Taylor Devices earnings missed by $0.79, revenue fell short of estimates

Freedom Broker downgraded Taylor Devices (TAYD) to Hold from Buy, lowering its price target to $65. Revenue declined 26% YoY in Q1 2027, with 12-month revenue at $39M. Gross margin compression led to earnings miss. Despite cash surplus and defense contracts, stock is seen as overvalued at $56.09.

Comfort Systems USA (FIX) reported Q3 2026 earnings, with record bookings driven by new and existing customers. Gross margins declined due to higher equipment/materials costs and purchase accounting adjustments. Backlog duration extended to 18-24 months, potentially delaying revenue recognition. Labor constraints and high acquisition pricing were noted. The company expects margin normalization in early 2027 and remains cautious about adding new programmatic modular customers.

Autoliv Inc (ALV) reported Q3 2026 adjusted operating margin of 9.7%, exceeding expectations despite a 1.9% global light vehicle production decline. Sales grew in Asia, with strong cash flow and shareholder returns. The company expects Q4 margin expansion but narrowed full-year margin guidance to around 10.5% due to cost pressures. Raw material and logistics costs negatively impacted margins, with challenges expected to persist into 2027.

WSFS Financial reported Q3 2026 earnings with broad-based growth in trust services, including 45% and 48% year-over-year increases in Corporate Trust and Global Capital Markets. Personal Trust grew 22%, and Private Wealth rose 14%. Cash Connect fees declined due to interest rate cuts but maintained a 15% profit margin. Loans grew 1% linked quarter, with commercial and consumer segments showing strength. Deposits decreased 3% linked quarter, but average core deposits rose 10% year-over-year.

Tesla CEO Elon Musk stated that the company's Megapack battery storage systems are nearly sold out through 2027 due to surging demand. Tesla's energy business reported a 33.1% gross margin, up from 20.4% in the previous quarter, with strong order backlog and expanding production capacity. Energy revenue fell 16% year over year to $2.88 billion, highlighting fluctuations in project deliveries.

South Korean stocks may fluctuate this week ahead of the Fed's FOMC meeting and earnings reports from Samsung Electronics and SK Hynix. The Kospi is expected to trade in a 5,100-6,400 range. Samsung reported a 107.4 trillion won operating profit, while SK Hynix is projected to post record earnings. Investors focus on future monetary policy and shareholder returns.