Últimas noticias sobre Badger Meter (NYSE:BMI) Bolsa

Badger Meter

Badger Meter Inc is an innovator, manufacturer, and marketer of products incorporating flow measurement, quality, control, and other system solutions serving markets. The company's products measure water, oil, chemicals, and other fluids, and provide and communicate timely measurement data. Badger's product lines include two categories: sales of water meters, radios, software, and related technologies, and water quality monitoring solutions to water utilities (utility water) and sales of meters and other sensing instruments, valves, software, and other solutions for industrial applications in water, wastewater, and other industries (flow instrumentation). It derives a majority of its revenues from the United States.

Badger Meter Inc

Bridge Mutual

Brazil Minerals

BEACON MINERALS LTD by Beacon Minerals Ltd.

Badger Meter (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMI#NYSE">BMI</a>) is preparing to release its quarterly earnings on Thursday, 2024-10-17. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Badger Meter to report an earnings per share (EPS) of $1.11.
Badger Meter bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
<h3>Earnings History Snapshot</h3>
The company's EPS beat by $0.09 in the last quarter, leading to a 0.0% drop in the share price on the following day.
Here's a look at Badger Meter's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
<th>Q4 2023</th>
<th>Q3 2023</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>1.03</td>
<td>0.82</td>
<td>0.82</td>
<td>0.81</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>1.12</td>
<td>0.99</td>
<td>0.84</td>
<td>0.88</td>
</tr>
<tr>
<td>Price Change %</td>
<td>-2.0%</td>
<td>-1.0%</td>
<td>-6.0%</td>
<td>-1.0%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1729090847_0.png" alt="eps graph" />
<h3>Market Performance of Badger Meter's Stock</h3>
Shares of Badger Meter were trading at $222.06 as of October 15. Over the last 52-week period, shares are up 59.04%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release. 
<a href="https://www.benzinga.com/quote/BMI/earnings">To track all earnings releases for Badger Meter visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Earnings

Earnings Preview For Badger Meter

Stifel analyst Nathan Jones maintains Badger Meter (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMI#NYSE">BMI</a>) with a Hold and raises the price target from $189 to $203.

News

Price Target

Analyst Ratings

Stifel Maintains Hold on Badger Meter, Raises Price Target to $203

Have you been paying attention to shares of Badger Meter (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>)? Shares have been on the move with the stock up 6% over the past month. The stock hit a new 52-week high of $215.94 in the previous session. Badger Meter has gained 38.4% since the start of the year compared to the 20.3% move for the Zacks Computer and Technology sector and the 11.1% return for the Zacks Instruments - Control industry.
<h2>What&#39;s Driving the Outperformance?</h2>
The stock has an impressive record of positive earnings surprises, as it hasn&#39;t missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 19, 2024, Badger Meter reported EPS of $1.12 versus consensus estimate of $0.98 while it beat the consensus revenue estimate by 7.86%.
For the current fiscal year, Badger Meter is expected to post earnings of $4.09 per share on $821.88 million in revenues. This represents a 30.25% change in EPS on a 16.81% change in revenues. For the next fiscal year, the company is expected to earn $4.66 per share on $891.5 million in revenues. This represents a year-over-year change of 13.92% and 8.47%, respectively.
<h2>Valuation Metrics</h2>
Badger Meter may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Badger Meter has a Value Score of D. The stock&#39;s Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 52.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 25.4X. On a trailing cash flow basis, the stock currently trades at 51.9X versus its peer group&#39;s average of 20.7X. Additionally, the stock has a PEG ratio of 2.92. This isn&#39;t enough to put the company in the top echelon of all stocks we cover from a value perspective.
<h2>Zacks Rank</h2>
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Badger Meter currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Badger Meter meets the list of requirements. Thus, it seems as though Badger Meter shares could have potential in the weeks and months to come.
<a href="https://www.zacks.com/stock/news/2337755/badger-meter-inc-bmi-hit-a-52-week-high-can-the-run-continue?cid=CS-BENZ-FT-52_week_high-2337755">To read this article on Zacks.com click here.</a>

Mid Cap

Markets

Trading Ideas

Badger Meter, Inc. Hit a 52 Week High, Can the Run Continue?

Seaport Global analyst Scott Graham initiates coverage on Badger Meter (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMI#NYSE">BMI</a>) with a Buy rating and announces Price Target of $235.

Initiation

Seaport Global Initiates Coverage On Badger Meter with Buy Rating, Announces Price Target of $235

In a recent exclusive interview with Benzinga, Paul Eitelman, chief investment strategist for North America at Russell Investments, provided insights into the sectors of small-cap stocks that stand out <a href="https://www.benzinga.com/trading-ideas/small-cap-analysis">amidst economic uncertainty</a>.
While small-caps as a whole face some macroeconomic risks, Eitelman highlights several specific sectors that could offer substantial opportunities.
<h1 class="wp-block-heading">Where Small-Cap Managers Are Finding Opportunities</h1>
Eitelman notes that &#8220;dedicated small-cap managers are finding opportunities to tilt their portfolio strategies toward banks, technology and select highly indebted companies that are likely to benefit from lower interest rates going forward.&#8221; These sectors are positioned to thrive, especially as interest rates begin to decline.
Technology continues to dominate market discussions, and small-cap tech companies could be key beneficiaries of economic shifts, particularly those aligned with innovative growth areas like AI and data services.
The Russell 2000 index is one of the more popular indices tracking small cap U.S. equity. ETFs that track this index include the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), the Vanguard Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTWO#NYSE">VTWO</a>) and the Avantis US Small Cap Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVSC#NYSE">AVSC</a>). The Invesco S&amp;P SmallCap Information Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSCT#NYSE">PSCT</a>) is a lesser-known but technology-focused ETF tracking small cap companies. The top 3 holdings of this ETF are Fabrinet (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FN#NYSE">FN</a>), SPS Commerce, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) and Badger Meter Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMI#NYSE">BMI</a>).
Read Also: <a href="https://www.benzinga.com/news/24/08/40423157/small-cap-ai-stocks-on-the-rise-3-hidden-gems-you-shouldnt-miss">Small-Cap AI Stocks On The Rise: 3 Hidden Gems You Shouldn&#8217;t Miss</a>
<h1 class="wp-block-heading">Stock Selection: Primary Driver Of Risk, Return</h1>
However, Eitelman cautions that given the high macroeconomic uncertainty, broad sector bets are risky. He recommends a more refined approach: "Our preference into high macro uncertainty is to target only modest sector tilts and let stock selection shine as the primary driver of risk and return."
This focus on stock selection over aggressive sector rotation makes sense in an environment where not all companies are equally positioned to navigate fluctuating interest rates or economic slowdowns. 
Banks, for example, are likely to benefit from a soft landing scenario, while indebted companies could see relief as rates fall. Tech remains a favorite sector due to its long-term growth prospects, even amid near-term uncertainty.
Overall, Eitelman's strategy emphasizes precision and caution, advising investors to prioritize stock-picking and avoid broad over-exposure in the small-cap space.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40749609/this-small-cap-top-pick-is-positioned-for-strong-gains-jpmorgan-sees-over-50-upside">This Small Cap &#8216;Top Pick&#8217; Is Positioned For Strong Gains, JPMorgan Sees Over 50% Upside</a></li>
</ul>
Don&#8217;t miss the opportunity to dominate in a volatile market at the <a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference on Oct. 9-10, 2024</a>, at the Chicago Marriott Downtown Magnificent Mile.
Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you&#8217;re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders.
<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Secure your spot and get your tickets today!</a>
Photo: Borka Kiss via Shutterstock

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PSCT

SPSC

VTWO

EXCLUSIVE: Russell Strategist Uncovers Top Small-Cap Picks — Seizing Opportunities In A Low-Rate Environment

Autodesk (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/adsk#NASDAQ">ADSK</a>) reported second-quarter fiscal 2025 non-GAAP earnings of $2.15 per share, which beat the Zacks Consensus Estimate by 7.5% and improved 12.6% year over year.
The company reported revenues of $1.5 billion, which beat the consensus mark by 1.54%. The figure grew 11.9% year over year. The company generated broad-based growth across products and regions in AEC and manufacturing, which was partly offset by softness in media and entertainment, primarily due to the lingering effects of the Hollywood strike.
<div class="chart_embed">
<h2>Autodesk, Inc. Price, Consensus and EPS Surprise</h2>
<img alt="Autodesk, Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/e0/1725018942.png" style="height:310px; width:620px" title="" />
Autodesk, Inc. price-consensus-eps-surprise-chart | Autodesk, Inc. Quote
</div>
<h2>Top-Line Details of ADSK</h2>
Autodesk&#39;s subscription revenues (93.6% of total revenues) increased 10.9% year over year to $1.4 billion. Maintenance revenues (0.7% of total revenues) declined 21.4% from the year-ago quarter to $11 million. Other revenues (5.7% of total revenues) increased 41% to $86 million in the reported quarter.
Recurring revenues contributed 97% to Autodesk&#39;s second-quarter fiscal 2025 revenues. The net revenue retention rate was within the company&#39;s 100-110% targeted range, on a constant currency basis.
Region-wise, revenues from the Americas (44% of revenues) increased 12.4% from the year-ago quarter&#39;s levels to $662 million. Revenues from the EMEA, which accounted for 37.9% of revenues, climbed 12.6% to $570 million. Revenues from the Asia-Pacific (18.1% of revenues) increased 9.2% to $273 million.
Billings of $1.24 billion increased 13% year over year in the reported quarter.
<h2>Product Top-Line Details</h2>
Autodesk offers primarily four product families &mdash; Architecture, Engineering and Construction, AutoCAD and AutoCAD LT, Manufacturing and Media and Entertainment (M&amp;E).
AEC (47.4% of revenues) revenues increased 13.7% year over year to $713 million. AutoCAD and AutoCAD LT (25.8% of revenues) revenues rose 6.9% to $389 million. MFG (19.7% of revenues) revenues increased 15.6% to $296 million. M&amp;E (5.1% of revenues) revenues increased 4.1% to $77 million.
<h2>Operating Results</h2>
Autodesk reported a non-GAAP operating income of $560 million, up 14.5% year over year.
The non-GAAP operating margin was 37%, up 1 percentage point.
<h2>Balance Sheet &amp; Cash Flow</h2>
As of July 31, 2024, Autodesk had cash and cash equivalents (including marketable securities) of $1.87 billion compared with $1.99 billion as of April 30, 2024.
Deferred revenues decreased 13% to $3.69 billion. Unbilled deferred revenues were $2.17 billion, representing an increase of $1.18 billion compared with the year-ago quarter. Remaining performance obligations (RPO) increased 12% to $5.86 billion. Current RPO increased 11% to $3.9 billion.
Cash flow from operating activities was $212 million, representing an increase of $77 million compared with the year-ago quarter. Free cash flow was $203 million, reflecting an increase of $75 million compared with the second quarter of fiscal 2024.
<h2>Fiscal 2025 Guidance</h2>
Autodesk projects fiscal 2025 revenues between $6.08 billion and $6.13 billion, indicating approximately 11% growth. Billings are estimated in the $5.88-$5.98 billion band, suggesting an increase of 13-15% year over year.
Non-GAAP earnings per share are expected between $8.18 and $8.31. ADSK expects a non-GAAP operating margin between 35% and 36% year over year.
Free cash flow is anticipated in the $1.45-$1.5 billion band.
For the third quarter of fiscal 2025, Autodesk expects revenues between $1.555 billion and $1.57 billion. Non-GAAP earnings are anticipated in the range of $2.08-$2.14 per share.
<h2>Zacks Rank &amp; Key Picks</h2>
Autodesk carries a Zacks Rank #3 (Hold) at present. Shares of ADSK have returned 6.1% year to date.
Some better-ranked stocks from the broader Computer and Technology sector are Arista Networks (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/anet#NYSE">ANET</a>), Badger Meter (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>) and Audioeye (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aeye#NASDAQ">AEYE</a>), each sporting a Zacks Rank #1 (Strong Buy) at present.
Arista Networks&#39; shares have rallied 46.8% in the year-to-date period. The long-term earnings growth rate for ANET is anticipated to be 17.2%.
Badger Meter&#39;s shares have gained 32.5% in the year-to-date period. The long-term earnings growth rate for BMI is projected at 17.91%.
Shares of Audioeye have surged 342.6% in the year-to-date period. The long-term earnings growth rate for AEYE is expected to be 25%.
<a href="https://www.zacks.com/stock/news/2329679/autodesk-q2-earnings-and-sales-surpass-estimates-improve-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2329679">To read this article on Zacks.com click here.</a>

Earnings Beats

Large Cap

Penny Stocks

Guidance

Tech

ADSK

AEYE

ANET

Autodesk Q2 Earnings and Sales Surpass Estimates, Improve Y/Y

Nutanix (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ntnx#NASDAQ">NTNX</a>) reported fourth-quarter fiscal 2024 non-GAAP earnings of 27 cents per share, which surpassed the Zacks Consensus Estimate by 35% and increased 12.5% year over year.
Nutanix&#39;s revenues climbed 11% year over year to $548 million, beating the Zacks Consensus Estimate by 2.02% and the guided range of $530-$540 million.
The top line was primarily driven by growth in NTNX&#39;s core hyper-converged infrastructure software and the solid adoption of its new capabilities. Nutanix continues to witness a strong adoption of its hybrid multi-cloud solutions across Fortune 100 and Global 2000 companies.
NTNX noted that the average contract term length in the fiscal fourth quarter was 3.1 years, 0.1 years higher than the fiscal third quarter.
During the fiscal fourth quarter, Nutanix&#39;s Annual Contract Value (ACV) billings jumped 21% to $338 million, which was above the guided range of $295-$305 million.
<div class="chart_embed">
<h2>Nutanix Price, Consensus and EPS Surprise</h2>
<img alt="Nutanix Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/78/1724929813.png" style="height:310px; width:620px" title="" />
Nutanix price-consensus-eps-surprise-chart | Nutanix Quote
</div>
<h2>Top-Line Details of NTNX</h2>
Product revenues (48.5% of total revenues) increased 10.6% year over year to $265.9 million. Support, entitlements &amp; other services revenues (51.5% of total revenues) rose 11.2% to $282.05 million.
Subscription revenues (94.7% of total revenues) climbed 12.9% from the year-ago quarter&#39;s figure to $518.7 million. Professional services revenues (4.9% of total revenues) improved 11.4% to $26.7 million. Other non-subscription product revenues (0.5% of total revenues) decreased 76.8% to $2.49 million.
Billings were up 23.5% year over year to $672.86 million. Annual recurring revenues climbed 22% to $1.91 billion.
During the fiscal fourth quarter, Nutanix added 670 customers, taking the total number of clients to 26,530.
The company&#39;s largest win in the fiscal fourth quarter was a multimillion-dollar ACV deal with a North American-based Fortune 100 financial services company, which replaced its existing solution with the Nutanix Cloud platform, including AHV hypervisor as well as Nutanix cloud manager.
<h2>Operating Details</h2>
In the fiscal fourth quarter, Nutanix&#39;s non-GAAP gross margin expanded 110 basis points year over year to 86.9%.
Non-GAAP operating expenses increased 12% year over year to $405.5 million.
Non-GAAP operating income came in at $70.5 million compared with $63.3 million reported in the year-ago quarter.
<h2>Balance Sheet &amp; Cash Flow</h2>
As of July 31, 2024, cash and cash equivalents plus short-term investments were $994.3 million, down from $1.44 billion at the end of the third quarter of fiscal 2024.
During the fourth quarter of fiscal 2024, cash generated through operating activities was $244.7 million and free cash flow was $224.3 million.
<h2>Outlook</h2>
For the first quarter of fiscal 2025, revenues are estimated between $565 million and $575 million.&nbsp; Non-GAAP operating margin is expected in the band of 14.5-15.5%. The company expects fully diluted weighted average shares outstanding of approximately 287 million shares.
For fiscal 2025, revenues are estimated in the range of $2.435-$2.465 billion, indicating year-over-year growth of 14% at the midpoint. The company expects free cash flow in the range of $540-$600 million, suggesting a free cash flow margin of 23% at the midpoint.
Non-GAAP operating margin is expected in the band of 15.5-17%.
<h2>Zacks Rank &amp; Key Picks</h2>
Nutanix carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks from the broader Computer and Technology sector are Arista Networks, Badger Meter (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>) and Audioeye (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aeye#NASDAQ">AEYE</a>), each sporting a Zacks Rank #1 (Strong Buy) at present.
Arista Networks&#39; shares have rallied 46.8% in the year-to-date period. The long-term earnings growth rate for ANET is anticipated to be 17.2%.
Badger Meter&#39;s shares have gained 32.5% in the year-to-date period. The long-term earnings growth rate for BMI is projected at 17.91%.
Shares of Audioeye have surged 342.6% in the year-to-date period. The long-term earnings growth rate for AEYE is expected to be 25%.
<a href="https://www.zacks.com/stock/news/2328935/nutanix-q4-earnings-surpass-estimates-revenues-increase-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2328935">To read this article on Zacks.com click here.</a>

NTNX

Nutanix Q4 Earnings Surpass Estimates, Revenues Increase Y/Y

GoDaddy (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gddy#NYSE">GDDY</a>) is expanding its footprint in the digital marketing space with the launch of its all-in-one Digital Marketing product. The tool is designed to empower small business owners by simplifying and enhancing their online marketing activities.
Recognizing challenges that entrepreneurs face, such as limited time, budget and expertise, GoDaddy&#39;s new offering integrates essential tools like Search Engine Optimization (SEO), social media and email marketing into a single platform.
The latest launch enables businesses to manage their marketing strategies more efficiently and effectively, regardless of where their website is hosted.
With advanced AI-powered features, including customizable content creation, digital ads and a unified inbox for streamlined communication, GoDaddy Digital Marketing provides a comprehensive solution for small businesses aiming to grow and thrive in the competitive digital landscape.
<div class="chart_embed">
<h3>GoDaddy Inc. Price and Consensus</h3>
<img alt="GoDaddy Inc. Price and Consensus" src="https://staticx-tuner.zacks.com/images/charts/4f/1724254030.png" style="height:281px; width:620px" title="" />
GoDaddy Inc. price-consensus-chart | GoDaddy Inc. Quote
</div>
<h3>GoDaddy&#39;s Strong Portfolio Aids Prospect</h3>
The latest move will solidify GDDY&#39;s presence by offering an all-in-one digital marketing solution that simplifies and enhances small business marketing efforts.
Per a Mordor Intelligence report, the digital market is expected to be valued at USD 1.38 trillion in 2024. It is projected to reach USD 3.62 trillion by 2029, exhibiting a CAGR of 21.32% between 2024 and 2029.
Strong momentum in the promising digital market is expected to instill investor optimism in the stock.
GDDY&#39;s focus on small businesses and expanding clientele has been a major growth driver.
In the second quarter of 2024, the company launched the Digital Marketing Suite, a new customer onboarding path offering personalized marketing tools and content on a single dashboard to help users build their brand, generate leads and grow their businesses, even without a website.
In May, the company expanded its Small Business GenAI Prompt Library, offering more than 185 updated prompts and new capabilities to support small business owners globally.
GoDaddy also introduced the Smart Terminal Flex in April, a compact and versatile Point of Sale terminal designed to improve efficiency for small businesses through modern features and seamless integration across various sales channels.
GDDY&#39;s efforts are expected to help it acquire numerous small businesses as customers, which, in turn, will drive its top-line growth in the days ahead.
GoDaddy expects third-quarter 2024 revenues in the band of $1.13-$1.15 billion, indicating year-over-year growth of 7% at the mid-point. The Zacks Consensus Estimate for the same is pegged at $1.14 billion, suggesting a rise of 6.83%.
The consensus mark for earnings is pegged at $1.25 per share, up by a penny in the past 30 days. The projection suggests a 40.45% year-over-year growth.
<h3>Zacks Rank &amp; Other Stocks to Consider</h3>
Currently, GoDaddy carries a Zacks Rank #2 (Buy).
The stock has surged 53.5% against the Zacks Computer and Technology sector&#39;s growth of 22.5% in the year-to-date period.
Some other top-ranked stocks in the broader technology sector are Arista Networks (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/anet#NYSE">ANET</a>), Badger Meter (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>) and Daktronics (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dakt#NASDAQ">DAKT</a>), each sporting a Zacks Rank #1(Strong Buy) at present.
Arista Networks&#39; shares have appreciated 50.2% in the year-to-date period. The long-term earnings growth rate for ANET is pegged at 17.20%.&nbsp;
Badger Meter&#39;s shares have gained 30.5% in the year-to-date period. The long-term earnings growth rate for BMI is pegged at 17.91%.
Shares of Daktronics have surged 79.3% in the year-to-date period. The long-term earnings growth rate for DAKT is pegged at 30%.
<a href="https://www.zacks.com/stock/news/2325270/godaddy-gddy-aids-small-business-marketing-in-digital-sector?cid=CS-BENZ-FT-analyst_blog|company_news_tech_sector-2325270">To read this article on Zacks.com click here.</a>

DAKT

GDDY

GoDaddy Aids Small Business Marketing in Digital Sector

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market&#39;s attention and deliver solid returns. But finding a great growth stock is not easy at all.
That&#39;s because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, it&#39;s pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score, which looks beyond the traditional growth attributes to analyze a company&#39;s real growth prospects.
Badger Meter (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
Here are three of the most important factors that make the stock of this manufacturer of products that measure gas and water flow a great growth pick right now.
<h2>Earnings Growth</h2>
Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Badger Meter is 19.1%, investors should actually focus on the projected growth. The company&#39;s EPS is expected to grow 29.2% this year, crushing the industry average, which calls for EPS growth of 17.4%.
<h2>Cash Flow Growth</h2>
Cash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That&#39;s because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Badger Meter is 30.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 25.6%.
While investors should actually consider the current cash flow growth, it&#39;s worth taking a look at the historical rate too for putting the current reading into proper perspective. The company&#39;s annualized cash flow growth rate has been 11.8% over the past 3-5 years versus the industry average of 9.1%.
<h2>Promising Earnings Estimate Revisions</h2>
Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Badger Meter. The Zacks Consensus Estimate for the current year has surged 3% over the past month.
<h2>Bottom Line</h2>
Badger Meter has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.
This combination indicates that Badger Meter is a potential outperformer and a solid choice for growth investors.
<a href="https://www.zacks.com/stock/news/2323989/3-reasons-why-growth-investors-shouldn-t-overlook-badger-meter-bmi?cid=CS-BENZ-FT-tale_of_the_tape|yseop_template_11_growth-2323989">To read this article on Zacks.com click here.</a>

3 Reasons Why Growth Investors Shouldn't Overlook Badger Meter

Wix.com&#39;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wix#NASDAQ">WIX</a>) shares have been performing well on the trading front, with a gain of 32.5% year to date compared with the S&amp;P 500 composite and sub-industry&#39;s growth of 16.2% and 1.8%, respectively.
The stock has gained 4.2% since announcing solid second-quarter 2024 results on Aug 7. The stock is still trading 8.7% below its 52-week high of $178.65, which makes it relatively affordable for investors.
Headquartered in Tel Aviv, Israel and founded in 2006, WIX is a cloud-based web development platform. It offers solutions that enable businesses, organizations, professionals and individuals to develop customized websites and application platforms and grow the companies&#39; online presence.
The company&#39;s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters with the average surprise being 29.8%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/36/74490.jpg?v=1273220810" />
Image Source: Zacks Investment Research
<h3>WIX Studio &amp; AI Strategy Propelling Growth</h3>
Increasing adoption of the product portfolio, especially various AI products and WIX Studio, has been driving WIX&#39;s performance. The addition of new features and enhancements to WIX Studio is driving its uptake. Management highlighted that the number of Studio accounts and rate of new Partners joining the Wix platform through Studio continues to better expectations.
The addition of new AI-powered offerings to its product portfolio is another tailwind. WIX is also focusing on embedding AI assistants across its platform and has released 17 AI business assistants so far.
In June 2024, Wix launched advanced AI creation capabilities for its mobile app builder. The initiative is set to empower users to effortlessly craft professional and fully customizable applications. By leveraging AI technology, it revolutionizes the way business apps for iOS and Android can be designed and altered.
The company also expanded the availability of its AI Website Builder in different languages. Besides English, AI Website Builder is now available to global users in French, German, Portuguese, Spanish, Italian, Japanese, Turkish and Korean. This initiative aids users in building websites in their preferred language.
WIX&#39;s second-quarter total revenues increased 12% year over year to $435.7 million and beat the Zacks Consensus Estimate of $433.6 million. Bookings of $458.4 million improved 15% year over year. Creative Subscriptions&#39; bookings increased 12% year over year to $329 million. Business Solutions&#39; bookings rose 24% to $129.4 million.
Partners revenues in the second quarter were $148.4 million, or 34% of total revenues, up 29% year over year. The increase was driven by market share gains resulting from the onboarding of new agencies and freelancers.
<h3>Outlook Revised</h3>
Continued strong momentum in the first half of 2024 led WIX to upgrade the outlook for bookings, revenues and free cash flow for the year.
Total bookings are expected between $1,802 million and $1,822 million, compared with a previous range of $1,796-$1,826 million.
Total revenues are now expected to be in the range of $1,747-$1,761 million (previous projection:&nbsp; $1,738 million to $1,761 million).
Free cash flow, excluding headquarters costs, is expected between $460 million and $470 million, or 26-27% of revenues in 2024. Earlier, free cash flow was expected in the range of $445-$455 million, or 26% of revenues.
<h3>Estimates Moving North</h3>
The estimates have also moved northward in the past 60 days. The Zacks Consensus Estimate for 2024 and 2025 earnings per share has increased 7.3% and 2.4%, respectively, reflecting analysts&#39; optimism.
The estimated figures for 2024 and 2025 EPS, $5.86 and $6.93, indicate a rise of 33.5% and 18.3%, respectively, from the prior-year actuals. The long-term earnings growth rate is 22.4%.
The Zacks Consensus Estimate for WIX&#39;s 2024 and 2025 revenues is pegged at $1.75 billion and $1.99 billion, respectively, which indicates growth of 12.4% and 13.2% from the year-ago levels.
<h3>Headwinds Persist</h3>
However, unfavorable foreign currency movement and weak global macroeconomic conditions are headwinds.
Increasing investments in product development, infrastructure and platform, along with stiff competition in the e-commerce marketplace, remain concerns for this Zacks Rank #3 (Hold) stock.
<h3>Stocks to Consider</h3>
Some better-ranked stocks worth consideration in the broader technology space are Badger Meter (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>), Manhattan Associates (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/manh#NASDAQ">MANH</a>) and ANSYS (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/anss#NASDAQ">ANSS</a>). Badger Meter and Manhattan Associates sport a Zacks Rank #1 (Strong Buy) each, while ANSYS carries a Zacks Rank #2 (Buy), at present.
The Zacks Consensus Estimate for Badger Meter&#39;s 2024 EPS is pegged at $4.06, up 4.4% in the past 30 days. BMI&#39;s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.9%. The long-term earnings growth rate is 17.9%. Its shares have risen 26.1% in the past year.
The Zacks Consensus Estimate for ANSS&#39; 2024 earnings is pegged at $9.72, up 3.7% in the past 30 days. ANSS&#39; earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once, with the average surprise being 4.8%. Its shares have risen 12.1% in the past year.
The Zacks Consensus Estimate for MANH&#39;s 2024 EPS is pegged at $4.26. MANH&#39;s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 26.6%. The stock has surged 37.7% in the past year.
<a href="https://www.zacks.com/stock/news/2323236/wix-stock-soars-33-year-to-date-will-the-rally-continue?cid=CS-BENZ-FT-analyst_blog|price_surge_/_plunge-2323236">To read this article on Zacks.com click here.</a>

Offerings

Management

ANSS

MANH

WIX Stock Soars 33% Year to Date: Will the Rally Continue?

Applied Materials Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amat#NASDAQ">AMAT</a>) reported third-quarter fiscal 2024 non-GAAP earnings of $2.12 per share, which surpassed the Zacks Consensus Estimate by 5.5%. Moreover, the figure improved 12% from the year-ago quarter.
Net revenues of $6.78 billion were up 5% from the year-ago quarter. The figure surpassed the&nbsp; consensus estimate by 1.6%.
Strong momentum in the Display and Adjacent Markets and Applied Global Services (AGS) segments was a positive. The Semiconductor Systems segment&#39;s enhanced performance contributed to the results. AMAT also experienced solid momentum across the United States, Japan, Korea, China and Southeast Asia.
Shares of Applied Materials have gained 31.2% over a year, outperforming the industry&#39;s 17.4% growth.
However, weak momentum across Taiwan and Europe was a major negative.
<div class="chart_embed">
<h3>Applied Materials, Inc. Price, Consensus and EPS Surprise</h3>
<img alt="Applied Materials, Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/96/1723808255.png" style="height:278px; width:620px" title="" />
Applied Materials, Inc. price-consensus-eps-surprise-chart | Applied Materials, Inc. Quote
</div>
<h3>Segments in Detail</h3>
Semiconductor Systems generated revenues worth $4.92 billion, which contributed 72.7% to its net revenues, reflecting growth of 5.3% from the year-ago quarter. The figure surpassed the Zacks Consensus Estimate by 2.3%
AGS reported revenues of $1.58 billion (23.3% of net revenues), up 7.9% from the prior-year quarter. The figure surpassed the consensus estimate by 0.5%.
Revenues from Display and Adjacent Markets were $251 million (3.7% of net revenues), up 6.8% from the year-ago quarter. The figure beat the consensus estimate by 2.4%.
Corporate and Other revenues were $23 million (0.3% of revenues), down 54% year over year.
<h3>Revenues by Geography</h3>
Revenues in the United States, Europe, Japan, Korea, Taiwan, Southeast Asia and China were $1.05 billion, $339 million, $555 million, $1.1 billion, $1.15 billion, $428 million and $2.15 billion, contributing 16%, 5%, 8%, 16%, 17%, 6% and 32% to net sales, respectively.
Revenues in the United States, Japan, Korea, Southeast Asia and China increased 1.3%, 16.1%, 11.5%, 137.8% and 24.2%, respectively, from the year-ago quarter. Revenues in Europe and Taiwan fell 48.7% and 14.6%, respectively, from the year-ago quarter.
<h3>Operating Results</h3>
The non-GAAP gross margin was 47.4%, which expanded 100 basis points (bps) from the year-ago quarter.
Operating expenses were $1.26 billion, up 8% from the year-ago quarter. As a percentage of sales, the figure expanded 50 bps from the year-earlier quarter to 18.7%.
The non-GAAP operating margin of 28.8% expanded 50 bps year over year.
<h3>Balance Sheet &amp; Cash Flow</h3>
As of Jul 28, 2024, cash, cash equivalent balances and short-term investments were $9.1 billion, up from $7.6 billion as of Apr 28, 2024.
Inventories were $5.6 billion in the fiscal third quarter compared with $5.7 billion in second-quarter 2024. Accounts receivables increased to $4.97 billion from $4.8 billion in the previous quarter.
The long-term debt was $6.16 billion at the end of the quarter compared with $5.463 billion at the end of the previous quarter.
Applied Materials generated a free cash flow of $2.09 billion, up from $1.14 billion in the prior quarter.
AMAT returned $1.19 billion to its shareholders, of which share repurchases were worth $861 million and dividend payments amounted to $331 million.
<h3>Guidance</h3>
For the fiscal fourth quarter, Applied Materials expects net sales of $6.93 billion (+/-$400 million). The Zacks Consensus Estimate is pegged at $6.89 billion.
Semiconductor Systems, AGS and Display sales are anticipated to be $5.1 billion, $1.61 billion and $200 million, respectively.
Applied Materials expects a non-GAAP gross margin of 47.4% and non-GAAP operating expenses of $1.275 billion. It projects a non-GAAP tax rate of 12.5%.
Management expects non-GAAP earnings per share of $2.18 (+/-$0.18). The Zacks Consensus Estimate is pegged at $2.11.
<h3>Zacks Rank &amp; Other Stocks to Consider</h3>
Applied Materials currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the broader technology sector are Badger Meter (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>), Arista Networks (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/anet#NYSE">ANET</a>) and Adobe (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/adbe#NASDAQ">ADBE</a>). While Badger Meter and Arista Networks sport a Zacks Rank #1 (Strong Buy) each, Adobe carries a Zacks Rank of 2 at present.
Badger Meter shares have gained 32.7% in the year-to-date period. The long-term earnings growth rate for BMI is currently projected at 17.91%.
Arista Networks shares have gained 41.5% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 17.20%.
Adobe shares have gained 16.4% in the year-to-date period. The long-term earnings growth rate for ADBE is currently projected at 13.04%.
<a href="https://www.zacks.com/stock/news/2322889/applied-materials-amat-q3-earnings-revenues-top-estimates?cid=CS-BENZ-FT-analyst_blog|earnings_article-2322889">To read this article on Zacks.com click here.</a>

Dividends

ADBE

AMAT

Applied Materials Q3 Earnings & Revenues Top Estimates

Onto Innovation&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/onto#NYSE">ONTO</a>) shares have been performing well on the trading front, with a gain of 30.3% year to date compared with the S&amp;P 500 composite&#39;s and sub-industry&#39;s growth of 14.1% and 28.5%, respectively.
Solid financial performance has been aiding the stock&#39;s trajectory. The stock has gained 12% since announcing second-quarter fiscal 2024 results on Aug 8.
ONTO outpaced estimates in each of the trailing four quarters, with the average surprise being 6.6%.
The stock is trading down 16.7% from its 52-week high of $238.13, indicating further upside potential.
Headquartered in Wilmington, MA, Onto Innovation specializes in the design, development, manufacture and support of metrology and inspection tools primarily for semiconductor device fabricators, silicon wafer manufacturers and advanced packaging manufacturers in the semiconductor space.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/9f/74399.jpg?v=81156687" />
Image Source: Zacks Investment Research
<h3>Factors Driving Growth</h3>
Onto Innovation&#39;s performance is gaining from increasing demand for its Dragonfly inspection system. Its Dragonfly G3 platform integrates 2D and 3D technologies to identify yield-killing defects and compute features, which are important for advanced front-end and packaging technologies.
The system is witnessing strong adoption owing to higher demand for advanced packaging of AI computing devices.
In the last reported quarter, total revenues of $242.3 million beat the Zacks Consensus Estimate by 2.9%. The top line expanded 27.1% year over year. The uptick was largely driven by the expansion of pilot lines for high-performance computing, which incorporates cutting-edge gate-all-around transistor architecture and high-bandwidth memory to support the growing demand in the AI sector.
Revenues surpassed the high end of the company&#39;s guided range of $230-$240 million. Management highlighted record revenues of $164 million from its specialty and advanced packaging customers. This growth was driven by demand from the company&#39;s AI packaging customers.
ONTO secured more than $300 million in volume purchase agreements from two major customers. These agreements, which extend through 2025, pertain to investments in AI advanced packaging and gate-all-around technologies.
Healthy momentum in advanced nodes sales was driven by the success of ONTO&#39;s Atlas and Iris systems. These systems are pivotal in supporting emerging gate-all-around devices. 
In addition, ONTO bolstered its product portfolio with the introduction of the JetStep X500 lithography tool, specifically crafted for next-generation glass substrates used in panel-level packaging. The addition of these sensors will enable its users to collect important data needed to mature their process in a relatively shorter time.
The company remains focused on inventory reduction to boost cash-flow performance. Improvements in supply-chain initiatives are expected to drive margin performance.
For the third quarter, the management expects revenues in the range of $245-$255 million. For the second half, it now expects revenues to be 5-10% stronger than the first half of 2024.
ONTO expects revenues to gain from increasing investments in gate-all-around capacity, and capacity expansions by several high-bandwidth memory and logic packaging manufacturers in 2025.
<h3>Headwinds Persist</h3>
Nonetheless, weak global macro conditions, forex fluctuations and fierce competition are concerns for this Zacks Rank #3 (Hold) stock.
Increasing expenses is likely to weigh on the margin performance. For the third quarter of 2024, it expects operating expenses in the range of $64-$66 million amid higher research and development expenses.
<h3>A Look at Estimates</h3>
The Zacks Consensus Estimate for ONTO&#39;s 2024 and 2025 revenues is pegged at $968.9 million and $1.1 billion, respectively, indicating growth of 18.8% and 13.4% from the year-ago levels.
The consensus estimate for 2024 and 2025 EPS implies a rise of 37% and 22%, respectively, from the prior-year actuals to $5.11 and $6.24.
The consensus mark for 2024 EPS has increased 2%, in the past 90 days.
<h3>Stocks to Consider</h3>
Some better-ranked stocks worth consideration in the broader technology space are Badger Meter (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>), Manhattan Associates (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/manh#NASDAQ">MANH</a>) and ANSYS (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/anss#NASDAQ">ANSS</a>). Badger Meter and Manhattan Associates sport a Zacks Rank #1 (Strong Buy) each, while ANSYS carries a Zacks Rank #2 (Buy), at present.
The Zacks Consensus Estimate for Badger Meter&#39;s 2024 EPS is pegged at $4.06, up 4.4% in the past 30 days. BMI&#39;s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.9%. The long-term earnings growth rate is 17.9%. Its shares have risen 17.1% in the past year.
The Zacks Consensus Estimate for ANSS&#39; 2024 earnings is pegged at $9.72, up 3.7% in the past 30 days. ANSS&#39; earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once, with the average surprise being 4.8%. Its shares have risen 7.7% in the past year.
The Zacks Consensus Estimate for MANH&#39;s 2024 EPS is pegged at $4.26. MANH&#39;s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 26.6%. The stock has surged 30.7% in the past year.
<a href="https://www.zacks.com/stock/news/2322399/onto-innovation-onto-soars-30-ytd-will-the-rally-last?cid=CS-BENZ-FT-analyst_blog|price_surge_/_plunge-2322399">To read this article on Zacks.com click here.</a>

ONTO

Onto Innovation Soars 30% YTD: Will the Rally Last?

Itron&#39;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/itri#NASDAQ">ITRI</a>) shares have been performing well on the trading front, with a gain of 33.1% year to date compared with 19.2% and 2.5% growth of the S&amp;P 500 composite and the sub-industry, respectively.&nbsp;
The stock is down 16.4% from its 52-week high level of $113.07, reflecting further potential upside.
Headquartered in Liberty Lake, WA, Itron is one of the leading global suppliers of a wide range of standard, advanced and smart meters and meter communication systems. It also provides networks and communication modules, software, services and sensors for the effective management of electricity, gas and water resources for its consumers.
With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) stock appears to be a solid investment option at present.
Apart from a favorable rank, ITRI has a Growth Score of B. Per Zacks&#39; proprietary methodology, stocks with a combination of a Zacks Rank #1 (Strong Buy) or 2 and&nbsp; a Growth Score of A or B offer solid investment opportunities.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/90/74132.jpg?v=1310954533" />
Image Source: Zacks Investment Research
The company&#39;s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters with an average surprise of 57%.
&nbsp;
<h3>Steady Demand Trends</h3>
Steady market demand remains the primary catalyst. The company recently posted its second-quarter 2024 results wherein revenues of $609 million beat the Zacks Consensus Estimate of $600 million. The top line expanded 13% (up 13% at constant currency) year over year.
Successful operational execution and conversion of previously constrained revenues aided the top-line growth. Itron&#39;s bookings were $447 million, and its backlog amounted to $4.1 billion at the end of the reported quarter.
Networked Solutions&#39; revenues totaled $412.7 million (67.8%), up 14% year over year, driven by current and new project deployments. Outcomes&#39; revenues of $77.8 million (12.8%) increased 16% on a year-over-year basis attributed to higher recurring and one-time services revenues.
Momentum in the Grid Edge Intelligence platform augurs well. The platform&#39;s growth is being driven by various factors, including data center-related demand growth, reindustrialization and production localization, as well as electrification of transportation and homes. Itron added that automation of water infrastructure, safety applications for gas customers and the digitalization of its operations were other growth drivers.
Also, the acquisition of Elpis Squared expanded the Grid Edge Intelligence platform&#39;s solutions. Management noted that its customers are increasingly deploying new digital technology and non-wires grid solutions. This represents a strong opportunity for ITRI.
<h3>Solid Outlook</h3>
Itron anticipates 2024 bookings to result in a book-to-bill ratio of at least 1:1.
For the third quarter of 2024, ITRI expects revenues to be between $590 million and $600 million. Non-GAAP EPS is anticipated to be in the range of $1.10-$1.20. The Zacks Consensus Estimate for both top and bottom lines is pegged at $597 million and $1.10 per share.
The company has revised its full-year revenue outlook for 2024. Management now projects revenues to be between $2.385 billion and $2.415 billion compared with earlier guidance of $2.275 to $2.375 billion.
Non-GAAP EPS is currently estimated in the $4.45-$4.65 band compared with of $3.40-$3.80 projected in February 2024.
<h3>Estimates Northward Bound</h3>
The Zacks Consensus Estimate for ITRI&#39;s 2024 and 2025 revenues is pegged at $2.41 billion and $2.5 billion, respectively, indicating growth of 10.8% and 3.8% from the year-ago levels.
The consensus estimated figures for 2024 and 2025 EPS are expected to rise 33.3% and 3.6% from the prior-year actuals of $4.48 and $4.64, respectively.
The figures of consensus mark for 2024 and 2025 EPS have increased 12% and 5.9%, respectively, in the past 60 days, reflecting analysts&#39; optimism.
ITRI&#39;s long-term earnings growth rate is pegged at 26%.
<h3>Headwinds Persist</h3>
However, rising operating expenses and stiff competition amid a soft macroeconomic backdrop remain concerns.
In the second quarter of 2024, non-GAAP operating expenses of $141.1 million jumped 6.6% year over year due to higher sales and general and administrative costs. These factors might exert pressure on the margins, at least in the near term.
Itron also has a leveraged balance sheet. As of Jun 30, 2024, the company&#39;s cash and cash equivalents totaled $920.6 million. Long-term debt at the end of the second-quarter 2024 was $1.24 billion.
<h3>Other Stocks to Consider</h3>
Other top-ranked stocks worth consideration in the broader technology space are Badger Meter (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>), Manhattan Associates (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/manh#NASDAQ">MANH</a>) and ANSYS (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/anss#NASDAQ">ANSS</a>). Badger Meter and Manhattan Associates sport a Zacks Rank #1 each, while ANSYS carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Badger Meter&#39;s 2024 EPS is pegged at $4.06, up 4.4% in the past 30 days. BMI&#39;s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.9%. The long-term earnings growth rate is 17.9%. Its shares have risen 12.5% in the past year.
The Zacks Consensus Estimate for ANSS&#39; 2024 earnings is pegged at $9.72, up 3.7% in the past 30 days. ANSS&#39; earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once, with the average surprise being 4.8%. Its shares have risen 3.3% in the past year.
The Zacks Consensus Estimate for MANH&#39;s 2024 EPS is pegged at $4.26. MANH&#39;s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 26.6%. The stock has surged 28.4% in the past year.
<a href="https://www.zacks.com/stock/news/2321144/itron-itri-stock-up-33-1-in-a-year-will-the-rally-continue?cid=CS-BENZ-FT-analyst_blog|price_surge_/_plunge-2321144">To read this article on Zacks.com click here.</a>

ITRI

Itron Stock Up 33.1% in a Year: Will the Rally Continue?

TELUS Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tu#NYSE">TU</a>) has unveiled a plan to make $19.2 million worth TELUS PureFibre services available in Doig River First Nation, located about 70 kilometers northeast of Fort St. John, as well as to hundreds of homes in 14 other communities. This significant step underscores TELUS&#39; ongoing efforts to bring its PureFibre technology to numerous communities, residents and businesses.
The new fibre-optic network will support TELUS&#39; wireless services, set the stage for future 5G technologies and provide Doig River First Nation residents with the resources needed to participate and gain from the digital economy.
In 2011, Doig River First Nation was among the first to receive broadband through the Pathways to Technology initiative. The Pathways project will fund the fibre upgrade, with TELUS being its longstanding partner.
TELUS PureFibre is a 100% fibre-to-the-home network as it uses cutting-edge fibre optics directly to homes and businesses, providing the fastest possible speeds. As Western Canada&#39;s established fibre network, TELUS offers fast, symmetrical upload and download speeds with reliable and sustainable technology.
High-speed Internet is essential in today&#39;s digital world, whether for accessing healthcare or growing a business. By 2027, Atlantic Canada&#39;s federal government, in partnership with TELUS, plans to bring high-speed Internet to every home in British Columbia.
Last month, TELUS unveiled its plan to make TELUS PureFibre services available in the Township of Langley, Kwantlen First Nation&#39;s McMillan Island 6 and Katzie First Nation&#39;s Katzie 2 communities.
TELUS is dedicated to working with indigenous, federal, provincial and local governments to expand access to their advanced technology. The company highlighted that this collaboration aims to ensure that everyone in Canada has the resources needed to reach their full potential and improve their social and economic outcomes.
TELUS is one of the leading communications technology firms, known for its expertise in developing, constructing and delivering advanced solutions, including artificial intelligence and content moderation.
TU currently carries a Zacks Rank #3 (Hold). Shares of the company have lost 6.8% in the past year compared with the sub-industry&#39;s decline of 2.4%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/3c/74192.jpg?v=1240247995" />
Image Source: Zacks Investment Research
<h3>Stocks to Consider</h3>
Badger Meter, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>), sporting a Zacks Rank #1 (Strong Buy) at present, has a long-term earnings growth expectation of 17.9% and delivered an earnings surprise of 12.89%, on average, in the trailing four quarters. In the last reported quarter, BMI delivered an earnings surprise of 14.29%.
Arista Networks, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/anet#NYSE">ANET</a>), sporting a Zacks Rank #1 at present, has a long-term earnings growth expectation of 17.2% and delivered an earnings surprise of 15.02%, on average, in the trailing four quarters. In the last reported quarter, ANET delivered an earnings surprise of 8.25%.
Itron, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/itri#NASDAQ">ITRI</a>), carrying a Zacks Rank #2 (Buy) at present, has a long-term earnings growth expectation of 26% and delivered an earnings surprise of 57.02%, on average, in the trailing four quarters. In the last reported quarter, ITRI delivered an earnings surprise of 26.04%.
<a href="https://www.zacks.com/stock/news/2321441/telus-tu-continues-purefibre-expansion-to-boost-connectivity?cid=CS-BENZ-FT-analyst_blog|company_news_tech_sector-2321441">To read this article on Zacks.com click here.</a>

TELUS Continues PureFibre Expansion to Boost Connectivity

Badger Meter Raises Dividend From $0.27 To $0.34

NetApp&#39;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ntap#NASDAQ">NTAP</a>) shares have been performing well on the trading front, with a gain of 51.1% year to date compared with the sub-industry and the S&amp;P 500 composite&#39;s growth of 47.1% and 16.6%, respectively.&nbsp;
NetApp provides enterprise storage, data management software and hardware products and services. The San Jose, CA-based company assists enterprises in managing multiple cloud environments, adopting next-generation technologies like artificial intelligence, Kubernetes and contemporary databases and navigating the complexity brought by the quick development of data and cloud usage.
With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) stock appears to be a solid investment option at present.
Apart from a favorable rank, NTAP has a Growth Score of B. Per Zacks&#39; proprietary methodology, stocks with a combination of a Zacks Rank #1 (Strong Buy) or 2 and a Growth Score of A or B offer solid investment opportunities.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/7a/73718.jpg?v=136312059" />
Image Source: Zacks Investment Research
The stock is down 13.9% from its 52-week high level of $135.01, reflecting further potential upside.&nbsp;
The company&#39;s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and met the same in one, delivering an average surprise of 8.8%.&nbsp;
<h3>Factors Driving Performance</h3>
Solid demand across the all-flash and cloud storage portfolio is driving top-line expansion. Data-driven digital and cloud transformations involving business analytics, AI, data security and application modernization remain secular growth drivers.
The company expects the new AFF A-series, along with its C-series and ASA products, to capture further share in the all-flash market.
The AI-driven landscape has pushed organizations to innovate swiftly, enhance customer experiences, combat cyber threats and boost productivity. This new product is aimed at offering intelligent data infrastructure to unlock the potential of AI-driven insights. The new AFF A-Series systems extend its footprint in unified data storage for the next generation of workloads.
In the fourth quarter of fiscal 2024, the company&#39;s All-Flash Array Business&#39; annualized net revenue run rate was $3.6 billion, up 17% year over year. Total billings rose 8% year over year to $1.8 billion.
Apart from frequent product launches, strengthening go-to-market activities and various cloud collaborations are aiding NetApp in driving top-line performance. Extensive cost discipline is boosting margin performance.
The company&#39;s advanced portfolio of ransomware protection solutions is expected to gain momentum amid rising cybersecurity risks. Its hyper-scaler partnerships and natively integrated storage services should help tap the growing demand for generative AI.
NetApp expects its strengthening position in tackling critical customer priorities, such as business analytics, AI, cloud transitions, data security and application modernization, to drive further expansion.
The company expects fiscal 2025 revenues to be in the band of $6.45-$6.65 billion compared with $6.27 billion in the previous year. Management also expects Public Cloud revenues to return to steady growth in fiscal 2025. Public Cloud Services recorded revenues of $152 million in the fourth quarter of fiscal 2024, up 1% year over year.
<h3>Sound Capital Allocation Strategy</h3>
NetApp&#39;s cash, cash equivalents and investments were $3.252 billion as of Apr 26, 2024. Its long-term debt was $1.992 billion in the same period. For the fiscal fourth quarter, the company&#39;s generated net cash from operations was $613 million compared with $235 million in the prior-year quarter. Free cash flow was $567 million (free cash flow margin of 34%) compared with $196 million in the prior-year quarter (12.4%).
A strong balance sheet helps the company to continue its shareholder-friendly initiatives via dividend payouts and share buybacks. The company returned $204 million and $1.32 billion to its shareholders as dividend payouts and share repurchases, respectively, in the fiscal fourth quarter and fiscal year. NTAP also announced a 4% hike in its quarterly dividend and an additional $1 billion share repurchase authorization.
<h3>Estimates Activity</h3>
The Zacks Consensus Estimate for fiscal 2025 and 2026 revenues is pegged at $6.55 billion and $6.81 billion, respectively, which indicates year-over-year growth of 4.4% and 4.1%.
The Zacks Consensus Estimate for earnings per share for fiscal 2025 and fiscal 2026 is expected to rise 6.2% and 7.1%, respectively, year over year to $6.86 and $7.34.
The Zacks Consensus Estimate for fiscal 2025 and 2026 EPS has increased 3.2% and 3.1%, respectively, in the past 90 days, reflecting analysts&#39; optimism.
<h3>Headwinds Persist</h3>
However, an unfavorable macroeconomic environment and price increases on NAND from suppliers continue to remain headwinds.
Stiff competition from Pure Storage in all-flash business and cloud-based storage solutions&#39; space is another headwind.
<h3>Other Stocks to Consider</h3>
Some other top-ranked stocks worth consideration in the broader technology space are Badger Meter (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>), SAP SE (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sap#NYSE">SAP</a>), and Generac Holdings (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gnrc#NYSE">GNRC</a>). Badger Meter sports a Zacks Rank #1, while SAP and GNRC carry a Zacks Rank #2 each at present.
The Zacks Consensus Estimate for Badger Meter&#39;s 2024 EPS is pegged at $4.06, up 3% in the past 30 days. BMI&#39;s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.9%. The long-term earnings growth rate is 17.9%. Its shares have risen 15.7% in the past year.
The Zacks Consensus Estimate for GNRC&#39;s 2024 earnings is pegged at $6.44, up 4.5% in the past seven days. GNRC&#39;s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once, the average surprise being 9.75%. The long-term earnings growth rate is 12%. Its shares have risen 28.4% in the past year.
The Zacks Consensus Estimate for SAP&#39;s 2024 EPS is pegged at $4.75. SAP&#39;s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed the same in the other two, the average surprise being 4%. The long-term earnings growth rate is 10.7%. The stock has surged 48.7% in the past year.
<a href="https://www.zacks.com/stock/news/2319314/netapp-ntap-up-49-in-the-past-year-will-the-rally-continue?cid=CS-BENZ-FT-analyst_blog|price_surge_/_plunge-2319314">To read this article on Zacks.com click here.</a>

GNRC

NTAP

NetApp Up 49% in the Past Year: Will the Rally Continue?

Cirrus Logic Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/crus#NASDAQ">CRUS</a>) reported first-quarter fiscal 2025 adjusted earnings per share of $1.12, which surpassed the Zacks Consensus Estimate by 80.7%. Also, the bottom line expanded 67.2% from the prior-year quarter&#39;s 67 cents.
Total revenues of $374 million beat the Zacks Consensus Estimate by 17.7% and soared 18% year over year. The uptick was driven primarily by stronger-than-anticipated shipments into the smartphone market.
The company&#39;s largest customer accounted for 88% of total revenues in the fiscal first quarter.
Following the announcement, the company&#39;s shares gained 11.9% in aftermarket trading on Aug 6, 2024. The stock has rallied 39.1% in the past year compared with the sub-industry&#39;s growth of 37.7%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/02/73622.jpg?v=1205545805" />
Image Source: Zacks Investment Research
<h3>Segment Details</h3>
This Texas-based company rearranged its reportable segments and created separate categories, High-Performance Mixed-Signal and Audio in the fourth quarter of fiscal 2021. Cirrus Logic is expanding into other applications such as laptops, gaming, tablets and AR/VR.
CRUS&#39; High-Performance Mixed-Signal segment includes a few of its non-audio products. The segment, which contributed 41% to total revenues in the fiscal first quarter, rose 27.9% year over year to $155 million.
The Audio segment&#39;s sales grew 11.8% to $218.9 million and contributed 59% to total revenues.
In the fiscal first quarter, our estimates for the High-Performance Mixed-Signal and Audio segments were pegged at $188.6 million and $124.5 million, respectively.
<div class="chart_embed">
<h3>Cirrus Logic, Inc. Price, Consensus and EPS Surprise</h3>
<h3><img alt="Cirrus Logic, Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/f9/1723039523.png" style="height:265px; width:580px" title="" /></h3>
Cirrus Logic, Inc. price-consensus-eps-surprise-chart | Cirrus Logic, Inc. Quote
</div>
<h3>Margins</h3>
Non-GAAP gross margin was 50.6% compared with 50.4% in the prior year quarter.
Cirrus Logic&#39;s non-GAAP operating expenses rose 3.7% year over year to $118 million due to increasing variable compensation.
Non-GAAP operating income of $71.2 million grew 55.2% year over year. Non-GAAP operating profit margin improved to 19% from 14.5%.
<h3>Balance Sheet and Cash Flow</h3>
The company exited the fiscal first quarter with cash and marketable securities of $517 million compared with $388.1 million in the prior-year period.
As of Jun 29, 2024, accounts receivables were $190.1 million compared with $286 million in the previous-year quarter.
In the fiscal first quarter, CRUS generated $87.2 million as net cash from operations against $39.8 million as net cash used from operations in the prior-year quarter. Free cash flow was $77 million in the quarter under review.
The company repurchased 361,218 shares worth $41 million in the reported quarter. As of Jun 29, 2024, it had $274.1 million worth of shares remaining under its existing share repurchase authorization.
<h3>Fiscal Q2 Guidance</h3>
Management projects revenues between $490 million and $550 million.
Combined R&amp;D and SG&amp;A are anticipated to be between $149 million and $155 million, respectively.
The gross margin is expected to be in the range of 50-52%.
Non-GAAP operating expenses are estimated to be in the band of $125-$130 million.
<h3>Zacks Rank</h3>
Cirrus Logic currently carries a Zacks Rank #2 (Buy).
<h3>Performance of Other Companies</h3>
BlackBerry&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bb#NYSE">BB</a>) first-quarter fiscal 2025 adjusted loss per share of 3 cents was narrower than the company&#39;s estimate of a loss of 4-6 cents. In the year-ago quarter, it reported non-GAAP earnings of 6 cents per share. The Zacks Consensus Estimate was pegged at a loss of 4 cents per share.
Shares of BB have lost 53% in the past year.
Badger Meter, Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>) reported earnings per share of $1.12 for second-quarter 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter&#39;s EPS of 76 cents.
Shares of BMI have gained 18.2% in the past year.
SAP SE (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sap#NYSE">SAP</a>) reported second-quarter 2024 non-IFRS earnings of &euro;1.10 ($1.18) per share, climbing 59% from the year-ago quarter&#39;s levels. The Zacks Consensus Estimate was pegged at $1.01.
In the past year, shares of SAP have gained 50.8%.
<a href="https://www.zacks.com/stock/news/2318203/cirrus-logic-s-crus-q1-earnings-revenues-beat-rise-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2318203">To read this article on Zacks.com click here.</a>

CRUS

Cirrus Logic's Q1 Earnings & Revenues Beat, Rise Y/Y

Blackbaud (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/blkb#NASDAQ">BLKB</a>) reported second-quarter 2024 non-GAAP earnings per share of $1.08, which surpassed the Zacks Consensus Estimate by 3.9%. The bottom line increased 10.2% year over year.
Total revenues jumped 6% year over year to $287.3 million, driven by growth in recurring revenues. Revenues missed the Zacks Consensus Estimate by 0.5%.
Total recurring revenues (contributed 98% to total revenues) in the reported quarter amounted to $281.4 million, up 7.2% year over year. One-time services and other revenues (2% of total revenues) totaled $5.9 million, down 31.7%.
<div class="chart_embed">
<h3>Blackbaud, Inc. Price, Consensus and EPS Surprise</h3>
<img alt="Blackbaud, Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/30/1722432424.png" style="height:265px; width:574px" title="" />
Blackbaud, Inc. price-consensus-eps-surprise-chart | Blackbaud, Inc. Quote
Non-GAAP organic revenues were up 6.7% on a reported basis and 6.6% on a constant-currency basis, year over year. Non-GAAP organic recurring revenues rose 7.2%. 
Margin Details 
Non-GAAP gross margin was 62.9% compared with 61.6% a year ago.
Total operating expenses declined 19.3% on a year-over-year basis to $120.5 million.
Non-GAAP operating margin jumped 260 basis points (bps) to 30%.
Non-GAAP adjusted EBITDA margin was 35.7%, up 290 bps year over year. 
Balance Sheet &amp; Cash Flow 
As of Jun 30, 2024, Blackbaud had total cash, cash equivalents and restricted cash of $831.1 million compared with $382.9 million as of Mar 31, 2024.
Total debt (including the current portion) as of Jun 30, 2024, was $1021.9 million compared with&nbsp; $1039.8 million as of Mar 31, 2024.
For the second quarter, cash provided by operating activities was $53.8 million compared with $53.2 million in the prior-year quarter.
Non-GAAP adjusted free cash flow was $36.4 million compared with $43.6 million in the year-ago quarter.
Blackbaud repurchased approximately 3 million shares in the first half of 2024, representing 5.5% of the common stock outstanding at the end of 2023.
In July 2024, Blackbaud&#39;s board of directors approved a replenished and expanded $800 million stock repurchase authorization. BLKB expects to buy back up to 10% of the common stock outstanding in 2024 to offset dilution from annual stock-based compensation.&nbsp; 
Outlook 
Blackbaud reiterated its 2024 financial guidance, factoring in a significant, one-time expense to expedite crucial security initiatives. These initiatives, designed to provide long-term benefits for customers, include enhancing cybersecurity talent (both employees and third-party resources) and upgrading systems and tools to improve identity and privilege access management, as well as data loss prevention. The company anticipates that this accelerated cybersecurity investment will not recur in 2025 and beyond.
BLKB now expects non-GAAP revenues between $1.164 billion and $1.194 billion.
The company continues to project non-GAAP adjusted EBITDA margin in the range of 32.5-33.5%.
Non-GAAP EPS is anticipated to be between $4.12 and $4.38.
Non-GAAP adjusted free cash flow for 2024 is forecasted to be in the range of $254-$274 million.
Non-GAAP annualized effective tax rate is the same as the prior estimation of approximately 24.5%.
Interest expense is now expected in the band of $52 million to $56 million, changed from earlier guidance of $48 million to $52 million.
Fully diluted shares are now anticipated to be 51.0 million to 52.0 million compared with the earlier guided range of 52-53 million.
Capital expenditures are expected to be in the range of $65 million to $75 million, which includes $60-$70 million of capitalized software and content development costs. This remains the same as the earlier outlook. 
Zacks Rank and Stocks to Consider 
Blackbaud currently carries a Zacks Rank #3 (Hold)
Some better-ranked stocks from the broader technology space are Badger Meter,Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>), SAP SE (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sap#NYSE">SAP</a>) and NVIDIA Corporation. BMI presently sports a Zacks Rank #1 (Strong Buy), whereas NVDA &amp; SAP carry a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Badger Meter&#39;s 2024 EPS has increased 4.37% in the past 60 days to $4.06. BMI&#39;s long-term earnings growth rate is 17.9%. The company recently reported results for second-quarter 2024, wherein EPS of $1.12 topped the Zacks Consensus Estimate by 14.3%. Quarterly net sales were $216.7 million, up 23% from $175.9 million in the year-ago quarter and surpassed the consensus mark by 7.86%.
Badger Meter&#39;s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 12.89%. BMI shares have risen 24.3% in the past year.
The Zacks Consensus Estimate for SAP&#39;s 2024 EPS has increased 4.2% in the past 60 days to $4.75. SAP&#39;s long-term earnings growth rate is 10.7%. The company recently reported results for second quarter of 2024 wherein non-IFRS earnings came in at &euro;1.10 ($1.18) per share, climbing 59% from the year-ago quarter&#39;s levels. The Zacks Consensus Estimate was pegged at $1.01.
Total revenues on a non-IFRS basis of &euro;8.288 billion ($8,921.3 million), rose 10% year over year both at nominal and constant currencies basis. The Zacks Consensus Estimate was pegged at $8,864.7 million.
SAP&#39;s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 4.0%. Shares of SAP have gained 51.6% in the past year.
The Zacks Consensus Estimate for NVDA&#39;s 2024 EPS has increased 1.5% in the past 60 days to $2.69. NVDA&#39;s long-term earnings growth rate is 37.6%.
NVIDIA&#39;s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 18.43%. Shares of NVDA have gained 123.0% in the past year.
<a href="https://www.zacks.com/stock/news/2313190/blackbaud-blkb-q2-earnings-beat-estimates-revenues-up-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2313190">To read this article on Zacks.com click here.</a>
</div>
&nbsp;

BLKB

Blackbaud Q2 Earnings Beat Estimates, Revenues Up Y/Y

Flex Ltd (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/flex#NASDAQ">FLEX</a>) reported first-quarter fiscal 2025 adjusted earnings per share of 51 cents, beating the Zacks Consensus Estimate by 24.4%. The bottom line compared favorably with the prior-year quarter&#39;s 47 cents per share.
Revenues fell 8% year over year to $6.3 billion. However, it surpassed the consensus mark by 7%. The downside resulted from a slowdown in the Agility and Reliability Solutions business segments.
<div class="chart_embed">
<h3>Flex Ltd. Price, Consensus and EPS Surprise</h3>
<img alt="Flex Ltd. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/46/1721913824.png" style="height:265px; width:574px" title="" />
Flex Ltd. price-consensus-eps-surprise-chart | Flex Ltd. Quote
Following the announcement, shares were up 6.86% and closed the session at $31.76 on Jul 24. In the past year, the stock has gained 12.3% compared with the sub-industry&#39;s rise of 12.1%.
</div>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/37/72446.jpg?v=336980060" />
Image Source: Zacks Investment Research
<h3>Segment Details</h3>
The Flex Reliability Solutions Group encompasses Health Solutions, Automotive and Industrial businesses. Revenues were down 10% year over year to $2.9 billion. The downtick is caused by weak macro trends in core industrial areas, offset by momentum in automotive, cloud, data center power and healthcare devices.
The Flex Agility Solutions Group comprises Communications &amp; Enterprise Compute or CEC and Lifestyle and Consumer Devices businesses. Revenues were down 5.5% to $3.4 billion from the prior-year figure of $3.6 billion. Positive trends were observed in cloud amid softness in enterprise IT and non-cloud-related networks.
<h3>Operating Details</h3>
Non-GAAP gross margin increased 50 basis points (bps) on a year-over-year basis to 7.8% in the reported quarter.
Non-GAAP operating income came in at $306 million, up from the prior-year level of $293 million. Non-GAAP operating margin expanded 50 bps to 4.8%.
Non-GAAP selling, general &amp; administrative expenses totaled $189 million, down 9% year over year.
The adjusted operating margins of the Flex Reliability Solutions Group was 5%, on par with the prior year&#39;s level. Adjusted operating margins of the Flex Agility Solutions Group improved 120 bps to 5.3%.
<h3>Balance Sheet &amp; Cash Flow</h3>
As of Jun 30, 2024, cash &amp; cash equivalents and long-term debt (net of current portion) were $2.24 billion and $2.6 billion, respectively, compared with $2.3 billion and $3.3 billion a year ago.
In first-quarter fiscal 2025, the company generated cash flow from operating activities of $340 million and an adjusted free cash flow of $232 million.
<h3>Guidance</h3>
For second-quarter fiscal 2025, Flex expects revenues to be between $6.2 billion and $6.8 billion.
Management expects adjusted earnings in the range of 52-60 cents per share, excluding 1 cent for net restructuring charges, 8 cents for stock-based compensation expense and 3 cents for net intangible amortization. Adjusted operating income is projected to be between $310 million and $350 million.
For fiscal 2025, Flex expects revenues to be between $25.4 billion and $26.4 billion. It anticipates adjusted earnings in the range of $2.30-$2.50 per share, excluding 32 cents for stock-based compensation expense, 25 cents for net restructuring charges and 13 cents for net intangible amortization.
Management further anticipates momentum in key end-markets - cloud, power, auto and medical devices. However, rising global tax rates and a dynamic macro backdrop remain headwinds.
<h3>Zacks Rank</h3>
Flex currently carries a Zacks Rank #2 (Buy).
<h3>Performance of Other Companies</h3>
BlackBerry&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bb#NYSE">BB</a>) reported first-quarter fiscal 2025 adjusted loss per share of 3 cents is narrower than the company&#39;s estimate of a loss of 4-6 cents. In the year-ago quarter, it reported non-GAAP earnings of 6 cents per share. The Zacks Consensus Estimate was pegged at a loss of 4 cents per share.
Shares of BB have lost 48.9% in the past year.&nbsp;
Badger Meter, Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>) reported earnings per share of $1.12 for second-quarter 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter&#39;s EPS of 76 cents.
Shares of BMI have gained 22% in the past year.&nbsp;
SAP SE (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sap#NYSE">SAP</a>) reported second-quarter 2024 non-IFRS earnings of &euro;1.10 ($1.18) per share, climbing 59% from the year-ago quarter&#39;s levels. The Zacks Consensus Estimate was pegged at $1.01.
In the past year, shares of SAP have gained 57.9%.
<a href="https://www.zacks.com/stock/news/2309145/flex-s-q1-earnings-surpass-estimates-revenues-decline-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2309145">To read this article on Zacks.com click here.</a>

FLEX

FLEX's Q1 Earnings Surpass Estimates, Revenues Decline Y/Y

Seagate Technology Holdings plc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/stx#NASDAQ">STX</a>) reported fourth-quarter fiscal 2024 non-GAAP earnings of $1.05 per share, beating the Zacks Consensus Estimate by 40%. The company reported a non-GAAP loss of 18 cents per share in the year-ago quarter.
Management anticipated fourth-quarter fiscal 2024 non-GAAP earnings to be 70 cents (+/- 20 cents).
Non-GAAP revenues of $1.887 billion beat the Zacks Consensus Estimate by 1.5%. The figure increased 18% on a year-over-year basis and 14% sequentially. Management projected revenues to be $1.85 billion (+/- $150 million) for the fiscal fourth quarter.
Higher mass capacity revenues were driven by stronger global cloud demand. Mass capacity revenues surged 46% year over year to $1.437 billion. Its exabyte shipments now represent more than 90% of total exabyte shipments. Nearline cloud revenues more than doubled year over year, owing to higher traditional cloud computing workloads and new AI deployments.&nbsp;
<div class="chart_embed">
<h3>Seagate Technology Holdings PLC Price, Consensus and EPS Surprise</h3>
<img alt="Seagate Technology Holdings PLC Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/d7/1721821765.png" style="height:265px; width:583px" title="" />
Seagate Technology Holdings PLC price-consensus-eps-surprise-chart | Seagate Technology Holdings PLC Quote
Following the announcement, shares were up 5% in the premarket trading on Jul 24. In the past year, STX has gained 80.8% compared with the sub-industry&#39;s growth of 45.4%.
</div>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/68/72303.jpg?v=2106150403" />
Image Source: Zacks Investment Research
<h3>Exabyte Shipments in Detail</h3>
In the reported quarter, Seagate shipped 114.2 exabytes of HDD storage, up 25% year over year and 15% sequentially.
Average mass capacity increased 45% year over year and 6% sequentially to 9.3TB.
The company shipped 103.9 exabytes for the mass-capacity storage market (including nearline, video and image applications, and network-attached storage). This recorded a year-over-year increase of 38% in exabyte shipments and 17% sequentially. Average mass capacity per drive slightly increased sequentially to 12.6 TB from 12.5 TB.
In the nearline market, it shipped 84.3 exabytes of HDD, up 54% year over year and 18% sequentially.
Seagate shipped 10.3 exabytes for the legacy market (which includes mission-critical notebooks, desktops, gaming consoles, digital video recorders or DVR and external consumer devices), down 36% year over year and 3% sequentially. Average capacity increased 2% year over year to 2.5 TB.
<h3>Revenues by Product Group</h3>
Total revenues of HDD (91.5% of revenues) rose 25% year over year to $1.727 billion in the reported quarter. On a sequential basis, revenues were up 17%.
Systems, SSD &amp; Other segment&#39;s revenues (8.5%), including enterprise data solutions, cloud systems and solid-state drives, were $160 million, down 27% on a year-over-year basis and 10% sequentially.
Our estimates for revenues from HDD and non-HDD segments were $1.674 billion and $178 million, respectively.
<h3>Margin Details</h3>
Non-GAAP gross margin increased to 30.9% from 19.5% in the prior year quarter.
Non-GAAP operating expenses were down 1% on a year-over-year basis to $256 million.
Non-GAAP income from operations totaled $327 million, up from $55 million a year ago. Non-GAAP operating margin increased to 17.3% from 3.4% in the year-earlier quarter.
<h3>Balance Sheet and Cash Flow</h3>
As of Jun 28, 2024, cash and cash equivalents were $1.358 billion compared with $795 million as of Mar 29.
As of Jun 28, 2024, long-term debt (including the current portion) was $5.674 billion compared with $5.671 billion as of Mar 29.
Cash flow from operations was $434 million compared with $188 million in the previous quarter. Free cash flow amounted to $380 million compared with $128 million in the prior quarter. This includes $226 million from the sale of System-on-Chip Operations, net of transaction costs.
STX paid $147 million as dividends in the fiscal fourth quarter. It exited the quarter with 210 million shares outstanding.
For the fiscal year, STX reported $918 million in cash flow from operations and $664 million in free cash flow. It paid cash dividends of $585 million in the fiscal year.
Seagate announced a quarterly cash dividend of 70 cents per share. The dividend will be paid out on Oct 7, 2024, to its shareholders of record as of the close of business on Sep 23.
<h3>Outlook</h3>
Management anticipates first-quarter fiscal 2025 revenues to be $2.10 billion (+/- $150 million). STX expects incremental improvements in mass capacity demand, owing to strengthening demand from global cloud customers and modest improvement in the nearline enterprise market. The increase in mass capacity revenues is likely to offset lower revenues from legacy markets.
Gross margin is expected to benefit from a higher mix of mass capacity revenues and ongoing pricing actions.
For VIA, management anticipates sales to fluctuate in the second half of the calendar 2024. Though smart cities are the biggest end-market opportunity, the near-term budget visibility remains blurry amid existing macroeconomic uncertainty.
Non-GAAP earnings for the fiscal first quarter of 2025 are expected to be $1.40 per share (+/- 20 cents).
The non-GAAP operating expenses are expected to be $270 million. At the midpoint of the revenue guidance, management expects the non-GAAP operating margin to grow in the high-teens percentage range of revenues.
STX expects fiscal 2025 capex to be at or below the low end of its long-term target range of 4-6% of revenues.
Currently, Seagate sports a Zacks Rank #1 (Strong Buy).
<h3>Other Stocks to Consider</h3>
Some other top-ranked stocks worth consideration in the broader technology space are Badger Meter (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>), Generac Holdings (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gnrc#NYSE">GNRC</a>) and Onto Innovation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/onto#NYSE">ONTO</a>). Badger Meter sports a Zacks Rank 1 while GNRC and ONTO carry a Zacks Rank #2 (Buy) each, at present.
The Zacks Consensus Estimate for Badger Meter&#39;s 2024 EPS is pegged at $4.06, up 4.4% in the past 30 days. BMI&#39;s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.9%. The long-term earnings growth rate is 16.7%. Shares of BMI have risen 24% in the past year.
In the last reported quarter, BMI reported earnings of $1.12 per share for the second quarter of 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter&#39;s EPS of 76 cents. Quarterly net sales were $216.7 million, up 23% from $175.9 million in the year-ago quarter and surpassed the consensus mark by 7.86%. The uptick was attributed to healthy customer demand for its smart water solutions, smooth operational execution and accretive customer backlog conversion.
The Zacks Consensus Estimate for Onto Innovation&#39;s 2024 EPS is pegged at $5.05, unchanged in the past 30 days. ONTO&#39;s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing the remaining one, with the average surprise being 2.6%. Shares of ONTO have gained 93.8% in the past year.
The Zacks Consensus Estimate for Generac&#39;s 2024 EPS is pegged at $6.16. GNRC&#39;s earnings beat the Zacks Consensus Estimate in two of the last four quarters while missing in the remaining quarters, with the average surprise being 5.8%. The long-term earnings growth rate is 12%. Shares of GNRC have risen 7.1% in the past year.
<a href="https://www.zacks.com/stock/news/2307600/seagate-s-stx-q4-earnings-beat-estimates-revenues-up-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2307600">To read this article on Zacks.com click here.</a>

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