Another data center-related stock that beat this week was Comfort Systems. (FIX), which announced that its first quarter revenue increased 56.8% to $2.87 billion, compared to $1.83 billion in the same quarter last year. Also notable over the past year, Comfort Systems’ backlog jumped 80.7%. to $12.45 billion from $6.89 billion. The analyst community was expecting revenue of $2.35 billion and earnings of $7.19 per share. As a result, the company posted a revenue surprise of 18.1% and a profit surprise of 46.2%.
Speaking of backlog, I discussed on Fox Business that record order books are now propelling many data center-related companies higher. For example, during the first quarter, GE Vernona (GEV) order backlog increased by $18.3 billion, so the company raised its revenue and profit forecasts. GE Vernova reported better-than-expected results and strong guidance, posting a revenue surprise of 1.5% and a huge profit surprise of 785.3%.
Iran refuses to negotiate with the United States, but President Trump has extended the ceasefire indefinitely. there are hopes for new talks once Iran’s internal power struggle ends. I should add that the US Navy is using maritime drones to help clear mines of any mines that may be in the Strait of Hormuz. until this clearance is completed, the Strait of Hormuz should remain closed.
In the meantime, the EU is only hurting itself by proposing more expensive solutions to fossil fuels. Specifically, the EU in Brussels is pushing for greater electrification to combat energy shortages plaguing Europe. Specifically, the EU has proposed an “emissions trading system” which is expected to face significant challenges. Due to a shortage of jet fuel, German airline Lufthansa is canceling 20,000 short-haul flights. Clearly, electrification and the EU’s proposed emissions trading system will not solve the jet fuel shortage. This will continue to hamper Germany and many producing countries. Italy is in better shape than Germany, since it gets light sweet crude from Nigeria and Libya, so it should not experience any…
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