Latest news with #GorillaGame:PickingWinnersInHighTechnology
Yahoo
4 hours ago
- Business
- Yahoo
Darden (NYSE:DRI) Reports Q2 In Line With Expectations
Restaurant company Darden (NYSE:DRI) met Wall Street's revenue expectations in Q2 CY2025, with sales up 10.6% year on year to $3.27 billion. Its GAAP profit of $2.58 per share was 12.1% below analysts' consensus estimates. Is now the time to buy Darden? Find out in our full research report. Revenue: $3.27 billion vs analyst estimates of $3.26 billion (10.6% year-on-year growth, in line) EPS (GAAP): $2.58 vs analyst expectations of $2.94 (12.1% miss) EPS (GAAP) guidance for the upcoming financial year 2026 is $10.60 at the midpoint, missing analyst estimates by 1.2% Operating Margin: 11.7%, down from 13.4% in the same quarter last year Free Cash Flow Margin: 8.4%, down from 9.7% in the same quarter last year Locations: 2,159 at quarter end, up from 2,031 in the same quarter last year Same-Store Sales rose 4.6% year on year (0% in the same quarter last year) Market Capitalization: $26.07 billion "We had a strong quarter with same-restaurant sales and earnings growth that exceeded our expectations," said Darden President & CEO Rick Cardenas. Founded in 1968 as Red Lobster, Darden (NYSE:DRI) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands. Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. With $12.08 billion in revenue over the past 12 months, Darden is one of the most widely recognized restaurant chains and benefits from customer loyalty, a luxury many don't have. Its scale also gives it negotiating leverage with suppliers, enabling it to source its ingredients at a lower cost. However, its scale is a double-edged sword because there is only so much real estate to build restaurants, placing a ceiling on its growth. For Darden to boost its sales, it likely needs to adjust its prices, launch new chains, or lean into foreign markets. As you can see below, Darden's sales grew at a mediocre 6% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts) as it barely increased sales at existing, established dining locations. This quarter, Darden's year-on-year revenue growth was 10.6%, and its $3.27 billion of revenue was in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 8.7% over the next 12 months, an acceleration versus the last six years. This projection is above average for the sector and indicates its newer menu offerings will catalyze better top-line performance. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Darden sported 2,159 locations in the latest quarter. Over the last two years, it has opened new restaurants at a rapid clip by averaging 6.1% annual growth, among the fastest in the restaurant sector. When a chain opens new restaurants, it usually means it's investing for growth because there's healthy demand for its meals and there are markets where its concepts have few or no locations. The change in a company's restaurant base only tells one side of the story. The other is the performance of its existing locations, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales is an industry measure of whether revenue is growing at those existing restaurants and is driven by customer visits (often called traffic) and the average spending per customer (ticket). Darden's demand within its existing dining locations has been relatively stable over the last two years but was below most restaurant chains. On average, the company's same-store sales have grown by 1.7% per year. This performance suggests it should consider improving its foot traffic and efficiency before expanding its restaurant base. In the latest quarter, Darden's same-store sales rose 4.6% year on year. This growth was an acceleration from its historical levels, which is always an encouraging sign. We enjoyed seeing Darden beat analysts' same-store sales expectations this quarter. We were also happy its revenue was in line with Wall Street's estimates. On the other hand, its EPS fell short of Wall Street's estimates. Looking ahead, EPS guidance also came in below expectations. Overall, this was a weaker quarter. The stock remained flat at $221 immediately following the results. Darden didn't show it's best hand this quarter, but does that create an opportunity to buy the stock right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 hours ago
- Business
- Yahoo
Why GXO Logistics (GXO) Stock Is Up Today
Shares of contract logistics company GXO (NYSE:GXO) jumped 11.3% in the afternoon session after the company provided impressive preliminary financial forecasts and raised its full-year 2025 guidance for organic revenue growth, adjusted EBITDA, and adjusted diluted EPS. This upward revision reflects better-than-expected performance (volumes and accelerated productivity gains) and anticipated gains from the Wincanton acquisition. GXO confirmed that the UK Competition and Markets Authority (CMA) cleared its acquisition of Wincanton, a major UK logistics company, subject to the condition of divesting a small number of grocery contracts. This regulatory clearance removes a key hurdle for the acquisition, allowing integration to begin in Q3 2025. Lastly, the company announced the appointment of seasoned supply chain leader Patrick Kelleher as its new chief executive officer, effective August 19, 2025. Kelleher has 33 years of global supply chain experience, having held senior executive roles at DHL Supply Chain, a division of Deutsche Post DHL Group. Most recently, he served as CEO of DHL North America, where he led significant growth and operational enhancements across the business. These updates suggest a clearer path for GXO in the eyes of investors, which is spurring buying of the stock. If it's one thing the markets shy from, it's uncertainty. Is now the time to buy GXO Logistics? Access our full analysis report here, it's free. GXO Logistics's shares are somewhat volatile and have had 13 moves greater than 5% over the last year. But moves this big are rare even for GXO Logistics and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 4 months ago when the stock dropped 15.8% on the news that the company reported weak fourth quarter results. Its full-year EPS and EBITDA guidance fell short of Wall Street's estimates. In addition, while GXO Logistics narrowly topped analysts' revenue expectations this quarter, its organic revenue missed. Overall, this was a weaker quarter. GXO Logistics is up 10.6% since the beginning of the year, but at $47.58 per share, it is still trading 24.5% below its 52-week high of $63.01 from October 2024. Investors who bought $1,000 worth of GXO Logistics's shares at the IPO in July 2021 would now be looking at an investment worth $874.40. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 hours ago
- Business
- Yahoo
Couchbase (BASE) Shares Skyrocket, What You Need To Know
Shares of database as a service company Couchbase (NASDAQ: BASE) jumped 31% in the afternoon session after the company agreed to be acquired by Haveli Investments in an all-cash deal valued at approximately $1.5 billion. This deal offers Couchbase stockholders $24.50 per share in cash, representing a 29% premium to the stock's closing price on June 18, 2025. The transaction is expected to close in the second half of 2025, subject to stockholder approval and regulatory clearances, after which Couchbase will become a privately held company. Overall, this can be considered a positive development for BASE's shareholders, given the improved possibility of exiting their position at a significantly higher price. Is now the time to buy Couchbase? Access our full analysis report here, it's free. Couchbase's shares are very volatile and have had 23 moves greater than 5% over the last year. But moves this big are rare even for Couchbase and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 7 months ago when the stock dropped 23% on the news that the company reported weak third-quarter 2024 results and provided revenue guidance for the next quarter, which missed significantly - this matters much more as markets are forward-looking. The company provided conservative guidance due to macroeconomic challenges, limiting insights into upsell, migration timelines, and consumption trends. On the other hand, revenue and earnings came in ahead of expectations during the quarter. Still, this was a challenging quarter. Couchbase is up 58.6% since the beginning of the year, and at $24.67 per share, has set a new 52-week high. Investors who bought $1,000 worth of Couchbase's shares at the IPO in July 2021 would now be looking at an investment worth $811.51. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
GMS (NYSE:GMS) Surprises With Q1 Sales
Building materials distributor GMS (NYSE:GMS) reported Q1 CY2025 results topping the market's revenue expectations , but sales fell by 5.6% year on year to $1.33 billion. Its non-GAAP profit of $1.29 per share was 15.9% above analysts' consensus estimates. Is now the time to buy GMS? Find out in our full research report. Revenue: $1.33 billion vs analyst estimates of $1.30 billion (5.6% year-on-year decline, 2.9% beat) Adjusted EPS: $1.29 vs analyst estimates of $1.11 (15.9% beat) Adjusted EBITDA: $109.8 million vs analyst estimates of $104.5 million (8.2% margin, 5.1% beat) Operating Margin: 4.5%, down from 7.1% in the same quarter last year Free Cash Flow Margin: 13.7%, similar to the same quarter last year Organic Revenue fell 9.7% year on year (5.5% in the same quarter last year) Market Capitalization: $2.81 billion 'We reported solid results for our fourth quarter and full year fiscal 2025 despite deterioration in end market conditions as we moved through the year,' said John C. Turner, Jr, President and Chief Executive Officer of GMS. Founded in 1971, GMS (NYSE:GMS) distributes specialty building materials including wallboard, ceilings, and insulation products, to the construction industry. Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, GMS grew its sales at an impressive 11.2% compounded annual growth rate. Its growth beat the average industrials company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. GMS's recent performance shows its demand has slowed significantly as its annualized revenue growth of 1.7% over the last two years was well below its five-year trend. GMS also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, GMS's organic revenue averaged 2.4% year-on-year declines. Because this number is lower than its normal revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results. This quarter, GMS's revenue fell by 5.6% year on year to $1.33 billion but beat Wall Street's estimates by 2.9%. Looking ahead, sell-side analysts expect revenue to decline by 1.2% over the next 12 months, a slight deceleration versus the last two years. This projection is underwhelming and implies its products and services will face some demand challenges. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. GMS was profitable over the last five years but held back by its large cost base. Its average operating margin of 7.5% was weak for an industrials business. Analyzing the trend in its profitability, GMS's operating margin decreased by 1.1 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. GMS's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. This quarter, GMS generated an operating margin profit margin of 4.5%, down 2.6 percentage points year on year. Since GMS's operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. GMS's EPS grew at a spectacular 15.7% compounded annual growth rate over the last five years, higher than its 11.2% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its operating margin didn't improve. We can take a deeper look into GMS's earnings quality to better understand the drivers of its performance. A five-year view shows that GMS has repurchased its stock, shrinking its share count by 8.5%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For GMS, its two-year annual EPS declines of 18.1% mark a reversal from its (seemingly) healthy five-year trend. We hope GMS can return to earnings growth in the future. In Q1, GMS reported EPS at $1.29, down from $2.01 in the same quarter last year. Despite falling year on year, this print easily cleared analysts' estimates. Over the next 12 months, Wall Street expects GMS's full-year EPS of $6.16 to stay about the same. We were impressed by how significantly GMS blew past analysts' organic revenue expectations this quarter. We were also glad its revenue outperformed Wall Street's estimates. Zooming out, we think this was a solid print. The stock remained flat at $73.50 immediately after reporting. Sure, GMS had a solid quarter, but if we look at the bigger picture, is this stock a buy? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
3 days ago
- Business
- Yahoo
Why Redwire (RDW) Stock Is Down Today
Shares of aerospace and defense company Redwire (NYSE:RDW) fell 17% in the morning session after the company priced a public offering for roughly 15.5 million shares of its common stock at $16.75 per share. The gross proceeds from the offering were expected to be around $260 million. Notably, before the announcement, RDW had approx. 77m shares outstanding, which means the stock sale could significantly raise the supply. This could have a negative impact on its stock price as the increase in the supply of outstanding shares dilutes the ownership of existing shareholders. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Redwire? Access our full analysis report here, it's free. Redwire's shares are extremely volatile and have had 93 moves greater than 5% over the last year. But moves this big are rare even for Redwire and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 21 days ago when the stock gained 13.9% after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand. Redwire is down 1.7% since the beginning of the year, and at $16.75 per share, it is trading 34.7% below its 52-week high of $25.66 from February 2025. Investors who bought $1,000 worth of Redwire's shares at the IPO in January 2021 would now be looking at an investment worth $1,609. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
