Earnings Callouts – Week of July 21st (COUR, EFX, FTI, NOC, SAP, SKYW, VICR)
Earnings Reactions:
Coursera (COUR) – Commentary via Cantor Fitzgerald analyst Yi Fu Lee:
“We are seeing Coursera stay laser-focused and head down in executing under this roadmap this quarter. The result, we are witnessing good old revenue growth near double digits and healthy margin expansion. Prioritizing content is sensible since learners/customers come to the platform for high-quality, trusted content. We would highlight Generative AI courses is a bright spot, surpassing 10 million enrollments with 925 courses in the content library, leading to 12 new enrollments every minute in 1H25. Coursera Coach, which offers real time support and AI powered translation are products gaining strong customer traction, we expect additional investments to be made here. We believe Coursera will take a methodical data-science driven approach as the newly appointed Chief Data Officer will likely tie product or service offerings backed by real hard data to ensure best monetization potential.”
Equifax (EFX) – Commentary via Oppenheimer analyst Owen Lau:
“Changes under Biden’s administration are currently being undone, forcing states to return to more stringent requirements for government programs. Management expects near-term headwinds as states adjust budgets to accommodate this shift. US hiring market remains stressed, with ongoing economic uncertainties from tariffs. Management noted that customer conversations with background screeners reveal persistent nervousness in corporate confidence, with companies continuing to exercise greater caution around hiring. Management does not expect the hiring environment to improve unless there is increased clarity around tariffs. Accordingly, EFX expects 2H25 Talent revenue to be slightly below 1H25’s.”
TechnipFMC (FTI) – Commentary via JPMorgan analyst Arun Jayaram:
“FTI booked a near-record $2.6bn of Subsea inbound orders in 2Q25, exceeding our 2Q25 estimate of $2.2bn, with nearly half of the inbound tied to greenfield projects. The company noted unannounced direct awards in 2Q25 approached $1bn. FTI retained its $10bn+ order outlook in 2025. Outside of the traditional golden triangle, FTI highlighted emerging growth opportunities in Mozambique, the Eastern Mediterranean, Indonesia, and Namibia driven by the company’s focus on capitalizing on significant gas as well as oil reserves. Despite recent headwinds noted by its Large Cap OFS peers, the company noted it was involved in multiple pre-FEED and FEED studies as well as active commercial negotiations for projects in Namibia. Particularly in South America, FTI’s strong foothold in Brazil is reinforced by partnerships with Petrobras and other international operators, driving the potential for multiple billion-dollar projects. The company’s exclusive provision of Subsea equipment in Guyana and new ventures in Suriname further highlight its commitment to expanding beyond traditional basins.”
Northrop Grumman (NOC) – Commentary via Truist analyst Michael Ciarmoli:
“In the quarter international sales increased 18% Y/Y and are up 14% YTD. NOC sees opportunity globally, particularly emphasizing European opportunities for IBCS and weapon systems and Middle Eastern opportunities in integrated defense, munitions, E-2D, AARGM-ER, and ground based radars. Programs such as TACAMO, IBCS, and international ground based radars are expected to drive 2H25 and are expected to contribute $700M of sales. International B2B is 1.4x and mirror the shift in European defense spending. The international growth is broad based across programs from weapons and ammunition to integrated air and missile defense.”
SAP SE (SAP) – Commentary via Piper Sandler analyst Brent Bracelin:
“Cloud ERP now sits at a €17B+ run-rate, and posted another quarter of 30%+ growth in cc (34% vs. 33% last quarter). Cloud backlog in cc also remained strong at 28% vs. 29% last quarter. Cloud ERP now represents 49% of sales (vs. 34% in 2023) with mix sustaining double-digit cc growth. The order pipeline has surged since Business Data Cloud (BDC) was launched earlier this year, bringing a potential 20%+ uplift to average deal sizes, in some cases. More than half of cloud order volume came from deals that included AI use cases. SAP has already released its first 14 AI agents, with plans to have 40 total agents by year-end.”
Skywest (SKYW) – Commentary via Raymond James analyst Savanthi Syth:
“Impressively, SkyWest raised its 2025 EPS outlook for the fourth time since preliminary indications last October and now expects “in the $10/share area”. In turn, we are modestly increasing our 2025/26/27 EPS to $10.17/10.50/11.00. As shown in Exhibits 1-8, regional demand remains strong and SkyWest has ample flex capacity to meet partner needs. Moreover, it still has plenty of optionality for growth beyond the next 18 months with many small markets not yet restored and the potential for SWC (SkyWest Charter) to gain commuter authorization from the DOT.“
Vicor (VICR) – Commentary via Needham analyst Quinn Bolton:
“2Q25 results were much better than expected as they included a $45M payment from Delta Electronics to settle the patent litigation case in the Eastern District of Texas. Notably, Vicor did not issue Delta a patent license in this settlement. Vicor reiterated its strategy is to not license contract manufacturers or power module competitors but rather to license hyperscalers and OEMs that import computing systems that use infringing power modules. The company signed its first OEM license agreement with an OEM in 4Q22 and following the successful conclusion to its ITC case, signed its first hyperscaler license agreement (we think Google) in 1Q25. We believe the hyperscaler is paying royalties to and purchasing NBM products from Vicor. On the heels of the patent litigation settlement, Vicor reiterated its outlook for $200MM of licensing-related revenue, including licensee fees, royalty income and related product revenue through 2026, and believes upside to 2x this amount is possible with additional license agreements.”