Key Takeaways
- ADP (ADP) reported strong Q4 results, with adjusted EPS of $2.26 surpassing estimates of $2.23, and adjusted EBIT of $1,200 million exceeding the $1,183 million estimate.
- Harley-Davidson (HOG) significantly beat revenue expectations in Q2, posting $1,307 million against an estimated $1,101 million, alongside Q2 operating income of $112 million.
- Timken (TKR) announced Q2 adjusted EPS of $1.42, outperforming the $1.36 estimate, and provided an optimistic FY adjusted EPS outlook of $5.1-$5.4.
- GE Healthcare (GEHC) delivered better-than-expected Q2 adjusted EPS of $1.06 on $5.00 billion in revenue, and raised its full-year organic growth outlook to +3%.
- Morgan Stanley raised its price target for Nvidia (NVDA), citing the company's exceptional strength in AI.
Mid-week trading saw a flurry of corporate earnings reports, with several major companies exceeding analyst expectations, signaling resilience in various sectors. Technology, industrials, and consumer discretionary firms provided positive surprises, while financial institutions also reported solid performance.
Payroll processing giant ADP (ADP) posted robust fourth-quarter results, with adjusted earnings per share reaching $2.26, comfortably above the estimated $2.23. The company's adjusted EBIT margin stood at 23.7%, contributing to an adjusted EBIT of $1,200 million, surpassing the $1,183 million estimate.
In the industrial sector, Timken (TKR) reported a strong second quarter, with adjusted EPS of $1.42 exceeding the $1.36 estimate. The company's adjusted net income for the quarter was $99.3 million, higher than the $97.3 million estimate. Looking ahead, Timken provided an optimistic full-year adjusted EPS outlook of $5.1-$5.4, up from a previous outlook of $3.9-$4.2.
Motorcycle manufacturer Harley-Davidson (HOG) revved past revenue forecasts in its second quarter, reporting $1,307 million against an IBES estimate of $1,101 million. The company also announced a Q2 operating income of $112 million and net income of $108 million, translating to an EPS of $0.88.
GE Healthcare (GEHC) also delivered a strong second quarter, with adjusted EPS of $1.06 surpassing the $0.92 estimate on $5.00 billion in revenue, slightly above the $4.96 billion estimate. The company reported a net income of $486 million and adjusted free cash flow of $94 million. Furthermore, GE Healthcare raised its full-year organic growth outlook to +3%, up from its previous range of +2% to +3%.
In the financial sector, Italian banking group Intesa Sanpaolo (ISP) announced a net profit of EUR2.60 billion for Q2 2025, outperforming the estimated EUR2.41 billion. The bank maintained a strong Common Equity Tier 1 Ratio at 13.5%, with loan writedowns recorded at EUR281 million.
Analyst actions also made headlines, with Morgan Stanley raising its price target for Nvidia (NVDA), citing the chipmaker's exceptional strength in artificial intelligence. Similarly, BofA Global Research increased its price objective for Starbucks (SBUX) to $114 from $110.
In broader market news, the Department of Justice (DOJ) reportedly green-lighted a controversial merger between Hewlett Packard Enterprise (HPE) and Juniper Networks (JNPR), with national security concerns related to China influencing the decision. Geopolitical tensions also remained a focus, as Russia expressed concerns about potential new attacks targeting Iran's nuclear sites and discussed the possibility of an agreement on the Iran nuclear problem with China and Iran. The Kremlin also claimed Russia has achieved "immunity" from heavy sanctions.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.