Q4 Earnings Scorecard & Analyst Reports for Alphabet, Blackstone & KLA

Monday, February 3, 2025The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time scorecard of the Q4 earnings season and new research reports on 16 major stocks, including Alphabet Inc. (GOOGL), Blackstone Inc. (BX) and KLA Corporation (KLAC), as well as a micro-cap stock Crawford United Corporation (CRAWA). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.You can see all of today’s research reports here >>>Ahead of Wall StreetThe daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market's open and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.You can read today's AWS here >>> Trade War Reality Sets into Pre-MarketsQ4 Earnings Season Scorecard Including all the results that came out today, we now have Q4 results from 181 S&P 500 members or 36.2% of the index's total membership. Total earnings for these companies are up +7.4% from the same period last year on +5.1% higher revenues, with 80.7% beating EPS estimates and 67.4% beating revenue estimates. This is better results from these 181 index members relative to other recent periods. Looking at Q4 as a whole, combining the actual results from the 181 index members with estimates for the still-to-come companies, total earnings are expected to be up +10.2% from the same period last year on +5.2% higher revenues. For more details on the evolving earnings picture as a result of this earnings season, please check out our weekly Earnings Trends report here >>>>Broad-Based Sector Growth Expected in 2025Today's Featured Research ReportsShares of Alphabet have gained +28.5% over the past six months against the Zacks Internet - Services industry’s gain of +29.2%. The company is riding on strong cloud and search growth. Google Cloud is benefiting from accelerated growth across AI infrastructure, enterprise AI platform Vertex, generative AI solutions and core Google Cloud Platform products. GOOGL’s strong AI portfolio is helping it attract new customers, win larger deals, and deepen product adoption among existing customers. Alphabet’s expanding GenAI capabilities present a potential catalyst for future growth. Its dominant position in the search engine market is a strong growth driver. Major search updates and removal of bad ads to enhance the search results continue to boost traffic on Google’s search engine. However, increasing litigation issues and expenses remain concerns. Rising cloud competition from Microsoft and Amazon is a concern.(You can read the full research report on Alphabet here >>>)Blackstone shares have outperformed the Zacks Financial - Miscellaneous Services industry over the past six months (+37.4% vs. +23.7%). The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters. Its fourth-quarter 2024 results showed a rise in asset under management (AUM) balance. A strong revenue mix, global footprint, diversified products, superior position in the alternative investments space and solid total and fee-earning AUM balances are expected to aid its financials. Robust fundraising ability and significant available capital for deployment will support top-line expansion. Blackstone has a solid balance sheet position, enabling it to address its debt obligations. However, rising consolidated expenses will likely hamper Blackstone’s bottom-line expansion. The low sustainability of its capital distribution activities, given volatile earnings, is worrisome.(You can read the full research report on Blackstone here >>>)Shares of KLA have outperformed the Zacks Electronics - Miscellaneous Products industry over the past year (+21.1% vs. -28.2%). The company reported steady growth in the second quarter of fiscal 2025, with both earnings and revenues increasing year over year. This growth was driven by positive performance in the Semiconductor Process Control, Specialty Semiconductor Process, and PCB, Display and Component Inspection segments, which showed gains both year over year and sequentially. Despite facing challenges from new U.S. export controls, KLA is benefiting from strong demand for high bandwidth memory (HBM) and advanced packaging solutions. Also, the expansion of AI, HPC and DRAM investments continues to fuel demand in high-performance and advanced packaging.However, geopolitical uncertainties and supply chain disruptions, particularly in regions like China and Taiwan where much of the semiconductor production is concentrated, could pose challenges.(You can read the full research report on KLA here >>>)Crawford United’s shares have outperformed the Zacks Manufacturing - General Industrial industry over the past year (+22.9% vs. +15.4%). This microcap company with market capitalization of $152.26 million demonstrates consistent growth, with third-quarter 2024 revenues up 9.2% year over year to $36.7 million and year-to-date sales rising 2.5% to $112.8 million. Year over year, operating income rose 22.4% to $5.3 million, and net income grew 19.7% to $3.4 million in third-quarter 2024, reflecting strong cost management. In third-quarter 2024, gross margins reached 29.1%, and EBITDA grew 10.1% to $6.8 million year over year, showcasing robust cash generation. Strategic acquisitions like Advanced Industrial Coatings bolstered aerospace and defense offerings while diversified markets in healthcare and transportation mitigated risks. Challenges include slower revenue growth, dependence on cyclical aerospace and defense markets, rising costs, acquisition integration risks, competitive pressures and macroeconomic uncertainty.(You can read the full research report on Crawford United here >>>)Other noteworthy reports we are featuring today include AstraZeneca PLC (AZN), Aflac Incorporated (AFL) and Hess Corporation (HES).Director of ResearchSheraz MianNote: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>Today's Must ReadAlphabet (GOOGL) Benefits From Cloud & Search InitiativesFund-Raising Ability Aids Blackstone (BX), High Costs AilsStrong Demand for HBM and Advanced Packaging Aids KLA (KLAC)Featured ReportsKey Drugs Aid AstraZeneca (AZN) Sales Amid China IssuesAstraZeneca's key drugs like Lynparza, Tagrisso, Imfinzi, Ultomiris and Farxiga should continue to drive sales. The ongoing investigations at China subsidiary concerns the Zacks analyst.Solid U.S. Sales Aid Aflac (AFL), Lower Premiums in Japan HurtPer the Zacks analyst, Aflac's U.S. segment backed by product innovations and increased face-to-face interactions fuel growth. Declining premiums in Japan put pressure on margins.Hess' (HES) Numerous Premium Untapped Drilling Locations AidHess' strategic foothold in Bakken shale, with premium untapped drilling sites and stable fee-based revenues, ensures stability and growth. However, high debt levels concern the Zacks analyst.Las Vegas Sands (LVS) Bets on Macau Amid High CompetitionPer the Zacks analyst, Las Vegas Sands is likely to benefit from recovery in Macau, strategic investments in Singapore and capital return initiatives. Yet, competitive market dynamics is a concern.Broadridge (BR) Gains From Itiviti Buyout, Competition HighPer the Zacks analyst, the Itiviti acquisition has boosted Broadridge's global technology and operations segment. High competition from other players is an overhang.Product Launches Aid Globus Medical (GMED), Cost Woes StayPer the Zacks analyst, Globus Medical is driving impactful innovations from its prolific R&D pipeline, including the ExcelsiusHub Navigation system. Yet, macroeconomic challenges may escalate costs. Industrial Precision Segment Aids Nordson (NDSN) Costs AilPer the Zacks analyst, Nordson's Industrial Precision Solutions segment is driven by growing demand for nonwoven and industrial coating product lines. However, high costs remain a woe.New UpgradesBuyouts, Rising Fee Income & Loans Aid Valley National (VLY)Per the Zacks analyst, strategic acquisitions, efforts to strengthen fee income, decent loan demand and a solid balance sheet will likely support Valley National's financials.Columbia Sportswear (COLM) Gains From ACCELERATE StrategyPer the Zacks analyst, Columbia Sportswear is well-positioned for growth, backed by its ACCELERATE strategy. This strategy is designed to elevate the brand and attract younger, more active consumers.Adtalem (ATGE) Banks on Business Initiatives & CollaborationsPer the Zacks analyst, Adtalem is gaining from strategic investments, collaborations and focus on operational excellence amid the backdrop of robust demand trends in U.S. healthcare sector.New DowngradesLiberty Energy (LBRT) at Risk Due to Customer DependenceThe Zacks analyst believes that Liberty Energy's reliance on its top four customers, which contribute over 40% of revenue, exposes it to financial risks if one of them is lost.High-Debt Burden, Stiff Rivalry Hurt Western Digital (WDC)Per the Zacks analyst, stiff competition from other major storage players weighs on the growth prospects of Western Digital. Customer concentration and leveraged balance sheet are added woes.Foot Locker (FL) Continues to Witness High SG&A ExpensesPer the Zacks analyst, Foot Locker is grappling adverse impact stemming from persistent SG&A expenses. This metric, as a percentage of sales, increased 210 bps year over year in the third quarter.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AstraZeneca PLC (AZN): Free Stock Analysis Report Blackstone Inc. (BX): Free Stock Analysis Report Hess Corporation (HES): Free Stock Analysis Report KLA Corporation (KLAC): Free Stock Analysis Report Aflac Incorporated (AFL): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Crawford United Corporation (CRAWA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks