Category

Earnings Alerts

Graco Inc (GGG) Earnings: Q3 EPS Falls Short with 3.8% Drop in Net Sales

By | Earnings Alerts
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  • Graco’s adjusted earnings per share (EPS) for Q3 were 71 cents, missing the estimate of 76 cents and also down from 76 cents year-over-year (y/y).
  • Net sales totaled $519.2 million, a 3.8% decline compared to the previous year, and below the estimated $538.7 million.
  • Industrial sales, including intersegment sales, were $156.3 million, which is a slight decrease of 0.5% y/y but exceeded the estimate of $152.5 million.
  • Process net sales experienced a significant drop, recording $120.6 million, down 12% y/y, falling short of the $130.1 million estimate.
  • Contractor net sales were $242.3 million, down by 1.2% y/y, and did not meet the projected $258.3 million.
  • Despite the sales shortfalls, the company maintained its full-year revenue guidance, expecting a low single-digit decline on an organic, constant currency basis.
  • The company noted that the demand decline was broad, with the Industrial and Process segments most impacted.
  • Graco’s gross margin showed resilience, maintaining stability despite the reduced sales volume.
  • Analysts’ recommendations for Graco stock include 3 buys, 8 holds, and 1 sell.

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A look at Graco Inc Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth3
Resilience4
Momentum4
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Graco Inc, a company specializing in fluid management technology for industrial and commercial use, has received favorable Smartkarma Smart Scores across various key factors. With solid scores in Resilience and Momentum, Graco is positioned well for long-term growth and stability. Its above-average score in Growth also indicates potential for expansion in the future, reflecting positively on its strategic direction.

While Graco Inc‘s Value and Dividend scores are more moderate, the company’s strong performance in Resilience and Momentum suggests a promising outlook. As a leading provider of fluid handling solutions, Graco’s innovative products cater to a wide range of applications, from paint and coating to vehicle maintenance. This diversification coupled with its robust Smart Scores positions Graco Inc favorably for sustained success in the fluid management industry.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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First American Financial (FAF) Earnings: Q3 Adjusted EPS Surpasses Expectations Despite Revenue Miss

By | Earnings Alerts
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  • First American reported an adjusted EPS of $1.34 for Q3, surpassing the estimate of $1.15.
  • Revenue for the quarter was $1.41 billion, falling short of the estimated $1.51 billion.
  • Total assets increased to $16.57 billion, exceeding the estimate of $14.71 billion.
  • The company reported a loss per share of $1.00.
  • Analyst ratings for the company include 4 ‘buys’, 2 ‘holds’, and no ‘sell’ ratings.

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First American Financial on Smartkarma

Analysts on Smartkarma, like Baptista Research, are closely monitoring First American Financial Corporation. In their recent insights, Baptista Research highlighted the company’s management of technological advancements in title underwriting and the challenges it faces. Despite a market fraught with challenges, First American Financial reported a total revenue of $1.6 billion for the second quarter of 2024, with an adjusted earnings per diluted share of $1.27. The title segment, a key revenue generator, saw a slight decrease in adjusted pretax margin to 11.9% from the previous year’s 12.6%.

Baptista Research also covered the initiation of coverage on First American Financial, pointing out four pivotal factors expected to drive the company’s performance in 2024 and beyond. The first quarter earnings of 2023 faced challenges in the mortgage and real estate sectors due to elevated interest rates and low housing inventory levels, leading to historically low transaction volumes. However, signs of a potential market recovery were seen in March and April, indicating a slow positive shift in dynamics. Analysts like those at Baptista Research provide valuable insights for investors navigating the complexities of the financial market.


A look at First American Financial Smart Scores

FactorScoreMagnitude
Value4
Dividend4
Growth2
Resilience4
Momentum5
OVERALL SMART SCORE3.8

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

First American Financial Corporation, a provider of insurance services, is poised for a positive long-term outlook based on its Smartkarma Smart Scores. With strong scores in Value, Dividend, Resilience, and Momentum, the company demonstrates solid fundamentals and growth potential. The high scores in Value and Dividend signify that First American Financial is considered to be undervalued and offers attractive dividend payouts, making it an appealing choice for investors seeking income and growth opportunities.

While the Growth score is moderate, the overall outlook remains optimistic due to the company’s robust performance in other key areas. First American Financial‘s resilience score further enhances its attractiveness, indicating its ability to weather economic uncertainties. Additionally, the high Momentum score suggests strong positive price trends, aligning with the company’s reputation for providing insurance services efficiently to individuals and businesses across the United States.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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Caci International (CACI) Earnings: FY Revenue Forecast Raised, Q1 Beats Estimates with Strong EPS Growth

By | Earnings Alerts
  • CACI raised its full-year revenue forecast to between $8.10 billion and $8.30 billion, up from the previous range of $7.90 billion to $8.10 billion. The market estimate was $8.08 billion.
  • Adjusted earnings per share (EPS) guidance for the year increased to a range of $22.89 to $23.78, higher than the previous forecast of $22.44 to $23.33. The estimate was $23.14.
  • For the first quarter, CACI reported adjusted EPS of $5.93, significantly up from $4.36 the previous year and beating the estimated $5.10.
  • The company’s first quarter revenue reached $2.06 billion, marking an 11% year-over-year increase and surpassing the $1.92 billion estimate.
  • Cash and cash equivalents rose substantially to $440.7 million, compared to $125.5 million the previous year, exceeding the $164.1 million estimate.
  • Reported EPS for the first quarter was $5.33, up from $3.76 year-over-year.
  • EBITDA reached $215.9 million, a 24% increase from the previous year, exceeding the $194.1 million estimate.
  • The EBITDA margin improved to 10.5%, up from 9.4% the previous year, and higher than the estimated 10%.
  • The market shows strong confidence in CACI with 10 buy recommendations, 3 hold recommendations, and no sell recommendations.

Caci International on Smartkarma

Analyst coverage of CACI International on Smartkarma by top independent analysts reveals positive sentiments towards the company’s financial performance and growth prospects. Baptista Research‘s report highlights CACI International Inc.’s solid fiscal year 2024 performance, marked by substantial revenue growth exceeding guidance, with a notable 20% increase in the fourth quarter. This growth is attributed to key drivers and program deliveries, according to another report by Baptista Research.

Moreover, insights from Value Investors Club emphasize CACI’s strong presence in government services and defense sectors, positioning the company as an undervalued investment opportunity with significant growth potential. Despite a slight stock price decrease, CACI International continues to garner positive attention from analysts for its operational efficiency and margin expansion, reflecting a promising outlook for the company’s future.


A look at Caci International Smart Scores

FactorScoreMagnitude
Value3
Dividend1
Growth3
Resilience3
Momentum5
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores for CACI International, the company’s long-term outlook appears positive. With a strong momentum score of 5, CACI International is showing robust performance trends that could continue in the future. Additionally, the company has solid scores in value, growth, and resilience, all pointing towards a promising future ahead. However, the lower score in dividend indicates that investors may not receive substantial dividend payouts from the company.

CACI International Inc. is a company that specializes in providing information technology products and services. Their solutions range from systems integration to electronic commerce, catering to both government and commercial markets in North America and Western Europe. With its diverse range of offerings and strong performance across various factors, CACI International seems well-positioned for continued growth and success in the long term.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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Plexus Corp (PLXS) Earnings: 4Q Revenue Surpasses Estimates While 1Q Forecast Misses Targets

By | Earnings Alerts
  • Plexus forecasts first-quarter revenue between $960 million and $1 billion, falling short of the market estimate of $1.02 billion.
  • The projected earnings per share (EPS) for the first quarter is between $1.25 and $1.40.
  • In the fourth quarter, revenue reached $1.05 billion, marking a 2.6% increase year-over-year, and exceeding the $1.01 billion estimate.
  • Adjusted EPS for the fourth quarter was $1.85, significantly higher than the $1.44 from the previous year and the estimate of $1.45.
  • Return on invested capital decreased to 11.8% from 13.4% year-over-year.
  • Free cash flow surged to $193.8 million, compared to $65.6 million the previous year, and far exceeded estimates of $8.4 million from two evaluations.
  • Operating income increased by 1% year-over-year to $53.9 million.
  • The adjusted operating margin improved to 6.2% from 5.2% year-over-year.
  • Gross margin rose to 10.3% from 9.4% year-over-year, surpassing the estimate of 9.89%.
  • Analyst recommendations include 3 buy ratings and 4 hold ratings, with no sell ratings.

Plexus Corp on Smartkarma

Analyst coverage of Plexus Corp on Smartkarma reveals positive sentiments from Baptista Research. In the report titled “Plexus Corp.: The 4 Biggest Challenges In Its Path! – Major Drivers,” Plexus Corp‘s fiscal third quarter 2024 performance was highlighted, showing revenues of $961 million in line with expectations. While the industrial sector faced challenges due to design changes and customer delays, the Aerospace and Defense sectors flourished, leading to an impressive non-GAAP operating margin of 5.8% due to enhanced efficiency and cost management.

In another report by Baptista Research, “Plexus Corp: Expanding Market Presence in Industrial Sector – Major Drivers,” Plexus Corp‘s fiscal second quarter 2024 results were discussed. The company demonstrated strong growth and operational performance, reporting revenue of $967 million at the top end of guidance, and a non-GAAP operating margin of 4.2%. These reports on Plexus Corp indicate a positive outlook for the company’s market presence and operational efficiency according to independent analysts on Smartkarma.


A look at Plexus Corp Smart Scores

FactorScoreMagnitude
Value3
Dividend1
Growth3
Resilience3
Momentum5
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Plexus Corp has a favorable long-term outlook. The company scores high in Momentum, indicating strong positive price performance. Additionally, Plexus Corp ranks well in Value, Growth, and Resilience, all key factors contributing to its overall positive outlook. Despite a lower score in Dividend, the company’s strengths in other areas position it well for continued success in the electronics manufacturing services industry.

Plexus Corp, a key player in the electronics manufacturing services sector, offers a range of solutions to various market sectors including wireline and networking, wireless infrastructure, medical, and defense among others. With solid scores in Value, Growth, Resilience, and particularly strong Momentum, Plexus Corp is poised for sustained growth and performance in the long term, reflecting its robust position in the industry.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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Churchill Downs (CHDN) Earnings: 3Q Adjusted EPS Surpasses Estimates with Strong Financial Performance

By | Earnings Alerts
  • Churchill Downs reported an adjusted EPS of 97 cents, surpassing the estimate of 95 cents.
  • The actual EPS for the third quarter is 86 cents, up from 79 cents year over year.
  • Net revenue increased by 9.8% year over year to $628.5 million, aligning with estimates.
  • Adjusted net income rose by 7.6% year over year to $72.1 million, beating the estimate of $70.4 million.
  • Adjusted EBITDA reached $235.3 million, a 7.8% increase year over year, slightly below the estimate of $237.3 million.
  • Analysts are bullish on the company’s prospects with 10 buy ratings and no holds or sells.

A look at Churchill Downs Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience2
Momentum3
OVERALL SMART SCORE2.6

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Churchill Downs Incorporated, the renowned horse racing company famed for hosting the prestigious Kentucky Derby, appears to have a promising long-term outlook based on its Smartkarma Smart Scores. With a notable Growth score of 4, the company shows significant potential for expansion and development in the future. Additionally, a Momentum score of 3 suggests that Churchill Downs is building positive market momentum, indicating a favorable trend in its overall performance.

While the company scores moderately in other areas such as Value, Dividend, and Resilience, the standout Growth and Momentum scores hint at a bright future for Churchill Downs. This indicates that despite facing challenges, the company is actively positioning itself for future success and growth within the horse racing industry and beyond.

Summary: Churchill Downs Incorporated is a horse racing company with its flagship operation, Churchill Downs, known for hosting the prestigious Kentucky Derby. The company also operates additional racing and simulcast-wagering operations in multiple states and has interests in various racing services companies.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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Annaly Capital Management (NLY) Earnings: 3Q Results Meet Estimates with $340.9M Distribution

By | Earnings Alerts
  • Earnings available for distribution totaled $340.9 million, slightly below the estimate of $342.1 million.
  • Earnings available for distribution per common share were 66 cents.
  • Reported earnings per share (EPS) were 5.0 cents.
  • Economic net interest income, excluding PAA, was $368.5 million.
  • The net interest margin, excluding PAA, was 1.52%, which was below the estimated 1.65%.
  • Cash and cash equivalents were reported at $1.56 billion, surpassing the estimate of $1.45 billion.
  • Book value per share came in at $19.54, slightly under the estimate of $19.75.
  • Market sentiment included 8 buy recommendations, 5 hold recommendations, and no sell recommendations.

A look at Annaly Capital Management Smart Scores

FactorScoreMagnitude
Value4
Dividend5
Growth2
Resilience2
Momentum4
OVERALL SMART SCORE3.4

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Annaly Capital Management, Inc., a capital manager focused on residential and commercial assets, has a varied outlook based on the Smartkarma Smart Scores analysis. With strong scores in Dividend and Value factors, Annaly Capital Management shows promise for investors seeking income generation and potentially undervalued assets. However, lower scores in Growth and Resilience indicate challenges in long-term growth and potential vulnerabilities in market downturns. Yet, with a respectable Momentum score, the company may be trending positively in the short term.

As a Real Estate Investment Trust (REIT), Annaly Capital Management is dedicated to generating net income for its shareholders by carefully managing its portfolio and selecting investments wisely. The combination of its high Dividend and Value scores suggests a commitment to providing consistent returns to investors while focusing on opportunities that offer good value. Despite limited scores in Growth and Resilience, the company’s overall outlook remains positive, particularly for those seeking steady dividend income and potential capital appreciation.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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Globe Life (GL) Earnings: Robust 3Q Operating EPS Surpasses Estimates at $3.49

By | Earnings Alerts
  • Globe Life’s operating EPS for Q3 was $3.49, surpassing the estimated $3.06.
  • The adjusted book value per share came in at $83.92 compared to the forecast of $84.94.
  • The company’s book value per share was reported at $54.65, below the anticipated $59.92.
  • Total revenue met expectations at $1.46 billion.
  • Life insurance premium revenue amounted to $818.6 million, slightly under the estimated $824.9 million.
  • Health insurance premium revenue was $354.0 million, marginally higher than the expected $353.6 million.
  • Insurance underwriting income significantly exceeded forecasts with $387.4 million against an estimate of $342.3 million.
  • Net investment income was close to predictions at $285.0 million, with a slight shortfall from the projected $285.4 million.
  • Projected net operating income per share for the year ending December 31, 2025, is expected to range between $13.20 and $13.90.
  • Analyst recommendations include 7 buys and 5 holds, with no sell ratings.

Globe Life on Smartkarma

Analysts at Baptista Research on Smartkarma have published two insightful reports on Globe Life Inc. The first report, titled “Globe Life Inc.: A Bear’s Perspective! – Major Drivers,” highlights the company’s impressive second-quarter performance in 2024. Globe Life reported a net income of $258 million, showing a 20% growth from the previous year. The net operating income also saw a significant increase to $271 million, reflecting a 14% rise and indicating improved profitability and operational efficiency.

The second report, “Globe Life Inc.: Initiation of Coverage – Strategic Review and Exit from Proposed Acquisitions due to Financial Prudence! – Major Drivers,” focuses on the significant financial improvements Globe Life reported in the first quarter. The company’s net income rose notably to $254 million, showcasing a robust performance across various segments. Analysts pointed out a 10% year-over-year increase in net operating income to $264 million, signaling strong operational performances driving the company’s financial strength.


A look at Globe Life Smart Scores

FactorScoreMagnitude
Value3
Dividend2
Growth4
Resilience3
Momentum5
OVERALL SMART SCORE3.4

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Globe Life shows promising long-term prospects. With strong scores in Growth and Momentum, the company is positioned for expansion and market success. The high Momentum score reflects positive investor sentiment and the potential for continued upward movement in the company’s stock price. Additionally, Globe Life’s Growth score indicates the company’s ability to increase revenue and expand its market presence.

In terms of value and resilience, Globe Life is rated moderately, suggesting a stable financial foundation and reasonable valuation. However, the lower score in Dividend indicates that the company may not be a top choice for income-seeking investors. Overall, Globe Life’s strategic position in the insurance industry, particularly in Texas, combined with its solid performance across key Smartkarma indicators, paints a favorable picture for its long-term outlook.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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Molina Healthcare (MOH) Earnings Q3: Adjusted EPS Surges to $6.01, Beating Estimates

By | Earnings Alerts
  • Molina Healthcare‘s adjusted earnings per share (EPS) for 3Q reached $6.01, surpassing both the previous year’s $5.05 and analysts’ estimate of $5.92.
  • The company reported revenues of $10.34 billion, which is a 21% increase compared to the previous year and exceeds the predicted $9.93 billion.
  • The medical care ratio for Molina Healthcare rose slightly to 89.2% from last year’s 88.7%.
  • Analysts’ recommendations include 6 buy ratings, 9 hold ratings, and 1 sell rating for Molina Healthcare.

Molina Healthcare on Smartkarma

Analysts on Smartkarma, such as Baptista Research, are providing coverage of Molina Healthcare, spotlighting the company’s first-quarter earnings. Molina Healthcare reported an adjusted EPS of $5.73 and generated $9.5 billion in premium revenue. The company’s performance was deemed in line with expectations, supported by efficient operating metrics across all business segments. Notably, Molina Healthcare showcased strong medical cost management, with a consolidated MCR (medical cost ratio) of 88.5%, mirroring the company’s forecasted results.

Baptista Research‘s coverage highlights Molina Healthcare‘s enhanced focus on Managed Medicaid and Medicare Advantage Expansion as major drivers of growth. The analysis underscores the pivotal role these initiatives play in shaping the company’s strategic direction. With a bullish sentiment, Baptista Research‘s perspective sheds light on the positive trajectory and potential opportunities Molina Healthcare may capitalize on in the evolving healthcare landscape.


A look at Molina Healthcare Smart Scores

FactorScoreMagnitude
Value3
Dividend1
Growth4
Resilience4
Momentum3
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Molina Healthcare shows a promising long-term outlook. With strong scores in Growth and Resilience, the company is positioned for future expansion and stability in the healthcare sector. Its focus on providing health care services to low-income families and individuals through various programs like Medicaid bodes well for its sustainability.

Although Molina Healthcare has room for improvement in terms of Dividend and Momentum scores, its overall outlook appears solid. With a strategic presence in key states like California and Michigan, along with primary care clinics in various locations, Molina Healthcare is well-positioned to continue its mission of delivering essential health care services to those in need.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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United Rentals (URI) Earnings: 3Q Adjusted EPS Misses Estimates with Notable Revenue Growth

By | Earnings Alerts
  • United Rentals‘ adjusted earnings per share (EPS) for the third quarter were $11.80, slightly up from $11.73 a year ago, but below the estimate of $12.47.
  • The company’s revenue for the quarter was $3.99 billion, a 6% increase year-over-year, but missed the estimate of $4.01 billion.
  • Rental revenue stood at $3.46 billion, marking a 7.4% rise year-over-year and meeting the estimate.
  • Service and other revenue increased by 11% year-over-year to $93 million, surpassing the estimate of $89.4 million.
  • Contractor Supplies sales were $38 million, representing a 2.6% decline from the previous year and falling short of the $41.3 million estimate.
  • Sales of rental equipment were $321 million, down 12% year-over-year, and below the expected $358 million.
  • Sales of new equipment surged by 48% to $77 million, significantly exceeding the estimate of $51.2 million.
  • Adjusted EBITDA for the quarter was $1.90 billion, a 2.9% increase from the prior year, but below the estimate of $1.94 billion.
  • The adjusted EBITDA margin was 47.7%, down from 49.1% a year ago, and also below the projected 48.5%.
  • The company has refined its outlook ranges for various financial metrics but upheld the mid-points of its 2024 forecast.
  • Analyst recommendations include 11 buys, 6 holds, and 5 sells for the company’s stock.

United Rentals on Smartkarma

Analysts at Baptista Research on Smartkarma have been closely monitoring United Rentals Inc., a company focused on acquisition-led growth and competitive advantage. In their recent research reports, the analysts highlighted the company’s strong financial performance and strategic direction. United Rentals reported a significant increase in total revenue, rising by 6% year-over-year to $3.8 billion in the second quarter. Rental revenue also climbed by 8% to $3.2 billion, supported by a 4.6% improvement in fleet productivity.

In another report by Baptista Research, United Rentals‘ solid mergers and acquisitions strategy was examined. The company’s latest earnings results showed a strong performance in Q1, with total revenue growing by 6% year-over-year to reach $3.5 billion. Rental revenue increased by 7% and fleet productivity showed a promising 4% improvement. Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) reached a first-quarter record of $1.6 billion, with a margin of 45.5%, while adjusted Earnings per Share (EPS) rose by 15% to $9.15. The analysts maintain a bullish outlook on United Rentals, emphasizing its growth potential and financial strength.


A look at United Rentals Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience2
Momentum5
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

United Rentals, Inc. is positioned for a promising long-term outlook based on the Smartkarma Smart Scores. Their growth and momentum scores of 4 and 5 respectively indicate strong positive trends for the company, showcasing potential for expansion and increasing market favor. These scores suggest that United Rentals is on a path towards sustainable growth and profitability in the future.

Although United Rentals received lower scores for value, dividend, and resilience, with 2s across the board, the higher scores in growth and momentum overshadow these aspects. Given the company’s focus on the construction industry and its extensive network in the U.S. and Canada, United Rentals remains well-positioned to leverage its strengths and capitalize on future opportunities in the equipment rental sector.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.


 

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South State (SSB) Earnings: Q3 Results Show Robust Growth Despite Net Interest Income Miss

By | Earnings Alerts
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  • SouthState Corp’s net interest income for the third quarter stood at $351.5 million, slightly up by 0.3% from the previous quarter but missing the estimate of $357.8 million.
  • The net interest margin (NIM) on a taxable-equivalent basis was recorded at 3.4%, below the previous quarter’s 3.44% and missing the estimated 3.46%.
  • Cash and due from banks increased by 11% quarter-over-quarter to $563.9 million, while cash and cash equivalents grew by 8.5% to $1.21 billion.
  • Adjusted earnings per share (EPS) improved significantly to $1.90, compared to $1.62 year-on-year, surpassing the estimated $1.64.
  • Non-interest income rose 2.9% year-on-year, reaching $74.9 million, exceeding the estimate of $72.1 million.
  • The tangible book value per share increased to $51.26 from $42.26 year-on-year, exceeding the estimated value of $49.74.
  • The dividend payout ratio decreased to 28.8% from 31.8% year-on-year.
  • Book value per share rose to $77.42, compared to $68.81 year-on-year, surpassing the estimate of $75.94.
  • The net charge-offs ratio fell to 0.07% from 0.16% year-on-year, beating the estimated 0.14%.
  • There was a recovery of credit losses amounting to $6.97 million, contrasting with a provision of $32.7 million the previous year and against an estimated provision of $15.6 million.
  • Despite the challenges of hurricane season, SouthState demonstrated steady growth in loans, deposits, revenue, and earnings per share.
  • Analyst recommendations include 5 buys, 4 holds, and no sells.

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A look at South State Smart Scores

FactorScoreMagnitude
Value4
Dividend3
Growth3
Resilience3
Momentum5
OVERALL SMART SCORE3.6

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

South State Corp, a leading financial institution, is positioned favorably for long-term growth based on its comprehensive Smartkarma Smart Scores. With strong momentum and value ratings, the company is showing promising signs of continued success. The high momentum score suggests that South State is gaining traction and experiencing positive market trends, potentially leading to future price increases. Additionally, the impressive value score indicates that the company is currently undervalued, presenting an attractive opportunity for investors to capitalize on. Coupled with solid scores for growth, resilience, and dividends, South State appears well-rounded and poised for sustainable performance in the years to come.

South State Corp’s diverse range of banking services, including retail and commercial banking, mortgage lending, trust and investment services, and consumer finance loans, underpin its resilient performance and growth potential. While the company’s Smart Scores across various factors may vary, the overall outlook remains positive, reflecting a well-rounded investment opportunity. Investors looking for a company with sound fundamentals and strong market momentum may find South State an appealing choice for long-term investment.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.


 

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Sign Up for Free

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  • βœ“ Unlimited Research Summaries
  • βœ“ Personalised Alerts
  • βœ“ Custom Watchlists
  • βœ“ Company Analytics and News
  • βœ“ Events & Webinars