Chefs' Warehouse (CHEF) fell 12% at the open despite reporting a third-quarter earnings beat, then briefly rose near 5% before giving back most of those gains. Adjusted earnings were $0.66 per share versus analysts' $0.58 estimate, and sales rose 11% year over year to $1.14 billion. Free cash flow for the year so far reached $115.7 million, 44% above reported net income and more than five times the year-earlier figure. CEO Christopher Pappas said momentum continued after the quarter, and management raised full-year guidance, with sales approaching $4.6 billion and full-year earnings implied at $2.55 per share, up 34%. The article suggests current profit may not fully justify a 43 price-to-earnings ratio, though the news is good for shareholders.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
earningsfree cash flowvaluation
Open a keyword to see other news on the same topic.
Related news
- Can Pinterest Stock Jump 50%?
Pinterest (PINS) stock trades 44.2% below its highest close of the past two years, $40.00 on February 7, 2025, and cash generated over the last twelve months equals 10.2% of its market value, versus 4.3% for the median S&P 500 company. Free cash flow rose to $1,280 million in the twelve months to June 2026, from $1,047 million a year earlier and $370 million in the twelve months to June 2023, while sales grew 16.6%. Pinterest held $1,275 million of cash and short-term investments at June 30, 2026, roughly matching its $1,197 million of debt, which stood at $137 million a year earlier. Costs have outpaced sales: the fiscal Q2 2026 operating margin was -3.5% versus -0.4% a year earlier, and management guided fiscal Q3 revenue growth of 13% to 15%, down from 18%, while raising its full-year adjusted EBITDA margin expectation to about 30% from about 29%. The article says the share price appears to assume slower growth and higher costs will erode cash, and points to the fiscal Q3 report expected on October 29, 2026 as the next test.
- Tesla Delivers Strong Free Cash Flow, Surprising Analysts - Is TSLA Undervalued?
- Boeing shares slide on a disappointing cash flow update. Why this dip is buyable
Boeing shares fell about 10% on Tuesday to a fresh 52-week low after the company gave long-term free cash flow guidance below expectations, even though third-quarter revenue of $24.19 billion rose 4% year over year and beat forecasts. Free cash flow of $464 million beat the $330 million expected, and Boeing kept its $2 billion expectation for 2026. However, it now sees free cash flow of $3 billion in 2027 and $6 billion in 2028, reaching its $10 billion target in 2029, a year later than Wall Street had modeled. The company ended the quarter with a record $745 billion backlog, and CEO Kelly Ortberg said customer demand has not changed. The author views the report as a clearing event, reiterating a buy-equivalent 1 rating while lowering the price target to $225.
- Is Amazon Spending Too Much On AI?
Amazon spent $173 billion on capital projects over the 12 months to June 2026, more than the $161 billion its operations generated, leaving free cash flow at negative $11.6 billion versus positive $13.5 billion a year earlier. Total debt rose to $223 billion from $134 billion, and interest expense increased to $3.33 billion from $2.23 billion. Management attributes the spending mainly to AWS and generative AI to meet strong customer demand, citing a backlog of $496 billion and $53.1 billion in cash capital spending in fiscal Q2 2026. Operating margin reached 12.1%, its highest across the 40 quarter ends since fiscal Q3 2016, with operating income at $93.7 billion versus $76.2 billion, yet operating cash flow still fell short of the build. Alphabet recorded $53.3 billion in free cash flow over the same period, while Amazon posted negative free cash flow of $18.2 billion in fiscal Q1 2026 and negative $8.82 billion in fiscal Q2 2026.
- Why Pegasystems Stock Dropped After Earnings
Pegasystems shares slipped 3.6% by 1:30 p.m. ET on Wednesday after the company reported Q3 results well below analyst forecasts. Analysts expected $0.49 per share on $421.8 million in sales, but Pegasystems earned $0.35 per share on a non-GAAP basis with sales below $393.4 million, and GAAP earnings were only $0.08 per share. Sales grew 3% year over year, GAAP profit fell 68%, and annual contract value rose 6%, which CEO Alan Trefler and CFO Ken Stillwell cited as grounds for confidence. The article argues free cash flow matters more to investors: the company generated $490 million last year and is running at about $438 million annualized, and Stillwell projects $700 million or more by 2028. The article calculates that this would imply near-term free cash flow growth north of 25%.
- Mark Zuckerberg's Meta Platforms Reported Negative Free Cash Flow for the First Time Since 2012. Here's Why That Milestone Matters for Shareholders.
Meta Platforms reported Q3 revenue of $64.6 billion, up 26% year over year, while operating income fell 37% and operating margin dropped from 40% to 20% amid heavy AI spending. Capital expenditures reached $34.9 billion, up 80%, pushing free cash flow to negative $2.1 billion, the first negative FCF since 2012. Capex is expected to reach about $140 billion in 2026 at the midpoint, future commitments rose to $825 billion from $643 billion at June 30, and long-term debt stands at $80.9 billion. Consensus estimates see negative FCF of $10.6 billion in 2026 and almost $35 billion next year, before turning positive again in 2028. Meta also repurchased no shares in the first nine months of 2026, versus $26.2 billion in the first three quarters of 2025.
Related markets
Latest news
- Microsoft might be the 'adult in the room' when it comes AI. Here's why.
Ahead of earnings from Microsoft (MSFT) and Alphabet (GOOG, GOOGL), Laffer Tengler Investments CEO and CIO Nancy Tengler and a panel say Microsoft could currently lead in AI thanks to its ecosystem of AI-powered software. The panel includes Christine Short of TMX Wall Street Horizon, Anna Rathbun of Grenadilla Advisory, Ken Mahoney of Mahoney Asset Management and Mark Malek of Siebert Financial.
- Vietcombank, BIDV and VietinBank Included in State Capital Restructuring Plan
Under Decision No. 2054/QĐ-TTg dated 27/10/2026, Vietcombank (VCB), BIDV (BID) and VietinBank (CTG) are on the list of companies undergoing state capital restructuring for 2026-2030. The plan targets keeping state ownership at Vietcombank and BIDV at 65% or above, while raising state ownership at VietinBank from 64.46% to 65% by 2030. The State currently holds about 74.8% of Vietcombank and 76.73% of BIDV. These are plan targets and do not mean immediate share sales or new share issuance; timing and form will be decided by competent authorities. The Ministry of Finance and the State Bank of Vietnam are tasked with implementation, and Vietnam Airlines (HVN), VIMC (MVN) and Vietnam Rubber Industry Group (GVR) are also on the list.
- Steve Eisman Says Anthropic Left Q3 Figures Out of IPO Filing on Purpose: 'Very Intentional'
Steve Eisman accused Anthropic of deliberately leaving third-quarter financial figures out of its IPO prospectus, arguing that newer numbers could reveal a sharp slowdown in growth. He made the remarks on Prof G Markets on Wednesday.
- Applied Digital Insiders Just Bought More Shares. Should You Join Them?
Applied Digital’s CEO and president combined to buy $6.7 million of shares on Oct. 16, as the stock fell more than 30% over the past month. The company builds AI data centers, and CoreWeave is among its largest customers under 15-year leases worth up to $11 billion in revenue for 400 megawatts, or $1.83 million per megawatt annually. Revenue rose 322% year over year to $341.9 million in its fiscal 2027 first quarter, though the company remains unprofitable as costs climb. The author argues the colocation model and long-term, low-value contracts limit Applied Digital compared with Nebius, which signs short-term deals at $40 million to $50 million per megawatt a year. The author concludes the stock looks oversold, but pure neoclouds are a better way to approach the opportunity.
- Microsoft earnings live: Microsoft to report Q1 earnings with Wall Street looking for further Azure growth
Microsoft (MSFT) will report first-quarter earnings after the bell on Wednesday, the first report under its new segments, Agents and Infra and Devices and Consumer. Bloomberg analyst consensus expects EPS of $4.27 on revenue of $90.6 billion, versus EPS of $4.13 and revenue of $77.6 billion in the same period last year. Agents and Infra revenue is expected to rise 22.5% to $75.6 billion, with Azure and Microsoft 365 expected to bring in $32.2 billion and $27.4 billion, respectively, while Devices and Consumer sales are projected to fall 6% to $15 billion. Capital expenditures, including leases, are expected to top $45.9 billion, up from $19.3 billion a year earlier, and remaining performance obligations are expected at $705.6 billion, up 77% from $389 billion. Investors will be watching Azure and Copilot growth as Microsoft pushes its AI services.
- Amazon's EPS Is "Absolutely Exploding," Says Josh Brown. Here's What the Stock Needs to See October 29
Amazon (AMZN) reports third-quarter results after the close on Thursday, October 29, with its forward P/E at 28x, near a five-year low and well below its five-year average of 49x. Normalized EPS rose from $2.90 in 2023 to $7.17 in 2025, and analysts expect $13.37 in 2028. The stock has lagged this earnings growth amid concerns over AI infrastructure spending: Amazon expects about $220 billion of capex this year, free cash flow was a $7.6 billion outflow over the 12 months to June 30, and long-term debt doubled to $128.9 billion in the first half of 2026. The article says the report needs to show AWS growth near Q2's 37% (up from 17% a year earlier), an AWS operating margin holding near 39.4%, and operating income at or above its $22.5 billion to $26.5 billion guidance.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.