Donaldson’s Q3 Earnings Call: Our Top 5 Analyst Questions

Hormel Foods’ third quarter saw a positive market reaction despite revenue falling below Wall Street’s expectations, as investors focused on the company’s stronger than anticipated non-GAAP profit. Management highlighted persistent input cost inflation, particularly in pork and beef, as a major headwind, which weighed on margins and sales volumes. Interim CFO Paul Keenan acknowledged, “Profit was challenged this year, and value-added growth was more than offset by year-over-year margin pressures related to higher commodity input costs, supply chain impacts of avian illnesses, and some discrete items.” The company’s protein-forward brands like Jennie-O and Planters provided some stability, but discrete events including a product recall and facility fire further pressured results.

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Hormel Foods (HRL) Q3 CY2025 Highlights:

• Revenue: $3.19 billion vs analyst estimates of $3.25 billion (1.5% year-on-year growth, 2% miss)
• Adjusted EPS: $0.32 vs analyst estimates of $0.30 (6% beat)
• Adjusted EBITDA: $316.8 million vs analyst estimates of $293.2 million (9.9% margin, 8.1% beat)
• Adjusted EPS guidance for the upcoming financial year 2026 is $1.47 at the midpoint, beating analyst estimates by 2.1%
• Operating Margin: 0.1%, down from 9.4% in the same quarter last year
• Sales Volumes fell 1.8% year on year (-4.1% in the same quarter last year)
• Market Capitalization: $13.06 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Hormel Foods’s Q3 Earnings Call

• Michael Lavery (Piper Sandler) asked for details on the puts and takes behind 2026 guidance. CEO Jeff Ettinger explained that enhanced marketing support, continued cost savings, and pork cost relief should aid results, but Q1 will remain pressured due to lingering cost impacts.

• Tom Palmer (JPMorgan) sought clarification on turkey market assumptions and restructuring savings. President John Ghingo noted ongoing volatility in turkey pricing and supply, while Ettinger explained that restructuring savings will be partially reinvested, with benefits ramping up as the year progresses.

• Ben Theurer (Barclays) questioned the Planters brand’s distribution recovery and international strategy. Ghingo confirmed Planters has nearly regained previous shelf space, while further portfolio review—especially in Brazil—remains underway.

• Heather Jones (Heather Jones Research) requested specifics on raw material cost trends and consumer demand assumptions. CFO Keenan said pork input relief is anticipated in the second half of the year, but consumer behavior is expected to remain value-focused and cautious in 2026.

• Leah Jordan (Goldman Sachs) asked about the mix of price versus volume in segment growth and the competitive retail landscape. Keenan forecasted modest volume declines in retail with most growth from pricing, while Ghingo highlighted continued investment in brand support to maintain momentum.

Catalysts in Upcoming Quarters

In the quarters ahead, the StockStory team will monitor (1) the effectiveness of Hormel’s pricing actions in offsetting stubborn input cost inflation, (2) the pace and impact of restructuring savings and reinvestment into key brands, and (3) signs of sustained volume growth, especially in retail and international segments. Progress on portfolio simplification and expansion of value-added protein products will also be important indicators of future performance.

Hormel Foods currently trades at $23.77, up from $23.43 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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ChargePoint’s third quarter was marked by a positive market reaction, driven by better-than-expected revenue growth and initial signs of improved operational discipline. Management attributed the quarter’s performance to expanded partnerships with automotive and fleet customers, as well as successful cost reduction initiatives. CEO Rick Wilmer emphasized that ChargePoint’s “relentless pursuit of operational excellence” led to lower operating expenses and a reduction in cash consumption. The company also highlighted increased utilization across its charging network, reflecting broader growth in electric vehicle adoption.

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ChargePoint (CHPT) Q3 CY2025 Highlights:

• Revenue: $105.7 million vs analyst estimates of $95.89 million (6.1% year-on-year growth, 10.2% beat)
• Adjusted EPS: -$1.32 vs analyst estimates of -$1.31 (in line)
• Adjusted EBITDA: -$19.45 million (-18.4% margin, 32% year-on-year growth)
• Revenue Guidance for Q4 CY2025 is $105 million at the midpoint, above analyst estimates of $102.4 million
• Adjusted EBITDA Margin: -18.4%
• Market Capitalization: $220.7 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From ChargePoint’s Q3 Earnings Call

• Colin Rusch (Oppenheimer) asked about expectations for gross margin trajectory and sales productivity. CFO Mansi Khetani said margin improvement would be gradual, with significant benefits next year, and CEO Rick Wilmer credited sales leadership changes for better sales process efficiency.
• Bill Peterson (JPMorgan) questioned the impact of potential tariffs and ChargePoint’s manufacturing flexibility. Wilmer clarified the company does not manufacture in China and can shift production to the U.S. if needed to mitigate risks.
• Mark Delaney (Goldman Sachs) inquired about management’s confidence in business momentum post-trough. Wilmer pointed to growing EV diversity and Khetani cited green shoots from deals in fleet, commercial, and residential segments.
• Steven Fox (Fox Advisors) wanted more detail on hardware versus software margin trends. Khetani explained that both are expected to improve, with hardware margins benefiting from Asia manufacturing and software margins from a growing installed base.
• Craig Irwin (Roth Capital Partners) asked about contributions from new versus existing products to future revenue and the Omni Port solution’s readiness. Wilmer stated most near-term growth will come from existing products, while Omni Port is set to address connector compatibility and generate incremental service revenue.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will focus on (1) the pace of next-generation software and hardware rollouts and customer adoption, (2) the realization of margin improvements as Asia-based manufacturing ramps up, and (3) execution on cost controls and operating expense discipline. The progress of network utilization trends and expansion in key verticals, such as fleet and residential, will also be critical to ChargePoint’s trajectory.

ChargePoint currently trades at $9.42, up from $8.62 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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Genesco’s third quarter results were met with a sharp negative market reaction, reflecting investor concerns over profitability despite meeting revenue expectations. Management identified stronger back-to-school sales at Journeys and ongoing store optimization as key drivers, but acknowledged that heightened promotional activity in the UK and headwinds from tariffs pressured gross margins. CEO Mimi Eckel Vaughn stated that Schuh faced "heightened promotional activity" while the exit of licenses in Genesco Brands Group and the impact of tariffs added further margin pressure.

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Genesco (GCO) Q3 CY2025 Highlights:

• Revenue: $616.2 million vs analyst estimates of $617.5 million (3.3% year-on-year growth, in line)
• Adjusted EPS: $0.79 vs analyst expectations of $0.86 (8.1% miss)
• Adjusted EBITDA: $26.27 million (4.3% margin, 12.3% year-on-year growth)
• Management lowered its full-year Adjusted EPS guidance to $0.95 at the midpoint, a 36.7% decrease
• Operating Margin: 2.1%, in line with the same quarter last year
• Locations: 1,245 at quarter end, down from 1,302 in the same quarter last year
• Same-Store Sales rose 3% year on year (6% in the same quarter last year)
• Market Capitalization: $256.9 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Genesco’s Q3 Earnings Call

• Mitch Kummetz (Seaport Research): asked for clarity on Journeys’ fourth quarter comp expectations. CEO Mimi Eckel Vaughn confirmed positive comps are anticipated, driven by strong store performance but moderated e-commerce, and highlighted ongoing store closures to improve productivity.
• Joseph Vincent Civello (Truist Securities): sought insight into demand trends between athletic and canvas footwear. Vaughn explained athletic styles are seeing increased year-round demand and innovation, while canvas is less in demand with limited innovation expected.
• Mantero Valentino Moreno-Cheek (Jefferies): questioned the strategy for expanding Journeys’ brand portfolio. Vaughn said diversification is key, with new brands like HOKA and Nike supporting growth, though initial volumes start small and build over time as consumer preferences evolve.
• Mantero Valentino Moreno-Cheek (Jefferies): also asked about gross margin improvement levers. Vaughn and CFO Sandra Harris cited the exit of one-time license liquidations and ongoing actions at Schuh as main drivers, while acknowledging tariffs will remain a headwind.
• Mantero Valentino Moreno-Cheek (Jefferies): inquired about marketing spend effectiveness. Vaughn noted a shift from performance to brand marketing, with campaigns like ‘Life on Loud’ and the Peyton Manning partnership aimed at boosting awareness and customer acquisition.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will track (1) the pace of recovery and margin improvement at Schuh as inventory and promotional strategies are adjusted, (2) continued progress in Journeys’ store remodel program and new brand partnerships, and (3) the impact of tariffs and completion of license liquidations on gross margins. We will also monitor the effectiveness of expanded marketing campaigns and new product introductions in driving customer traffic and sales.

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SentinelOne’s third quarter was marked by solid top-line growth and improving profitability, but the market responded negatively to the results. Management attributed the company’s performance to strong customer adoption of its emerging AI, data, and cloud security offerings, as well as greater expansion among existing clients. CEO Tomer Weingarten emphasized the rapid uptake of the Purple AI and data solutions, which contributed to a record average recurring revenue per customer and demonstrated the platform’s differentiation. The quarter also featured continued strength in international markets and meaningful progress in operational efficiency.

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SentinelOne (S) Q3 CY2025 Highlights:

• Revenue: $258.9 million vs analyst estimates of $256.1 million (22.9% year-on-year growth, 1.1% beat)
• Adjusted EPS: $0.07 vs analyst estimates of $0.05 (31.5% beat)
• Adjusted Operating Income: $17.67 million vs analyst estimates of $10.2 million (6.8% margin, 73.2% beat)
• Revenue Guidance for Q4 CY2025 is $271 million at the midpoint, below analyst estimates of $273.2 million
• Operating Margin: -28.3%, up from -42.3% in the same quarter last year
• Customers: 1,572 customers paying more than $100,000 annually
• Annual Recurring Revenue: $1.06 billion vs analyst estimates of $1.05 billion (22.8% year-on-year growth, in line)
• Billings: $281.6 million at quarter end, up 36.6% year on year
• Market Capitalization: $5.18 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From SentinelOne’s Q3 Earnings Call

• Saket Kalia (Barclays) asked which non-endpoint products are driving new business. CEO Tomer Weingarten identified data solutions and Purple AI as leading contributors, with Flex licensing enabling broader adoption.
• John DiFucci (Guggenheim) questioned the cautious revenue guidance. CFO Barbara Larson explained it was due to prudent assumptions on deal timing and macroeconomic uncertainty, affirming commitment to steady execution.
• Brian Essex (JPMorgan) inquired about factors behind gross margin compression. Larson cited investments in cloud infrastructure and global expansion as drivers, with margins expected to remain in the high 70s.
• Meta Marshall (Morgan Stanley) sought details on Flex deal momentum. Weingarten described Flex as key to landing larger, multi-solution deals and improving ARR per customer.
• Adam Tindle (RJF) referenced a competitor’s claims of partner displacements. Weingarten countered that SentinelOne’s partner ecosystem remains robust, with significant multi-year commitments and no meaningful disruption observed.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be tracking (1) adoption rates and revenue contributions from emerging AI, data, and cloud security products, (2) the effectiveness of the Flex licensing model in driving larger multi-product deals, and (3) the impact of ongoing investments in cloud infrastructure and recent acquisitions on both growth and operating margins. Leadership continuity and successful execution through the CFO transition will also be closely monitored.

SentinelOne currently trades at $15.19, down from $17.10 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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America’s Car-Mart saw a notable market rebound after its third quarter results, despite reporting a larger-than-expected non-GAAP loss. Management attributed the positive market response to the early progress of a multi-phase cost reduction initiative, new underwriting technology, and improved operational efficiency. CEO Douglas Campbell emphasized the significance of recently completed store consolidations and headcount reductions, which are expected to generate meaningful ongoing savings. The company also highlighted resilience in consumer demand for used vehicles and the value of its upgraded digital payment platform. Campbell noted, “We are prioritizing value over volume to build a portfolio that delivers stronger returns.”

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America's Car-Mart (CRMT) Q3 CY2025 Highlights:

• Revenue: $350.2 million vs analyst estimates of $331 million (1.2% year-on-year growth, 5.8% beat)
• Adjusted EPS: -$0.79 vs analyst estimates of -$0.28 (significant miss)
• Adjusted EBITDA: $3.70 million vs analyst estimates of $13.48 million (1.1% margin, 72.5% miss)
• Operating Margin: -1.1%, down from 7.3% in the same quarter last year
• Locations: 154 at quarter end, in line with the same quarter last year
• Same-Store Sales were flat year on year (-8.4% in the same quarter last year)
• Market Capitalization: $222.6 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From America's Car-Mart’s Q3 Earnings Call

• John Hecht (Jefferies) asked about quantifying improvements in credit losses for newer loan vintages versus older ones. CFO Jonathan Collins explained that newer loans under LOS V2 are showing an 18% to 20% improvement in loss rates compared to pre-upgrade pools, but noted historical comparisons are complicated by changes in vehicle pricing and loan terms.
• John Hecht (Jefferies) inquired about the competitive landscape and whether smaller rivals were under increased pressure. CEO Douglas Campbell described a challenging environment for peers, with Car-Mart’s technology and capital access helping it to differentiate and benefit from less competition in some markets.
• John Hecht (Jefferies) sought management’s view on signals for a more constructive environment. Campbell stressed the need to control costs and pursue higher-quality customers, adding that flexibility and operational discipline are key as timing on external improvements remains uncertain.
• Kyle Joseph (Stephens) asked about the timing for rebuilding inventory given strong application flow and new capital. Campbell responded that Q3 will focus on inventory normalization to position the company for increased activity during the tax season in Q4.
• Vincent Caintic (BTIG) questioned the expected impact of store closures on sales and revenue retention. Campbell clarified that while about 10% of the store footprint is consolidating, early results suggest over 80% of sales from closed locations are being retained through nearby stores.

Catalysts in Upcoming Quarters

Going forward, our team will watch for (1) the pace and effectiveness of further SG&A and store consolidation actions, (2) measurable improvements from the new digital collections and payment infrastructure, and (3) successful rebuilding of vehicle inventory to support higher sales during tax refund season. Additionally, we will monitor credit quality trends and any changes in the competitive landscape, as these will determine if Car-Mart’s operational changes yield sustainable margin recovery and growth.

America's Car-Mart currently trades at $26.83, up from $23.32 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

The Best Stocks for High-Quality Investors

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return).