Track market-moving stories before they get noisy

By You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

McDonald's is facing challenges with its value menu. Robert Nickelsberg/Getty Images McDonald's is facing big problems with some of the cheapest items on its menu.

The fast-food giant is rethinking its approach to value-priced options after a rough few months, executives said on Tuesday.

CEO Chris Kempczinski pointed to multiple problems on the company's second-quarter earnings call. The chain cut back on digital discounts, alienating some of its most loyal patrons. It also struggled to roll out its new under-$3 value menu to restaurants. And McDonald's had too many promotions too close together, from special World Cup meals to new refresher beverages.

McDonald's quarterly US sales growth slowed down as a result.

"We don't have a strategy problem," Kempczinski said. "We simply didn't execute at the level we needed to in the second quarter."

McDonald's has plenty of competition, with rivals eager to offer diners deals on a cheap burger.

We want to know what you think. Whether you're a weekly McDonald's customer or have stopped going altogether, we're interested in hearing your thoughts on the chain's value and prices.

Do you have a story idea about McDonald's? Contact this reporter at [email protected] or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

Read next

Alex Bitter You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansion, Starbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at [email protected] or via encrypted messaging app Signal at +1 (808) 854-4501.

Fast Food Food

Key Takeaways WFC launches tokenized deposits enabling real-time on-chain payments and settlements for corporate clients.BNY partners with Galaxy Digital to add staking to its Digital Asset Custody platform, pending approval. WFC and BNY expand blockchain services to address digital asset demand and support future growth prospects. Wells Fargo & Company (WFC - Free Report) and The Bank of New York Mellon Corporation (BNY - Free Report) are expanding their digital assets capabilities as they move beyond their traditional crypto custody into blockchain-based financial services.

Wells Fargo has announced tokenized deposits for corporate clients to enable real-time on-chain payments and settlements, while BNY has partnered with Galaxy Digital (GLXY - Free Report) to add staking to its Digital Asset Custody platform. Although the initiatives target different areas of digital finance, they reflect a broader shift among large banks toward integrating blockchain technology into core financial services. As institutional demand for digital asset solutions continues to grow, both banks are expanding their service offerings to address evolving client needs and position themselves for long-term growth.

For Wells Fargo, the initiative is expected to enhance treasury management through programmable payments enabled by smart contracts, allowing funds to be released based on predefined conditions. The bank is also participating in a shared tokenized deposit network with JPMorgan, Bank of America and Citigroup through The Clearing House, aimed at enabling 24/7 blockchain-based payments, real-time liquidity management and cross-border settlements. The tokenized deposits solution retains the same regulatory protections and deposit insurance eligibility as the bank’s existing deposit products, allowing clients to benefit from blockchain-based functionality within the regulated banking system.

Meanwhile, BNY has partnered with Galaxy Digital to integrate staking into its Digital Asset Custody platform, combining custody and staking under a single institutional servicing model, subject to regulatory approval. Galaxy Digital will also serve as a design partner to enhance the bank’s blockchain infrastructure. The collaboration also builds on BNY's June 2026 partnership expansion with Circle Internet Group to support USDC on its Digital Asset Custody platform, reinforcing the bank's focus on institutional digital finance.

Although these initiatives are unlikely to materially affect near-term financial performance, they demonstrate the WFC and BNY’s commitment to evolving alongside changing market dynamics. Continued investment in innovative financial solutions could help strengthen customer relationships, broaden fee-generating opportunities, and support sustainable long-term growth as the financial services industry undergoes digital transformation.

Comparing Stock Performance: WFC vs. BNYOver the past year, shares of Wells Fargo have risen 13.4%, significantly trailing the 55.8% increase recorded by BNY.

Image Source: Zacks Investment Research

Bank of New York Mellon Corporation currently sports a Zacks Rank #1 (Strong Buy), while Wells Fargo carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways First Solar beat Q2 earnings estimates, reaffirmed 2026 guidance and topped 100 GW module sales. FSLR's 45.1 GW backlog worth $13.6B and wider gross margins supported investor optimism.CTEC ranks among the ETFs with significant exposure to First Solar. Shares of First Solar Inc. (FSLR - Free Report) gained 2.5% on July 31, 2026, following the release of its second-quarter results after the market closed on July 30. The stock continued its upward momentum over subsequent trading sessions, surging 18.3% since the announcement.

The solar panel manufacturer comfortably surpassed Wall Street's earnings expectations, despite narrowly missing revenue estimates.

This rally in FSLR’s share price reflects increased investor optimism surrounding its strong profitability. The earnings beat, driven by expanding gross margins and strong operational execution, coupled with reaffirmed full-year guidance, provides confidence in FSLR's near-term momentum and reinforces its position as the largest solar panel manufacturer in the United States.

However, direct equity ownership in FSLR carries distinct single-stock concentration risks. As a domestic manufacturer, First Solar’s long-term profitability remains heavily dependent on federal policy incentives as well as favorable trade protections against foreign solar module imports.

Against this backdrop, investors looking to capitalize on First Solar's upward momentum while maintaining a diversified approach may want to focus on exchange-traded funds (ETFs) that hold significant exposure to the stock. 

But before identifying those specific ETFs, it is worth taking a closer look at the key metrics behind First Solar's impressive quarterly beat and the solid contracted backlog that underpins its multi-year outlook.

Brief Analysis of FSLR's Q2 ResultsThe bottom line surpassed the Zacks Consensus Estimate by 1.2%, while revenues missed the consensus mark by 0.4%. A similar trend was visible on a year-over-year basis as well, with its top line declining 4% but bottom line improving 23.3%.   

The sales decline was on account of lower revenues associated with customer contract terminations. 

The company reached an important milestone in the second quarter, exceeding 100 gigawatts (GW) of cumulative module sales globally. As of June 30, 2026, FSLR’s contracted backlog totaled 45.1 GW with an aggregate transaction value of $13.6 billion. 

Its gross margin expanded 1180 basis points (bps) from the second quarter of 2025, driven by net IEEPA tariff-related benefit, higher mix of modules qualifying for Section 45X tax credits and lower logistics costs. 

Looking ahead, FSLR’s South Carolina facility is expected to provide up to 3.5 GW of finishing capacity for modules, with the first phase of the finishing facility remaining on track to begin production in the second half of 2026. FSLR expects the second phase of the facility to be completed by mid-2027. The company expects its 2026 results to reflect a net-tariff impact of $60 million to $80 million.

First Solar-Heavy ETFs in FocusInvesco Solar ETF (TAN - Free Report)   

This fund, with a market value worth $1.41 billion, provides exposure to 35 companies from the solar energy industry. Of these, First Solar takes the first spot, holding 10.60% of the fund.  

TAN has gained 8.7% year to date and charges 70 basis points (bps) in fees. 

Virtus Duff & Phelps Clean Energy ETF (VCLN - Free Report)   

This fund, with net assets worth $5.6 million, provides exposure to companies involved in clean energy innovation and commercialization across the utility, industrial, technology and energy sectors. First Solar takes the first spot in VCLN's holdings, comprising 8.71% of the fund.  

VCLN has rallied 12.2% year to date and charges 59 bps in fees. 

iShares Global Clean Energy ETF (ICLN - Free Report)   

This fund, with net assets worth $2.25 billion, offers exposure to 105 global companies involved in clean energy. Of these, First Solar takes the first spot, holding 8.67% of the fund. 

ICLN has risen 12.2% year to date and charges 39 bps in fees.  

Global X CleanTech ETF (CTEC - Free Report)   

This fund, with net assets worth $25.5 million, offers exposure to 40 companies involved in renewable energy production, energy storage, smart grid implementation, residential/commercial energy efficiency, and/or the production and provision of pollution-reducing products and solutions. Of these, First Solar takes the second spot, holding 7.43% of the fund.  

CTEC has rallied 10.1% year to date and charges 50 bps in fees.  

Key Takeaways GILD beat Q2 revenue estimates as HIV, Trodelvy and Livdelzi drove 10% year-over-year sales growth. Gilead raised 2026 HIV and product sales guidance as Biktarvy, Descovy and Yeztugo delivered strong growth. GILD reported a wider loss from acquisition charges while advancing HIV and oncology regulatory milestones. Gilead Sciences, Inc. (GILD - Free Report) reported a second-quarter 2026 adjusted loss of $6.75 per share, narrower than the Zacks Consensus Estimate of a loss of $7.07. In the year-ago quarter, GILD posted adjusted earnings of $2.01 per share.

The significant decline was due to acquired in-process research and development (IPR&D) expenses related to the acquisitions of Arcellx, Tubulis and Ouro Medicines.

Revenues increased 10% year over year to $7.80 billion, which beat the Zacks Consensus Estimate of $7.37 billion. Growth was driven by the HIV portfolio, along with Trodelvy and Livdelzi. Product sales excluding Veklury rose 10% to $7.60 billion.

Shares of GILD have gained 10.2% year to date compared with the industry’s growth of 0.8%.

Image Source: Zacks Investment Research

GILD's HIV Franchise Drives GrowthHIV product sales increased 12% year over year to $5.69 billion, reflecting higher average realized prices and demand. The figure beat the Zacks Consensus Estimate of $5.4 billion and our model estimate of $5.35 billion.

Flagship HIV therapy Biktarvy sales rose 7% to $3.80 billion, driven by pricing, favorable inventory dynamics and higher demand. Sales surpassed the Zacks Consensus Estimate of $3.65 billion and our model estimate of $3.72 billion.

Biktarvy continues to lead as the regimen of choice for both naive and switch patients across major markets.

Descovy sales jumped 48% to $967 million, comfortably exceeding the Zacks Consensus Estimate of $750 million and our model estimate of $701 million. The increase reflected higher demand and realized prices, particularly in HIV prevention.

Incremental sales of newly approved Yeztugo (lenacapavir) for pre-exposure prophylaxis (PrEP) also boosted HIV product sales. Yeztugo raked in sales of $232 million in the second quarter.

Driven by a $4 billion annualized PrEP business and the continued strong performance of Biktarvy, Gilead raised its full-year HIV sales growth guidance to 9-10% from the previous 8% forecast. GILD continues to expect Yeztugo sales of approximately $1 billion in 2026.

Gilead's Liver Disease Portfolio Sales AdvanceLiver Disease portfolio sales increased 10% to $877 million. The figure topped the Zacks Consensus Estimate of $800 million and our model estimate of $787 million. Higher demand for Livdelzi, hepatitis B treatments and Hepcludex more than offset lower hepatitis C product sales.

GILD's Cell Therapy Sales Face PressureCell Therapy sales declined 14% year over year to $417 million amid continued competitive headwinds. The figure matched the Zacks Consensus Estimate but came below our model estimate of $418.8 million.

Yescarta sales decreased 12% to $346 million due to competition. Tecartus sales fell 24% to $70 million because of in-class competition.

Gilead now expects full-year Cell Therapy sales to decline by a mid-teens percentage.

Trodelvy Boosts GILD’s Q2 RevenuesTrodelvy sales increased 26% year over year to $457 million, beating the Zacks Consensus Estimate of $448 million and our model estimate of $427 million. Growth reflected stronger demand across triple-negative and previously treated HR-positive/HER2-negative metastatic breast cancer.

The recent first-line metastatic triple-negative breast cancer approvals expand Trodelvy's addressable population. Management said adoption has broadened following regulatory approvals and treatment guideline updates.

Gilead's Costs Reflect Acquisition ChargesAdjusted product gross margin remained unchanged year over year at 86.9%. Adjusted research and development expenses declined 1% to $1.43 billion, as lower oncology clinical study activity offset costs associated with newly acquired businesses.

Adjusted selling, general and administrative expenses increased 12% to $1.52 billion, mainly due to higher HIV promotional spending. Acquired in-process research and development expenses totaled $11.2 billion, primarily related to the Arcellx, Tubulis and Ouro Medicines acquisitions.

As of June 30, 2026, Gilead's cash, cash equivalents and marketable debt securities totaled $3.2 billion, down from $10.6 billion as of Dec. 31, 2025. The decline was primarily due to $11.3 billion in acquisition-related cash outflows, $2.8 billion in debt repayments, $2.1 billion in dividend payments and $774 million in share repurchases.

These acquisition-related charges were the main reason for the adjusted quarterly loss. Excluding the acquisitions and nonrecurring other revenues, management indicated that adjusted earnings would have been $2.27 per share.

GILD Raises 2026 Base Business OutlookGilead now expects product sales of $30.10-$30.40 billion in 2026, up from the earlier expectation of $30.00-$30.40 billion. Product sales excluding Veklury are projected to be in the band of $29.80-$30.10 billion, up from the previous guidance of $29.40-$29.80 billion.

Veklury sales are now expected to be approximately $300 million, down from the earlier forecast of around $600 million, reflecting fewer COVID-19-related hospitalizations. Adjusted loss per share is projected between 30 cents and 65 cents compared with the previous loss guidance of 65 cents-$1.05.

The improved adjusted earnings outlook reflects stronger base-business sales.

Key Pipeline and Regulatory Updates From GILDThe FDA accepted Gilead's supplemental new drug application for Yeztugo (lenacapavir) 300 mg tablets as a potential once-weekly oral HIV PrEP regimen, with a target date of Feb. 2, 2027.

Gilead and partner Merck (MRK - Free Report) reported positive phase III results from the ISLEND-1 and ISLEND-2 studies, demonstrating the potential of the investigational once-weekly oral combination of islatravir and lenacapavir in virologically suppressed adults with HIV.

The FDA also granted accelerated approval to Hepcludex for the treatment of chronic hepatitis D virus (HDV) infection in adults without cirrhosis or with compensated cirrhosis, making it the first and only FDA-approved therapy for HDV in the United States.

Trodelvy received FDA approval for first-line metastatic triple-negative breast cancer (mTNBC), as a monotherapy for patients who are not candidates for PD-1/PD-L1 inhibitor-based therapy or in combination with Merck’s Keytruda combination with Keytruda (pembrolizumab) or Keytruda Qlex (pembrolizumab and berahyaluronidase alfa-pmph) for patients whose tumors express PD-L1 (CPS ≥10).

The European Commission approved Trodelvy monotherapy for first-line unresectable locally advanced or metastatic TNBC in patients ineligible for PD-1/PD-L1 therapy.

The EMA's CHMP issued a positive opinion for Trodelvy plus Keytruda as a first-line treatment for PD-L1-positive unresectable locally advanced or metastatic TNBC.

However, Gilead and partner Merck announced that the phase III EVOKE-03 study was discontinued. The study was evaluating Trodelvy plus Keytruda in first-line PD-L1-high metastatic non-small cell lung cancer after an independent review found the study was unlikely to meet its efficacy goals.

Our Take on GILD’s Q2 PerformanceGilead delivered a strong second quarter, with both earnings and revenues exceeding expectations. The HIV franchise remains the principal growth engine, supported by Biktarvy's durability and rapid expansion of the prevention business.

Descovy and Yeztugo’s strong performance is boosting the top-line growth. Per GILD, Yeztugo has quickly become the leading long-acting PrEP option for new patient starts.

Management's higher HIV outlook reinforces the franchise's near-term momentum.

The FDA had earlier accepted Gilead’s new drug application for bictegravir/lenacapavir (BIC/LEN) for virologically suppressed people living with HIV under priority review, setting a target action date of Aug. 27, 2026.  A potential approval of BIC/LEN will further bolster its HIV portfolio.

Approval of additional better treatments should bolster GILD’s HIV franchise in the wake of increasing competition from the likes of GSK plc (GSK - Free Report) .

HIV sales account for a major chunk of GSK’s Specialty Medicines portfolio. GSK continues to grow its HIV business, driven by strong patient demand for long-acting injectable medicines (Cabenuva and Apretude) and Dovato. The solid growth from these drugs has helped GSK combat the decline in Triumeq sales.

Trodelvy and Livdelzi are adding meaningful diversification, while additional approvals could expand their growth runway.

Gilead’s recent aggressive dealmaking strategy, including the acquisitions of Arcellx and Tubulis, underscores its commitment to diversifying beyond its core HIV franchise and expanding into higher-growth oncology and immunology markets.

Launch preparations are underway for anito-cel (added from Arcellx acquisition), which has a Dec. 23 regulatory action date for heavily pretreated relapsed or refractory multiple myeloma.

The Tubulis acquisition added next-generation antibody-drug conjugate (“ADC”) assets, including GS-8824, a NaPi2b-directed topoisomerase-I inhibitor ADC, and a platform to develop novel ADCs, to GILD’s pipeline.

However, competitive pressure in Cell Therapy remains a notable weakness, and recent acquisitions have created substantial near-term earnings volatility.

GILD’s Zacks Rank

Key Takeaways Palantir shares rose 21.6% in a month as AI adoption and financial execution strengthened.Commercial revenue surged 109.7%, led by 149% growth in U.S. commercial sales.PLTR's 88.5X forward earnings multiple leaves little room for slower growth or weaker margins. Palantir Technologies Inc. (PLTR - Free Report) shares have advanced 21.6% in the past month, beating the sub-industry's 5.1% gain, extending a rally backed by faster AI adoption and sharply improved financial execution.

                                                                  Image Source: Zacks Investment Research

The central question is whether Palantir can continue exceeding elevated expectations. Its growth, margins and cash generation support the bullish case, but a demanding valuation leaves little room for a slowdown.

Palantir’s Growth Signals StrengthenedSecond-quarter revenues climbed 92.8% year over year to $1.94 billion. Earnings increased 156.3% to 41 cents per share, showing that profit growth continued to outpace the top line.

Results also cleared expectations. Revenues beat the consensus mark by 7.2%, while earnings delivered a 17.1% surprise. Those gains suggest that demand and operating leverage were stronger than investors had anticipated.

PLTR’s Commercial Engine Is AcceleratingCommercial revenues rose 109.7% year over year, outpacing 79% growth in government revenues. The mix matters because it broadens Palantir’s expansion beyond the government customers that historically anchored its business.

Palantir closed 220 deals valued at $1 million or more. U.S. commercial revenue jumped 149%, indicating that AIP adoption is gaining traction among enterprises seeking to deploy AI within operational workflows.

Palantir’s Margins and Cash Flow Add SupportAdjusted gross margin reached 86%, while adjusted operating margin was 62%. These levels show that rapid revenue growth is translating into substantial operating leverage rather than being absorbed by an equally fast rise in costs.

Adjusted free cash flow was roughly 63% of revenues. Palantir also ended the quarter with $9.2 billion in cash, cash equivalents and short-term U.S. Treasury securities, giving it ample capacity to fund product development and customer deployments while scaling.

PLTR’s Valuation Raises the BarPLTR trades at 88.5X forward earnings, far above the comparable sub-industry. That premium reflects exceptional growth, but it also assumes that the company can sustain unusually high expansion and profitability.

                                                                 Image Source: Zacks Investment Research

Further gains may therefore depend on continued earnings beats and upward estimate revisions. Even a solid quarter could disappoint investors if revenue growth, contract activity or margins fail to match the expectations embedded in the stock.

Palantir Still Faces Execution RisksCompetition remains intense. Microsoft Corporation (MSFT - Free Report) offers Microsoft Foundry for building and governing enterprise AI applications and agents, while Amazon.com, Inc. (AMZN - Free Report) provides similar production-scale capabilities through Amazon Bedrock. Alphabet Inc. (GOOGL - Free Report) also targets enterprise agent development through Google Cloud’s Gemini Enterprise Agent Platform.

Palantir has committed to spend at least $5.6 billion on cloud services through February 2036, reducing cost flexibility if demand moderates. Credit concentration adds another risk, as one customer represented 27% of accounts receivable at June 30, 2026.

PLTR’s Growth and Momentum Scores Support the RallyPalantir’s operating momentum supports the recent share-price strength, but valuation remains the key restraint. Sustaining the rally will likely require continued execution across commercial adoption, contract growth, margins and cash flow.

The stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Coupled with a Growth Score of A and Momentum Score of B, those readings favor its growth and near-term momentum characteristics. A Value Score of F and VGM Score of C, however, show that the stock’s premium valuation limits its broader style appeal.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) stock is sliding on Wednesday as chip names digest a mixed tape.

The Nasdaq is down 0.06% while the S&P 500 has gained 0.27%.

• Taiwan Semiconductor stock is showing positive momentum. What’s the outlook for TSM shares?

The contract chipmaker is expanding advanced chip production as AI customers increase demand for higher-performance, lower-power 3nm and 2nm technologies.

AI Demand Drives 3nm ExpansionTSMC has raised this year’s capital expenditure plan to $60 billion to $64 billion, with about 70% to 80% of that spending directed toward advanced process technologies.

TSMC Adds Capacity Across Key SitesThe company is adding three new 3nm fabrication plants in Taiwan, Arizona and Kumamoto, Japan, while also converting some existing 5nm production lines to support more 3nm capacity.

Demand for TSMC’s 2nm process also remains strong, with monthly wafer output expected to approach 100,000 wafers by the end of the year, in line with the company’s production roadmap.

Technical AnalysisFrom a trend perspective, TSMC is still in a longer-term uptrend, trading about 15.7% above its 200-day SMA ($358.98) and about 4% above its 100-day SMA ($399.47). The near-term picture is choppier: the stock is about 2.5% below its 50-day SMA ($425.84), and the 20-day SMA ($410.99) remains below the 50-day SMA, a short-term bearish alignment.

Earnings & Analyst OutlookLooking further out, the next major catalyst for the stock arrives with the Oct. 15 (estimated) earnings report.

EPS Estimate: $4.03 (Up from $2.92 year-over-year) Revenue Estimate: $42.75 billion (Up from $33.10 billion YoY) Valuation: P/E of 36.6x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $551.67. Recent analyst moves include:

Needham: Buy (Raises target to $530 on July 27) DA Davidson: Buy (Raises target to $500 on July 17) TD Cowen: Hold (Raises target to $440 on July 17) Top ETF ExposureSignificance: Because TSMC carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely trigger automatic buying or selling of the stock.

TSM Price ActionTaiwan Semiconductor shares were down 0.55% at $414.88 at the time of publication on Wednesday, according to Benzinga Pro data.

Image via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

Key Takeaways Lockheed Martin's record $230B backlog and major awards support long-term revenue visibility and growth.LMT is expanding missile production and international partnerships to meet sustained defense demand.LMT trades below industry valuation, but execution risks and elevated debt warrant investor caution. Lockheed Martin’s (LMT - Free Report) shares have risen 15.5% over the past three months, outperforming the Zacks Aerospace-Defense industry’s growth of 12.2%. The company’s record backlog, expanding munitions capacity and alignment with U.S. and allied defense priorities support durable growth.
 

Image Source: Zacks Investment Research

Shares of other defense stocks, such as General Dynamics (GD - Free Report) and RTX Corporation (RTX - Free Report) , have also risen during the same period. Shares of General Dynamics and RTX have risen 10.5% and 26.1%, respectively, over the same time frame.

Considering Lockheed Martin’s outperformance, investors might be left wondering if this is a good time to add LMT stock to their portfolio. Let's examine the factors that contributed to the share price gain and assess the stock's investment prospects to make an informed decision.

Tailwinds for LMT StockLockheed Martin stands out for its broad portfolio and the scale of its established franchises, including the F-35, PAC-3, THAAD, PrSM, HIMARS, Aegis and strategic space programs. Its combat-proven systems and willingness to invest in production capacity before formal awards also strengthen its ability to respond quickly as customer priorities shift.

LMT is converting elevated demand into longer-duration awards that improve revenue visibility and support capacity planning. Backlog reached a record $230 billion as of June 28, 2026, after the company booked $65 billion of second-quarter orders and achieved a 3.2 book-to-bill ratio. The total includes a seven-year, $35 billion contract to quadruple THAAD interceptor production, alongside new GMLRS, HIMARS, radar and space awards. Management said this contract base should fuel sales growth for years.

International customers represented 28% of LMT’s 2025 sales, providing a broad demand base beyond U.S. programs. The company is extending that presence through co-production and regional sustainment initiatives. It signed an agreement with Rheinmetall to pursue ATACMS production in Europe and is supporting exploration of a dedicated European PAC-3 maintenance facility.

On July 29, the U.S. Department of War awarded Lockheed Martin a seven-year, multiyear contract worth up to $58.62 billion to produce PAC-3 MSE Patriot interceptor missiles under its Acquisition Transformation Strategy. The funding also supports LMT’s plan to triple PAC-3 MSE production by 2030 and expand employment at its Camden, AR, facility by roughly 50%. This improves operating leverage while positioning the company to benefit from sustained global demand for advanced air and missile defense systems amid rising geopolitical tensions.

Challenges for LMT StockLockheed Martin remains exposed to cost-estimate and schedule risk on complex programs, especially under fixed-price arrangements. Second-quarter 2026 results benefited from the absence of the $1.6 billion in reach-forward losses recorded in the prior-year period, rather than reflecting the elimination of the underlying execution risk. Aeronautics also recorded $160 million of lower net favorable profit adjustments.

Management cited F-16 and C-130 program challenges as factors affecting Aeronautics margins, while lower initial booking rates on new contracts may weigh on profitability. The company also retains existing classified and helicopter program exposures on its balance sheet, which could continue to generate additional program losses over time if cost, scope or approval assumptions deteriorate.

Estimates for LMT StockThe Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates year-over-year growth of 31.1%. LMT’s long-term (three to five years) earnings growth rate is 19.19%.
 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for General Dynamics’ 2026 EPS indicates year-over-year growth of 9.2%.  GD’s long-term earnings growth rate is 10.2%. The Zacks Consensus Estimate for RTX’s 2026 EPS indicates year-over-year growth of 14.6%. RTX’s long-term earnings growth rate is 11.64%.

LMT’s Earnings Surprise HistoryThe company beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 8.85%.

Image Source: Zacks Investment Research

LMT’s Debt PositionCurrently, the company’s total debt to capital is 70.08%, higher than the industry’s average of 47.1%.

Image Source: Zacks Investment Research

LMT Stock Trades at a DiscountIn terms of valuation, LMT’s forward 12-month price-to-sales (P/S) is 1.64X, a discount to the industry’s average of 2.69X. This suggests the stock is trading at a lower valuation relative to its projected sales growth compared with its peer group.

Image Source: Zacks Investment Research

What Should an Investor Do Now?Lockheed Martin continues to strengthen its leadership in missile defense and advanced military systems through a broad portfolio, expanding international partnerships, and long-term contract wins that enhance revenue visibility and support sustained production growth. The company is also increasing manufacturing capacity and investing in its industrial base, positioning it to capitalize on rising global demand for air and missile defense solutions driven by higher defense spending and geopolitical tensions.

Considering its financial pressures and current debt levels, new investors should wait and watch for a better entry point. Investors who already own this Zacks Rank #3 (Hold) stock may consider retaining it, given the company’s earnings growth outlook and price performance.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Oshkosh's Q2 adjusted EPS beat estimates as revenues rose 6.7% to $2.92 billion.Access orders reached $1.5 billion, backed by infrastructure, data centers and large construction projects.Oshkosh cut 2026 EPS guidance amid slower-than-expected fire truck production. Oshkosh Corporation (OSK - Free Report) reported second-quarter 2026 adjusted earnings of $2.87 per share, down 15.8% year over year. Earnings, however, beat the Zacks Consensus Estimate of $2.60 by 10.39%. Consolidated adjusted operating income declined 17.7% to $257.6 million, while adjusted operating margin fell to 8.8% from 11.5%. Unfavorable sales mix and higher manufacturing overhead costs impacted the results.

Revenues rose 6.7% to $2.92 billion and beat the consensus mark of $2.75 billion by 6.18%. Higher sales volume and improved pricing supported the top line. Period-end backlog reached $14.75 billion, led by sizable Vocational and Transport order books.

OSK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

OSK's Access Sales Rise on Strong OrdersAccess segment sales increased 9.4% year over year to $1.37 billion, driven by higher sales volume and improved pricing. Aerial work platform revenues rose to $735.1 million from $638 million, while telehandler revenues declined to $263.3 million from $325.1 million.

Adjusted operating income fell to $155.8 million from $185.7 million. Adjusted operating margin contracted to 11.3% from 14.8% due to adverse product and customer mix, unfavorable price-cost dynamics, higher litigation reserves, increased selling and administrative costs, and greater product-development spending. Higher sales volume partly offset these pressures.

Orders reached $1.5 billion and backlog was $1.96 billion at the end of the quarter, supported by infrastructure projects, data centers and other large construction developments.

Oshkosh's Vocational Margin Faces PressureVocational segment sales were nearly flat at $966.8 million. Higher municipal fire apparatus and airport product revenues were offset by lower refuse and recycling vehicle sales.

Adjusted operating income declined to $130.5 million from $157.9 million, with margin contracting to 13.5% from 16.3%. Adverse sales mix, higher manufacturing overhead and lower volume outweighed improved price-cost dynamics and lower incentive compensation accruals.

Fire truck shipments were roughly level with the prior-year quarter. Oshkosh expects production to increase about 10% in 2026 as it shifts from bay-based assembly to higher-flow production lines, though material-flow changes are taking longer than initially planned.

OSK's Transport Revenues Gain on NGDV RampTransport segment sales rose 11.9% to $536.1 million. Delivery vehicle revenues increased to $261.6 million from $107.1 million as production of the Next Generation Delivery Vehicle accelerated. Defense revenues fell to $274.5 million from $372 million.

Operating income decreased to $15.8 million from $17.8 million. Adverse mix and higher warranty and manufacturing overhead costs offset a $16.6 million one-time benefit tied to the NGDV program. Management expects margins to improve in the second half as NGDV production rises and revised defense contracts contribute.

Oshkosh Generates Strong Free Cash FlowSecond-quarter free cash flow reached $348 million, up sharply from $49 million a year ago. The company repurchased about 667,000 shares for $92 million during the quarter. OSK declared a quarterly dividend of 57 cents per share, to be paid out on Aug. 27, 2026, to shareholders of record as of Aug. 13.

OSK Cuts Earnings Outlook on Fire Truck RampOshkosh now expects 2026 adjusted earnings of about $11 per share, down roughly 50 cents from its prior guidance. The revision reflects slower-than-expected improvement in fire truck production, more than offsetting the stronger outlook for the Access segment.

The company raised its full-year sales expectation by $200 million and continues to project free cash flow of $550-$650 million. Management expects fourth-quarter results to exceed third-quarter performance as fire truck production improves, NGDV output rises and defense work shifts to revised-price contracts.

Key Releases From Auto SpaceGeneral Motors (GM - Free Report) reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.

Tesla, Inc. (TSLA - Free Report) reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years. 

Ford (F - Free Report) reported second-quarter 2026 adjusted earnings of 42 cents per share, beating the Zacks Consensus Estimate of 33 cents by 27.27%. Earnings rose 13.5% from 37 cents a year ago. Automotive revenues of $44.89 billion fell 4.4% year over year and missed the consensus mark of $45.72 billion by 1.81%. Ford’s consolidated second-quarter revenues came in at $48.3 billion, down 3.7% year over year. The company raised its full-year adjusted EBIT outlook to $10-$11 billion from $8.5-$10.5 billion. 

Key Takeaways Carvana's Q2 revenues rose 52.4% to $7.37 billion as retail units sold climbed 37.7% to a record.Retail revenue per unit increased 17.4% to $27,908, helping retail vehicle sales reach $5.5 billion.Carvana sees 2026 adjusted EBITDA of $2.7-$3 billion and expects third-quarter retail units to rise. E-commerce used vehicle retailer Carvana (CVNA - Free Report) reported earnings of 42 cents per share for the second quarter of 2026, in line with the Zacks Consensus Estimate. Earnings rose 61.5% year over year. Revenues of $7.37 billion increased 52.4% year over year and topped the consensus mark of $6.99 billion by 5.5%. The top-line beat reflected record retail volume and strong vehicle pricing.

CVNA's Retail Volume Reaches a RecordRetail vehicle sales increased 61.7% to $5.5 billion, supported by a 17.4% rise in revenue per retail unit to $27,908. Retail units sold advanced 37.7% to 197,325. Retail volumes have nearly doubled over the past two years and continued to outpace an industry that declined year over year. Wholesale sales and revenues grew 31.2% to $1.34 billion, while wholesale unit sales climbed 44.4% to 105,052.

CVNA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Carvana's Gross Profit Rises, GPU DeclinesTotal gross profit increased 30.1% to $1.38 billion. Retail vehicle gross profit rose 34.4% to $700 million, wholesale gross profit advanced 19.7% to $158 million and other gross profit grew 28.0% to $526 million.

However, total gross profit per unit fell $412 to $7,014, and non-GAAP GPU declined $455 to $7,125. On a sequential basis, total gross profit and non-GAAP GPU improved by $231 and $214, respectively.

CVNA's Margins Reflect Growth InvestmentsOperating income increased to $680 million from $511 million, but adjusted EBITDA margin contracted to 10.4% from 12.4%. Adjusted EBITDA rose to $769 million from $601 million, showing strong dollar profit growth even as the margin narrowed.

Net income advanced 66.6% to $513 million. Selling, general and administrative expenses increased to $704 million from $551 million as advertising, logistics and other costs rose.

Carvana Expands Production CapacityInventory selection remains central to the company’s growth plan. Carvana integrated retail production capabilities at three additional ADESA sites during the quarter, bringing the total to 19, and began construction on its first full buildout at an ADESA location.

The current footprint provides fully built-out annual capacity for about 1.5 million retail units, with additional real estate available for expansion. The new full buildout is expected to begin producing vehicles in early 2027.

CVNA Builds Cash and LiquidityCash and cash equivalents totaled $2.63 billion as of June 30, 2026, up from $2.32 billion at year-end 2025. Committed liquidity resources were $4.67 billion, while total liquidity resources increased to $7 billion from $6.74 billion. For the first six months of 2026, net cash provided by operating activities rose to $345 million from $261 million.

Carvana Sets Full-Year EBITDA OutlookFor the third quarter, management expects retail units sold to increase sequentially from the second quarter. For full-year 2026, Carvana projects adjusted EBITDA of $2.7-$3 billion, compared with $2.24 billion in 2025. It also reiterated its long-term path toward selling 3 million vehicles annually and achieving a 13.5% adjusted EBITDA margin between 2030 and 2035.

Key Releases From the Auto SpaceGeneral Motors (GM - Free Report) reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.

Tesla, Inc. (TSLA - Free Report) reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years. 

Ford (F - Free Report) reported second-quarter 2026 adjusted earnings of 42 cents per share, beating the Zacks Consensus Estimate of 33 cents by 27.27%. Earnings rose 13.5% from 37 cents a year ago. Automotive revenues of $44.89 billion fell 4.4% year over year and missed the consensus mark of $45.72 billion by 1.81%. Ford’s consolidated second-quarter revenues came in at $48.3 billion, down 3.7% year over year. The company raised its full-year adjusted EBIT outlook to $10-$11 billion from $8.5-$10.5 billion. 

Kratos Defense & Security Solutions (KTOS +5.19%) stock jumped 6.7% through 11:15 a.m. ET Wednesday after rushing right past analyst earnings forecasts last night.

Heading into the report, Wall Street had Kratos pegged for a $0.13 per share profit on $410.4 million in sales. In fact, Kratos earned $0.21 per share on sales of $458.8 million.

Image source: Getty Images.

Kratos Q2 earnings by the numbers Kratos grew its sales by 30% year over year, with 19% organic growth. Curiously for a company that's best known as a drone stock, most of this growth came through Kratos's government solutions business, which provides satellite communications and intelligence services, electronics, and training systems -- rather than the drones unit (called "unmanned systems").

Drones revenue increased only 8%.

The other interesting part of Kratos's report is that the $0.21 "profit" that got investors so excited today was, in fact, only a pro forma, non-GAAP profit. Actual earnings for the quarter when calculated under generally accepted accounting principles (GAAP) was only $0.02 per share -- flat against one year ago.

Today's Change

(

5.19

%) $

2.69

Current Price

$

54.56

What does this mean for Kratos stock? And this news gets worse. While Kratos was at least profitable -- if much less profitable than at first appeared -- free cash flow at the defense stock actually ran negative. Indeed, with more than $75 million in cash burned in just the first six months of this year, Kratos is on course to burn $150 million in 2026.

The good news is that as the company converts manufactured products into cash, Kratos expects to be able to correct course and burn significantly less cash as the year progresses -- perhaps as little as $85 million. Even if it succeeds at that, though, I can't see myself investing in this barely profitable stock until FCF turns positive.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kratos Defense & Security Solutions. The Motley Fool has a disclosure policy.

Key Takeaways Entegris beat Q2 estimates as AI demand strengthened advanced logic, HBM and packaging sales.Unit-driven revenues rose 10%, and CapEx-related sales climbed 15%, led by filtration, CMP and FOUPs.ENTG guided Q3 revenues to $905M-$935M and expects 2026 net leverage to fall below 3 times. Entegris, Inc. (ENTG - Free Report) entered the second half of 2026 with management emphasizing that accelerating AI-driven semiconductor investment is broadening growth opportunities across both wafer production and capital equipment markets. The company's leadership highlighted improving visibility into customer spending, expanding margins and stronger cash generation as key themes from the quarter.

The company reported non-GAAP earnings per share (EPS) of $0.93, which beat the Zacks Consensus Estimate of $0.83. Revenues of $883.2 million surpassed the consensus mark of $839.9 million.

Entegris Sees AI Investment AcceleratingChief executive officer David Reeder said that the quarter reflected both improving semiconductor demand and accelerating AI-related investments across advanced logic, high-bandwidth memory (HBM) and advanced packaging.

Reeder noted that unit-driven revenues increased 10% year over year while CapEx-related revenues climbed 15%, supported by strength in liquid filtration, CMP products, FOUPs and gas filtration solutions. Liquid filtration posted its fourth consecutive record quarter, while bookings strengthened throughout the quarter, increasing backlog visibility.

Management also raised its outlook for 2026 semiconductor market growth, now expecting 7% to 8% MSI growth compared with the mid-single-digit assumption held at the beginning of the year.

ENTG Expands Capacity and Streamlines OperationsReeder said that Entegris is proactively expanding manufacturing capacity ahead of demand while simplifying its operating footprint.

During the quarter, the company exited its U.S. Life Sciences Fluid Management business and announced plans to close its Logan, UT, facility, marking the third facility rationalization since late 2025. Management said that these actions allow greater focus on semiconductor markets while improving long-term profitability.

The company also reported adjusted gross margin of 47.6%, its highest level since early 2022, supported by operational improvements and productivity initiatives. Free cash flow reached $120 million, allowing repayment of $200 million in debt and reducing net leverage to 3.4 times.

Strong Demand Supports Higher OutlookChief financial officer Sukhi Nagesh guided third-quarter revenues to $905 million-$935 million and projected non-GAAP EPS of $0.96-$1.04.

Management also expects gross margin of 47.5% to 48.5% and adjusted EBITDA margin of 28%-29%. Looking beyond the third quarter, executives said that fourth-quarter revenues should increase roughly 4% sequentially from the midpoint of third-quarter guidance, implying mid-teens year-over-year growth.

Nagesh added that the company now expects to finish 2026 with net leverage below three times while continuing to invest in manufacturing capacity and operational improvements.

Analysts Press on Growth and MarginsA Deutsche Bank analyst asked about the outlook for CapEx-driven revenues. Reeder explained that wafer fab equipment should drive most of the second-half growth, while benefits from fab construction are expected to become more meaningful during 2027 as projects advance through installation phases.

A Citi analyst questioned the sustainability of margin expansion. Reeder and Nagesh pointed to ongoing network optimization, procurement improvements, yield enhancements and productivity gains while noting that the company continues investing ahead of customer demand by increasing factory labor capacity.

Management also reiterated confidence that manufacturing capacity can support anticipated demand with relatively modest incremental capital spending.

Entegris Targets Advanced Packaging GrowthQuestions from Goldman Sachs and Oppenheimer centered on long-term strategy and advanced packaging opportunities.

Reeder described a companywide enterprise sales initiative focused on expanding product penetration across major semiconductor customers while identifying additional opportunities in advanced packaging. He estimated the company's current advanced packaging business at roughly a $100 million annual run rate and said that additional details will be presented during the November Investor Day.

Management also discussed continued strength in molybdenum precursor demand, HBM-related applications and advanced-node filtration, all of which are benefiting from increasing semiconductor complexity driven by AI workloads.

Management Focus Remains on ExecutionThroughout the earnings call, executives consistently emphasized execution rather than aggressive expansion.

Management highlighted improving cash conversion, continued debt reduction, disciplined capital allocation and operational efficiency as priorities while maintaining confidence in above-market long-term growth supported by advanced-node semiconductor demand. The company also indicated that balance sheet improvement is occurring faster than previously anticipated, creating additional financial flexibility over time.

Zacks Rank and Style Scores SignalENTG currently carries a Zacks Rank #2 (Buy), reflecting favorable earnings estimate revisions relative to the broader market. However, the Zacks Rank can change as analysts revise estimates following the latest quarterly results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among the Style Scores, ENTG has a Growth Score of B, indicating relatively attractive growth characteristics, while its Value Score of D suggests weaker value attributes. The Momentum Score of C and VGM Score of C indicate more balanced characteristics across value, growth and momentum rather than a clear strength in all three categories.

Key Takeaways AptarGroup beat Q2 earnings and revenue estimates, with quarterly sales surpassing $1B for the first time.ATR saw growth across Pharma, Beauty and Closures, led by consumer healthcare and beverage dispensing.AptarGroup expects Q3 adjusted EPS of $1.45-$1.53, supported by growth across all three segments. AptarGroup, Inc. (ATR - Free Report) reported second-quarter 2026 adjusted earnings of $1.42 per share, beating the Zacks Consensus Estimate of $1.34 by 5.97%. The bottom line fell 15.5% from $1.68 a year ago (including comparable exchange rates), reflecting weaker margins and a higher tax rate.

On a reported basis, earnings per share were $1.36 compared with the year-ago quarter’s $1.67.

Revenues rose 6.3% year over year to $1.03 billion and surpassed the consensus estimate of $1 billion by 2.32%. The quarter marked the first time reporting revenues of more than $1 billion. Core sales increased 1%, aided by growth across all three segments and strength in consumer healthcare and beverage dispensing. We predicted core sales growth of 0.5% in the quarter.

ATR’s Margins Decline Y/Y in Q2Cost of sales increased 10.3% year over year to $661 million. Gross profit decreased 0.4% year over year to $366 million. The gross margin was 35.6% in the reported quarter compared with the prior-year quarter’s 38%.

Selling, research, development and administrative expenses rose 4.4% year over year to $158 million. Adjusted operating income declined 10.5% year over year to $133 million. The adjusted operating margin was 13% in the reported quarter, down from the year-ago quarter’s 15.4%. Adjusted EBITDA decreased 2.7% year over year to $213 million in the second quarter.

AptarGroup’s Segmental Performances in Q2Total revenues in the Pharma segment increased 3.5% year over year to $458 million. The reported figure beat our estimate of $446 million. Adjusted EBITDA declined 1.9% year over year to $153.9 million. The segment’s adjusted EBITDA margin contracted to 33.6% from 35.4% in the year-ago quarter. We predicted a quarterly adjusted operating income of $159 million. Demand remained healthy across the central nervous system, asthma and COPD therapies, eye care, biologics, GLP-1 therapies, and vaccines.

Total revenues in the Beauty segment rose 9.7% year over year to $367.5 million. The upside was supported by prestige fragrance dispensing, color cosmetics and hair care applications. We estimated revenues of $357 million for the quarter. Adjusted EBITDA fell 5% year over year to $44.7 million. The reported figure beat our operating income prediction of $41.5 million. The adjusted EBITDA margin was 12.2% compared with the prior-year quarter’s 14.1%.

Total revenues in the Closures segment increased 6.5% year over year to $201 million. We estimated revenues of $192 million for the quarter. Adjusted EBITDA decreased 6.4% year over year to $29.8 million. The reported figure beat our operating income prediction of $29.2 million. The segment’s adjusted EBITDA margin declined to 14.9% from 16.9% a year ago.

ATR’s Cash Position at Q2 EndAptarGroup reported cash and cash equivalents of $190 million as of June 30, 2026, down from $402 million as of Dec. 31, 2025. The company generated $222 million in cash flow from operations in the first six months of 2026 compared with $209 million in the year-ago period.

The company returned $212 million to shareholders during the first half through dividends and buybacks, including $81 million in the second quarter. During the quarter, ATR repurchased 403,000 shares for $50 million. Its board also approved a quarterly dividend of 48 cents per share.

AptarGroup Issues Upbeat Q3 Earnings ViewATR expects third-quarter 2026 adjusted earnings of $1.45-$1.53 per share.

The company expects solid growth across all three segments. Pharma should benefit from injectables and consumer healthcare, with emergency medicine destocking expected to abate by the fourth quarter. Beauty growth is anticipated in fragrance and facial skincare, while Closures demand and operational performance are expected to improve.

ATR Stock’s Price PerformanceThe company’s shares have lost 1.5% in the past year against the industry’s 8.4% growth.

Image Source: Zacks Investment Research

AptarGroup’s Zacks RankThe company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Packaging StocksPackaging Corporation of America (PKG - Free Report) reported second-quarter 2026 adjusted earnings of $2.35 per share, down 5.2% year over year but beating the Zacks Consensus Estimate of $2.31. The bottom line also came above Packaging Corp’s guidance of $2.33.

Packaging Corp’s revenues increased 14.7% year over year to $2.49 billion and surpassed the consensus estimate of $2.40 billion by 3.6%. Total corrugated products shipments reached an all-time quarterly record, rising 24.3% both per day and in total from the prior-year quarter.

Crown Holdings, Inc. (CCK - Free Report) posted second-quarter 2026 adjusted earnings of $2.49 per share, up 15.8% year over year. The figure surpassed the Zacks Consensus Estimate of $2.15 by 15.81%.

Crown Holdings revenues increased 16.5% to $3.67 billion and beat the consensus estimate of $3.34 billion by 9.88%. Global beverage can volumes rose 5%, led by 6% growth in Europe and 5% growth in the Americas. This was partially offset by softer demand in Latin America.

Sonoco Products Company (SON - Free Report) reported adjusted earnings of $1.51 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.47 by 2.72%. The figure rose 10.2% from $1.37 in the year-ago quarter. Pricing actions, favorable foreign-exchange movements and productivity gains helped offset softer volume/mix during the quarter.

Sonoco’s revenues of $1.885 billion declined 1.3% year over year and missed the consensus mark of $1.886 billion by 0.05%. Sonoco’s top line declined from the prior-year period primarily due to the absence of sales from the ThermoSafe business, which was divested in November 2025.

Griffon Corporation (GFF) Q3 2026 Earnings Call August 5, 2026 8:30 AM EDT

Company Participants

Brian Harris - Executive VP & CFO
Ronald Kramer - Chairman of the Board & CEO

Conference Call Participants

Timothy Wojs - Robert W. Baird & Co. Incorporated, Research Division
Lee Jagoda - CJS Securities, Inc.
Collin Verron - Deutsche Bank AG, Research Division
Trey Grooms - Stephens Inc., Research Division
Sam Darkatsh - Raymond James & Associates, Inc., Research Division
Julio Romero - Sidoti & Company, LLC
Jeffrey Stevenson - Loop Capital Markets LLC, Research Division

Presentation

Operator

Good day, and welcome to the Griffon Corporation Fiscal Third Quarter 2026 Earnings Conference Call.

[Operator Instructions]

Please note this event is being recorded.

I would now like to turn the conference over to Brian Harris, CFO. Please go ahead.

Brian Harris
Executive VP & CFO

Thank you. Good morning, and welcome to Griffon Corporation's Third Quarter Fiscal 2026 Earnings Call. Joining me for this morning's call is Ron Kramer, Griffon's Chairman and Chief Executive Officer.

Our press release was issued earlier this morning and is available on our website at www.griffon.com. Today's call is being recorded, and the replay instructions are included in our earnings release. Our comments will include forward-looking statements about Griffon's performance. These statements are subject to risks and uncertainties that can change as the world changes. Please see the cautionary statements in today's press release and in our SEC filings. Finally, some of today's remarks will adjust for items that affect comparability between periods. These items are explained in our non-GAAP reconciliations included in our press release.

With that, I'll turn the call over to Ron.

Ronald Kramer
Chairman of the Board & CEO

Thanks, Brian. Good morning, everyone, and thanks for joining us. Griffon has executed particularly well this quarter, which is reflected in today's solid operational and financial results. In the

) manufactures medical devices and products used in various interventional medical specialties worldwide, including cardiovascular and surgical categories.On July 29, BSX reported revenue of $5.44 billion for their June quarter, up 7.5% over the same period last year. EPS came in at $0.86, compared to $0.75 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $5.38 billion, representing a surprise of +1.07%. The company delivered an EPS surprise of +3.61%, with the consensus EPS estimate being $0.83.

In response to the conference call and management's lowered guidance, analysts notched down their EPS estimates for this year and next, causing BSX shares to fall into the cellar of the Zacks Rank.

Since its 2025 highs near $110, BSX has been in a steady bear market, making new 52-week lows above $42 last month -- despite nearly doubling revenues in the last 5 years to cross $21 billion.

The stock may soon sort out a bottom after this report given other strong metrics under the hood of the business which continues to grow the top and bottom lines at mid-single digits.

Key Metrics Versus Estimates

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.

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

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

Geographic Revenue- Rest of the World: $2.02 billion compared to the $1.98 billion average estimate based on two analysts. The reported number represents a change of +9.8% year over year.

Geographic Revenue- U.S.: $3.43 billion versus $3.39 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.3% change.

Net Sales- MedSurg- Worldwide: $1.82 billion compared to the $1.8 billion average estimate based on five analysts. The reported number represents a change of +5.9% year over year.

Net Sales- Cardiovascular- Worldwide: $3.62 billion versus $3.6 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +8.3% change.

Net Sales- MedSurg- Neuromodulation- Worldwide: $341 million versus $335.33 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +12.5% change.

Net Sales- MedSurg- Endoscopy- Worldwide: $793 million versus $774.1 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +7.6% change.

Net Sales- MedSurg- Urology- Worldwide: $684 million compared to the $694.74 million average estimate based on four analysts. The reported number represents a change of +1.2% year over year.

Net Sales- Cardiovascular- Cardiac Rhythm Management (CRM)- Worldwide: $585 million compared to the $601.79 million average estimate based on three analysts. The reported number represents a change of -0.9% year over year.

Net Sales- Cardiovascular- Interventional Cardiology & Vascular Therapies- Worldwide: $1.33 billion compared to the $1.26 billion average estimate based on three analysts. The reported number represents a change of +82.4% year over year.

Net Sales- Cardiovascular- Watchman- Worldwide: $507 million compared to the $535.88 million average estimate based on three analysts. The reported number represents a change of +4.3% year over year.

Net Sales- Cardiovascular- Electrophysiology- Worldwide: $916 million versus $923.15 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +9.1% change.

Key Takeaways Leidos raised 2026 revenue guidance to $18.20B-$18.40B and EPS guidance to $12.20-$12.50.Defense posted a 2.2 book-to-bill ratio, with a $12B Defense Tech pipeline over the next year.LDOS expects Health revenues near Q2 levels after VBA incentive payments were suspended for the rest of 2026. Leidos Holdings, Inc. (LDOS - Free Report) used its fiscal second-quarter call to emphasize that faster Defense, Homeland and Intelligence & Digital growth is offsetting pressure in Health. Management raised revenue, earnings and cash flow guidance despite changes in the Veterans Benefits Administration medical-exam business.

The call gave investors more detail on defense-tech scaling, the VBA recompete and how agency in-sourcing could reshape Leidos’ role in health-system integration.

LDOS Raises the Floor on 2026 GuidanceExecutive vice president and CFO Chris Cage said fiscal 2026 revenue guidance is now $18.20-$18.40 billion, while non-GAAP earnings guidance rose to $12.20-$12.50 per share.

Cage raised operating cash flow guidance to approximately $1.85 billion. The adjusted EBITDA margin outlook remains in the mid-13% range, and the guidance excludes the pending Security Enterprise Solutions joint venture with Analogic.

Second-quarter non-GAAP earnings of $3.26 per share topped the $2.90 consensus mark. Revenues of $4.56 billion exceeded the Zacks Consensus Estimate of $4.36 billion.

Leidos Defense Tech Builds ScaleCEO Tom Bell said Defense posted a 2.2 book-to-bill ratio in the quarter and 1.9 over the trailing 12 months. He also cited a $12 billion pipeline of Defense Tech opportunities over the next year.

Bell highlighted low-cost containerized munitions, the small cruise missile, IFPC, space-sensor payloads, autonomous vessels and counter-UAS capabilities. Leidos plans to deliver 3,000 containerized munitions by 2030 under its framework agreement.

Cage said profitability should improve as programs mature and production volumes rise. Bell added that management can see double-digit profitability and double-digit revenue CAGR over time in Defense Tech.

LDOS’ Health Reset Focuses on VBABell said the VA suspended incentive payments for all vendors in the medical disability examination program for the rest of 2026. He said the change is incorporated into the higher companywide guidance.

Cage expects Health revenues to remain near second-quarter levels for the balance of the year, with non-GAAP operating margins around 20%. Management views the fourth-quarter run rate as the starting point for 2027.

A BNP Paribas analyst pressed for recompete clarity. Bell said Leidos expects a draft request for proposals shortly, formal bids near year-end and customer decisions in early 2027, with extensions providing continuity into next year.

Leidos Adapts to Agency In-SourcingA Melius Research analyst asked whether the next phase of MHS GENESIS signaled a broader reduction in systems-integrator roles. Bell said agencies are exploring more in-sourcing and direct commercial-software purchases.

Bell maintained that Leidos can shift toward higher-level mission integration while continuing to maintain and enhance MHS GENESIS. Cage said negotiations are continuing because the customer lacks capacity to absorb all current activities.

A JPMorgan analyst asked about fixed-price work. CEO Bell and CFO Cage said customers are increasingly requesting outcome-based contracts, a model they believe fits Leidos’ software, cyber and mission-technology offerings.

LDOS’ Cash Flow Supports Capital ChoicesCage emphasized second-quarter operating cash flow of $793 million and free cash flow of $761 million. Lower expected capital spending, now closer to $250 million, lifted implied full-year free cash flow guidance by about $150 million.

Bell reiterated that Leidos remains a low-capital-intensity business, with capital expenditures generally targeted at 1% to 1.5% of revenues, even as it funds selected Defense Tech programs.

Leidos paid down $300 million of commercial paper, completed a $66 million open-market repurchase and put a new board authorization in place. Bell said expensive acquisition targets favor a balanced approach to investment, repurchases and dividends.

Leidos Leans on Portfolio BalanceManagement’s tone was confident but centered on execution. Defense and Homeland are carrying more of the growth load while Health moves through contract and incentive changes.

The priorities are converting bookings into revenues, protecting cash generation and securing the VBA franchise without slowing investment in defense tech, cyber and energy infrastructure.

Zacks Signals for LDOSLDOS carries a Zacks Rank #3 (Hold), alongside Value and Growth Scores of A, a Momentum Score of B and a VGM Score of A. The Style Scores indicate favorable value, growth and momentum characteristics, while the Rank carries a Hold stance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The combination is constructive but lacks the stronger signal associated with Zacks Rank #1 or #2 (Buy) stocks paired with A or B Style Scores. The Zacks Rank can change as estimates are revised after the just-reported results.

For the quarter ended June 2026, Carlyle Group (CG - Free Report) reported revenue of $1.11 billion, up 13% over the same period last year. EPS came in at $1.07, compared to $0.91 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $908.66 million, representing a surprise of +22.4%. The company delivered an EPS surprise of +21.59%, with the consensus EPS estimate being $0.88.

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

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

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

Total AUM Roll Forward - Global Private Equity - EOP: $162.7 billion versus $161.32 billion estimated by three analysts on average.Total AUM Roll Forward - Global Credit - EOP: $211.12 billion compared to the $213.79 billion average estimate based on three analysts.Total AUM Roll Forward - EOP: $485.5 billion compared to the $485.23 billion average estimate based on three analysts.Fee-earning AUM Roll Forward - Global Private Equity - EOP: $96.56 billion versus the three-analyst average estimate of $99.95 billion.Segment Revenues- Fund management fees: $560.1 million compared to the $551.81 million average estimate based on three analysts. The reported number represents a change of -5% year over year.Fee related performance revenues: $88.7 million compared to the $48.54 million average estimate based on three analysts. The reported number represents a change of +129.2% year over year.Segment Revenues- Realized principal investment income (loss): $22.6 million versus $35.25 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -32.5% change.Segment Revenues- Total segment fee revenues: $759.3 million compared to the $674.77 million average estimate based on three analysts. The reported number represents a change of +12.3% year over year.Revenues- Global Private Equity- Fund management fees: $283.4 million versus the three-analyst average estimate of $286.63 million. The reported number represents a year-over-year change of -6.3%.Revenues- Global Private Equity- Total fee revenues: $304.3 million versus the three-analyst average estimate of $309.36 million. The reported number represents a year-over-year change of -1.6%.Revenues- Global Private Equity- Realized performance revenues: $251.5 million compared to the $189.29 million average estimate based on three analysts. The reported number represents a change of +2.8% year over year.Revenues- Global Private Equity- Realized principal investment income: $5.6 million compared to the $12.27 million average estimate based on three analysts. The reported number represents a change of -54.8% year over year.View all Key Company Metrics for Carlyle here>>>

Shares of Carlyle have returned +15.1% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

The Brink's Company (BCO) Q2 2026 Earnings Call August 5, 2026 9:00 AM EDT

Company Participants

Jesse Jenkins - Head & Vice President of Investor Relations
Richard Eubanks - CEO, President & Director
Kurt McMaken - Executive VP & CFO

Conference Call Participants

Timothy Mulrooney - William Blair & Company L.L.C., Research Division
Tobey Sommer - Truist Securities, Inc., Research Division

Presentation

Operator

Good day, and welcome to the Brink's Company Second Quarter 2026 Conference Call. [Operator Instructions] Please note this event is being recorded.

This call and the Q&A session will contain forward-looking statements. Actual results could differ materially from projected or estimated results. Information regarding factors that could cause such differences are available in today's press release and presentation and in the company's SEC filings. The information presented and discussed on this call is representative of today only. Brink's assumes no obligation to update any forward-looking statements. The call is copyrighted and may not be used without written permission from Brink's.

I will now turn it over to your host, Jesse Jenkins, Senior Vice President of Financial Planning and Analysis. Mr. Jenkins, you may begin.

Jesse Jenkins
Head & Vice President of Investor Relations

Thanks, and good morning. Joining me are CEO, Mark Eubanks; and CFO, Kurt McMacken. Today, Brink's reported second quarter results on a GAAP, non-GAAP and constant currency basis. Most of our commentary today will be focused on our non-GAAP results. These non-GAAP financial measures are intended to provide investors with a supplemental comparison of our operating results and trends for the periods presented. We believe these measures allow investors to better compare performance over time and to evaluate our performance using the same metrics as management. Reconciliations of non-GAAP results to their most comparable GAAP results are provided in SEC filings, which can be found on our website.

Key Takeaways Lincoln Electric shares rose 8% as Q2 adjusted EPS beat estimates and revenues hit a record $1.22B.Organic sales grew 10.1%, driven by 7.7% pricing and 2.4% volume growth.LECO raised 2026 sales growth guidance to the low-double-digit range after record cash flow. Lincoln Electric Holdings, Inc. (LECO - Free Report) shares have gained 8% since it reported second-quarter 2026 results on July 30.  Adjusted earnings came in at $2.93 per share, up 12.7% year over year. The figure surpassed the Zacks Consensus Estimate of $2.81 by 4.27%.

Including one-time items, the bottom line was $2.88 per share compared with $2.56 in the year-ago quarter.

LECO's Sales Mix Benefits From Price and VolumeRevenues increased 12% to a record $1.22 billion and beat the consensus estimate of $1.17 billion by 4.45%. Results benefited from 10.1% organic sales growth, with volumes contributing 2.4% and pricing at 7.7%. Acquisitions contributed 1.5%, primarily reflecting the Alloy Steel acquisition, and favorable foreign currency translation added 0.4%.

Consumables sales increased in the low-teens percentage range, equipment sales rose by a high-single-digit percentage and automation sales advanced by a mid-single-digit percentage. Four of the company’s five major end markets grew, led by a mid-30% increase in general fabrication. However, transportation declined by a mid-single-digit percentage. 

Lincoln Electric's Margin Performance ImprovesThe cost of goods sold increased 12.8% year over year to $770.7 million. Gross profit rose 10.7% to $449 million, while the gross margin contracted 50 basis points to 36.8%.

Selling, general and administrative expenses increased 6.6% to $224.9 million. However, SG&A expenses, as a percentage of sales, declined 100 basis points to 18.4%. 

Adjusted operating income climbed 14.9% to $224.1 million, with the adjusted operating margin expanding 50 basis points to a record 18.4%.

LECO's Americas Welding Business Gains MomentumAmericas Welding revenues increased 11.2% year over year to $774.4 million. Volume growth of 7.1% reflected gains across all product areas, led by accelerated capital spending. Pricing contributed 3.7%, while currency movements provided a 0.4% benefit. We expected the segment’s net sales to be $754 million in the quarter. 

Adjusted EBIT rose 14.6% to $158.1 million. The segment’s adjusted EBIT margin improved 110 basis points to 19.7%, aided by operating leverage from higher volumes and a narrower price-cost headwind. Tariff refunds also supported profitability. Our prediction for the segment’s adjusted operating income was $148 million. 

Lincoln Electric's International Results Face Volume PressureInternational Welding sales rose 4.5% to $243.3 million, as a 7% acquisition contribution and modest pricing and currency benefits offset a 4.7% volume decline. Organic sales were hurt by slowing demand in Europe, the Middle East and Africa, including a $2 million impact from the Middle East conflict. We expected the segment’s net sales to be $236 million in the quarter. 

Adjusted EBIT declined 12.9% to $26.6 million, while the adjusted EBIT margin contracted 210 basis points to 10.6%. Lower EMEA volumes weighed on the segment’s profitability despite growth in Asia Pacific and contributions from Alloy Steel. We predicted an adjusted operating profit of $28.8 million. 

LECO's Harris Products Group Delivers Sales & Profit GrowthThe Harris Products Group’s sales increased 26.9% to $201.9 million. A 34.2% pricing benefit, reflecting higher year-over-year metal costs, primarily silver, more than offset an 8.2% volume decline. Volumes were down 8.2% as it faced difficult year-over-year comparisons in HVAC and the retail channel. Our projection for the segment’s net sales was $171 million.

Adjusted EBIT advanced 32.5% to $42.3 million. The adjusted EBIT margin expanded 100 basis points to 20.4%, supported by SG&A leverage and a tariff refund. Our prediction for the segment’s adjusted operating income was $34.3 million.

Lincoln Electric Generates Record Cash FlowCash flow from operations reached a record $253.8 million, up from $143.8 million a year earlier. Free cash flow totaled $222.3 million, resulting in cash conversion of 138%. 

LECO returned $120 million to shareholders, including $43.4 million in dividends and $76.1 million in share repurchases. Cash and cash equivalents were $242.4 million at quarter-end, while total debt declined to $1.15 billion from $1.29 billion at the end of 2025. 

LECO Raises Its 2026 Sales AssumptionLincoln Electric raised its 2026 net sales growth assumption to the low-double-digit percentage range from the high-single-digit range. Management expects one-third of organic growth to come from volume and two-thirds from pricing.

The company anticipates neutral price-cost conditions and a mid-20% incremental adjusted operating margin in the second half. It also projects capital expenditures of $110-$130 million, a low-to-mid-20% tax rate and full-year cash conversion of 100% for the full year.

LECO Stock’s Price PerformanceLincoln Electric’s shares have gained 14.7% in the past year compared with the industry’s 12.3% growth.

Image Source: Zacks Investment Research

Lincoln Electric’s Zacks RankLECO currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Quarterly Performances of Other Manufacturing StocksStanley Black & Decker, Inc. (SWK - Free Report) reported adjusted earnings of $1.57 per share for the second quarter of 2026, which beat the Zacks Consensus Estimate of $1.20 by 30.8%. The bottom line increased from adjusted earnings of $1.08 per share reported in the year-ago quarter.

Stanley Black & Decker’s net sales of $3.96 billion surpassed the consensus estimate of $3.93 billion by 0.7% and increased 0.4% year over year. Higher organic sales, improved gross margins and strong cash generation supported the quarter. Stanley Black & Decker’s also raised its full-year adjusted earnings guidance to $5.20-$5.80 per share, up from the earlier outlook of $4.90-$5.70.

Enerpac (EPAC - Free Report) came out with quarterly earnings of 60 cents per share in the third quarter of fiscal 2026 (ended May 31, 2026), beating the Zacks Consensus Estimate of 49 cents per share. This compares with earnings of 51 cents per share a year ago.

Enerpac posted revenues of $167.6 million for the quarter, surpassing the Zacks Consensus Estimate of $165 million. This marks a 6% increase from year-ago revenues of $158.7 million. Enerpac updated its earnings per share projection for fiscal 2026 to $1.84-$1.89 from the prior stated $1.85-$1.92.

Dover Corporation (DOV - Free Report) reported second-quarter 2026 adjusted earnings of $2.74 per share, up 12% year over year and beating the Zacks Consensus Estimate of $2.72. The improvement reflected broad-based revenue growth, stronger segmental margins and operational execution that more than offset input-cost inflation.

Dover’s revenues rose 7% year over year to $2.19 billion but missed the consensus estimate of $2.21 billion. Organic revenues increased 4.8% in the quarter. 

Key Takeaways SHOO raised its 2026 revenue and adjusted earnings outlook after stronger second-quarter results.Steve Madden lifted its 2026 brand outlook as footwear, handbags and wholesale demand accelerated.SHOO expects slower margin expansion as freight, tariffs and higher operating costs increase. Steven Madden, Ltd. (SHOO - Free Report) raised its 2026 revenue and adjusted earnings outlook after stronger second-quarter results and improving demand across its key brands. Investors now need to assess whether brand momentum can continue to outweigh freight, tariff and expense pressures in the second half.

The revised guidance shows greater confidence in the operating trend, but the new targets also raise the execution bar as external costs increase.

SHOO’s Raised Guidance Signals Greater ConfidenceSHOO now expects 2026 revenues to increase 11%-13%, up from its previous forecast of 10%-12%. Adjusted earnings are projected in the range of $2.05-$2.15 per share, compared with the prior outlook of $2.00-$2.10.

Management said the revenue increase mainly reflects stronger expectations for the periods ahead. Better-than-expected second-quarter gross margin also supported the earnings revision. Adjusted gross margin expanded 460 basis points year over year to 46.5%, helped by higher average selling prices, lower private-label penetration and a smaller tariff drag.

Crocs, Inc. (CROX - Free Report) also reported record second-quarter 2026 results and raised its full-year outlook, showing that differentiated footwear brands can still produce growth. Urban Outfitters, Inc. (URBN - Free Report) posted record fiscal first-quarter sales and income, reinforcing the importance of brand relevance and merchandise execution across consumer businesses.

Image Source: Zacks Investment Research

Steve Madden Drives the Guidance IncreaseThe Steve Madden brand was the primary growth engine in the second quarter. Trend-right assortments lifted demand across women’s footwear, men’s footwear and handbags, while global comparable sales increased 9%, including a 17% gain in the United States.

Branded wholesale revenues rose 20% as sell-through, reorders and the ability to chase best sellers improved. Handbag revenues increased about 30% across channels. Management raised its 2026 outlook for the flagship brand to high-single-digit revenue growth from the previous mid- to high-single-digit range.

Demand also remained favorable entering the third quarter. Management cited similar direct-to-consumer trends and higher sell-through at the Nordstrom Anniversary Sale, suggesting that momentum was broad across categories and channels rather than dependent on one product cycle.

Kurt Geiger and Dolce Vita Add Growth DepthKurt Geiger is expanding SHOO’s premium direct-to-consumer and international exposure. The company opened two U.S. full-price stores in the second quarter, bringing the total to seven. Existing locations generated 12% comparable-store growth and healthy four-wall profitability.

SHOO also acquired the Kurt Geiger distribution business in Spain and Portugal and continues to pursue distribution and joint-venture opportunities in other markets. Management maintained its outlook for mid-teens pro forma revenue growth for the brand.

Dolce Vita delivered gains across wholesale and direct-to-consumer channels, supported by footwear, handbags and international expansion. Management raised its 2026 revenue outlook to high-single-digit to low-double-digit growth from high-single-digit growth.

SHOO’s Margin Gains May ModerateManagement still expects year-over-year gross margin improvement in each remaining quarter of 2026, but the rate of expansion is likely to slow. SHOO will lap the Kurt Geiger acquisition, which reduces the benefit from a richer mix comparison, while prior pricing actions also become part of the year-ago base.

Freight and supplier costs are moving in the opposite direction. The company is using more air freight to chase best sellers and work around disrupted ocean routes, while supplier cost pressure is becoming harder to defer. These factors could limit the margin benefit from branded and direct-to-consumer growth.

SHOO’s Cost Headwinds Test the New OutlookThe prolonged Middle East conflict added 6 cents per share of second-half freight pressure to management’s forecast. SHOO is also absorbing higher shipping costs to direct customers.

The company incorporated announced third-quarter tariffs into its outlook and continues to assume a 15% tariff rate for the fourth quarter because additional trade investigations remain unresolved. Further disruption could require additional pricing, reduce gross margin gains or test demand elasticity.

Adjusted operating expenses also remain elevated as SHOO invests in marketing, incentive compensation and direct-to-consumer expansion. Management expects selling, general and administrative expenses to equal about 38.3% of revenues in 2026.

SHOO’s Scores Back Growth With CautionThe raised outlook and improving brand trends support a constructive operating view. SHOO’s stronger mix, direct-to-consumer growth and broader brand contribution could sustain earnings progress if execution remains on track.

Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Its Growth Score of A, Momentum Score of A and VGM Score of A align with improving fundamentals and price momentum. Its Value Score of C, together with tariff, freight and expense risks, suggests investors should monitor whether earnings execution keeps pace with the higher expectations.

Image: Bigstock

Read MoreHide Full Article

Delek US Holdings (DK - Free Report) reported $4.09 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 47.8%. EPS of $5.48 for the same period compares to -$0.56 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $3.03 billion, representing a surprise of +34.83%. The company delivered an EPS surprise of +147.96%, with the consensus EPS estimate being $2.21.

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

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

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

Total throughput (average bpd) - Total Refining: 315,555.00 BBL/D compared to the 305,149.50 BBL/D average estimate based on four analysts.Total Throughput Capacity Per Day - Tyler, TX Refinery: 77,887.00 BBL/D compared to the 75,199.22 BBL/D average estimate based on four analysts.Tyler, TX Refinery - Per barrel of throughput - Tyler refining production margin: $23.3 million versus the four-analyst average estimate of $19.13 million.Total refining production margin per bbl total throughput: $19.84 versus $15.86 estimated by four analysts on average.Total Throughput Capacity Per Day - Big Spring, TX Refinery: 70,137.00 BBL/D versus 67,771.98 BBL/D estimated by four analysts on average.Total Throughput Capacity Per Day - Krotz Springs, LA Refinery: 83,025.00 BBL/D compared to the 81,088.97 BBL/D average estimate based on four analysts.El Dorado, AR Refinery - Per barrel of throughput - El Dorado refining production margin: $16.4 million versus $14.07 million estimated by four analysts on average.Big Spring, TX Refinery - Per barrel of throughput - Big Spring refining production margin: $20.47 million versus the four-analyst average estimate of $15.68 million.Total Throughput Capacity Per Day - El Dorado, AR Refinery: 84,506.00 BBL/D versus the four-analyst average estimate of 81,089.31 BBL/D.Total Revenues- Logistics: $384.7 million versus $296.9 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +56.1% change.Total Revenues- Corporate, Other and Eliminations: $-353.7 million compared to the $-240.47 million average estimate based on three analysts. The reported number represents a change of +78.1% year over year.Total Revenues- Refining: $4.06 billion versus $2.96 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +49.3% change.View all Key Company Metrics for Delek US Holdings here>>>

Shares of Delek US Holdings have returned +26.5% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.

Published in earnings earnings-estimates-revisions earnings-surprise

Key Takeaways Arista now expects 2026 revenues of about $12.6B, up 40%, after its third outlook raise.Added suppliers and capacity lifted shipments, while purchase commitments rose to $9.7B.Etherlink customers topped 100 as 1.6-terabit platforms enter trials before a 2027 production ramp. Arista Networks, Inc. (ANET - Free Report) used its second-quarter call to emphasize that improved component access is converting strong demand into higher shipments across artificial intelligence (AI), data center, campus and routing.

Management raised its 2026 revenue outlook for the third time this year, while focusing on execution, customer mix and demand beyond AI fabrics.

ANET Raises Its 2026 Revenue OutlookChairperson and chief executive officer Jayshree Ullal said Arista now expects 2026 revenues of approximately $12.6 billion, representing 40% growth. The outlook is $1.1 billion above the May projection and $2.1 billion above the prior Analyst Day goal.

Chief financial officer Chantelle Breithaupt guided third-quarter revenues to approximately $3.3 billion, with a non-GAAP operating margin of 48% to 49% and non-GAAP earnings of $1.06 to $1.08 per share.

Second-quarter revenues reached $3.04 billion, ahead of the Zacks Consensus Estimate of $2.83 billion and up 37.7% year over year. Non-GAAP earnings rose 39.7% to $1.02 per share, beating the consensus estimate of $0.89.

Arista Expands Supply CommitmentsPresident and chief operating officer Todd Nightingale said the company added suppliers, improved delivery terms and expanded manufacturing and distribution capacity. Arista now works with three contract manufacturers and three distribution facilities across the United States, Asia and Mexico.

Management secured memory supply for 2026 and extended visibility into 2027 across DDR4, DDR5 and NAND. It also established a liquid-cooling supply chain for next-generation AI systems.

Purchase commitments rose to $9.7 billion from $8.9 billion in the first quarter and about $3.6 billion a year earlier. Ullal cautioned that industry constraints could persist until 2028, despite Arista's progress.

ANET Builds Out Its AI Fabric AdvantageUllal said cumulative Etherlink customers now exceed 100, up from four to five customers discussed in 2024. The company is extending its portfolio with the 7060XE7, which supports 1.6-terabit throughput, 100 terabits of system capacity and liquid-cooling options.

Co-founder, President and chief technology officer Kenneth Duda highlighted Smart System Upgrade, Multipath Reliable Connection and SRv6-based routing. Management framed those capabilities as tools to reduce downtime, avoid congestion and improve accelerator utilization.

Arista expects 1.6-terabit platforms to remain in trials during the second half of 2026, with production ramping in 2027. Ullal said initial evaluations involve a small number of large customers.

Arista Sees Broader Growth Beyond AIA UBS analyst questioned why the higher annual outlook did not include a larger stated AI or campus target. Ullal responded that all product sectors should grow, while management retains flexibility to prioritize shipments based on supply.

A Raymond James analyst pressed on the incremental $1.1 billion. Ullal pointed to core data center front-end systems, enterprise demand, routing, campus and AI as contributors.

Breithaupt also cited new customer wins, international expansion and land-and-expand activity between campus and data center deployments. The guidance increase was broader than a single product cycle.

ANET Defends Its System-Level ApproachAn Evercore ISI analyst asked whether rising AI-network complexity strengthens integrated systems relative to white-box alternatives. Ullal said simple deployments can still use lower-cost white-box equipment, but larger scale-out and scale-across networks require more software, reliability and traffic engineering.

A Morgan Stanley analyst asked why newer cloud operators choose Arista's blue-box systems. Ullal emphasized operating efficiency, EOS feature depth and reliability, while acknowledging that large customers with extensive engineering staffs may continue using white-box products.

A Wells Fargo analyst asked about customer concentration. Ullal said Microsoft and Meta remain key partners and expects one, and potentially two, customers to represent at least 10% of revenue as shipments scale.

Arista Keeps Execution at the CenterManagement's tone remained confident on demand but measured on supply. Breithaupt said customer visibility remains about two quarters and the annual outlook reflects supply the company is confident it can secure.

The call left Arista focused on converting commitments into shipments, scaling new AI platforms and broadening growth across established networking categories without relaxing operating discipline.

Zacks Signals Show Mixed Style SupportANET carries a Zacks Rank #2 (Buy), a favorable indicator tied to earnings-estimate revisions over the next one to three months. Its Growth Score of A is the strongest style signal, while the Value Score of F and Momentum Score of D indicate weaker positioning on those dimensions.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The VGM Score of C shows a middle-range combined profile rather than the A or B scores that pair most strongly with a top Zacks Rank. The Zacks Rank can change as analysts revise estimates following the newly reported results.

Key Takeaways Sempra's earnings are expected to rise 13.5%, while revenues are projected to improve 7.2%.Rate-base growth, Oncor benefits and infrastructure investments are likely to support earnings.ECA LNG production and expected cargo revenue recognition may provide an incremental boost. Sempra (SRE - Free Report) is slated to report second-quarter 2026 results on Aug. 6, 2026, before market open. The company's earnings were in line with the Zacks Consensus Estimate in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors at Play Ahead of SRE’s Q2 ResultsSempra’s second-quarter earnings are likely to have benefited from continued rate base growth across its regulated utility operations. The recognition of financial benefits from Oncor’s recently approved base rate review, which was expected to be reflected primarily in the second quarter, is also likely to have supported regulated earnings.

The company’s continued investments in grid modernization, transmission expansion and system reliability projects are also expected to have supported quarterly performance. Sustained customer growth across its service territories, particularly in Texas, is likely to have boosted electricity and natural gas demand, contributing to higher revenues.

Additionally, progress at the ECA LNG Phase 1 project is likely to have provided an incremental boost to Sempra’s second-quarter performance. During the quarter, the project achieved first LNG production as part of the commissioning process, marking a key milestone toward commercial operations. As LNG production commenced and the company began recognizing revenues from LNG cargoes, the project is expected to contribute positively to quarterly results while strengthening Sempra’s long-term LNG growth prospects.

Estimates for SREThe Zacks Consensus Estimate for earnings is pegged at $1.01 per share, indicating a year-over-year increase of 13.5%.

The consensus estimate for revenues is pinned at $3.22 billion, indicating a year-over-year improvement of 7.2%.

What the Zacks Model Unveils for SREOur proven model predicts an earnings beat for SRE this time. 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, which is the case here, as you will see below.

Earnings ESP: SRE has an Earnings ESP of +0.79%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: SRE currently carries a Zacks Rank of 3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to ConsiderBelow, we have mentioned a few other players from the same sector that have the right combination of elements to beat on earnings in the upcoming releases:

Cheniere Energy (LNG - Free Report) is expected to report its second-quarter 2026 earnings on Aug. 6, 2026, before market open. It has an Earnings ESP of +3.69% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for LNG’s earnings is pegged at $2.80 per share. The consensus estimate for its sales is pegged at $5.03 billion, indicating year-over-year growth of 8.4%.

Calumet, Inc. (CLMT - Free Report) is expected to report its second-quarter 2026 earnings on Aug. 7, 2026, before market open. It has an Earnings ESP of +169.57% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for CLMT’s loss is pegged at 23 cents per share. The consensus estimate for its sales is pegged at $1.07 billion, indicating year-over-year growth of 4.1%.

National Energy Services Reunited (NESR - Free Report) is set to report its second-quarter 2026 earnings on Aug. 10, 2026, before market open. It has an Earnings ESP of +7.80% and a Zacks Rank of 1 at present.

The Zacks Consensus Estimate for NESR’s earnings is pegged at 35 cents per share. The consensus estimate for its sales is pegged at $458.4 million, indicating year-over-year growth of 40%.

-

HOUSTON--(BUSINESS WIRE)--The Board of Directors of Murphy Oil Corporation (NYSE: MUR) today declared a quarterly cash dividend on the Common Stock of Murphy Oil Corporation of $0.35 per share, or $1.40 per share on an annualized basis. The dividend is payable on September 1, 2026, to stockholders of record as of August 17, 2026.

ABOUT MURPHY OIL CORPORATION

Murphy Oil Corporation is an independent oil and natural gas company with a multi-basin onshore and offshore portfolio and significant exploration opportunities. The company has more than a century-long history of demonstrating strong execution and innovative, full-cycle development capabilities with a focus on value creation that drives shareholder returns. Murphy’s foresight and financial discipline, along with its culture of adaptability and accountability, will allow the company to continue its outstanding legacy and exceptional reputation. The company’s current operations include extensive inventory located onshore in the Eagle Ford Shale, Tupper Montney and Kaybob Duvernay, as well as offshore in the Gulf of America and Canada. Murphy also strives to create long-term shareholder value through offshore exploration and development in the Gulf of America, Vietnam and Côte d’Ivoire. Additional information can be found on the company’s website at www.murphyoilcorp.com.

More News From Murphy Oil Corporation

Back to Newsroom

PHILADELPHIA, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Axalta Coating Systems Ltd. (NYSE: AXTA) today announced that its shareholders overwhelmingly voted to approve its previously announced all-stock merger of equals (the “Merger”) with Akzo Nobel N.V. (“AkzoNobel”) at the Company’s Special General Meeting of Shareholders held earlier today.

AkzoNobel also held its Extraordinary General Meeting today, where AkzoNobel shareholders voted to approve the Merger.

“We appreciate the strong support we have received for our merger of equals with AkzoNobel and we are excited about the opportunity to deliver significant value to shareholders, customers and employees,” said Chris Villavarayan, Chief Executive Officer of Axalta. “Building on our record second quarter, we are excited to embark on our next phase with real momentum in the business. Our teams are working diligently to advance integration planning and remain focused on bringing together two highly complementary businesses to capture the full value of this combination from day one.”

“Today’s approval marks an important milestone toward creating a premier global coatings company,” said Rakesh Sachdev, Chair of the Axalta Board of Directors. “The resounding support reaffirms our conviction that combining Axalta and AkzoNobel will create a differentiated industry leader with broad capabilities, world-class innovation and an even stronger platform for growth and value creation. I look forward to working with our combined team to deliver on the promise of this combination.”

Completion of the Merger remains subject to receipt of required regulatory approvals and other customary closing conditions. Subject to the satisfaction of these conditions, the companies continue to expect the Merger to be completed in late 2026 to early 2027.

The final voting results, as certified by an independent inspector of election, will be filed as a Form 8-K filed with the U.S. Securities and Exchange Commission.

About Axalta
Axalta is a global leader in the coatings industry, providing customers with innovative, colorful, beautiful and sustainable coatings solutions. From light vehicles, commercial vehicles and refinish applications to electric motors, building facades and other industrial applications, our coatings are designed to prevent corrosion, increase productivity and enhance durability. With more than 150 years of experience in the coatings industry, the global team at Axalta continues to find ways to serve our more than 100,000 customers in over 140 countries better every day with the finest coatings, application systems and technology. For more information visit axalta.com and follow us on LinkedIn.

General restrictions
This communication is not for release, publication, or distribution, in whole or in part, in or into, directly or indirectly, any jurisdiction in which such release, publication, or distribution would be unlawful.

This communication is not a prospectus and the information in this communication is not intended to be complete. This communication is for informational purposes only and is not intended to be and shall not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any securities, or an invitation or recommendation to subscribe for, acquire or buy securities of AkzoNobel or Axalta or any other financial products or securities, in any place or jurisdiction, nor shall there be any offer, solicitation or 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 U.S. Securities Act of 1933, as amended (the “Securities Act”).

Any decision to purchase, subscribe for, otherwise acquire, sell or otherwise dispose of any securities must be made only on the basis of the information contained in and incorporated by reference into the prospectus with respect to the shares to be allotted by AkzoNobel in the proposed transaction, which was published on June 24, 2026.

The distribution of this communication may, in some countries, be restricted by law or regulation. Accordingly, persons who come into possession of this document should inform themselves of and observe these restrictions. To the fullest extent permitted by applicable law, AkzoNobel and Axalta disclaim any responsibility or liability for the violation of any such restrictions by any person. Neither AkzoNobel, nor Axalta, nor any of their advisors assume any responsibility for any violation by any person of any of these restrictions. Shareholders of AkzoNobel and Axalta, respectively, with any doubt as to their position should consult an appropriate professional advisor without delay.

This communication is addressed to and directed only at, persons who are outside the United Kingdom or, in the United Kingdom, at persons who are: (i) persons having professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), (ii) persons falling within Article 49(2)(a) to (d) of the Order, or (iii) persons to whom it may otherwise lawfully be communicated pursuant to the Order (all such persons together being referred to as, “Relevant Persons”). This communication is directed only at Relevant Persons. Other persons should not act or rely on this communication or any of its contents. Any investment or investment activity to which this communication relates is available only to Relevant Persons and will be engaged in only with such persons. Solicitations resulting from this communication will only be responded to if the person concerned is a Relevant Person.

Additional Information and Where to Find It
In connection with the proposed transaction between AkzoNobel and Axalta, AkzoNobel filed with the U.S. Securities and Exchange Commission (the “SEC”) a registration statement on Form F-4 on May 27, 2026, as amended on June 18, 2026, which included a proxy statement of Axalta that also constitutes a prospectus with respect to the shares to be offered by AkzoNobel in the proposed transaction. The registration statement was declared effective by the SEC on June 23, 2026. In connection with the proposed transaction, on June 24, 2026, Axalta filed with the SEC a definitive proxy statement and, on or about June 24, 2026, Axalta commenced mailing the definitive proxy statement to its holders of record as of June 11, 2026. Each of AkzoNobel and Axalta will also file other relevant documents in connection with the proposed transaction. This communication is not a substitute for any registration statement, proxy statement/prospectus or other documents AkzoNobel and/or Axalta may file with the SEC or any other competent regulator in connection with the proposed transaction. This communication does not contain all the information that should be considered concerning the proposed transaction and is not intended to form the basis of any investment decision or any other decision in respect of the proposed transaction. BEFORE MAKING ANY INVESTMENT DECISIONS, INVESTORS, STOCKHOLDERS AND SHAREHOLDERS OF AKZONOBEL AND AXALTA ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THE PROXY STATEMENT/PROSPECTUS, AS APPLICABLE, AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, IN CONNECTION WITH THE PROPOSED TRANSACTION WHEN THEY BECOME AVAILABLE, AS THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT AKZONOBEL, AXALTA, THE PROPOSED TRANSACTION AND RELATED MATTERS. The registration statement and proxy statement/prospectus and other relevant documents filed by AkzoNobel and Axalta with the SEC are available free of charge at the SEC’s website at www.sec.gov. In addition, investors and shareholders will be able to obtain free copies of the proxy statement/prospectus and other documents filed with the SEC from Axalta’s investor relations webpage at https://ir.axalta.com/sec-filings/all-sec-filings or from AkzoNobel’s investor relations webpage at https://www.akzonobel.com/en/investors/all-sec-filings.

The contents of this communication should not be construed as financial, legal, business, investment, tax or other professional advice. Each recipient should consult with its own professional advisors for any such matter and advice.

Cautionary Statement Concerning Forward-Looking Statements
This communication contains forward-looking statements as that term is defined in Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, regarding, among other things, statements about management’s expectations of AkzoNobel’s and Axalta’s future operating and financial performance, product development, market position, and business strategy. Such forward-looking statements can sometimes be identified by the use of forward-looking terms such as “believes,” “expects,” “may,” “will,” “shall,” “should,” “would,” “could,” “potential,” “seeks,” “aims,” “projects,” “predicts,” “is optimistic,” “intends,” “plans,” “estimates,” “targets,” “anticipates,” “continues” or other comparable terms or negatives of these terms, but not all forward-looking statements include such identifying words. You are cautioned not to rely on these forward-looking statements. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. We can give no assurance that such plans, estimates or expectations will be achieved and therefore, actual results may differ materially from any plans, estimates or expectations in such forward-looking statements. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include: a condition to the closing of the proposed transaction may not be satisfied; the occurrence of any event that can give rise to termination of the proposed transaction; a regulatory approval that may be required for the proposed transaction is delayed, is not obtained or is obtained subject to conditions that are not anticipated; AkzoNobel and Axalta are unable to achieve the synergies and value creation contemplated by the proposed transaction; AkzoNobel and Axalta are unable to promptly and effectively integrate their businesses; management’s time and attention is diverted on transaction related issues; the possibility that competing offers or acquisition proposals may be made; disruption from the proposed transaction makes it more difficult to maintain business, contractual and operational relationships; the credit ratings of AkzoNobel or Axalta decline following the proposed transaction; legal proceedings are instituted against AkzoNobel or Axalta, including resulting expense or delay; AkzoNobel or Axalta is unable to retain or hire key personnel; the communication or the consummation of the proposed acquisition has a negative effect on the market price of the capital stock of AkzoNobel or Axalta or on AkzoNobel’s or Axalta’s operating results; evolving legal, regulatory and tax regimes; changes in economic, financial, political and regulatory conditions, in the Netherlands, the United States and elsewhere, and other factors that contribute to uncertainty and volatility, natural and man-made disasters, civil unrest, pandemics (e.g., the coronavirus (COVID-19) pandemic), geopolitical uncertainty, and conditions that may result from legislative, regulatory, trade and policy changes associated with the current or subsequent United States or Netherlands administration; the ability of AkzoNobel or Axalta to successfully recover from a disaster or other business continuity problem due to a hurricane, flood, earthquake, terrorist attack, war, pandemic, security breach, cyber-attack, power loss, telecommunications failure or other natural or man-made event, including the ability to function remotely during long-term disruptions; the impact of public health crises, such as pandemics and epidemics and any related company or governmental policies and actions to protect the health and safety of individuals or governmental policies or actions to maintain the functioning of national or global economies and markets, including any quarantine, “shelter in place,” “stay at home,” workforce reduction, social distancing, shut down or similar actions and policies; actions by third parties, including government agencies; the risk that disruptions from the proposed transaction will harm AkzoNobel’s or Axalta’s business, including current plans and operations and/or divert management’s attention from AkzoNobel’s or Axalta’s ongoing business operations; certain restrictions during the pendency of the acquisition that may impact AkzoNobel’s or Axalta’s ability to pursue certain business opportunities or strategic transactions; AkzoNobel’s or Axalta’s ability to meet expectations regarding the accounting and tax treatments of the proposed transaction; the risks and uncertainties discussed in AkzoNobel’s latest annual report as filed with the AFM, the Dutch trade register and on its website at https://www.akzonobel.com/en/investors/results-center; and the risks and uncertainties discussed in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections in Axalta’s reports filed with the SEC. These risks, as well as other risks associated with the proposed transaction, are more fully discussed in the proxy statement/prospectus. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. We caution you not to place undue reliance on any of these forward-looking statements as they are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of new markets or market segments in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this communication. Except as required by law, neither AkzoNobel nor Axalta assumes any obligation to update or revise the information contained herein, which speaks only as of the date hereof.

Key Takeaways HWM is expected to report Q2 EPS of $1.23 on $2.41B in revenues, with earnings and sales up year over year.Howmet's commercial aerospace demand and defense orders are expected to support second-quarter results.HWM faces commercial transportation weakness, supply-chain issues and a higher valuation than peers. Howmet Aerospace Inc. (HWM - Free Report) is scheduled to release second-quarter 2026 results on Aug. 6, before market open. The Zacks Consensus Estimate for earnings is currently pegged at $1.23 per share on revenues of $2.41 billion.

The company’s second-quarter earnings estimates have decreased a penny over the past 30 days. However, the bottom-line projection indicates an increase of 35.2% from the year-ago number. The Zacks Consensus Estimate for quarterly revenues indicates year-over-year growth of 17.5%.

Earnings Surprise History
Image Source: Zacks Investment Research

The company has surpassed the Zacks Consensus Estimate thrice and missed once in the preceding four quarters, the average surprise being -1.3%. In the last reported quarter, it reported earnings of 86 cents per share, which missed the consensus estimate by 22.5%.

Earnings Whispers for HWMOur proven model does not conclusively predict an earnings beat for HWM 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, which is not the case here, as elaborated below.

Earnings ESP: HWM has an Earnings ESP of -0.83% as the Zacks Consensus Estimate is pegged at $1.23 per share, which is higher than the Most Accurate Estimate of $1.22. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: HWM currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors to Note Ahead of Howmet Aerospace’s Q2 ResultsHowmet Aerospace’s second-quarter results are expected to gain from persistent strength in its commercial aerospace market. Solid demand in the air transport market has been driving demand for wide-body aircraft, thereby supporting continued OEM spending. Pickup in air travel has been positive for the company as the increased usage of aircraft spurs spending on parts and products that it provides.

Increasing popularity for new, more fuel-efficient aircraft with reduced carbon emissions and increased spare demand for engines are expected to have proven promising for HWM in the second quarter. The Zacks Consensus Estimate for revenues from the commercial aerospace market is pegged at $1.29 billion, indicating a 21.7% rise from the year-ago quarter number.

Also, the company's defense aerospace market remains a key growth driver, backed by stable government funding. HWM is continuing to experience robust orders for engine spares for legacy fighters like the F-15 and the F-16. This is expected to have augmented its revenues in the to-be-reported quarter. The consensus estimate for revenues from the defense aerospace market is pegged at $388 million, indicating 10.2% growth from the year-ago quarter’s number.

However, Howmet Aerospace has been facing weakness in the commercial transportation market served by the Forged Wheels segment, due to lower OEM builds and tariff-related impacts in North America. This is likely to have affected its second-quarter performance.

Howmet Aerospace is dependent on a global supply chain, and in recent years, it has experienced supply-chain disruptions in the aerospace sector that resulted in delays and increased costs. Despite moderation, the persistence of supply-chain issues in the aerospace sector is likely to have affected its operations and performance.

HWM’s Price PerformanceHWM shares have gained 29.1% in the past six months compared with the Zacks Aerospace - Defense industry and the S&P 500’s decline of 2.3% and growth of 11.8%, respectively. In comparison, the company’s peers, Textron Inc. (TXT - Free Report) and RTX Corporation (RTX - Free Report) have decreased 6.6% and gained 9.7%, respectively, in the same period.

Six-Month Price Performance
Image Source: Zacks Investment Research

Howmet Aerospace’s Valuation Remains an OverhangHWM is trading at a forward 12-month price-to-earnings (P/E) ratio of 51.67X, much higher than the industry average of 34.53X. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours. In comparison with HWM’s valuation, its peers, Textron and RTX Corp., are trading cheaper. Notably, Textron and RTX Corp. are currently trading at 12.76X and 28.9X, respectively.

Price-to-Earnings (Forward 12 Months)
Image Source: Zacks Investment Research

Investment ThesisHowmet Aerospace is well-positioned for long-term growth, supported by its diversified portfolio and strong demand across the commercial aerospace and defense markets. The House of Representatives passed the fiscal year 2026 Defense Appropriations Act in July 2025, providing a total discretionary allocation of $831.5 billion. The expanded defense budget is expected to create additional contract opportunities for Howmet Aerospace, supporting growth in its defense aerospace business and boosting its top line.

However, persistent weakness in the commercial transportation market is likely to remain a near-term headwind. Additionally, Howmet Aerospace's premium valuation may limit further upside and warrants a cautious stance from investors.

Final ThoughtsStrength across the commercial and defense aerospace markets, supported by solid aircraft build rates, strong engine spares demand and elevated defense spending, is expected to drive Howmet Aerospace's growth. Despite its premium valuation, strong growth prospects make the stock worth considering.