue- Residential Connectivity & Platforms- Other: $1.13 billion compared to the $1.13 billion average estimate based on five analysts. The reported number represents a change of -6.6% year over year.Revenue- Residential Connectivity & Platforms- Video: $6.09 billion versus $6.13 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -9.4% change.Revenue- Content & Experiences- Media: $5.69 billion versus the five-analyst average estimate of $5.42 billion. The reported number represents a year-over-year change of -11.6%.Revenue- Content & Experiences- Studios: $3.04 billion versus $2.64 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +25% change.Revenue- Content & Experiences- Theme Parks: $2.41 billion compared to the $2.47 billion average estimate based on five analysts. The reported number represents a change of +2.7% year over year.Revenue- Residential Connectivity & Platforms- Residential Connectivity- Domestic convergence- Domestic broadband: $6.28 billion versus the five-analyst average estimate of $6.25 billion. The reported number represents a year-over-year change of -3.8%.View all Key Company Metrics for Comcast here>>>
Shares of Comcast have returned +3.9% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
