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In the case of United Parcel Service (UPS +1.72%), it's all about adjusted operating profit margin. This key number lies at the heart of the company's transformational strategy, which entails reducing less-profitable Amazon deliveries in favor of higher-margin e-commerce deliveries, particularly in targeted markets such as healthcare and small and medium-sized businesses (SMBs).

At the same time, UPS's investments in smart facilities and automation are intended to improve productivity and, ultimately, margins. Everything points to margin expansion, but is it working out like that for UPS right now? Let's find out.

UPS changes guidance In the fourth-quarter earnings presentation in January, management forecast full-year revenue of $89.7 billion and an adjusted operating profit margin of 9.6%, implying $8.611 billion in adjusted operating profit. The headline guidance was maintained on the first-quarter earnings call in April. Still, on the second-quarter earnings call, management increased its full-year revenue guidance to $91.2 billion and specifically said that adjusted operating profit would be about $8.65 billion.

UPS United Parcel Service$100.21+$1.69 (+1.72%)

NYSE · As of 2:47 PM ET 10/21/26

Why the guidance change isn't good news Superficially, it's an increase in revenue guidance and also an increase over the implied guidance of $8.611 billion I calculated above. However, there are two key considerations for investors, and they matter a lot for the upcoming results of a company with a near-7% dividend yield.

First, the new guidance implies an adjusted operating margin of 9.48%, down from the 9.6% initially forecast. Second, it's important to understand the nuance of the guidance change. As previously discussed, due to rising fuel costs, UPS raised fuel surcharges by $1.173 billion in the first half. Bearing in mind that the increase in full-year revenue guidance was $1.5 billion to $91.2 billion, it's reasonable to expect a large chunk of the revenue increase is due to the fuel surcharge.

Turning to the difficult question of how much profit UPS is making from the fuel surcharges, its fuel cost and third-party costs increased by $744 million, resulting in a net difference of $429 million -- a figure slightly more than the increase in adjusted operating profit guidance.

Image source: Getty Images.

To be clear, management's position is that the fuel surcharge is intended solely to cover increased fuel costs, and there are associated costs related to fuel disruptions as well. Moreover, CFO Brian Dykes argued that "the net impact to consolidated operating profit dollars was modest" on the second-quarter earnings call.

In the absence of knowing exactly what kind of figure "modest" implies, it could be argued that the combination of a positive contribution from fuel surcharges over fuel cost -- something not likely to prove sustainable -- actually implies a significant decrease in adjusted operating profit margin if the impact of fuel is taken out.

The key metric to look out for As noted, this is the year when UPS should start to build on margin improvement, not least because it finished the so-called "glide down" of Amazon deliveries by 50% (volume) from the start of 2025 to the middle of 2026. That's why investors are so focused on margin, particularly the expected adjusted operating profit margin in the U.S. domestic package segment.

I've replicated what the Wall Street consensus, according to S&P Global Market Intelligence, is expecting for the segment, and the company's total adjusted operating margins will be below. As is often the case with Wall Street estimates, the full-year U.S. Domestic Package margin guidance mirrors management's 7.5% guidance given on the last earnings call.

Adjusted Operating Profit

Q1 2026

Q2 2026

Q3 2026 Est

Q4 2026 Est

Full Year 2026 Est

U.S. Domestic Package

4%

7.96%

6.98%

10.56%

7.53%

Total company

6.24%

9.21%

8.92%

12.65%

9.4%

Data source: S&P Global Market Intelligence.

Watch UPS's margin guidance All told, in the absence of management disclosing the exact figure, it's hard to know exactly how much fuel surcharges are adding to the blue chip stock's profitability. However, management has guided to a full-year U.S. Domestic Package adjusted operating profit margin of 7.5%, and the implied total company adjusted operating margin guidance is 9.48%.

Any failure to maintain those figures or meet the Wall Street analyst consensus in the table in the third quarter would suggest its margin trajectory isn't quite what most hope for. That said, if UPS beats both expectations, the margin expansion story will support the case for the stock.

4 Stocks With Demand So Sticky That the AI Sell-Off Barely Touched Them at AllMicron Technology NASDAQ: MU outlined a technology and product roadmap centered on rising artificial-intelligence memory and storage requirements, including plans for next-generation DRAM, high-bandwidth memory, NAND and advanced packaging technologies.

During the company’s technology and product leadership webinar, President and Chief Technology and Products Officer Scott DeBoer said AI is changing the role of memory from a supporting component to a central constraint on system performance, capacity and cost per token. He said Micron aims to advance memory, storage and compute together through higher bandwidth, larger capacities, improved power efficiency and closer product collaboration with customers.

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DRAM roadmap and 3D transition The AI Sell-Off Continues—These 3 Stocks Keep Raising Guidance AnywayDeBoer said Micron’s 1-gamma DRAM node is in high-volume manufacturing and will serve as the foundation for products introduced over the coming 12 months. The company expects its 1-delta DRAM node to enter volume production in the second half of 2027, targeting a mid-20% percentage improvement in bit density while optimizing the technology for AI-oriented products including HBM5, vertical HBM and vertical edge inference memory.

Micron also described work on 1-epsilon, 1-zeta and eta-generation technologies, including wafer bonding, High-NA EUV, new materials and other process innovations. DeBoer said the company has confidence in several additional generations of planar DRAM scaling before introducing 3D DRAM.

MarketBeat Week in Review – 10/12 - 10/16While Micron has 3D DRAM on its roadmap, DeBoer said deployment timing will depend on cost, complexity and device-performance considerations. He pushed back on the view that 4F² DRAM architectures inherently provide a density advantage over 6F² designs, saying capacitor pitch is the foundational determinant of DRAM bit density.

“When we look out from Micron’s point of view as the leading-edge technology company, when we look at scaling 4F² beyond where we’re sitting today, it’s physics,” DeBoer said during the question-and-answer session. “There’s fundamental problems with 4F² scaling, that ultimately will lead to 3D DRAM coming in instead of 4F².”

HBM expansion and vertical memory Micron said it is in high-volume manufacturing with HBM4 and is developing both standard and customized HBM products. The company expects custom HBM designs to incorporate customer-specific memory and logic intellectual property into the base die, while standard HBM products will remain part of the market.

The company also described a future category called vertical HBM, in which memory is integrated directly on top of processing units. DeBoer said the architecture is intended primarily to deliver substantially greater bandwidth, while capacity will scale at a different pace because of thermal-management challenges.

Advanced packaging and hybrid bonding will be increasingly important to those products, according to Micron. DeBoer said hybrid bonding is necessary as interconnect pitches tighten, and he cited both bandwidth and thermal benefits. The company is also developing higher-stack HBM designs and thermal technologies, including heat spreaders positioned over hotter areas of an HBM base die.

Micron said it will use foundry nodes for future standard and custom HBM base dies. DeBoer said HBM4 did not require more advanced CMOS for Micron to achieve its power and performance objectives, but HBM4E will require more advanced CMOS to meet speed and power requirements.

New DRAM and NAND products Micron highlighted several forthcoming DRAM offerings. LPDDR6 is expected to provide 35% better power performance than LPDDR5, with greater improvement on some densities, according to the company. Micron also said it is working with customers on DDR6, which it described as offering twice the bandwidth of DDR5, and plans a 1-terabyte RDIMM following its recently sampled 512-gigabyte DDR5 RDIMM.

On NAND, Micron said its Generation 11 technology will ramp in the second half of 2027. The company said G11 will more than double bit density compared with its Generation 9 NAND, target 1.5 times the I/O speed and reduce data-transfer energy. The node will use wafer-on-wafer bonding and have more than 400 layers.

Micron is also pursuing what it calls AI-class NAND in two areas:

High-IOPS, SLC-based NAND designs using small blocks for ultra-fast storage products. High-bandwidth NAND using TSV-stacked NAND and logic dies positioned closer to compute resources. DeBoer said the company will determine the appropriate designs in collaboration with customers, given different performance and cost requirements across data center, automotive and edge applications.

AI tools, investment and customer collaboration Micron said it is using AI internally to speed product development and manufacturing execution. DeBoer cited a data center controller design that moved from silicon to tape-out in half the time of the prior generation, as well as a data center SSD development effort completed with 60% less time than the preceding generation.

The company also pointed to longer-term investments, including expanded Micron Ventures activity, work at Albany NanoTech on advanced lithography and a previously announced $10 billion, 10-year commitment to Micron Research Labs. DeBoer said the company is collaborating with partners ranging from startup Liqid to Meta, with Micron and Meta recently publishing a white paper focused on optimizing LPDDR6 for data centers.

In response to questions about AI system design, DeBoer said memory configurations will vary across training, inference, edge and rack-scale deployments. However, he said the underlying principle remains that more memory content and bandwidth improve system performance. He added that Micron does not expect memory supply to come into balance over the next two years, citing prior comments by company leadership.

About Micron Technology (NASDAQ:MU)Micron Technology, Inc is a semiconductor company that develops and manufactures memory and storage products. Its portfolio includes dynamic random-access memory (DRAM), NAND flash memory, NOR flash memory, solid-state drives, memory modules, and other semiconductor solutions used in data centers, personal computers, smartphones, automotive systems, industrial equipment, and consumer electronics.

The company also provides high-bandwidth memory and other advanced memory technologies designed to support artificial intelligence, high-performance computing, networking, and graphics applications.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Coinbase shares have been cut nearly in half over the past year, yet one staggering market projection sits at the heart of the bull case and could justify a dramatic reversal if it plays out.

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Our 24/7 Wall St. price target for Coinbase (NASDAQ:COIN | COIN Price Prediction) is $228.27 over the next 12 months. From the current price of $169.27, that means 34.86% upside. Our model rates the stock a buy with moderate confidence.

24/7 Wall St. Price Target Summary Metric Value Current Price $169.27 Price Target from 24/7 Wall St. $228.27 Upside/Downside 34.86% Recommendation BUY Confidence Level 50% That target may look high for a stock with back-to-back GAAP losses. The bull case rests on one very big number: a stablecoin market that Coinbase expects to grow from $300B to $3T by 2030. Through USD Coin (CRYPTO:USDC) economics and its Base blockchain, Coinbase sits close to the center of that market.

A Steep One-Year Slide Meets Multi-Year-Low Volatility Shares fell 5.32% over the past week and 12.07% over the past month. They are down 24.47% year to date and 49.17% over one year, inside a 52-week range of $139.11 to $373.25.

Second-quarter revenue came in at $1.22B, down 18.5% year over year and short of the $1.29B consensus. EPS was -$1.36, missing the -$0.2278 estimate, as spot volume fell 25% from the prior quarter.

There were bright points, though. Trading market share reached an all-time high of 10.3%, and adjusted EBITDA of $207.8M was positive for the 14th consecutive quarter.

Why Bulls See $341 Ahead Our bull case reaches $341.59. Stablecoins do much of the work.

CEO Brian Armstrong said Base processed about “$32 trillion in the last 12 months of stablecoin transfer volume,” and average USDC held in Coinbase products hit $20B. Tokenized real-world assets, which Coinbase projects could grow to $16T by 2030, add a second path to growth.

Prediction markets topped $100M annualized, and Coinbase One “passed a million subscribers.” CFO Alesia Haas pointed out that subscriber growth happened “during a down market.” Among analysts, 4 rate the stock Strong Buy and 19 rate it Buy.

What Could Go Wrong for Coinbase Our bear case is $197.35, but a retest of the 52-week low is a real risk. Transaction revenue tracks volatility, and Q3 transaction revenue through July 26 was only about $130M. Rate cuts squeeze stablecoin income, and long-term debt has climbed to $7.2B.

One analyst rates the stock Sell and 1 rates it Strong Sell. There is a counterpoint: much of the Q1 loss came from $482.4M in losses on crypto held for investment, which were largely non-cash. Cash also stands at $8.61B.

Coinbase vs. Robinhood, Interactive Brokers and CME Group Company Forward P/E Quarterly Revenue Growth (YoY) Coinbase N/A -18.5% Robinhood 45x 32.3% Interactive Brokers 28x 13.5% CME Group 22x 0.8% Robinhood Markets (NASDAQ:HOOD) competes directly with Coinbase for retail crypto and stock investors. It is valued at $88.89B, compared with Coinbase’s $38.02B, which shows what the market pays for multi-asset growth.

Interactive Brokers (NASDAQ:IBKR) is a brokerage with steadier growth, and its 1.37 beta contrasts sharply with Coinbase’s.

CME Group (NASDAQ:CME) lists crypto futures, which makes it the benchmark for Coinbase’s derivatives ambitions through Deribit. CME earns a 63.4% profit margin. Next to these peers, our target looks reasonable if transaction revenue recovers.

BUY Rating Rests on Stablecoin Scale The 24/7 Wall St. price target of $228.27 carries a buy rating at 50% confidence. What tips the scale is subscription and services revenue, now 48% of net revenue.

I’d grow more constructive if crypto volatility comes back while USDC balances keep rising. I’d stay cautious if the next earnings report shows another quarter of shrinking transaction revenue. The stablecoin opportunity outweighs the cyclical risk overall.

Here is where our model projects Coinbase could trade if current growth trends and market conditions hold over the longer term.

Year Base Case Bull Case 2026 $179.50 $207.42 2027 $237.29 $333.50 2028 $285.68 $522.93 2029 $313.37 $687.60 2030 $394.06 $857.39 These projections hinge on Coinbase continuing to carry out its Everything Exchange strategy. Results could land well above or below these figures depending on stablecoin adoption, crypto volatility and the outcome of the Clarity Act.

Contact [email protected] for any questions or corrections.

Key Takeaways Axsome's Auvelity generated $333 million in first-half 2026 sales, up 54.2% year over year.Auvelity's Alzheimer's agitation launch and phase III smoking cessation study could expand its market reach.AXSM's acquisition of Sunosi's U.S. rights from Jazz helped diversify its commercial portfolio.
Axsome Therapeutics (AXSM - Free Report) has been witnessing strong uptake for its lead marketed drug, Auvelity (AXS-05), which is approved for treating major depressive disorder. The drug has played an instrumental role in driving the company’s top line since its approval and launch in the United States in 2022.

Auvelity generated $333 million in sales in the first half of 2026, up 54.2% year over year in the United States. Building on this momentum, we expect investors to closely watch Auvelity’s sales performance when Axsome reports its third-quarter 2026 results on Nov. 2.

Auvelity sales are likely to have been driven by prescription growth and higher volumes during the third quarter.

The drug is also being developed in several label expansion studies for other central nervous system (CNS) disorders like Alzheimer’s disease agitation and smoking cessation.

In April 2026, the FDA approved Auvelity for the treatment of agitation associated with dementia due to Alzheimer’s disease. The company commercially launched Auvelity for this indication in June 2026.

Axsome recently initiated the phase III SUMMIT study evaluating Auvelity for smoking cessation in August 2026.

The successful commercialization of Auvelity in additional indications would help the drug address a broader patient population and drive sales further in future quarters.

AXSM’s Other Marketed Drugs Support GrowthBesides Auvelity, Axsome’s narcolepsy drug, Sunosi (solriamfetol), is also generating incremental sales and aiding the top line. Axsome acquired U.S. rights to Sunosi from Jazz Pharmaceuticals (JAZZ - Free Report) .

Sunosi generated sales worth $66.5 million in the first half of 2026, reflecting an increase of 25.5% year over year. The acquisition of Sunosi from Jazz diversified Axsome’s commercial portfolio. The drug has become an important revenue driver for the company.

Axsome’s newest product, Symbravo, was approved by the FDA for the acute treatment of migraine with or without aura in adults in January 2025. The drug, which was launched in the United States in June 2025, recorded sales worth $6.3 million in the first six months of 2026.

The approval of Symbravo further solidified Axsome’s commercial footprint in the target market. However, increasing competition in the target market remains a concern for the company.

AXSM’s Competition in the Target MarketAlthough Axsome is benefiting from Auvelity’s momentum and its broader commercial portfolio, the CNS space remains highly competitive. Acadia Pharmaceuticals (ACAD - Free Report) currently markets its lead drug, Nuplazid (pimavanserin), for a CNS disorder.

ACAD’s Nuplazid was the first and only drug approved by the FDA for hallucinations and delusions associated with Parkinson’s disease psychosis. The ACAD drug recorded sales worth $350.1 million in first-half 2026, up 7% year over year.

Sunosi is also likely to face competition from Jazz’s sleep disorder drugs, which hold a strong market share.

Symbravo is also expected to face stiff competition in the migraine market from established players such as Pfizer’s Nurtec ODT/Vydura and AbbVie’s Ubrelvy and Qulipta/Aquipta. This could intensify competition for Axsome and potentially affect its long-term growth prospects.

Key Takeaways RJF returned nearly $2 billion to shareholders over the trailing 12 months through dividends and buybacks.Strong liquidity and excess capital provide flexibility for shareholder returns and strategic investments.Earnings growth prospects aid future capital returns, yet costs and regulatory requirements remain risks.
Raymond James Financial, Inc. (RJF - Free Report) continues to prioritize shareholder returns alongside investments in organic growth, technology and strategic acquisitions. The company's strong earnings generation and conservative capital management approach provide flexibility to distribute excess capital through dividends and share repurchases while supporting business expansion. However, regulatory capital requirements and elevated expenses remain near-term risk factors.

RJF’s Dividends and Buybacks Drive Capital ReturnsRaymond James has maintained a consistent record of dividend growth, supported by recurring revenues and disciplined capital allocation. In December 2025, the company announced an 8% increase in its quarterly dividend to 54 cents per share. Over the past five fiscal years, the company raised its dividends five times, with an annualized growth rate of 12.4%. Management has indicated a target dividend payout ratio of 20-30% of earnings, providing room to sustain dividend payments while retaining capital for future growth.

Dividend Yield TTM

Image Source: Zacks Investment Research

Share repurchases remain another important component of Raymond James’ capital return strategy. During the fiscal third quarter, Raymond James repurchased $400 million of common shares at an average price of $152 per share. Over the preceding 12 months, it repurchased approximately 9.8 million shares for $1.6 billion.

Dividends Paid and Share Repurchases

Image Source: Raymond James Financial, Inc.

Including dividends, the company returned nearly $2 billion to common shareholders over the 12 months, equivalent to 86% of earnings. Although this reflects a substantial commitment to shareholder distributions, management's capital allocation priorities remain focused on organic growth, technology and platform investments, strategic acquisitions and sustainable dividends.

RJF’s Buyouts and Growth Investments Remain PrioritiesRaymond James continues to deploy capital toward strategic acquisitions and business expansion. The completion of its Clark Capital Management Group acquisition in April 2026 added more than $46 billion in discretionary and non-discretionary assets, strengthening its asset management capabilities. Its investment in GreensLedge expanded its capital-markets platform. Over the years, inorganic expansions have enhanced the company’s presence in private credit, trust services and international wealth management.  

These transactions complement RJF’s organic growth initiatives, particularly in its Private Client Group (PCG) and Asset Management businesses. Strong advisor recruiting, client retention and net new asset inflows further support the long-term growth outlook.

What’s Driving RJF’s Sustainable Capital Return Strategy?Raymond James maintains a solid capital and liquidity position, providing financial flexibility to support shareholder distributions and growth initiatives. As of June 30, 2026, the company reported a Tier 1 leverage ratio of 11.7% and a total capital ratio of 22.5%. Parent-level corporate cash was $2.5 billion, including $1.3 billion in excess liquidity above its $1.2 billion target.

Management indicated that Raymond James had approximately $1.5 billion in excess capital capacity before reaching its conservative Tier 1 leverage ratio target of 10%. This capital cushion provides room to support business expansion and return capital to shareholders while maintaining a prudent balance sheet.

Further, the company has been reporting steady earnings growth. These reinforce its ability to fund sustainable shareholder returns and growth initiatives.

RJF’s Quarterly Pre-Tax and Adjusted Pre-Tax MarginsOverall, Raymond James' strong capital position and earnings generation provide meaningful support to its shareholder-friendly policy. The Zacks Consensus Estimate indicates earnings growth of 13.8% in fiscal 2026 and 17.1% in fiscal 2027, which could further support capital generation.

Earnings Estimates

Image Source: Zacks Investment Research

Peer Firms Capital Return StrategyRobinhood Markets (HOOD - Free Report) follows a capital return strategy focused on share repurchases, supported by a strong liquidity position. As of June 30, 2026, the company had $5.4 billion in cash and cash equivalents, while corporate cash, investments and stablecoin totaled $5.6 billion. It also had $4.9 billion in available lines of credit.

During the second quarter of 2026, HOOD repurchased $414 million of Class A common stock, representing 4.4 million shares at an average price of approximately $94 per share. The company’s $1.5 billion share repurchase authorization, refreshed in March 2026, supports continued shareholder returns while retaining financial flexibility to fund growth initiatives.

BGC Group (BGC - Free Report) follows a capital return strategy focused on share repurchases and regular dividends, supported by solid liquidity. As of June 30, 2026, the company had $861.4 million in liquidity, providing financial flexibility to fund operations and shareholder returns.

In November 2025, BGC authorized a $400 million share repurchase program, with $274.6 million remaining available as of June 30, 2026. The company also continued its quarterly dividend of 2 cents per share. Management expects share repurchases to increase as seasonal cash requirements ease.

Trump Index: 6 Companies Linked to Trump’s Cabinet Worth WatchingRoivant Sciences NASDAQ: ROIV reported positive Phase III results from its CLARITY-1 and CLARITY-2 studies evaluating brepocitinib, which the company referred to as Brepo, in noninfectious uveitis (NIU), an inflammatory eye disease that can result in vision loss.

Matt Gline, Roivant’s chief executive officer, said the trials met their primary endpoint of time to treatment failure as well as all secondary endpoints in each individual study and in pooled analyses. The studies compared brepocitinib with placebo over a 48-week treatment period.

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“We got the largest efficacy benefit ever seen for a non-steroidal therapy,” Gline said during the company’s call, while noting that comparisons with prior studies of other treatments are cross-trial comparisons and subject to limitations.

Primary Endpoint and Steroid-Free Disease Control In both CLARITY trials, the median time to treatment failure was not reached among brepocitinib-treated patients by the end of the 48-week study period, because more than half of those patients had not experienced treatment failure. In comparison, median time to treatment failure was approximately 12 weeks in one placebo study and 13 weeks in the other, according to Roivant.

The company said the studies used an aggressive corticosteroid taper. Patients began treatment with 60 milligrams of steroids for two weeks and were fully tapered off steroids by week eight.

In pooled data, 33.5% of brepocitinib-treated patients experienced treatment failure by the end of the study, compared with 78% of placebo-treated patients. Roivant said the benefit was consistent across subgroups, including patients previously treated with tumor necrosis factor, or TNF, therapies.

Gline said roughly one-third of patients enrolled across the trials had prior TNF exposure. In the subset of patients with prior TNF experience, the company said brepocitinib’s treatment-failure results were comparable with results in the broader trial population.

Roivant also highlighted steroid-free quiescence, a measure of disease control in which patients have a “quiet eye” without corticosteroid treatment. The company said more than 60% of patients achieved steroid-free quiescence in one study, compared with roughly 20% of placebo patients.

Macular Edema, Imaging and Patient-Reported Outcomes Roivant said the treatment demonstrated separation from placebo on fluorescein angiography measures, an imaging approach used by physicians to monitor uveitis. The company also reported clinically meaningful resolution of macular edema among patients who entered the studies with the condition.

About one-third of the study population had macular edema at baseline. Of those patients, Roivant said approximately 40% in CLARITY-1 and slightly more than 40% in CLARITY-2 achieved clinically meaningful resolution by the end of the study, compared with low rates in the placebo groups.

Ben Zimmer, chief executive officer of Priovant, said macular edema results could represent a differentiating feature versus adalimumab and other TNF therapies used off-label in the disease. However, he said it remains to be determined what information could be included in a potential product label.

The company also reported improvement versus placebo in a visual function questionnaire beginning at week six in both trials. The patient-reported measure included domains such as general vision, pain, near and distance activities, mental health, dependency and driving.

Safety, Regulatory Plans and Commercial Discussion Gline said brepocitinib’s safety profile was well tolerated and consistent with prior studies of the drug, the JAK inhibitor class and the existing label for LISRAYA. He said patients with NIU often otherwise rely on high doses of background steroids, which can be difficult to use over extended periods.

Roivant plans to submit a supplemental new drug application for brepocitinib in NIU during the first half of 2027. The company did not provide details regarding potential review timing, saying it would update investors after submission acceptance and receipt of a PDUFA date.

Gline said NIU is the third leading cause of blindness in the United States and described a substantial need for new treatment options. He cited estimates of between 70,000 and 190,000 patients with posterior or pan-uveitis from various causes, while later noting that approximately 50,000 patients are systemically treated today.

The company expects to discuss the NIU commercial opportunity, patient population and physician-call strategy in greater detail at an Investor Day scheduled for Dec. 9 in New York City. Gline said a future NIU launch would require a commercial effort distinct from the organization supporting LISRAYA in dermatomyositis, though some patient-support infrastructure could be reused.

Roivant said brepocitinib is also being developed in other indications, including cutaneous sarcoidosis and lichen planopilaris, with both programs enrolling patients.

About Roivant Sciences (NASDAQ:ROIV)Roivant Sciences Ltd. NASDAQ: ROIV is a biopharmaceutical company focused on discovering, developing and commercializing medicines. The company organizes its activities through subsidiaries and partner companies, often referred to as “Vants,” which specialize in particular therapeutic areas and stages of drug development.

Roivant's research and development activities have included immunology, dermatology, women's health, rare diseases and other specialty-care fields. Its portfolio has included Vtama (tapinarof) cream, a nonsteroidal topical treatment approved in the United States for plaque psoriasis and atopic dermatitis.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Wall Street expects a year-over-year increase in earnings on higher revenues when Brinker International (EAT - Free Report) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on October 28, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy is expected to post quarterly earnings of $2.49 per share in its upcoming report, which represents a year-over-year change of +29%.

Revenues are expected to be $1.45 billion, up 7.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.67% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Brinker International?For Brinker International, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.59%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Brinker International will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Brinker International would post earnings of $3.07 per share when it actually produced earnings of $3.07, delivering no surprise.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Brinker International appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAnother stock from the Zacks Retail - Restaurants industry, Cheesecake Factory (CAKE - Free Report) , is soon expected to post earnings of $0.92 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +35.3%. Revenues for the quarter are expected to be $998.45 million, up 10.1% from the year-ago quarter.

The consensus EPS estimate for Cheesecake Factory has been revised 6.2% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.34%.

This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Cheesecake Factory will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Several exchange-traded funds (ETFs) have gobbled up shares of Space Exploration Technologies (SPCX +9.94%) since it went public on June 12, 2026. But while major ETFs like the Vanguard Morningstar Total Stock Market ETF and the Vanguard Morningstar Growth ETF have barely increased their holdings since June, the Vanguard Communication Services ETF (VOX -0.29%) has consistently added shares every month.

In fact, SpaceX is now the seventh-largest holding in the Vanguard Communication Services ETF. As of Sept. 30, the ETF now holds 1,209,387 SpaceX shares, up from 1,170,398 shares as of Aug. 31, 842,835 shares as of July 31, and 632,077 shares as of June 30.

Here's why investors can expect the Vanguard Communication Services ETF to continue buying SpaceX shares, and why the ETF remains a top buy now.

Image source: Getty Images.

SpaceX's Float isn't anywhere close to 13.18 billion shares
Despite having a $1.93 trillion market cap, SpaceX is still not a top holding in many growth-focused and general market ETFs because the percentage of shares available for trading on the Nasdaq exchange (called the float) is still a relatively small percentage of SpaceX's total share count. SpaceX sold 639 million shares during its June initial public offering. It has since unlocked about 2.3 billion shares in total. But that's still just 17.5% of SpaceX's outstanding share count of 13.18 billion.

As more SpaceX shares become unlocked, SpaceX's float will increase, and so will its float-adjusted weighting in the Nasdaq-100 index, which is the 100 largest non-financial stocks by market cap in the Nasdaq Composite (^IXIC +0.99%). In turn, ETFs benchmarked to the Nasdaq-100 or that use float-adjusted weighting systems will increase their SpaceX holdings.

SPCX Space Exploration Technologies$162.49+$14.70 (+9.94%)

NASDAQ · As of 12:32 PM ET 10/21/26

SpaceX is one of the three largest communication stocks
Among ETFs buying SpaceX stock, the Vanguard Communication Services ETF will likely remain one of the most aggressive, as it is a sector-based fund. Meaning that it only invests in communication stocks, which includes Alphabet (NASDAQ: GOOG) (GOOGL -2.17%) and Meta Platforms (META +2.42%) but excludes mega cap giants like Nvidia, Apple, Microsoft, and Amazon that you'd find in other growth-focused ETFs and general market ETFs.

Because Vanguard classifies SpaceX as a communications stock, the Vanguard Communication Services ETF is the only Vanguard sector ETF that will buy SpaceX. And because SpaceX's market cap is so large, it would become a top-three holding in the ETF if it were weighted by market cap rather than float-adjusted. This dynamic is why SpaceX has ascended to the seventh-largest holding in the Vanguard Communication Services ETF in a matter of months.

Alphabet and Meta Platforms are 47% of the Vanguard Communication Services ETF
The Vanguard Communication Services ETF is a great buy for investors looking to build a portfolio around Alphabet, Meta Platforms, and SpaceX. Alphabet and Meta Platforms currently make up a whopping 47% of the fund.

Adding the full weight of SpaceX's market cap to the mix will make the ETF even more top-heavy and growth-oriented. But the ETF will likely still have a reasonable valuation given that Alphabet and Meta Platforms feature forward P/E ratios of 25.9 and 23.4, respectively. What's more, the communications sector has significant weightings in value-focused industries like telecommunications and legacy media. These qualities make the Vanguard Communication Services ETF uniquely positioned to absorb the high-risk, high-reward nature of making SpaceX a top holding.

Daniel Foelber has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard Morningstar Growth ETF. The Motley Fool has a disclosure policy.

Coca-Cola (KO -0.48%) has been around for a long time -- 140 years -- and is about as familiar as it gets. It's a classic blue chip stock, providing stability, reliable profits, and even a great dividend. Those are traits that investors appreciate, but they're nothing that generates a jaw-dropping moment.

But these are also interesting times -- there are concerns that the artificial intelligence (AI) market is developing an unsustainable bubble, and investors may start looking for safe, reliable picks for some safety.

The global beverage giant will report third-quarter earnings on Oct. 27, and I think the stage is set for Coca-Cola to remind investors that there's nothing wrong with bubbles -- as long as they're in carbonated drinks that are loved around the world.

Coca-Cola stock trades up about 33% so far this year, and after raising its full-year guidance in July, I think another strong earnings report could send Coca-Cola stock higher.

Image source: Getty Images.

Coca-Cola's business is picking up steam
Coca-Cola is proving that its line of beverages, which includes soft drinks, coffee, tea, sports drinks, water, dairy products, and juices, is growing in popularity -- and adding to the company's bottom line.

In the second quarter, Coca-Cola reported $13.4 billion in revenue, up 7% from a year ago. And global unit case volume, a measure of beverage sales, increased by 5%. In short, consumers are actually buying more products, rather than the company simply charging more for the same amount of soda.

Coca-Cola Zero Sugar volume increased 16%, while sports drinks, water, and tea all recorded gains. The company also gained market share in the global nonalcoholic ready-to-drink beverage market.

Those results helped Coca-Cola record adjusted earnings per share of $0.97, up 11% from a year ago.

$93.05-$0.45 (-0.48%)

NYSE · As of 12:31 PM ET 10/21/26

The global strategy delivers results
Coca-Cola has another advantage that investors shouldn't overlook -- its international distribution network. In Q2, it used the FIFA World Cup to promote its brands in more than 180 markets. Coca-Cola says the campaign contributed to 5% volume growth for its flagship brand and 8% for Powerade.

It's also adapting products to local preferences, including lemon-flavored Sprite+Tea in China and expanding Coca-Cola Zero into additional international markets. Unit case volume was up 8% in Asia Pacific during the second quarter, while North America and Latin America were both up 3%.

Expect another strong quarter
Coca-Cola raised its full-year outlook after reporting second-quarter earnings. Management forecast organic revenue growth of 5% and adjusted EPS growth of 9% to 10%, up from its previous range of 8% to 9%. The company also increased its projected free cash flow to $12.4 billion.

Coca-Cola has spent decades building a global distribution network and a portfolio of recognizable brands. Now it's using those advantages to sell more beverages, reach new consumers, and improve profitability.

That combination could give investors another reason to buy the stock when Coca-Cola reports on Tuesday, Oct. 27.

SummaryAlphabet Inc./Google's negative FCF and rising leverage heighten scrutiny of AI investment returns ahead of Q3 earnings - especially given intensifying industry capital constraints and tightening financial conditions.Gemini also faces growing monetization risks across both consumer and enterprise end-markets, as Meta Platforms' Muse agent and SpaceX Super Intelligence's Grok Bot gain traction in the respective segments.However, robust compute demand and favorable pricing tailwinds, validated by SpaceX Super Intelligence's Q3 results, support potential Google Cloud earnings upside despite near-term margin pressures.Coupled with Google's vertically-integrated AI ecosystem and expansive consumer reach, the company remains well-positioned for sustained operating leverage improvements and earnings upside, reinforcing underappreciated prospects for a stronger ROI trajectory. hapabapa/iStock Editorial via Getty Images

Alphabet Inc./Google (GOOG/GOOGL) faces mounting headwinds heading into its upcoming Q3 earnings on October 28. The company’s growing reliance on external financing after its recent shift into negative FCF amid the

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

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

Microsoft just wrapped a record fiscal year with Azure growing faster than its data centers can handle, Wall Street nearly unanimously bullish, and Copilot seats doubling quarter over quarter. Whether that momentum compounds your money or stalls under a mountain…

Putting $5,000 into Microsoft (NASDAQ:MSFT | MSFT Price Prediction) today buys a stake in a company that just finished what its chief executive called “a record fiscal year for us,” with shares at $529.05.

Microsoft’s AI and cloud business is still growing fast at a scale few companies reach, which makes a five-year look worth doing. Here is what that stake could be worth by 2031 under three projected scenarios.

Your $5,000 Could Grow to About $9,089 by 2031
Under the central scenario, a $5,000 investment in Microsoft could be worth about $9,089 by 2031, a total return of 81.78%. That figure comes from a projected five-year share price of $961.72, which works out to a annual average gain of 12.7%. This outlook has a confidence score of 0.9 (high) and a buy rating.

For context, Microsoft shares rose 81.22% over the past five years. In other words, the central scenario assumes the next five years look a lot like the last five.

Bull, Base, and Bear Scenarios for a $5,000 Stake

Scenario
Target Share Price
Total Return
Annualized Return
Value of $5,000

Bull
$1,195.85
126.04%
17.72%
$11,302

Base
$961.72
81.78%
12.7%
$9,089

Bear
$639.23
20.83%
3.86%
$6,041.50

Even the conservative case leaves the stake above where it started, though a 3.86% annual pace would trail many lower-risk options. Over a shorter window, the model’s one-year base target is $645.21, with a bull case of $749.10 and a bear case of $545.75.

Three Drivers Powering the Projection
Azure Demand Is Running Ahead of Supply
Azure exceeded $100 billion in annual revenue, up 41%, and grew 43% in the latest quarter.

Management expects first-quarter fiscal 2027 Azure growth of about 45% in constant currency and said “demand continues to exceed available supply.” Commercial remaining performance obligations, which measure signed future revenue, rose 84% to $678 billion.

Copilot Is Turning AI Into Recurring Revenue
Microsoft 365 Copilot passed 30 million paid seats, and net paid seat additions more than doubled quarter over quarter. GitHub Copilot reached 50 million users.

Microsoft is also adding usage-based billing on top of per-seat licenses, which it says should speed up Microsoft 365 Commercial cloud growth through fiscal 2027. For your money, that pricing model gives Microsoft another way to earn more from customers it already has.

Wall Street Is Firmly in the Bullish Camp
Analysts count 14 strong buy, 39 buy, and 2 hold ratings, with no sells, and a consensus target of $599.24. Microsoft has exceeded EPS estimates for 6 consecutive quarters.

Most recently, it reported $4.74 against a $4.2397 estimate, on revenue of $90.01B versus $87.63B expected. MarketWatch recently named Microsoft among the AI stocks Wall Street favors heading into earnings season (MarketWatch).

What Could Derail the $9,089 Outcome
The biggest risk is spending. Full-year capital expenditures hit $115.95B, quarterly free cash flow fell 23.2% to $19.64B, and Microsoft expects first-quarter fiscal 2027 capex of over $50 billion.

If AI demand cools off before those data centers start paying off, both margins and the stock could suffer. Management already expects fiscal 2027 operating margins to decline by less than a point.

Concentration matters too. Excluding OpenAI, remaining performance obligations grew a much slower 25%. A $3.2B gain from the Anthropic investment raised recent EPS and may not repeat. More Personal Computing revenue slid 4%.

And at a market cap of about $3.93 trillion, Microsoft has to keep performing just to justify where it trades now, before the stock can climb further. Competition, cybersecurity threats, and AI regulation round out the risks the company itself flags.

Where $5,000 in Microsoft Could Land by 2031
Across the projected scenarios, a $5,000 stake in Microsoft could be worth between $6,041.50 and $11,302 by 2031, with $9,089 as the most likely outcome.

These figures represent scenarios, and none is guaranteed. Watch Azure growth, Copilot seat counts, and capex returns in each earnings report to see which path the stock is following. Consider it a projection, not investment advice.

Contact [email protected] for any questions or corrections.

That didn't take long. Greg Abel has been CEO of Berkshire Hathaway (BRKA +0.55%)(BRKB +0.55%) since January, and since then he's made several big moves. He bought homebuilder Taylor Morrison in July, although that fits right into the company's standard formula and will be merged with its existing homebuilding operations.

He also presided over a major purchase of Alphabet stock, although the position was initiated by Warren Buffett, who was still the company's chairman at the time.

His latest move, though, is a further push into tech. Berkshire first bought shares of holding company Bending Spoons (BSP -3.90%) in its initial public offering (IPO) in July, and the company just bought an additional $330 million in shares, bringing its total stake to 4% of the company.

Is this where Berkshire Hathaway is heading?

Why Bending Spoons isn't your typical tech stock
CEO Luca Ferrari describes Bending Spoons as "25% private equity, 75% tech company." It's a holding company of sorts, just like Berkshire Hathaway, and it seems to be gaining Abel's admiration.

Berkshire Hathaway CEO Greg Abel. Image source: Getty Images.

Instead of acquiring distressed companies and fixing them up before reselling them or taking them public, as many private equity firms do, Bending Spoons acquires great tech companies that need improvement, identifies how to address their problems, helps them perform better, and then keeps them. The Milan-based company's brand portfolio includes Vimeo, Evernote, and AOL, among others, and it recently acquired Airtable.

Similar to Berkshire's recent expansion of its Alphabet holdings, the Bending Spoons position is a private placement, and the company issued 10 million shares to Berkshire at $33 per share. The stock traded at $47 before the announcement, and it jumped to $53 on Oct. 14, when it was announced.

Bending Spoons is a fast-growing tech stock
Abel has said in the past that he's not going to reinvent Berkshire Hathaway. His recent trades are all in line with the company's historical model, and the Bending Spoons position isn't all that different. Although Abel didn't comment on the deal, Bending Spoons' methodology, aside from its tech focus, would appeal to Abel. Berkshire Hathaway loves brand-name companies, although it usually spends its money on companies that have proven their worth, rather than fallen out of favor with their fans.

BSP Bending Spoons S.p.A.$43.78-$1.78 (-3.90%)

NASDAQ · As of 12:28 PM ET 10/21/26

The company itself is growing fast. In the second quarter, revenue increased 126% to $311 million. However, growth was driven by new acquisitions, and it didn't disclose operating results for its individual brands. Operating income was up 139%, and operating margin improved from 32% to 34%.

Bending Spoons' model is supported by a large credit facility and high debt. It had $793 million in cash and equivalents at the end of the second quarter and $1.28 billion in available borrowing capacity, although it has since increased that. Its net debt was $4.09 billion, with a leverage ratio of 2.4. That's not the kind of cash-generating company Berkshire Hathaway usually invests in.

Is this a new direction for Berkshire Hathaway?
The market seemed happy with the news, and Berkshire Hathaway stock has been rising. Its performance year to date has been mediocre, up close to 6%, but it's up 3% over the past week alone.

Bending Spoons itself is based in Italy, but its companies are in the U.S., so it's still a bet on America. Buffett has said that "there remain only a handful of companies in this country capable of truly moving the needle at Berkshire, and they have been endlessly picked over by us and by others." Even under his leadership, the company made investments in Chinese, Japanese, and Latin American companies, and Abel sees opportunities outside the U.S. that could move the needle, too.

$542.80+$2.98 (+0.55%)

NYSE · As of 12:27 PM ET 10/21/26

Although Berkshire Hathaway seeks to invest in long-term opportunities, it's quick to sell when needed. Some of its recent positions that didn't last very long include Ulta Beauty, Nu Holdings, and Floor & Decor Holdings. Bending Spoons is a riskier company than Berkshire's usual fare, and if it doesn't live up to expectations or Abel feels it's time to move on, it could disappear quickly.

More important for Berkshire Hathaway investors is that Abel appears willing to look beyond the company's traditional industries to move the needle, which bodes well for its future growth.

New York, New York--(Newsfile Corp. - October 21, 2026) - Lead Plaintiff Deadline: December 15, 2026. Investors who purchased (NYSE: BAC) securities between August 1, 2025 and October 13, 2026 may be eligible to recover losses.

This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Bank of America securities between August 1, 2025 and October 13, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/cases/bank-of-america-corporation-bac-class_action_lawsuit.

Bank of America Case Details

The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that:

Systemic weaknesses in Bank of America's Bank Secrecy Act and Anti-Money Laundering ("BSA/AML") compliance program caused BAC to fail to properly monitor trillions of dollars in transactions and to miss, delay, or file inaccurate or incomplete suspicious activity reports involving billions of dollars in suspicious activity; Internal reports had documented BAC's BSA/AML compliance deficiencies for years, yet BAC failed to adequately remediate these deficiencies following the 2024 Consent Order; Bank of America, N.A. ("BANA") also had deficiencies in its sanctions compliance program and processed transactions that were subsequently identified as apparent violations of multiple sanctions programs; Addressing these compliance deficiencies required significant additional resources and exposed BAC to substantial regulatory penalties and costs; and As a result, Defendants' statements regarding the scope of BAC's compliance failures, its progress in addressing the deficiencies identified in the 2024 Consent Order, and the anticipated costs and penalties associated with these issues were materially false and/or misleading.What's Next for Bank of America Investors?

A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/cases/bank-of-america-corporation-bac-class_action_lawsuit, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Bank of America you have until December 15, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.

No Cost to Bank of America Investors

We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.

Why Bronstein, Gewirtz & Grossman, LLC for Bank of America Securities Class Action?

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com

"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.

Follow us for updates on LinkedIn, X, Facebook, or Instagram.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/319787

Source: Bronstein, Gewirtz & Grossman, LLC

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Key Takeaways NCLH expects annual capital spending to fall nearly $1B from 2028 as ship deliveries slow to one per year.NCLH faces $4.29B in principal repayments through 2029, with net leverage expected to exceed 6x by 2026-end.NCLH's $225M in identified annualized savings and potential 2027 revenue recovery could support deleveraging.
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) expects gross newbuild and growth capital expenditures to decline by nearly $1 billion annually as ship deliveries slow beginning in 2028. As of June 30, 2026, the company had approximately $15 billion in debt and $1.5 billion in liquidity. It expects net leverage to exceed 6x by 2026-end.

Norwegian Cruise expects to take delivery of two ships in each of 2026 and 2027, followed by one ship annually in 2028 and 2029. The company anticipates capacity growth at a compound annual rate of approximately 2.5% from 2026 through 2029 as new ship deliveries slow. For the remainder of 2026, anticipated ship-construction and growth expenditures total approximately $1.3 billion, with $0.7 billion in associated export credit financing. Five planned fleet exits over the next three years also support efforts to improve fleet quality, align offerings with brand positioning and strengthen returns.

Scheduled principal repayments, including exchangeable notes and finance lease obligations, remain substantial, totaling approximately $4.29 billion from the remainder of 2026 through 2029, followed by $3.95 billion in 2030. These obligations, combined with elevated capital requirements, could constrain financial flexibility before ship deliveries moderate. Efficiency initiatives could provide additional support, with approximately $225 million in annualized savings and cash benefits identified over the past two quarters. The latest $100 million initiative primarily relates to capital expenditures, with the remainder largely tied to salary and benefit efficiencies.

Lower capital spending could support debt reduction, but operating performance remains a key factor. Norwegian Cruise expects constant-currency net yields to decline approximately 5% in 2026, with demand challenges continuing into the first half of 2027. Marketing and revenue-management changes are expected to support improvement as 2027 progresses, particularly in the second half. A revenue recovery, combined with lower capital spending from 2028, could strengthen free cash flow and accelerate deleveraging.

Key Peers Show Greater Financial FlexibilityRoyal Caribbean Group (RCL - Free Report) is benefiting from cash generation and lower leverage, supporting investment and shareholder returns. RCL ended the second quarter of 2026 with leverage below 3x and $6.9 billion in liquidity. The company returned more than $600 million through dividends and share repurchases during the quarter. Royal Caribbean expects continued cash-flow growth to support strategic investments while maintaining investment-grade balance-sheet metrics, providing flexibility to fund growth and return capital to shareholders.

Carnival Corporation (CCL - Free Report) is strengthening its balance sheet while continuing to invest in its business and reward shareholders. CCL reported total debt below $24 billion in its third-quarter fiscal 2026 update, down from a $36 billion peak in 2023. During the quarter, the company redeemed $500 million of 7% notes using cash on hand and secured a second investment-grade credit rating. Carnival expects nearly $2 billion in shareholder returns in fiscal 2026 alongside year-over-year improvement in balance-sheet and leverage metrics, supported by expected adjusted EBITDA exceeding $7 billion.

Published in consumer-discretionary

Kinross Gold (KGC - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 28. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis gold mining company is expected to post quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of +6.8%.

Revenues are expected to be $2.08 billion, up 15.5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 19.72% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Kinross Gold?For Kinross Gold, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.17%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that Kinross Gold will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Kinross Gold would post earnings of $0.66 per share when it actually produced earnings of $0.71, delivering a surprise of +7.58%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Kinross Gold doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways BMY's legacy drugs Revlimid, Pomalyst, Sprycel and Abraxane face continued pressure from generic competition.Eliquis sales grew 19% to $8.6 billion in first-half 2026, driven by robust demand and market share gains.Revlimid shows resilience despite generics, while Eliquis faces a $1.5-$2 billion sales decline in 2027
Bristol Myers’ (BMY - Free Report) legacy portfolio, which includes Eliquis, Revlimid, Pomalyst, Sprycel and Abraxane, continues to encounter headwinds from generic competition.

Legacy portfolio revenues fell 5% year over year to $10.7 billion in the first half of 2026, primarily due to generic-related declines in Revlimid, Pomalyst, Sprycel and Abraxane.

Eliquis has been a notable exception, delivering 22% revenue growth in the second quarter on the back of robust demand and further market share gains. Co-marketed globally with Pfizer (PFE - Free Report) , the blood thinner generated $8.6 billion in sales in the first half of 2026, representing a 19% increase from the year-ago period’s level. Its strong performance has helped cushion the impact of declining sales across other legacy products.

BMY also expects the price reduction implemented at the start of 2026 to support U.S. Eliquis sales in the second half by removing the accumulated CPI-related penalty in certain government channels. Following better-than-expected first-half results, management raised its full-year Eliquis revenue growth forecast to 20-25% from 10-15%.

Additionally, Revlimid sales have demonstrated relative resilience despite generic competition in the United States, offering some further support to the legacy portfolio. As a result, BMY now anticipates a 4-6% decline in legacy portfolio revenues for 2026, a significant improvement from its previous expectation of a 12-16% contraction.

The stronger outlook for Eliquis, together with the improved legacy portfolio forecast and solid momentum across the Growth Portfolio, had prompted BMY to raise its 2026 revenue guidance to $49-$50 billion in July (from $46-$47.5 billion).

However, the sustainability of this momentum remains a concern. Management had previously warned that Eliquis could face increasing revenue pressure beyond 2026, with sales expected to decline approximately $1.5-$2 billion in 2027. This anticipated drop could offset some of the revenue gains generated by the Growth Portfolio. Generic competition for the drug in the United States is expected in 2028, adding to longer-term uncertainty.

While Eliquis is positioned to support BMY’s top-line growth in the near term, the company will need continued strong execution from its Growth Portfolio to compensate for the anticipated revenue shortfall. Although new drug approvals and pipeline expansion are critical to its growth strategy, legacy products still account for approximately 44% of total revenues and face varying levels of generic competition and loss-of-exclusivity risk.

Thus, despite an improved near-term revenue outlook, BMY continues to face challenges in sustaining growth as its legacy portfolio comes under increasing competitive pressure.

Competition for BMY’s Key DrugsBMY’s growth portfolio primarily comprises Opdivo, Orencia, Yervoy, Reblozyl, Opdualag, Abecma, Zeposia, Breyanzi, Camzyos, Sotyku, Krazati and others.

Oncology is a key therapeutic area of focus for Bristol Myers, which is developing and delivering transformational medicines in this space. However, BMY faces competition from large pharma companies like Merck (MRK - Free Report) and Pfizer.

The immuno-oncology space is dominated by pharma giant MRK’s blockbuster drug Keytruda (pembrolizumab).

Keytruda is approved for several types of cancer and alone accounts for around 48% of MRK’s pharmaceutical sales. Merck is currently working on different strategies to drive long-term growth of Keytruda.

Pfizer is one of the largest and most successful drugmakers in the field of oncology. It has an innovative oncology product portfolio of antibody-drug conjugates, small molecules, bispecifics and other immuno-oncology biologics that treat a wide range of cancers, including breast cancer, gastrointestinal cancer, genitourinary cancer, hematology-oncology and thoracic cancers, including lung cancer. Pfizer also has oncology biosimilars in its portfolio.

Pfizer strengthened its oncology portfolio through the acquisition of Seagen.

The company inked a licensing agreement with 3SBio for the development, manufacturing and commercialization of SSGJ-707, a bispecific antibody targeting PD-1 and VEGF, outside China.

Modern integration capability improves decision making and efficiency

, /PRNewswire/ -- Collins Aerospace, an RTX (NYSE: RTX) business, has expanded the functionality of its ARINCDirect℠ flight support services with ARINCDirect OpenAPI, a new capability that allows operators to integrate ARINCDirect flight planning, trip and performance data directly into their existing digital platforms.

Early adopters have integrated the new API into the enterprise tools their flight departments already use, improving access to information, reducing manual data entry and delivering more timely updates across platforms.

"Business aviation flight schedules can shift by the minute, and flight departments need tools and real-time information that can keep pace," said Nicole White, vice president and general manager of Connected Aviation at Collins Aerospace. "ARINCDirect OpenAPI integrates the trusted, secure flight planning data our customers rely on directly into their operating systems, helping teams adapt quickly and efficiently to changing plans."

By connecting internal systems directly to ARINCDirect, customers and partners can automatically receive flight plan status, airspace information, trip performance and logbook data without needing to re-key or format information. The result is fewer manual steps for dispatchers, cleaner insights for crews and a shared operational picture across systems that previously required time-consuming workarounds.

The modular design of ARINCDirect OpenAPI allows customers to tailor how the interface connects with their existing systems and workflows. The capability supports Collins Aerospace's broader vision for airspace modernization — connecting aircraft, operators and the broader aviation ecosystem with more timely, actionable information while allowing customers to build on the systems they already use. 

About Collins Aerospace
Collins Aerospace, an RTX business, provides advanced aerospace and defense solutions across avionics, aircraft interiors, aerostructures and engine components, mission systems, and power and control systems. Our global employees are dedicated to delivering innovative technologies to enhance aircraft performance, passenger comfort, operational safety and reliability.

About RTX
With more than 180,000 global employees, we push the limits of technology and science to redefine how we connect and protect our world. With industry-leading capabilities, we advance aviation, engineer integrated defense systems for operational success, and develop next-generation technology solutions and manufacturing to help global customers address their most critical challenges. The company, with 2025 sales of more than $88 billion, is headquartered in Arlington, Virginia.    

For questions or to schedule an interview, please contact [email protected].

SOURCE RTX

The market expects V.F. (VFC - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on October 28, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis maker of brands such as Vans, North Face and Timberland is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of -1.9%.

Revenues are expected to be $2.69 billion, down 3.9% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.92% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for V.F.?For V.F., the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +5.52%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that V.F. will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that V.F. would post a loss of$0.22 per share when it actually produced a loss of -$0.27, delivering a surprise of -22.73%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

V.F. appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Wix.com (WIX - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this cloud-based web development company have returned -1.3% over the past month versus the Zacks S&P 500 composite's +0.7% change. The Zacks Computers - IT Services industry, to which Wix.com belongs, has gained 7.4% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Wix.com is expected to post earnings of $1.32 per share, indicating a change of -21.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The consensus earnings estimate of $4.28 for the current fiscal year indicates a year-over-year change of -41.5%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $6.83 indicates a change of +59.7% from what Wix.com is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Wix.com is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Wix.com, the consensus sales estimate for the current quarter of $566.94 million indicates a year-over-year change of +12.2%. For the current and next fiscal years, $2.26 billion and $2.51 billion estimates indicate +13.3% and +11.3% changes, respectively.

Last Reported Results and Surprise HistoryWix.com reported revenues of $563.06 million in the last reported quarter, representing a year-over-year change of +14.9%. EPS of $1.39 for the same period compares with $2.28 a year ago.

Compared to the Zacks Consensus Estimate of $554.41 million, the reported revenues represent a surprise of +1.56%. The EPS surprise was +23.01%.

Over the last four quarters, Wix.com surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Wix.com is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Wix.com. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Key Takeaways WDAY's C1.ai buyout aims to enhance identity governance and secure access for AI agents across enterprises.C1.ai's technology could automate access permissions, reduce administrative workloads and boost compliance.Workday's 11,500-plus customers offer AI growth potential, though integration costs poses a challenge.
Workday, Inc. (WDAY - Free Report) has announced a definitive agreement to acquire C1.ai, an agentic identity platform, to strengthen its artificial intelligence (AI)-driven enterprise offerings. The acquisition is expected to enhance Workday's ability to manage identity governance and access permissions for employees and AI agents across enterprise applications.

The transaction is expected to close in the fourth quarter of fiscal 2027, subject to customary closing conditions. The move underscores Workday's strategy to expand beyond traditional human capital management and financial applications into secure AI-powered enterprise operations.

How Will C1.ai Enhance Workday's AI Capabilities?C1.ai's platform connects with enterprise systems, including customer relationship management applications, email, code repositories, financial systems and cloud infrastructure. Its technology enables organizations to automatically grant, modify and revoke access permissions as employees join, change roles or leave.

Integrating these capabilities with Workday's existing platform could streamline identity management, reduce manual administrative processes and strengthen security compliance. The acquisition is particularly relevant as enterprises increasingly deploy autonomous AI agents that require controlled access to sensitive business applications.

According to research cited by Workday, 95% of large U.S. companies already operate autonomous agents, while only 21% of organizations report having mature governance capabilities for these systems. This gap highlights a potentially significant market opportunity for Workday's expanded identity governance offerings.

The acquisition will also complement Workday's Agent System of Record, which provides centralized visibility and management of AI agents. C1.ai's capabilities could extend this functionality by governing what individual agents can access across Workday and third-party enterprise systems.

Acquisition Supports Workday's Long-Term Growth StrategyThe transaction aligns with Workday's broader investments in agentic AI, including its Sana platform, Autopilot Agents and Trusted Agent Platform. Combining identity governance with enterprise workflows could strengthen Workday's competitive differentiation and encourage deeper customer adoption.

Workday serves more than 11,500 organizations globally, including more than 65% of Fortune 500 companies. This established customer base offers opportunities to expand adoption of its AI and identity governance solutions, potentially supporting customer retention and long-term subscription revenue growth.

However, integrating C1.ai's technology into Workday's platform could entail additional expenses and operational complexities. The company must also demonstrate that these capabilities translate into commercial adoption amid competition in enterprise AI and identity security. Workday faces intense competition from Oracle Corporation (ORCL - Free Report) , Automatic Data Processing, Inc. (ADP - Free Report) and Paycom Software, Inc. (PAYC - Free Report) , which further limits its growth potential.

Overall, the proposed acquisition strengthens Workday's positioning in the evolving agentic AI ecosystem. Successful integration could strengthen its enterprise software value proposition and support sustainable long-term growth.

Wall Street expects a year-over-year increase in earnings on higher revenues when Carvana (CVNA - Free Report) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 28. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents a year-over-year change of +128.6%.

Revenues are expected to be $7.63 billion, up 35.2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 4.61% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Carvana?For Carvana, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -11.77%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that Carvana will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Carvana would post earnings of $0.42 per share when it actually produced earnings of $0.42, delivering no surprise.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Carvana doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Image: Bigstock

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Key Takeaways KEYS FITS-16CH doubles channel capacity, enabling more efficient interconnect testing.The platform validates 106G and 212G lanes for 800G interconnects and emerging 1.6T technologies.Automated tuning with Keysight DCA-X improves signal quality and cuts testing time to minutes.
Keysight Technologies, Inc. (KEYS - Free Report) has introduced the Functional Interconnect Test Solutions (FITS)-16CH digital-layer error performance validation system to improve the testing of optical and copper interconnects used in data centers. The new platform features 16 transmit and 16 receive channels, doubling the capacity of the previous FITS-8CH model and helping engineers test complete interconnect assemblies.

Keysight’s new system helps users evaluate interconnect performance through bit error ratio and forward error correction measurements, while enabling 106G and 212G lane-rate validation for existing 800G interconnects and emerging 1.6T technologies. It supports various optical and copper interconnects, including active optical cables, active copper cables, passive direct attach cables and high-speed copper flyover cables used in data centers, networking and high-performance computing.

The company has also included automated tuning features to improve testing efficiency. The system’s software integrates with the Keysight DCA-X to automatically optimize signal settings and improve signal quality. The automated process can reduce testing time to just a few minutes compared with hours, days, or even weeks required for manual testing.

The platform also works with Keysight’s data communications analyzers, bit error ratio testers and oscilloscopes. Its features include automated testing, real-time charts, pass/fail results, and PDF and CSV report generation to simplify testing and improve productivity. The launch expands Keysight’s product portfolio and facilitates interconnect development, manufacturing and performance testing for next-generation data centers.

Keysight’s PeersViavi Solutions Inc. (VIAV - Free Report) has strengthened its testing solutions for AI infrastructure, enterprise security and next-generation wireless networks. The company introduced CyberFlood CF50, a compact platform for testing application performance, network security and AI inference workloads at speeds of up to 100G. Viavi has introduced an enhanced channel emulator for 6G and Wi-Fi 7/8 testing to meet the new communication technology requirements.

Vistance Networks, Inc. (VISN - Free Report) is advancing its broadband networking business with technologies aiming to improve connectivity and network performance. Its Aurora Networks business announced that Comcast had begun field trials of its next-generation broadband node platform for DOCSIS 4.0 networks, targeting faster and more reliable multi-gigabit Internet services. The company has introduced additional broadband and passive optical network solutions to help operators upgrade their infrastructure.

Cadence Design Systems, Inc. (CDNS - Free Report) is enhancing its AI-based chip design solutions to meet rising demand for advanced semiconductors. The company has upgraded its ChipStack AI platform to help engineers generate and optimize chip designs more efficiently. Cadence has collaborated with TSMC on advanced design tools and high-speed UALink connectivity technology for AI chips and data centers, reinforcing its role in semiconductor design.

Published in automation communications tech-stocks

The S&P 500 (^GSPC +0.54%) index is trading at a Shiller Cyclically Adjusted Price-to-Earnings (CAPE) ratio of 41, the second-highest valuation in its history behind only the peak of the dot-com internet bubble in the year 2000. The index crashed by 49% when that bubble eventually burst, and while I'm not predicting a similar decline this time around, the risks to the current bull market are clearly mounting.

The Federal Reserve recently hiked interest rates to tame the rising inflation rate, which is generally bad news for stocks. Moreover, the artificial intelligence (AI) stocks that led the S&P 500 higher over the last few years have run into some turbulence, as investors question the sustainability of the data center spending boom.

It's entirely possible for those headwinds to spark a bear-market decline of 20% or more in the S&P 500. However, periods of heightened volatility tend to benefit one particular company: Interactive Brokers (IBKR +2.59%). Here's why its stock could be a great buy right now.

Image source: Getty Images.

One of the world's largest online brokerages
Interactive Brokers operates one of the world's most popular online investing platforms, where its clients buy and sell stocks, options contracts, futures contracts, and even cryptocurrencies. It had a record 5.58 million client accounts at the conclusion of the third quarter (ended Sept. 30), which was up by a whopping 35% from the year-ago period. That growth rate actually accelerated from 34% in the second quarter.

Client equity -- which represents the total value of all financial assets held in Interactive's custody -- also jumped by 27% to $964.7 billion. This number is important because Interactive earns volume-based commissions when clients buy and sell stocks or derivatives, so more equity means the platform has a bigger fee base.

In terms of transactions, Interactive processed 4.27 million daily average revenue trades (DARTS) during the third quarter, up 18%. But volume was a mixed bag; while clients were more active in the futures market compared to the year-ago period, they were less active in the stock and options markets. This is likely because the stock market traded in a relatively narrow range during the July to September period, with minimal volatility.

With that said, one metric suggests investors remained extremely bullish during the quarter. Interactive's outstanding margin loan balances ballooned by 36% to $105.2 billion, so clients still felt comfortable borrowing money to buy stocks and other financial assets. The company earns a significant amount of interest on those loans, so this revenue source might take a hit if a stock market downturn forces clients to deleverage.

Ideal conditions for faster revenue growth
Interactive generated $1.91 billion in revenue during the third quarter, a 15% increase from the year-ago period. There were two main components to that number:

$602 million in commission revenue, which grew by 12%.
$1.15 billion in net interest income, up 19%. This represented the interest Interactive earned on margin loans, client cash balances, and its own corporate cash balance.

If stock market volatility ramps up, I would expect commission revenue growth to accelerate as investors buy dips and hedge their potential downside risk using options and other derivatives. But net interest income might also grow at a faster pace in the near future as interest rates rise.

The Consumer Price Index (CPI) measure of inflation increased at an annualized rate of 3.7% in September, well above the Federal Reserve's 2% target. To make matters worse, it accelerated from 3.4% in August. The Fed already hiked interest rates once at its September meeting, but policymakers might feel compelled to execute further hikes to ensure inflation doesn't get out of control (like it did in 2022).

Therefore, although margin loan balances typically decline during bear markets, Interactive can still earn more net interest income overall if rates continue to rise. That will be especially true if cash balances climb as investors exit stocks and move to the sidelines for a while.

IBKR Interactive Brokers Group$85.06+$2.15 (+2.59%)

NASDAQ · As of 11:52 AM ET 10/21/26

Interactive stock looks attractive on a forward basis
Interactive generated earnings of $2.61 per share over the last four quarters, placing its stock at a price-to-earnings (P/E) ratio of 31.6. Therefore, it's currently more expensive than both the S&P 500 and Nasdaq-100 indexes, which trade at P/E ratios of 23.5 and 30.2, respectively.

But Wall Street's average estimate (provided by Yahoo! Finance) suggests Interactive could grow its earnings to $3.31 per share in 2027, placing its stock at a forward P/E of 24.9. That earnings estimate could even be revised higher if stock market volatility and higher interest rates persist over the next few quarters, so it's possible the stock is cheaper than it currently appears at face value.

As a result, I think Interactive stock might be a great buy right now.

KUALA LUMPUR, Malaysia, Oct. 21, 2026 (GLOBE NEWSWIRE) -- EHang Holdings Limited ("EHang" or the "Company") (Nasdaq: EH), the world's leading Advanced Air Mobility ("AAM") technology platform company, today announced a sandbox cooperation with the Civil Aviation Authority of Malaysia ("CAAM") to examine the safety, technical and regulatory considerations associated with EHang's proposed AAM within Malaysia's Low Altitude Economy. This cooperation marks another overseas regulatory sandbox initiative for EHang, following its efforts in Thailand, Sri Lanka, Vietnam and Hong Kong, China, further strengthening the Company's presence in Southeast Asia's low-altitude economy and underscoring the replicability of this regulatory sandbox approach. Drawing on its certification achievements and operational safety experience in China, EHang is working with civil aviation authorities in different markets to develop regulatory pathways tailored to local requirements.

(Image: EHang and CAAM announce sandbox cooperation at TXA 2026. Conor Yang (fourth from left), Chief Financial Officer of EHang, shakes hands with Dato' Captain Norazman Mahmud (third from right), CEO of CAAM. They are joined by Captain Mohd Nazri Bin Borhannuddin (third from left), Director of Flight Operations of CAAM; Captain Mohd Radzi Bin Mohamad Alias (second from right), Deputy CEO (Regulatory) of CAAM; and Ir. Collin Joshua Melling (far right), Director of Airworthiness of CAAM.)

The cooperation will provide a platform to examine the technical and operational considerations associated with electric vertical take-off and landing ("eVTOL") aircraft. Areas of engagement include airworthiness, operational safety, personnel competency and maintenance arrangements. EHang will support CAAM's assessment of its proposed activities in Malaysia. CAAM will undertake the cooperation in its capacity as Malaysia's civil aviation regulator.

CAAM and EHang recognise that the responsible development of AAM requires a phased approach, supported by technical evidence and robust safety assessment. The cooperation aims to strengthen understanding of emerging aviation technologies while keeping safety and the public interest central to their potential introduction and for the preparation of future AAM commercial operations in Malaysia.

(Image: EHang's EH216-S on display at TXA 2026)

At Transport Expo Asia ("TXA") 2026, held October 20–22 at the Malaysia International Trade and Exhibition Centre, the EH216-S is being showcased to industry partners, regulators and the public. EHang Chief Financial Officer Conor Yang delivered a keynote speech titled "Future on The Move, Making Pilotless Air Mobility a Reality," sharing EHang's experience in advancing the EH216-S from certifications toward commercial operations and its vision for integrating pilotless eVTOLs into Malaysia's mobility ecosystem and low-altitude economy.

(Image: EHang CFO Conor Yang delivers a keynote speech at TXA 2026)

Later today, Conor Yang joined a high-level panel discussion, alongside representatives from CAAM, Futurise, the National Aerospace Industry Corporation Malaysia (NAICO Malaysia) and the Malaysian Communications and Multimedia Commission (MCMC), to discuss the pathway toward operationalizing Malaysia's low-altitude economy, from policy frameworks and trial validation to commercial operations.

“Malaysia embraces the low-altitude economy as a national opportunity, and we are building the regulatory framework for it through an iterative, learn-by-doing approach, with safety as non-negotiable. We welcome collaboration with pioneering technology companies like EHang to develop the low-altitude economy," said Dato' Mohamed Sharil Tarmizi, Chairman of the Civil Aviation Authority of Malaysia.

With its established aviation sector and extensive island and coastal tourism offerings, Malaysia has strong potential for low-altitude economy applications. The sandbox cooperation comes as the country steps up efforts to develop the sector. In August 2026, CAAM released a proposed Low Altitude Economy Framework for public consultation and has been working with Futurise on an Advanced Air Mobility Concept of Operations to guide the development of emerging aviation technologies, including eVTOLs.

The regulatory sandbox approach enables EHang to work directly with local aviation authorities to translate regulatory requirements into concrete validation steps and operational preparations tailored to each market. The expansion into Malaysia further extends this sandbox approach across international markets and supports the Company's broader global growth strategy. Building on its sandbox initiatives in Thailand, Sri Lanka, Vietnam and Hong Kong, China, EHang is translating its international expansion strategy into tangible progress, working market by market to address local regulatory requirements and advance its certified pilotless eVTOL aircraft toward future overseas commercial operations.

About Civil Aviation Authority of Malaysia

The Civil Aviation Authority of Malaysia (CAAM) is the national aviation regulator responsible for ensuring the safety, security and efficiency of Malaysia’s civil aviation sector. CAAM also provides air navigation services and safeguards aviation consumer rights in accordance with applicable national requirements and international standards.

About EHang
EHang (Nasdaq: EH) is a global‑leading Advanced Air Mobility technology platform company dedicated to making safe, autonomous and eco‑friendly air mobility accessible to everyone. EHang focuses on the research, development and manufacturing of a diversified portfolio of pilotless electric vertical take‑off and landing (eVTOL) aerial vehicles, covering a wide range of application scenarios including aerial tourism, intra‑city commuting, inter‑city travel, logistics transportation and emergency firefighting. EHang’s flagship product, the EH216‑S, has obtained the world’s first type certificate (TC), production certificate (PC) and standard airworthiness certificate (AC) for pilotless passenger‑carrying eVTOL aircraft issued by the Civil Aviation Administration of China (CAAC), and has entered operation under China’s first batch of commercial operation qualifications for pilotless passenger‑carrying eVTOL. In addition, the Company’s long‑range VT35 model further extends inter‑city mobility scenarios, laying the foundation for a multi‑tiered low‑altitude mobility network. Leveraging its advanced autonomous flight technology and scalable operational infrastructure, EHang is redefining the transportation of people and goods — transcending cities, regions and natural barriers to usher in a new era of air mobility. For more information, please visit www.ehang.com.

Safe Harbor Statement
This press release may contain forward‑looking statements within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward‑looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “may” and other similar expressions. Statements that are not historical facts, including statements regarding management’s beliefs and expectations, are forward‑looking statements. Forward‑looking statements involve inherent risks and uncertainties. Many factors could cause actual results to differ materially from those contained in any forward‑looking statement, including but not limited to product certification, the Company’s expectations regarding demand for and market acceptance of its products, the commercialization of the Company’s autonomous aerial vehicle products and solutions and Advanced Air Mobility services, its relationships with strategic partners, and the litigation currently involving the Company and potential litigation. The Company’s management has made such forward‑looking statements based on current expectations, assumptions, estimates and projections. While the Company’s management believes that these expectations, assumptions, estimates and projections are reasonable, forward‑looking statements are only predictions of future events and involve known and unknown risks and uncertainties that are difficult for the Company’s management to control. These risks and uncertainties may cause EHang’s actual results of operations, performance or achievements to differ materially from those expressed or implied by any forward‑looking statements.

Media Contact: [email protected]
Investor Contact: [email protected]

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/9fc26113-eb6c-48cc-93fd-74e0163452a9

https://www.globenewswire.com/NewsRoom/AttachmentNg/e395dd14-e278-47cf-a67a-8f84cba7d81e 

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Meritage Homes (MTH - Free Report) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 28. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis homebuilder is expected to post quarterly earnings of $1.18 per share in its upcoming report, which represents a year-over-year change of -15.1%.

Revenues are expected to be $1.31 billion, down 7.5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 4.41% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Meritage?For Meritage, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -5.12%.

On the other hand, the stock currently carries a Zacks Rank of #5.

So, this combination makes it difficult to conclusively predict that Meritage will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Meritage would post earnings of $1.3 per share when it actually produced earnings of $1.42, delivering a surprise of +9.23%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Meritage doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.