Workday Set to Report Q3 Results: Will Revenue Growth Boost Earnings?

Nokia Corporation NOK recently revealed that it has been awarded a multi-year, multi-billion deal extension by Bharti Airtel (Airtel) to enhance and expand 4G and 5G network infrastructure across key regions of India, leveraging its advanced connectivity and technological solutions.

Digging Deep Into the NOK-Airtel Deal

As part of the agreement, Nokia will deploy equipment from its state-of-the-art industry-leading 5G AirScale portfolio, comprising baseband units and its latest generation of Massive Multiple-Input Multiple-Output (MIMO) radios. This portfolio integrates Nokia’s energy-efficient ReefShark System-on-Chip technology to deliver faster speeds, lower latency and greater capacity that will likely help Airtel meet growing demands, while the Massive MIMO radio supports the diverse deployment and operational needs of mobile network operators.

Additionally, Airtel will benefit from Nokia's MantaRay network management solution, renowned for its network optimization and automation capabilities. This solution features self-configuring modules that enhance network performance and efficiency, tailored to meet specific operational challenges and growing complexity. The AI-based automation will also facilitate better monitoring and management of the network with fewer people to ensure seamless equipment installation and superior performance.

Will This Deal Extension Drive NOK Shares?

With the emergence of the smartphone market and subsequent usage of mobile broadband, user demand for coverage speed and quality has recently increased. Further, to maintain superior performance as traffic increases, there is also a continuous need for network tuning and optimization. The company’s expertise in mission-critical networks is well-established, with deployments across more than 2,600 leading enterprise customers in the transportation, energy, manufacturing, webscale and public sector segments worldwide.

Nokia has been a key partner to Airtel for more than two decades, helping the company build its 2G, 3G, 4G, and now 5G networks. Their partnership has recently reached a new milestone with the launch of the Green 5G Initiative, aimed at enhancing energy efficiency and reducing carbon emissions in alignment with Airtel’s sustainability goals. This agreement further strengthens their long-standing collaboration, highlighting both companies' shared commitment to innovation and the sustainable growth of network infrastructure in India.

These advancements are likely to propel the stock with incremental revenue generation and inducement of similar deals from other carriers in the future. The deal is also expected to strengthen Nokia’s position as a leading telecommunications equipment provider in India.

NOK’s Stock Price Performance

Shares of Nokia have gained 20.4% over the past year compared with the industry’s growth of 43.5%.

NOK’s Zacks Rank and Key Picks

Nokia currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader industry have been discussed below.

Plexus Corp. PLXS sports a Zacks Rank of 1 (Strong Buy) at present. It is a leading provider of electronic contract manufacturing services to original equipment manufacturers (OEMs) in a wide range of industries, including Healthcare/Life Sciences, Industrial and Aerospace/Defense market sectors. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last reported quarter, PLXS delivered an earnings surprise of 20.92%.

Workday Inc. WDAY carries a Zacks Rank #2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 7.36%.

WDAY is a top supplier of enterprise-level software solutions for human resources and finance management. The company's cloud-based platform makes it simpler for businesses to offer analytical insights and decision support by integrating finance and human resources into a single system.

InterDigital, Inc. IDCC sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.

Zacks Investment Research

Keysight Technologies, Inc. KEYS recently expanded its financial capital markets portfolio through a strategic collaboration with a software company in London, Instrumentix. By integrating Instrumentix's renowned xMetrics flow monitoring software with Keysight’s market-data health and quality monitoring capabilities, the collaborative effort aims to introduce a cutting-edge trade solution that will provide financial institutions with powerful tools to monitor and analyze optical taps, high-speed packet brokers, multicast gap detection, time synchronization and flow monitoring into a single unified platform.

How Will KEYS-Instrumentix Deal Aid Financial Firms?

In today’s complex financial landscape, many institutions struggle with fragmented visibility into trade execution and market data performance, leading to inefficiencies, missed opportunities and operational challenges. Instrumentix’s xMetrics provides comprehensive insights into order flow, market data and infrastructure performance, ensuring that trade execution is efficient and profitable.

The solution’s integration with Keysight’s network packet brokers (NPBs) provides a unified, real-time monitoring and analytics platform that allows financial institutions to identify performance issues quickly, optimize trade execution and streamline operations. This, in turn, thereby improves profitability, ensuring a competitive edge.

In addition, the new platform will offer unmatched flexibility, enabling firms to deploy the technology either as standalone software or as part of a fully integrated system with Keysight’s Vision 400 NPBs. The combination of market-leading packet brokers with xMetrics analytics ensures that capital market participants can verify execution efficiency, optimize customer experience and improve overall operational performance.

Increasing Client Base to Drive Performance for KEYS

Keysight's cutting-edge solutions are shaping the future of connectivity across diverse sectors, from enhancing network visibility for telecom providers to certifying the next generation of wired connectivity and optimizing workflows for research facilities. With this joint solution, Keysight will empower financial institutions to navigate an increasingly complex market landscape. By providing real-time trade insights and comprehensive monitoring capabilities, the partnership ensures that firms can make smarter, faster decisions and maintain seamless operations in today’s fast-paced trading environment.

With a strong presence in more than 100 countries, the leading provider of electronic design and test solutions is expected to benefit from the increasing customer base. This will likely enable the company to generate higher revenues in the upcoming quarters. Improving financial performance is likely to propel the stock upward.

KEYS’ Stock Price Performance

Shares of Keysight have gained 23% over the past year compared with the industry’s growth of 10.7%.

KEYS’ Zacks Rank and Key Picks

Keysight currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader industry have been discussed below.

Plexus Corp. PLXS sports a Zacks Rank of 1 (Strong Buy) at present. It is a leading provider of electronic contract manufacturing services to original equipment manufacturers (OEMs) in a wide range of industries, including Healthcare/Life Sciences, Industrial and Aerospace/Defense market sectors. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last reported quarter, PLXS delivered an earnings surprise of 20.92%.

Workday Inc. WDAY carries a Zacks Rank #2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 7.36%.

WDAY is a top supplier of enterprise-level software solutions for human resources and finance management. The company's cloud-based platform makes it simpler for businesses to offer analytical insights and decision support by integrating finance and human resources into a single system.

InterDigital, Inc. IDCC sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.

Zacks Investment Research

Deckers Outdoor Corporation DECK has demonstrated strong upward momentum, trading above its 200 and 50-day simple moving averages (SMA). SMA is a key indicator of price stability and long-term bullish trends.

DECK ended yesterday’s trading session at $176.36, above its 200 and 50-day SMA of $154.65 and $162.56, respectively, highlighting a continued uptrend. This technical strength, along with sustained momentum, reflects positive market sentiment and investors’ confidence in Deckers’ financial health and growth prospects.

Shares of this leading designer and producer of innovative, niche footwear and accessories are 4.4% below its 52-week high of $184.48 attained on June 3, 2024, making investors contemplate their next moves. In the past year, DECK stock has rallied 66.1%, comfortably outpacing the Zacks Retail-Apparel and Shoes industry’s modest 16.8% growth.

The company’s commitment to innovation in product development and a strong focus on international market expansion has enabled it to outperform both the broader Retail-Wholesale sector and the S&P 500 index, which grew 31.2% and 30.1%, respectively, during the same period.

DECK Driving Growth With Product Innovation, DTC Success

Deckers’ ability to deliver consistent growth across both its direct-to-consumer (DTC) and wholesale channels, alongside successful international expansion, has reinforced its position for long-term success. Despite ongoing macroeconomic challenges, the company’s strategic marketplace management, product innovation, and consumer engagement initiatives have continued to drive brand strength and financial resilience.

The company is advancing HOKA toward becoming a multibillion-dollar brand while solidifying UGG's position as a global lifestyle brand. In the second quarter of fiscal 2025, HOKA and UGG posted impressive sales growth of 34.7% and 13%, respectively. This momentum, coupled with an expanded product assortment and optimized distribution channels, underpins Deckers' growth trajectory.

A standout driver of Deckers' success is its robust direct-to-consumer (DTC) business, which achieved a 19.9% increase in net sales to $397.7 million, along with 17% growth in comparable net sales during the quarter. By enhancing digital capabilities and strengthening its omnichannel presence, Deckers ensures seamless customer experiences and greater brand accessibility. The company’s strategic focus on consumer engagement through targeted marketing, collaborations, and seasonal product innovations continues to boost brand loyalty and fuel sales growth.

International expansion has been another critical factor in Deckers' growth, with international sales surging 33% year over year in the second quarter. The success of both UGG and HOKA in global markets, driven by targeted investments in new stores and retail locations, underscores the company’s expanding global footprint.

Deckers Wholesale Segment- A Key Growth Factor

Deckers also benefits from a robust wholesale channel, which contributes significantly to its overall revenues. This channel, combined with growing brand recognition, has allowed the company to broaden its market reach. In the second quarter, wholesale revenues increased 20.2% year over year to $913.7 million, reflecting the channel's robustness and ability to drive incremental sales.

This growth was driven by significant contributions from both the HOKA and UGG brands. HOKA recorded a 33% increase in wholesale revenues, while UGG grew 14%. Additionally, international markets outperformed domestic growth rates, highlighting the brand's global momentum. The wholesale channel benefitted from early shipments as partners sought to secure inventory ahead of peak seasons, reflecting robust consumer demand.

Deckers’ Strong Outlook for FY25

Deckers' robust expansion strategy has been a significant driver of its growth. The company now expects total revenues to increase by approximately 12% to reach $4.8 billion in fiscal 2025, up from the previous forecast of about $4.7 billion. HOKA is projected to achieve year-over-year growth of around 24%, while UGG is anticipated to record mid-single-digit growth.

The gross margin is estimated to range between 55% and 55.5%, an improvement from the earlier projection of 54%. Furthermore, management forecasts earnings per share in the range of $5.15 to $5.25, up from $4.86 last year and surpassing the prior guidance of $4.96 to $5.11 per share.

Estimate Revisions Favoring DECK Stock

Analysts have responded positively to Deckers’ prospects, which is reflected in upward revisions in the Zacks Consensus Estimate for earnings per share. In the past 30 days, analysts have increased their estimates for the current fiscal year by 17 cents. The consensus estimate for earnings is pegged at $5.47 per share.

The consensus estimate for earnings for the next fiscal year has also been raised 37 cents to $6.20 per share. The Zacks Consensus Estimate for the current and next fiscal year’s sales is pegged at $4.87 billion and $5.35 billion, indicating year-over-year growth of 13.6% and 9.8%, respectively.

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

Conclusion

Investors may find Deckers stock appealing due to its strong upward momentum, driven by consistent growth in both its DTC and wholesale channels. The company’s focus on innovation, global expansion, and successful brand management has positioned it for long-term success. With continued growth from its core brands, HOKA and UGG, and an expanding international presence, Deckers is well-positioned for future growth. Analysts have shown confidence in the company’s prospects, making DECK an attractive investment for those seeking exposure to a resilient, growth-focused business. Deckers currently sports a Zacks Rank #1 (Strong Buy).

Other Key Picks

Some other top-ranked stocks are Abercrombie & Fitch Co. ANF, Gildan Activewear Inc. GIL and Steven Madden, Ltd. SHOO.

Abercrombie is a specialty retailer of premium, high-quality casual apparel. It carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

ANF delivered a 16.8% earnings surprise in the last reported quarter.

The Zacks Consensus Estimate for Abercrombie’s fiscal 2025 earnings and sales indicates growth of 64.8% and 13.2%, respectively, from fiscal 2024 reported levels. ANF has a trailing four-quarter average earnings surprise of 28%.

Gildan is a manufacturer and marketer of premium quality branded basic activewear for sale principally in the wholesale imprinted activewear segment of North America’s apparel market. It currently carries a Zacks Rank #2.

The consensus estimate for Gildan’s current financial-year earnings and sales indicates growth of 15.6% and 1.5%, respectively, from figures of 2023. GIL has a trailing four-quarter average earnings surprise of 5.4%.

Steven Madden designs, sources, markets, and sells fashion-forward name-brand and private-label footwear. It currently has a Zacks Rank of 2.

The Zacks Consensus Estimate for Steven Madden’s 2024 earnings and sales indicates growth of 8.2% and 13.4%, respectively, from the year-ago actuals. SHOO has a trailing four-quarter average earnings surprise of 9.8%.

Zacks Investment Research

Nordstrom, Inc. JWN continues to bolster its growth strategy with plans to open a Nordstrom Rack store in Lakeland, FL, by fall 2025. The new store will span 30,000 square feet inside Lakeside Village, a prominent shopping center featuring retailers like Kohl's, Books-A-Million and Belk, alongside entertainment options such as CMX Cinemas.

The new rack store aims to become a key shopping destination for the local community by offering an extensive range of high-quality brands at affordable prices. The evolution of Nordstrom Rack in Lakeland will bring exciting fashion options to meet the evolving demands of the community. Lakeside Village is owned and managed by Continental Realty Corporation and is ideally located off Harden Boulevard and Polk Parkway.

The Lakeland Nordstrom Rack store will offer a range of convenient services to create a seamless shopping experience. Customers can also shop online via Nordstrom.com and NordstromRack.com, with the option to pick up their purchases in-store. The store will offer easy return processes, ensuring hassle-free returns. These services are designed to integrate online and in-store experiences, providing shoppers with greater flexibility and convenience.

The Seattle-based fashion retailer, Nordstrom, which currently carries a Zacks Rank #2 (Buy), has risen 5.2% in the past six months, outpacing the industry’s decline of 4.1%.

Nordstrom Rack's Offerings & Impacts

Nordstrom Rack, the off-price retail division of Nordstrom, plays a key role in the company’s Closer to You strategy, which aims to provide a seamless and interconnected shopping experience across physical stores and digital platforms. The store offers customers up to a 70% discount on trending apparel, accessories, beauty products, home decor and shoes from many of the top brands sold at Nordstrom stores.

Nordstrom is dedicated to investing in the diverse communities it serves. Nordstrom Rack stores are designed to attract a broad customer base by offering high-quality, fashionable items at significant discounts. By providing a wide selection of products from leading brands, Nordstrom Rack aims to meet the needs of budget-conscious shoppers while maintaining a strong focus on style and quality.

The expansion into Florida demonstrates Nordstrom's commitment to growing its presence in key markets and contributing to local economies. This new store is expected to create job opportunities and stimulate economic activity in the surrounding areas. Currently, Nordstrom operates six Nordstrom stores and 19 Nordstrom Rack stores across the state, contributing to the creation of approximately 2,800 jobs statewide. This expansion highlights JWN’s commitment to increasing its physical footprint and economic impacts in the region.

What’s More?

Nordstrom has been making efforts to enhance customer experience through faster delivery. It remains focused on its long-term strategy, which builds on its market strategy to capitalize on its digital-first platform, gain market share and deliver profitable growth. For this, the company is focused on three areas: winning in important markets, expanding the reach of Nordstrom Rack and enhancing its digital capabilities.

Nordstrom is making efforts to drive efficiency and improve customer experience via faster order fulfillment. Also, increased focus on Nordstrom Rack bodes well. The company continues to focus on introducing more premium brands at Rack, better assortments and increased brand awareness. It has introduced five Rack stores in the reported quarter, bringing its year-to-date total to 11. Going ahead, it intends to roll out to more markets. Management expects to open 12 more Rack stores in 2024, before the holiday season.

Three Other Picks You Can’t Miss

We have highlighted three other top-ranked stocks in the broader sector, namely Deckers DECK, Abercrombie & Fitch Co. ANF and The Gap, Inc. GAP.

Deckers, a footwear and accessories dealer, currently sports a Zacks Rank #1(Strong Buy). DECK delivered an average earnings surprise of 41.1% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Deckers’ current financial-year sales and earnings indicates growth of 13.6% and 12.6%, respectively, from the year-ago reported figures.

Abercrombie, a leading casual apparel retailer, currently carries a Zacks Rank of 2. Abercrombie has a trailing four-quarter earnings surprise of 27.9%, on average.

The Zacks Consensus Estimate for ANF’s current financial-year sales and earnings indicates growth of 13% and 64.2%, respectively, from the year-ago reported figures.

Gap operates as an apparel retail company, which offers apparel, accessories and personal care products for men, women and children. It currently has a Zacks Rank #2.

The Zacks Consensus Estimate for The Gap’s current fiscal-year sales and earnings indicates growth of 0.5% and 31.5%, respectively, from the year-ago quarter’s reported numbers. GAP has a trailing four-quarter average earnings surprise of 142.8%.

Zacks Investment Research

Zillow Group, Inc. ZG recently unveiled an affordability tool named BuyAbility to streamline home purchasing for prospective buyers. The solution provides a personalized estimate of the home price based on the buyer's budget, monthly installments the buyer can afford and the possibility of qualifying for a loan. The availability of this information empowers shoppers with greater clarity and enables them to select preferred homes that align with their budget swiftly.

Per Zillow data, around 80% of buyers revealed that finding a home within their initial budget is an important criteria. However, finding affordable homes in a volatile market is a major challenge, particularly for first-time home buyers who are discouraged by current high prices and reluctant to disclose their personal finance details to loan officers. Fluctuating mortgage rates make it difficult for shoppers to know how much loan they can get, and basic mortgage calculators often overlook the link between mortgage rates and buyers’ personal financial situation. For instance, buyers with lower debt-to-income ratios and high credit scores usually qualify for a more favorable mortgage rate. This factor immensely improves their purchasing power.

Zillow Group’s latest tool, BuyAbility, efficiently addresses these concerns. Buyers have to provide basic financial details such as income, credit score, monthly debt payments, savings for a down payment, and their target monthly housing cost. The tool calculates an estimate of the home price buyers are likely to qualify for and suggests a budgeted maximum price based on desired monthly payments. Moreover, while browsing homes on Zillow, listings falling within buyers’ affordability range are clearly tagged. These features of Zillow Group’s new tool are extremely convenient and significantly ease the homebuying process.

Will This Product Launch Boost ZG’s Share Performance?

BuyAbility keeps shoppers up to date on exactly what financially feasible options are available for them at any given time. This product launch underscores Zillow Group’s strong customer-oriented approach, which prioritizes fairness and transparency in the home-buying process. This will drive greater user engagement across its apps and websites and boost commercial prospects in the long run.

ZG’s Stock Price Performance

Shares of Zillow Group have gained 95.9% over the past year compared with the industry’s 16.3% growth.

ZG’s Zacks Rank & Other Stocks to Consider

Zillow Group currently carries a Zacks Rank #2 (Buy).

Arista Networks, Inc. ANET carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the last reported quarter, it delivered an earnings surprise of 14.83%. It provides cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.

InterDigital IDCC sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 114.47%.

It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.

Workday Inc. WDAY carries a Zacks Rank of 2 at present. In the last reported quarter, it delivered an earnings surprise of 7.36%.

WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system, making it easier for organizations to provide analytical insights and decision support.

Zacks Investment Research