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Research Alert: Ingersoll: Precision Revenues Help Deliver Q1 Beat

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

IR delivered adjusted EPS of $0.77 (+7% Y/Y), beating Wall Street estimates of $0.74, though organic revenue declined 0.3% despite 8% total revenue growth driven primarily by acquisitions (+3.7%) and favorable FX (+4.2%). Mixed segment performance emerged, with Precision & Science Tech achieving 4% organic sales growth and 120 bps margin expansion to 30.3%, while Industrial Tech faced a 2% organic decline and 210 bps of margin compression to 26.7% due to Iranian conflict headwinds. In our view, orders performance of $1,978M (+5%) was encouraging, with book-to-bill ratios above 1.0x in both segments suggesting potential for broader sales growth participation ahead. Profitability remained under pressure as adjusted EBITDA margin compressed 140 bps to 25.4%, reflecting lower volumes and input cost inflation, with margin pressure most pronounced in IT&S where pricing failed to fully offset higher costs despite operational efficiency initiatives driving positive performance in P&ST.

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Research

Research Alert: Southern Company Q1: Wholesale Electric Fuels Top- And Bottom-line Beats

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Southern Company reported Q1 2026 adjusted EPS of $1.32, up 7.3% Y/Y, and beating guidance by 10.0% and consensus by 9.1%. Operating revenues increased 8.0% (+3.6% vs. consensus) to $8.4B, attributed to wholesale electric revenues surging 29.7% to $965M and natural gas revenues rising 19.1% to $2.2B. The company added 49K customers Y/Y, reflecting 1.1% growth, while weather-adjusted retail sales increased 2.3%, with strong commercial (+4.6%) and industrial (+1.5%) performance. Weather impacts reduced quarterly EPS by $0.05 as actual residential sales declined 4.1%. Southern Power faced significant headwinds, with net income falling 95.4% to $4M due to $154M in accelerated depreciation charges from wind facility repowering projects, with additional charges of $335M expected through 2026 and $100M in 2027. We believe the strong underlying utility performance and customer growth trends support the investment thesis despite near-term Southern Power challenges.

$SO
International

US Q1 GDP Rises Less Than Expected, PCE Growth Slows

US economic growth, measured by gross domestic product, rose by 2.0% in Q1 after a 0.5% gain in Q4, slower than a 2.3% increase expected in a survey compiled by Bloomberg as of 7:35 am ET.Personal consumer expenditures rose by 1.6% after a 1.9% gain in Q4.There were positive contributions from nonresidential fixed investment, inventory growth and government spending that were partially offset by negative contributions from residential fixed investment and net exports.The GDP price index rose by 3.6% after a 3.7% gain in the previous quarter, but the PCE measures accelerated.The second estimate of Q1 GDP is scheduled to be released on May 28.The quarterly measure of gross domestic product, or GDP, is released by the US Bureau of Economic Analysis at three stages, with the advance reading about a month after the end of a quarter, followed by second and third readings for the same quarter two and three months after quarter-end.The data are broken down by each of the GDP components: consumption, fixed investment (which includes residential and nonresidential investment and inventories), government spending, and net exports (exports minus imports). The report also includes prices measures for the overall reading and the categories.Strong GDP growth is a positive for stocks, but a negative for bonds, especially if it is accompanied by sharp inflation gains.

US Markets

Eli Lilly Raises 2026 Outlook Following First-Quarter Beat

Eli Lilly (LLY) raised its full-year outlook on Thursday while the drugmaker reported first-quarter results above market estimates, as sales of its Mounjaro diabetes treatment more than doubled year over year.The drugmaker now expects adjusted earnings to be in a range of $35.50 to $37 per share for 2026, up from its previous projections of $33.50 to $35. Revenue is pegged at $82 billion to $85 billion, compared with the prior guidance of $80 billion to $83 billion.The current consensus on FactSet is for non-GAAP EPS of $34.51 and sales of $82.07 billion for the year."2026 is off to a strong start, we delivered 56% revenue growth in the first quarter and raised our full-year revenue guidance by $2 billion," Chief Executive David Ricks said in a statement. "We also delivered pipeline progress across all four therapeutic areas and continued investing in Lilly's future growth through four acquisitions."For the quarter ended March, Eli Lilly's adjusted EPS soared to $8.55 from $3.34 the year before, surpassing the Street's view of $6.97. Revenue jumped to $19.8 billion from $12.73 billion, well ahead of the average analyst estimate of $17.82 billion.The stock climbed 6.2% in the most recent premarket activity.Sales in the US advanced 43% to $12.1 billion, boosted by a 49% increase in volume, partially offset by lower prices, driven by weight-loss drug Zepbound and plaque psoriasis treatment Taltz, according to the firm. Revenue from non-US markets surged 81% to $7.7 billion amid volume growth of 95%.Revenue from Mounjaro spiked to $8.66 billion from $3.84 billion last year, amid gains in the US and international markets, boosted by robust demand and volume growth, respectively. Zepbound sales climbed to $4.16 billion from $2.31 billion, buoyed by higher demand.Eli Lilly said a recent milestone for the company was the US Food and Drug Administration's approval of its Foundayo, or orforglipron, drug for adults with obesity, or overweight with weight-related medical problems. In an emailed client note, Truist Securities said it believes the new product is likely to expand the market and not "cannibalize" it.

$LLY