Home Depot, Sempra Energy, American Tower to report earnings Tuesday

Keysight Technologies, Inc. KEYS is scheduled to report first-quarter fiscal 2025 results on Feb. 25, after the closing bell. It pulled off a trailing four-quarter earnings surprise of 6.34%, on average.

Find the latest earnings estimates and surprises on Zacks Earnings Calendar.

Based in Santa Rosa, CA, the electronic design company is expected to report higher year-over-year revenues, backed by strength in the AI data center market; aerospace, defense and government end markets; and healthy momentum in software and services. Management’s focus on expanding its business through collaborations with established sector players is another positive.

Factors at Play

In the quarter under review, Keysight launched the latest version of its Chiplet PHY Designer 2025 — a cutting-edge solution for enhancing high-speed digital chiplet design for AI and data center applications. This upgraded software brings simulation capabilities for the universal chiplet interconnect express 2.0 standard and adds support for the open computer project bunch of wires standard. With the latest software, engineers can get valuable insights into several critical parameters, such as signal integrity, bit error rate and crosstalk, crucial for identifying potential issues before silicon is manufactured. The addition of such cutting-edge products has significantly improved Keysight’s prospects in several verticals.

The company also unveiled its network visibility partner program — AppFusion. By integrating third-party security, monitoring solutions and cutting-edge technologies from leading cybersecurity companies directly into its network packet brokers, the program aims to provide customers with a unified solution that enhances network and security operations while reducing infrastructure costs. This move is likely to have benefited quarterly earnings by positioning the company as a central player in the integrated network visibility and security market.

In the quarter, Keysight announced that it joined the Intel Foundry Accelerator United States Military, Aerospace and Government Alliance to bolster the U.S. Defense Industrial Base and expand the availability of its advanced tools and technologies. The alliance provided members access to the company’s cutting-edge process technology and a robust ecosystem of industry-leading partners, facilitating faster, more efficient development of secure, next-generation military and aerospace systems.

In the to-be-reported quarter, Keysight entered an agreement to provide its electronic design automation software to six of the eight hubs involved in the U.S. microelectronics commons initiative. By leveraging KEYS’s simulation, measurement and design data management capabilities, the solution enables engineers to seamlessly correlate results across the design, simulation and testing phases, reducing risks and improving overall efficiency. These advancements are expected to generate incremental demand for Keysight’s solutions.

In the fiscal first quarter, KEYS also assisted Samsung Electronics in validating FiRa 2.0 secure test cases on the Exynos Connect U100 chipset using the former’s state-of-the-art Ultra-Wideband (UWB) test solution. By integrating secure test cases, the specification verifies the robustness of UWB devices, ensuring they can withstand physical layer attacks and continue to perform reliably in demanding environments. These initiatives are expected to have positive impacts on Keysight’s quarterly performance.

Overall Expectations

Our estimate for revenues from the Communications Solutions Group segment is pegged at $867.7 million, suggesting 3.4% year-over-year growth. Revenues from the Electronic Industrial Solutions Group vertical are projected to be $407.8 million.

For the first quarter of fiscal 2025, the Zacks Consensus Estimate for revenues is pegged at $1.28 billion, indicating year-over-year growth from $1.26 billion. The consensus estimate for adjusted earnings per share is pegged at $1.69, suggesting an improvement from the $1.63 per share reported a year ago.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Keysight in the fiscal first quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $1.69. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Keysight Technologies Inc. Price and EPS Surprise

Keysight Technologies Inc. price-eps-surprise | Keysight Technologies Inc. Quote

Zacks Rank: Keysight has a Zacks Rank #2.

Stocks to Consider

Marvell Technology MRVL is set to release quarterly numbers on March 3. It currently has an Earnings ESP of +2.77% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Backblaze Inc. BLZE is gearing up to release quarterly numbers on Feb. 25. It has an Earnings ESP of +3.03% and a Zacks Rank #2 at present.

FTAI Aviation Ltd. FTAI is set to release quarterly numbers on Feb. 26. It currently has an Earnings ESP of +8.16% and a Zacks Rank #2

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The leisure industry is likely to have benefited from optimizing business processes, consistent partnerships and digital initiatives. Robust demand for concerts, strong bookings for cruise operators and higher per-capita spending at theme parks are supporting the industry.

See the Zacks Earnings Calendar to stay ahead of market-making news.

The cruise industry has been benefiting from strong demand for cruising and accelerating booking volumes. The industry has been gaining from solid bookings in North American and European sailings. Also, strong pricing (on closer-in-demand) and solid onboard spending bode well for the industry.

The theme park industry is benefiting from robust demand. Theme park operators have been gaining from improving visitation. Consumer spending at theme parks continues to rise. The theme park sector is experiencing a boost from integrating technology, particularly through augmented and virtual reality. Live entertainment firms have benefited from pent-up live event demand and robust ticket sales.

Per the latest Earnings Outlook, total earnings of the Zacks Consumer Discretionary sector are expected to rise 20.3% year over year. Meanwhile, revenues for the sector are expected to increase 2.9% year over year.

Companies in the broader Consumer Discretionary sector like Planet Fitness, Inc. PLNT, Camping World Holdings, Inc. CWH, AMC Entertainment Holdings, Inc. AMC and Caesars Entertainment, Inc. CZR are set to report their fourth-quarter earnings on Feb. 25.

Sneak Peek Into Upcoming Earnings Releases

Let us focus on a few Consumer Discretionary companies that are scheduled to release fourth-quarter 2024 earnings.

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Planet Fitness is scheduled to report fourth-quarter 2024 results before the opening bell. In the last reported quarter, the company delivered a positive earnings surprise of 10.3%.

PLNT’s fourth-quarter performance is likely to have benefited from club openings. The new pricing of the company’s Classic Card membership to $15, the focus on the new growth model for reducing costs and expenses, the expansion of margins and new unit growth are expected to have aided its prospects.

The Zacks Consensus Estimate for PLNT’s fourth-quarter revenues and earnings per share is pegged at $326.6 million and 62 cents, indicating growth of 14.6% and 3.3% from the year-ago reported figures, respectively.

The company has an Earnings ESP of +1.35% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Planet Fitness, Inc. Price and EPS Surprise

Planet Fitness, Inc. price-eps-surprise | Planet Fitness, Inc. Quote

Camping World is scheduled to report fourth-quarter 2024 numbers after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 85.7%.

The Zacks Consensus Estimate for CWH’s fourth-quarter revenues is pegged at $1.14 billion, indicating year-over-year growth of 2.7%. The consensus estimate for the loss per share is pegged at 55 cents, whereas it incurred a loss of 47 cents in the prior-year quarter.

The company has an Earnings ESP of 0.00% and a Zacks Rank #2.

Camping World Price and EPS Surprise

Camping World price-eps-surprise | Camping World Quote

AMC Entertainment is slated to release fourth-quarter 2024 results after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 42.9%.

AMC Entertainment’s fourth-quarter performance is likely to have benefited from a recovering box office, revenue diversification initiatives and innovative content. This and the positive reception of food and beverage offerings — including collectible movie-themed items, movie-themed cocktails and menu upgrades, marketing efforts, and immersive premium large format auditoriums — are likely to have aided the company’s performance in the to-be-reported quarter.

The expansion of the distribution footprint for Ready-to-Eat and Microwave lines of popcorn, theater upgrades, and enhancements to Stubs and A-List loyalty programs are likely to have supported AMC’s fourth-quarter bottom line.

The Zacks Consensus Estimate for AMC Entertainment’s fourth-quarter revenues is pegged at $1.29 billion, indicating year-over-year growth of 16.5%. The consensus estimate for the loss per share is pegged at 16 cents, whereas it incurred a loss of 54 cents in the prior-year quarter.

The company has an Earnings ESP of +2.04% and a Zacks Rank #3.

AMC Entertainment Holdings, Inc. Price and EPS Surprise

AMC Entertainment Holdings, Inc. price-eps-surprise | AMC Entertainment Holdings, Inc. Quote

Caesars Entertainment is slated to release fourth-quarter 2024 results after the closing bell. In the last reported quarter, the company delivered an earnings miss of 119.1%.

CZR’s revenues are expected to have declined year over year in the fourth quarter due to increased competition and construction-related disruptions. Seasonal factors, including weather conditions in regional markets outside Las Vegas and shifts in visitor travel patterns, are also likely to have impacted its performance.

The Zacks Consensus Estimate for Caesars Entertainment’s fourth-quarter 2024 revenues is pegged at $2.81 billion, indicating a year-over-year decline of 0.5%. The consensus estimate for the loss per share is pegged at 15 cents, whereas it incurred a loss of 34 cents in the prior-year quarter.

Caesars Entertainment, Inc. Price and EPS Surprise

Caesars Entertainment, Inc. price-eps-surprise | Caesars Entertainment, Inc. Quote

The company has an Earnings ESP of +0.87% and a Zacks Rank #3.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The S&P 500 Index was edging higher and the Nasdaq Composite was down in late-morning trading Monday, as markets look to bounce back from Friday's dramatic sell-off.

In company news, Apple said Monday it plans to invest more than $500 billion in the US over the next four years, including for an artificial intelligence server factory in Texas. The tech giant plans to open a 250,000-square-foot manufacturing plant in Houston in 2026 that will produce servers for its AI features, dubbed as Apple Intelligence. The facility is slated to create "thousands of jobs," the company said. Apple shares were up 1.1% near noon.

Apollo Global Management said it is buying real estate investment firm Bridge Investment Group for roughly $1.5 billion in stock. Bridge, which will become a private company after the deal closes, will operate as a standalone platform within Apollo and retain its management team, according to the company. Apollo shares were down 1.3%, while those of Bridge were up 37%.

Starbucks is cutting 1,100 corporate positions, or about 7% of the global employee base working outside of company-owned stores, the company said Monday. Workers who are losing their jobs will be notified Tuesday, the company said. Starbucks shares were up 1.8%.

Blackstone's Blackstone Infrastructure has agreed to buy the Safe Harbor Marinas business from Sun Communities for $5.65 billion, the companies said Monday. Preliminary deal completion is expected in Q2, Sun Communities said. Blackstone shares were down 0.1%, while those of Sun Communities were up 6.8%.

Robinhood Markets said Monday that the US Securities and Exchange Commission officially closed its investigation into Robinhood Crypto and does not intend to move forward with an enforcement action. Robinhood shares were down 3.7%.

JPMorgan Chase said Monday it is committing $50 billion from its balance sheet, along with nearly $15 billion toward its private-credit deals. The move is intended to help extend its direct-lending capabilities, the lender said. JPMorgan shares were down 1%.