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Research Alert: Strength In Japan Propelled Aflac's Q1 Results

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

AFL reported Q1 2026 adjusted EPS of $1.75 versus $1.66 (+5.4%), topping our $1.58 estimate but missing the $1.80 consensus view, with currency headwinds creating a $0.02 negative impact. Net EPS surged to $1.98 from $0.05 (+3,860%) due to a significant swing in investment performance, with net gains of $49M versus $963M in losses. We view the strong underlying insurance operations as encouraging despite persistent Japanese yen weakness affecting results. Management is expected to update its 2026 outlook and sales forecast on tomorrow's conference call. Japan showed particular strength with new annualized premium sales surging 25.5% to 17.7B ($113M), due to successful product launches including Anshin Palette medical insurance and Miraito cancer insurance. U.S. sales growth of 2.9% to $318M primarily reflected group products, though we expect continued distribution challenges given the company's dependence on independent agents in an increasingly digital marketplace.

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:CP reported Q1 adjusted EPS of $1.04, beating consensus by $0.26. Total revenues declined 2% to $3.7B despite 2% RTM growth, as pricing pressure drove freight revenue per RTM down 4%. Operating income decreased 4% to $1.3B, and the operating ratio expanded 70 bps to 66.0%, reflecting continued KCS integration costs, including $91M in purchase accounting amortization. The company's 20,000-mile transcontinental network provides competitive advantages despite near-term volume constraints from broader economic conditions.Operationally, CP demonstrated improved network fluidity: average train speed increased 4% to 19.9 mph, terminal dwell improved 8% to 9.5 hours, and locomotive productivity advanced 5%. Business line performance was mixed. Grain revenues advanced 11% to $871M on robust Canadian production, while industrial segments faced headwinds reflecting market softness: energy, chemicals, and plastics declined 8% to $700M, and coal fell 12% to $226M.

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Research Alert: Mgm Q1 2026: Company Posts Strong Top-line Growth But Profitability Falls

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:MGM posted mixed Q1 results. Revenues were $4.5B (+4% Y/Y), but adjusted EPS declined 29% to $0.49, $0.04 below consensus, and consolidated adjusted EBITDA fell 9% to $580M. The Las Vegas Strip posted its first Y/Y growth in over a year at 0.2% to $2.2B, though adjusted EBITDAR declined 8% to $749M. Meanwhile, MGM China revenues increased 9% to $1.1B, but its EBITDAR fell 4% to $273M due to higher intercompany fees. BetMGM achieved a milestone, reporting $7.4M in operating income versus a $15.2M loss in the prior year. Management noted that monthly revenues strengthened into March and highlighted solid convention bookings and the new all-inclusive promotion as positive drivers for Q2. MGM completed the Northfield Park sale for $546M in April. The company also repurchased $90M of shares in Q1, with $1.5B remaining under authorization. We are not surprised by the muted market reaction as the profitability miss was offset by the company's low valuation at 8.5x NTM consensus EBITDA estimates.

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Research Alert: Tyl Posts Q1 Beats As Saas Revenues Accelerate

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:TYL reported Q1 non-GAAP EPS of $3.09 (+11.2% Y/Y), beating consensus by $0.08, while total revenue of $613.5M grew 8.6% Y/Y, exceeding expectations by $4.4M. Subscription revenue of $429.8M rose 14.6% Y/Y, with exceptional SaaS growth of 23.5% reaching $222.4M, reflecting accelerating public sector demand momentum. We view the strong SaaS performance and expanding recurring revenue mix (87.8% of total) as supportive of the investment thesis. Operating margins expanded to 27.2% from 26.8% prior year, due to favorable revenue mix and cloud efficiencies. FCF more than doubled to $102.8M (16.8% margin vs. 8.5% prior year), demonstrating strong operational leverage. We believe the significant capital deployment, including $250M Q1 share buybacks and $600M debt repayment, underscores management's confidence in the business trajectory. Management raised 2026 guidance to $2.535B-2.575B revenue (from $2.50B-2.55B) and EPS of $12.50-12.75 (from $12.40-12.65), both above Street estimates.

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