United States

• Novelis Corporation (0620365D US) Novelis is looking to raise US$1.2bn in its upcoming US IPO. The firm is owned by Indian-listed Hindalco. The deal will consist of 100% secondary shares.
• Novelis is a global provider of aluminum solutions for the beverage packaging, automotive markets, specialties markets and aerospace.
• In this note, we look at the firm’s past performance.

• GlobalFoundries Inc. has presented its first quarterly financial results for the fiscal year of 2024.
• Despite facing some challenges, the outcomes have exceeded the guidance ranges indicated in the firm’s fourth-quarter earnings call.
• The industry is showing signs of emerging from a period of inventory correction and uncertainty due to ongoing macroeconomic and geopolitical issues.

• It comes as no surprise that we have been bearish on the crypto market in recent weeks.
• However, the market seems indifferent to our stance.
• The softer-than-expected US Consumer Price Index (CPI) report last Wednesday boosted risk-on assets, particularly cryptocurrencies, while the prospect of improved liquidity conditions in the economy is also set to benefit the crypto market.

• The first quarter of 2024 marked a period of continued momentum for Wynn Resorts.
• The company’s earnings call transcript highlighted several significant developments, representing positive and negative factors that could be relevant for potential investors.
• Starting on the bright side, Wynn Resorts reported an all-time record property EBITDAR of $647 million during Q1 2024, owing to the company’s solid team delivering five-star service and unique experiences to their guests.

• Crocs, Inc. reported strong first quarter results that exceeded guidance both on revenue and net profit.
• Revenue rose by 7% compared to the prior year, driven by a 16% increase in Crocs brand sales.
• Adjusted gross margins improved 180 basis points to 56%, and adjusted earnings per share grew 16% to $3.02.

• Datadog, during its First Quarter 2024 Earnings, has revealed optimistic outcomes for the quarter.
• A 27% year-on-year increase in revenue at $611 million, surpassing the higher end of company expectations, signaled solid financial growth.
• Furthermore, the increase in the customer base to approximately 28,000, up from about 25,500 during the same period last year, brings a positive outlook for the company.

• Twilio Inc., a cloud communications platform, had a strong start to the year, exceeding its first quarter guide and reporting $1.04 billion in revenue and $160 million in non-GAAP income from operations.
• The company’s revenue represents a significant year-over-year increase, driven by a record quarter of non GAAP gross profit of $566 million and strong free cash flow of $177 million.
• Twilio has demonstrated disciplined execution across the board, leading to year-over-year growth and profitability.

• Henry Schein Inc, the leading global healthcare solutions provider, recently reported its results for the first quarter of 2024.
• The company reported solid earnings driven by gross profit and gross margin expansion as it recovers from last quarter’s cyber-incident.
• It’s worth noting that even with the cyber incident, Henry Schein marked an improvement in its merchandise sales growth.

• Fund Managers are Long Commodities and Hate Real Estate Fund managers positioning in commodities and energy was virtually unchanged compared to last month, according to the latest BofA survey.
• Compared to the longer term z-score fund managers remain quite long commodities and slightly short energy.
• While the amount of fund managers that are overweight commodities has risen, it’s still nothing compared to April 2022 – right after Russia invaded Ukraine.

• Rockwell Automation closed the second quarter of fiscal 2024 on a rather unsteady footing as a result of high inventory levels held by machine builders and slower ramp ups that are impacting shipments for the second half.
• The company has also had to reduce its guidance for the full fiscal year which is proving to be larger than initially expected.
• However, despite what looks like a rocky start to the fiscal year, Rockwell Automation has already set in motion a comprehensive program aimed at expanding margins as the company accelerates actions to align costs with the updated outlook on current year orders.

• Stellantis invested in Leapmotor and their joint venture will sell electric cars in Europe.
• Two vehicle producers, GAC and Li Auto, are dismissing employees.
• Tencent Music’s music revenue grew by 43% YoY in 1Q24.

• Arista Networks is well-positioned to take advantage of the rapidly growing opportunities in the artificial intelligence (AI) and cloud computing landscape.
• For the first quarter of 2024, the company reported revenue of $1.57 billion, representing a 16.3% year-over-year growth.
• Contributing a substantial 16.9% of this revenue was services and software support renewals.

• The Hershey Company reported optimistic market share trends in their Q1 2024 earnings.
• The firm has seen strong performances especially in seasonal sales and takeaway, with innovation being a significant growth driver.
• Its Reese’s Caramel product was quite popular among customers, with it not only being well received, but also helping drive strong merchandising especially around the Super Bowl season.

• McKesson Corporation’s Fourth Quarter Fiscal 2024 earnings reflect a strong financial year for the company with notable advancements throughout its strategic priorities.
• Consolidated revenue increased by 12% reaching $309 billion with adjusted earnings per diluted share increasing by 6% to $27.44 both exceeding the expectations set at the start of the fiscal year.
• The company achieved this growth across the enterprise with their differentiated portfolio of assets, innovative solutions, and commitment to quality and operational excellence.

• nVent Electric performed strongly in the first quarter of 2024, delivering impressive volume growth, margin expansion and robust free cash flow.
• The company executed its growth strategy, focusing on high-growth verticals, new products, global expansion and acquisitions.
• The continued acceleration of artificial intelligence (AI) has also increased demand for the company’s Data Solutions offerings.

• In the first quarter 2024 earnings, Occidental (OXY) management displayed confidence in their operational execution and diversified asset portfolio.
• OXY reported a strong start to 2024, overcoming a challenging third party outage in the Eastern Gulf of Mexico and exceeding the midpoint of their production guidance.
• The revenue was driven primarily by robust production results in their oil and gas business and outperformance in their Midstream and OxyChem businesses.

• Dolby Laboratories, Inc., a leader in immersive entertainment technologies, posted its Q2 2024 results, providing significant insights into its performance and future outlook.
• The report highlighted that the revenues were on par with their expectations, while the earnings exceeded the forecasted figures.
• However, the full-year guidance remained unchanged.

• Teleflex Inc.’s Q1 2024 Earnings revealed promising initial results, led by Liam Kelly, the Chairman, President and Chief Executive Officer, along with Thomas Powell, the Executive Vice President, and Chief Financial Officer.
• For Q1 2024, Teleflex achieved revenues of $737.8 million, a 3.8% YoY increase on a GAAP and constant currency basis.
• Utilization of the company’s products trend positively and was on par with expectations.

• The Walt Disney Company reported a strong performance in the first quarter of 2024.
• Disney’s CEO, Bob Iger, and the company’s CFO, Hugh Johnston, discussed their strategic focus on transitioning ESPN into a leading digital sports platform, developing streaming into a profit-generating business, reviving film studios, and enhancing growth in parks and experiences.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• The TransDigm Group reported their second quarter 2024 earnings and the group highlighted that their strategy remains consistent, focusing on intrinsic shareholder value creation through the different phases of the aerospace cycle.
• Approximately 90% of net sales are from unique proprietary products, with most of their EBITDA coming from aftermarket revenues.
• This results in higher margins and relative stability during downturns.

• Wheat prices are experiencing a significant resurgence due to extreme weather events and global supply-demand imbalances. Price is 22% higher over the past month. 
• May WASDE report indicates a positive outlook for global wheat production despite recent weather challenges, suggesting potential underestimations in global supply disruptions. 
• The anticipated shift to La Niña, coupled with historically low stocks-to-use ratios, threatens global wheat supply, heightening the potential for increased market volatility and price spikes.

• WestRock Company, in the 3rd Fiscal Quarter 2023, posted a net sales of $5.1 billion, with an adjusted EBITDA of $802 million, higher than expected due to strong execution, productivity gains, and moderating input costs.
• CEO David Sewell attributed the strong results to the firm’s resilience and the hard work of its team, even as they faced comparisons with record results from the prior year quarter.
• However, certain challenges were also observed.

• Expedia Group’s Q1 2024 performance reflected a primarily healthy market environment, but growth differed according to geographical area and product line.
• Notably, North America had the slowest growth compared to other major international markets.
• Additionally, despite meeting projections on revenue and EBITDA, Expedia experienced weaker gross bookings, with its Vrbo business producing slower recovery than anticipated.

• Floor & Decor Holdings, Inc.’s First Quarter 2024 Earnings revealed several important financial developments.
• The company’s diluted earnings per share (EPS) for Fiscal 2024 came in at $0.46, surpassing expectations.
• Interestingly, this success was achieved despite the ongoing weak demand for hard surface flooring and can be attributed to the firm’s ability to strategically grow their gross margin rate and prudently control expenses.

• HWKN is entering fiscal 2025 (March) with a business model that is changing from its historical norms. The revenue mix is changing in fiscal 2025.
• This change should lead to HWKN receiving a higher valuation in the market than it has historically received since the water treatment business is very different from HWKN’s industrial business
• A higher earnings profile for HWKN and earnings continuing to grow in fiscals 2025 and 2026 leads us to raise our price target to $96 from $74

• Hologic Inc. continues to maintain strong and robust revenue growth amid challenging market dynamics and tough year-on-year comparative figures.
• The company’s Q2 2024 result recorded total revenue of $1.02 billion and non-GAAP earnings per share of $1.03, both exceeding Hologic’s initial projections.
• The business benefited from high growth levels experienced in the past, yielding steady performance this quarter.

• Maravai is expected to experience returns over the next three years as it matures and grows within the expanding field of next generation medical therapeutics.
• The company has a solid financial foundation, a diverse portfolio of patent-protected products, and a strong position in high growth areas such as mRNA, CAR-T, and CRISPR technology.
• Despite recent market challenges, Maravai’s long-term prospects are promising, making it a compelling investment opportunity for patient investors seeking sustained growth and value.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Paylocity Holdings Corp reported solid results for Q3 2024, with total revenue growth of 18.1%.
• Paylocity credits this trend to their offerings resonating in the market, particularly among the younger generation, due to their investment in meeting the needs and expectations of the modern workforce.
• The company has released new enhancements to their talent acquisition suite to facilitate recruitment, training, and retention of this demographic.

• Payoneer Global, Inc. is a leader in profitability in the fintech industry
• The company’s experienced management team has a clear vision for future growth
• Payoneer offers a unique and essential service for SMBs in the global marketplace, positioning it well for continued success and value creation for investors

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Phinia (PHIN) presents significant upside potential for investors in the vehicle parts sector
• PHIN focuses on aftermarket replacement, commercial vehicles, and off-highway markets
• Despite strong geographic diversity and solid financial performance, PHIN is undervalued compared to peers, indicating potential for stock price increase

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Cummins Inc.’s Q1 2024 financial results revealed a decrease in revenues compared to Q1 2023, standing at $8.4 billion compared to the previous year’s $8.44 billion.
• This decrease was, however, marginal at 1%.
• EBITDA in Q1 2024 was doubled that of Q1 2023, being $2.6 billion or 30.6% compared to the previous year’s $1.4 billion or 16.1%.

• LOBO EV Technologies (LOBO) designs, develops, and manufactures micro mobility electric vehicles (EVs) and sells products through a broad-based dealership network in China, Southeast Asia, Latin America, and Europe.
• The company’s product lineup includes e-Bicycles, e-Mopeds, e-Tricycles, and electric off-highway four-wheeled shuttles (golf carts and scooters for elderly and disabled persons).
• In addition, LOBO provides automobile information and entertainment software development and design services.

• HeartCore Enterprises is an established software development and consulting company based in Tokyo, Japan and operates in five core offerings and solutions.
• These include 1) Content Management in which the core product is HeartCore CMS, 2) Digital Transformation which includes Controlio, myInvenio, Apromore and HeartCore Robo, 3) GO IPO, a consulting service that helps Japanese companies prepare for a U.S. Nasdaq public listing, 4) Sigmaways, that specializes in infrastructure modernization, and 5) other revenues.
• We believe the company is poised for strong growth due to its entry in the U.S. market and solid results from the Go IPO offering.

• SDRL reported first quarter results updating investors on the state of offshore drilling market that has shown little signs of change. Day rates have slowly climbed since last year
• SDRL disclosed a new contract for Sevan Louisiana. There was a considerable amount of time spent on the earnings call for the vessel and it’s 45-day contract.
• SDRL has entered a definitive contract to sell its three jack-up rigs and the joint venture stake that operates them for $338 million.

• Author discusses high-return opportunity in mortgage REIT preferreds, focusing on AGNC Investment Corp’s Series F preferred
• Systematic mispricing allows for 13-20% IRRs over 12-36 months with fairly safe investment
• Emphasis on safety and high yield of mREIT preferreds, highlighting potential for significant returns while minimizing borrower credit risk

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• We are initiating coverage of Vince Holding Corp., a leading ready to wear brand, offering luxury men’s and women’s apparel, accessories and home goods via their own stores, online and in wholesale partnerships with key retailers, with a Buy rating and $3 price target, or 6.5X our FY25 EBITDA projection.
• We believe, after a momentous FY23, where the company formed a partnership with Authentic Brands Group, a leading brand licensor, materially recast their balance sheet with debt paydowns and maturity extensions, and began a $30 million transformation program, Vince is ready to shine once again in 2HFY24 and return to top line growth, with higher returns and a more enduring business model.
• As such, and with investor skepticism remaining a drag, we view the longer term risk/reward as compelling, and are initiating coverage of VNCE with a Buy rating and $3 price target.

• Illumina Inc. has had a strong first quarter of 2024, which included an encouraging performance from its high throughput consumables, increased revenue from strategic partnerships, and the delivery of a number of NovaSeq X instruments.
• However, Chief Executive Officer Jacob Thaysen has warned about the persisting uncertain global economic environment and cited customer concerns affecting purchasing decisions.
• The year’s results were particularly promising considering the challenges posed by the Coronavirus pandemic.

• EOG Resources delivered a solid first quarter 2024 performance thanks to a range of factors, among them solid operational execution, underlining future value creation potential.
• EOG’s commitment to capital discipline, operational excellence, and pioneering sustainability initiatives have set the company up to deliver significant returns.
• It reported a strong financial performance during the quarter, with adjusted net income totaling $1.6 billion and free cash flow generation of $1.2 billion.

• GoDaddy’s first quarter results for 2024 demonstrate a strong start to the year and contribute to the positive reputation of the company.
• Notably, through their free cash flow, the company has achieved growth of 26% year-over-year, thanks to their profitable growth model that converts customer value to shareholder value.
• This has been largely driven by a surge in the applications and commerce sector, which has seen bookings growth of 22% and normalized EBITDA margin expansion of 400 basis points.

• Baxter International’s first quarter 2024 earnings report revealed that the company exceeded its guidance for that term, with 2% growth on a reported basis and 3% at constant currency rates compared to an initial projection of approximately 1% growth.
• This performance was underpinned by strong demand and favorable pricing for a broad range of Baxter’s products.
• The firm’s performance illustrates the benefits of its recent strategic transformation, with improved global visibility, enhanced accountability, and functional verticalization contributing to its success.

• Marathon Petroleum Corporation (MPC) exhibits strong financial health and is investing in growth.
• MPC added two new independent directors to its board demonstrating positive signs of expansion and diversification.
• Additionally, the company maintains an optimistic view of the macro refining environment, with a forecasted increase in oil demand driven predominantly by the growing need for transportation fuels.

• Booking Holdings has made a robust start to 2024 by posting strong first quarter results.
• The company revealed that travelers booked nearly 300 million room nights across its platforms in Q1, exceeding its expectations and showing growth of 9% YoY. Moreover, revenue for Q1 stood at $4.4 billion, reflecting a growth of 17%, while adjusted EBITDA was approximately $900 million, climbing Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• Amgen Inc. witnessed strong growth in the Q1 of 2024 with total revenue increasing by 22% YoY. This was largely driven by strong volume growth, including over $900 million from the integration of Horizon Pharmaceuticals’ legacy portfolio.
• The growth was also supported by robust product sales from brands like Repatha, TEZSPIRE, EVENITY, Prolia, and BLINCYTO. Amgen projects full-year sales of approximately $500 million for Neulasta.
• The company has advanced many of its pipeline products; it awaits approval for tarlatamab, hopes to bring this innovative cancer solution to patients with small-cell lung cancer.

• Fortinet, the multinational cybersecurity company, has showcased notable financial results for the first quarter of 2024.
• They declared an operating margin increase of a first quarter record of 28.5%, and a record cash flow from operations of $830 million.
• Their adjusted free cash flow margin was also their highest yet at 61%.

• Thousands of people from around the world gather in Omaha for Berkshire Hathaway shareholder meeting at Warren Buffet’s house.
• Questions arise about who will take over Berkshire Hathaway after Buffet’s reign and what will happen to the company.
• Berkshire Hathaway annual meeting features a variety of booths and shops representing the conglomerate’s diverse business holdings, attracting shareholders and fans alike.

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• Devon Energy’s Q1 2024 results exceeded operational and financial targets, setting a strong foundation for continued progress throughout the year.
• The company delivered results that surpassed its targets by a significant margin, including a production output 4% higher than expected, averaging 664,000 BOE per day.
• This output increase was driven by three principal factors: excellent well productivity, improved cycle times across drilling and completion operations, and easing infrastructure constraints across Devon’s Delaware Basin assets.

• Motorola Solutions, Inc. showcased robust financial performance in the first quarter of 2024, marked by a 10% revenue growth and a significant 27% increase in its earnings per share.
• This strong performance was complemented by an expanded operating margin by 220 basis points and a record first quarter operating cash flow of $382 million.
• The growth was propelled by various segments.

• Albemarle Corporation’s first quarter earnings of 2024 revealed a net sales of $1.4 billion and adjusted EBITDA of $291 million.
• Despite the decline of 47% year-over-year, which was caused largely by reduced prices, the firm experienced volumetric growth led by the energy storage segment.
• The firm also confirmed its ability to navigate the market dynamism and confirmed delivery of over $9 million in productivity and restructuring cost savings, as part of efforts geared towards aligning costs with the current market situation.

• The first quarter of 2024 was marked by operational disruptions and lower production for CF Industries Holdings Inc., a leading global manufacturer of hydrogen and nitrogen products.
• Unplanned downtime and plant outages caused by severe cold in January resulted in a significant loss of production, which affected the company’s earnings.
• The company reported an adjusted EBITDA of $460 million for the quarter.

• CDW Corporation has reported its Q1 2024 earnings.
• Despite a challenging market environment, gross profit came in at $1.1 billion, while non-GAAP operating income stood at $404 million.
• Gross margin for the period was a Q1 record, demonstrating the resilience of CDW’s underlying profitability and strategic integrity.

• In a surprise move, Intel announced that its foundry chief Stuart Pann is to retire from the company effective end of May after just over one year in the role
• He will be replaced by former IBM, Globalfoundries and Marvell executive Kevin O’Buckley, effective immediately
• Mr. O’Buckley now has the dubious distinction of being the third leader of IFS in as many years. 

• textLogic Inc. has entered into a definitive agreement to merge with Qoo10, a leading Asian e-commerce platform
• The deal values Wish at less than its estimated book value as of 12/31/23, reflecting the company’s struggles, but presents opportunities for growth and synergies
• The merger will allow ContextLogic to focus on monetizing its valuable NOLs and cash position, potentially unlocking additional value for shareholders and signaling a new chapter for Wish as it moves past its downfall

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• We are reiterating our Buy rating, $14 price target, and projections for Lands’ End after reviewing the May catalogs for 2023 and 2024.
• The overwhelming focus for this month is swim, one of the core categories for the company.
• Lands’ End continues to drive deeper levels of newness to capture higher pricing and create a sense of urgency for purchases.

• Lantern Pharma uses AI & data to identify drug responders, uncover mechanism of action & rescue failed drugs.
• It is developing LP-300 for non- & never smoker NSCLC in the Harmonic trial.
• Secondary candidates include LP-100 for mCRPC and LP-184 and LP-284 which are in clinical development for multiple biomarker-defined tumors and hematological cancers, respectively.

• On May 10, 2024, Soligenix, Inc. (SNGX) announced financial results for the first quarter of 2024 and provided a business update.
• The company recently completed a public offering for gross proceeds of approximately $4.75 million.
• This capital infusion is important as the company prepares to initiate a second Phase 3 trial of HyBryte (synthetic hypericin) in the treatment of cutaneous T cell lymphoma (CTCL).

• The company attributed the strong topline to investments in technology and personnel made in recent quarters to support expected growth.
• The Caduceus sub-contract is not included in guidance and so therefore could provide upside, depending on when it comes on stream.
• Moreover, SYRA is optimistic about potential new federal business.

• TLNE reported Q1 results benefiting from its hedging program to offset the warmer winter in parts of the country. The Q1 results confirmed the commentary management had previously provided
• TLNE sold its power plants in Texas subsequent to the first quarter ending. This should remove a large portion of volatility from TLNE’s operations
• Spark spreads have continued to move in TLNE’s favor implying quarterly results this year could remain above expectations

• Vail Resorts has underperformed benchmarks in the past but is now poised for a turnaround
• The company has expanded its portfolio to 41 strategically located destinations and increased EBITDA and revenue by over 50% since 2018
• Despite increased leverage from acquisitions, the management team has effectively managed disruptions to the business and presents an attractive investment opportunity with potential for growth

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Cinemark Holdings, Inc. is the 3rd largest movie theater chain in North America with over 500 theaters, making it a compelling risk/reward investment opportunity
• Stock has decreased in value due to concerns about potential impact of Hollywood strikes in 2024, but analysts anticipate a return to box office growth by mid-3Q 2024 and a focus on blockbuster films in 2025
• Analysts project >50% return in equity over next 6 to 12 months, with potential for greater gains in the future, citing Cinemark’s strong position in suburban areas with lower rent costs as an added attraction for investors

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Valvoline is a vehicle service center focused on quick lube and basic maintenance services.
• They have a new focus as a pure play company after divesting their global products business in 2023.
• The team pitched Valvoline with a price target of $84, representing a 95% price upside and 22% IRR.

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• Takeaways: Biden plans to quadruple US/EU tariffs on Chinese EV imports.
• This will further defend TSLA’s domestic beachhead: 1) 50% EV market share in the USA (No. 2: Ford 7% ) + 2) huge headstart over domestic auto incumbents in assembly line processes (Gigapress) & high manufacturing concentration .
• Together, this should result in superior economies of scale which translates into lower unit costs — increasingly important in a commoditizing US EV sector.

• UI reported fiscal third quarter (March) results in line with our revenue forecasts suggesting the business could be on the rebound after two years in a challenging environment
• The performance in the June quarter comes even though peers have been reporting a tough selling environment with extended sales process as customers took time to make their decision
• The increase in product availability did backfire in the quarter with Ubiquiti taking a charge for obsolete inventory. Nevertheless, Ubiquiti’s results show a business that is improving

• The second quarter performance for Johnson Controls was strong, with adjusted EPS coming in at the upper limit of company estimations.
• Johnson Controls managed to return to sales growth after experiencing a cybersecurity disturbance at the beginning of the fiscal year.
• Backed by productivity and the conversion of their higher-margin backlog, the company achieved robust margin expansion.

• Investors Flock Back Into Commodity Funds Investors are increasingly flocking to commodity funds again.
• A net €353 million flowed into funds from the Morningstar Broad Basket Commodities category in Europe in April.
• This was by far the best month for the category in over two years.

• Immersion Corp. is a high-margin licensing business with no debt and significant cash reserves
• Recent settlement with Meta in patent lawsuit could exceed company’s current enterprise value
• Previous settlements with Apple resulted in significant increase in Immersion’s share price, potential upside not fully reflected in current share price due to limited access to court documents, presenting possible investment opportunity

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• GlaxoSmithKline demonstrated robust quarterly performance, continuing its commitment to creating long-term value for its stakeholders.
• The company managed to deliver double-digit growth for the quarter, with sales increasing by 13% to GBP 7.4 billion, core operating profit going up by 35% to GBP 2.4 billion, and core earnings per share increasing by 37%.
• Underpinning GlaxoSmithKline’s solid financial results is the successful launch and strong delivery of its new products, reflecting the company’s ability to continue growing and innovating in the highly competitive pharmaceutical industry.

• The last week of SPACs was packed with activity, including deals, bankruptcies, and IPOs.
• Two new deals are announced including a SPAC taking a digital commerce platform connecting buyers and sellers public, and a blank-cheque firm merging with a company producing large format projection screens for the entertainment industry.
• Also, a used car retailer could declare bankruptcy three years after debuting through a SPAC, and an advanced nuclear fission company sees its shares plummet after completing a SPAC merger. 

• Yum!
• Brands, Inc.’s Q1 2024 Earnings highlighted a mixed performance, demonstrating the resilience of the business amidst a challenging operating environment.
• The company saw a growth rate of 6% in its core operating profit this quarter.

• Achieve Life Sciences is developing cytisinicline for use as a smoking cessation treatment in the United States and rest of world.
• Topline results from ORCA-2 were reported in April 2022 and for ORCA-3 in May 2023.
• Results exceeded expectations on safety & efficacy parameters.

• We have entered the week before the U.S. Securities and Exchange Commission (SEC) must decide on VanEck’s Ethereum spot ETF application, with a decision due next Thursday, May 23.
• It is expected that the outcome for this application will set a precedent for all the other Ethereum ETF applications.
• This issue of Crypto Crisp focuses extensively on the Ethereum spot ETF.

• ZEEKR, a rapidly growing premium EV maker, has successfully completed its IPO and raised ~$441M. The offering was priced at the top of the range at $21 per share.
• The company sold a total of 21M ADSs, up from the initial target of 17.5M shares. ZEEKR’s stock soared more than 30% following its strong debut on NYSE on Friday.
• Geely Auto, Mobileye and CATL have acquired ~14.3M ADSs and overall investor sentiment was positive. I believe ZEEKR may succeed as a high-volume EV maker worldwide.

• SiriusXM Holdings Inc. delivered a strong financial performance for its first quarter of 2024, with an encouraging 7% year-over-year increase in advertising revenue to over $400 million.
• This growth in ad revenue, driven by a growing addressable advertising audience and a strengthening ad market, helped offset a slight 1% drop in subscription revenue.
• The firm’s adjusted EBITDA was up 4% year over-year and delivered a margin of 30%, up 1 percentage point from the previous year.

• Lear Corporation’s record-setting first quarter revenues of $6 billion show an increase of 3%.
• Core operating earnings were up 6% at $280 million, while adjusted earnings per share rose 14% to $3.18.
• Operating cash flow matched that of the same period the previous year.

• The Clorox Company’s third-quarter financial results suggest a continuing recovery from the August cyberattack that affected its operations.
• Despite lower sales and significant investments in its brands, the company’s adjusted earnings per share exceeded its own expectations in the said quarter.
• Adjusting for the effects of the cyberattack, the company reported that Q3 sales performance was, for the most part, in line with the management’s expectations.

• Ecolab Inc.’s first-quarter 2024 earnings showcased strong progress with adjusted earnings per share increasing by 52%.
• This impressive outcome can be attributed to a 5% growth in organic sales and the expansion of organic operating income margin by 400 basis points.
• The company is also expected to maintain its long-term earnings growth of 12% to 15%.

• In Q1 2024, Eli Lilly and Company achieved strong growth and strategic milestones, with revenue growing by 26% and new products increasing by nearly $1.8 billion in comparison to the same period last year.
• The company’s new products, primarily Mounjaro and Zepbound, primarily drove the growth.
• Eli Lilly also accomplished various pipeline milestones during this period.

• In Q1 2024, Gartner delivered strong profitability and free cash flow, which both surpassed expectations, leading the company to increase its guidance for the year.
• The company proved its resilience in what’s described as a “complex environment”, with contract value growth in the high single digits.
• However, there remain several challenges to face.

• Incyte Corp’s first quarter 2024 earnings pointed towards the company’s steady performance during the quarter and provided an update on its ongoing projects.
• The company’s total revenue grew by 9% in Q1 as compared to the same period last year, with growth driven largely by the drugs Jakafi and Opzelura.
• In particular, Jakafi’s net product revenue was $572 million, not fully reflecting its demand growth due to an increase in total patients, particularly those with PV and GVHD. Similarly, Opzelura’s net product revenues in the first quarter were $86 million, indicating a 52% growth when compared to the same period last year.

• Based on the Q1 2024 earnings, Corning Incorporated appears to be in a position of growth and profitability.
• With sales close to $3.3 billion and EPS of $0.38, the company exceeds its guidance predictions.
• There was a year-over-year gross margin growth of 160 basis points to 36.8%, and a substantial improvement in free cash flow by $300 million.

• Mastercard Inc.’s Q1 2024 earnings showcased the company’s firm position in the payments sector, underpinned by robust revenue and adjusted net income growth on a non-GAAP, currency-neutral basis.
• The company’s strong results go beyond the uptake in consumer spending, extending to the rapid growth in cross-border volumes.
• There are several factors at play that make Mastercard attractive from an investment standpoint.

• In its first quarter 2024, Archer-Daniels-Midland (ADM) reported adjusted earnings per share of USD1.46, and an adjusted segment operating profit of USD1.3bn, representing an on-year decrease of 24%.
• ADM also achieved a trailing 4-quarter average of 11.2% for its adjusted Return on Invested Capital (ROIC) during the same quarter, while maintaining a strong balance sheet and healthy cash flows.
• Although the global grain and oilseed supply is expected to increase throughout the year amid an anticipated improvement in weather conditions, ADM proactively managed the risk of falling margins by driving the structural earnings, ROIC, and cash flow generation, enabling the company to continue investing in its business and returning cash to its shareholders.

• ZEEKR (ZK US), a premium EV brand by Geely, raised around US$440m in its US listing, after the deal was upsized and priced at the top.
• Zeekr was formed in Mar 2021 as a JV between Geely and its founder. Its first model was launched in Apr 21 with deliveries starting in Oct 21.
• We have looked at the company’s past performance and provided our thoughts on valuations in our earlier notes. In this note, we talk about the trading dynamics.

• PayPal Holdings Inc.’s Q1 2024 earnings showcased a solid start for the year with substantial improvements across various sectors of the business, tempered by an understanding of the need for continued retooling and operational changes.
• The company leadership is operating cohesively and the new strategies in place are evidently beginning to make a difference.
• PayPal has maintained steady progress with their three customer groups; large enterprises, small businesses, and consumers, including their subsidiary, Venmo.

• Amazon.com reported robust first quarter financial results in 2024, with revenue of $143.3 billion, a 13% increase year-over-year.
• However, the result excludes the impact of foreign exchange rates, which caused an unfavorable impact that reduced revenue by roughly $700 million.
• The company delivered higher than expected operating income of $15.3 billion, which is a 221% increase from last year, driven primarily by efficiency improvements and better customer experiences.

• TPL reported first quarter results with a higher than expected revenue figure from water sales to go along with the Company’s disclosure of a new desalination technology
• TPL’s quarterly results were better than we had projected due to the performance in water sales. Unlike second quarter 2023 results, TPL’s management referred to a pipeline of sales
• TPL used the first quarter results to disclose a new method of desalination of produced water

• Management has indicated that the pipeline for new leases, renewals is robust as ICE & multiple government entities seek capacity.
• Company is engaged in multiple discussions.
• In addition, the recent debt issuance extended maturities & CXW was able to maintain the cost of capital despite the uncertain rate, economic outlook.

• Starbucks’ second quarter fiscal year 2024 results reflect the challenges and opportunities the company faces in a changing marketplace.
• While global comparable store sales declined by 4% year-over-year and the company’s total revenue dipped by 1% to $8.6 billion, a decline in foot traffic in North America and a hefty decline of 11% in China being a few of the contributing factors.
• The company was also affected by severe weather conditions, causing a nearly 3% impact on both US and total company comp during the quarter.

• Mondelez International had robust Q1 2024 with solid top line results, strong earnings, and free cash flow generation.
• The performance was buoyed by momentum in emerging markets where consumer confidence is high and categories are resilient.
• The company faced challenges such as disruption with European clients and boycott of Western products in the Middle East and Southeast Asia.

• Ecolab Inc.’s first-quarter 2024 earnings showcased strong progress with adjusted earnings per share increasing by 52%.
• This impressive outcome can be attributed to a 5% growth in organic sales and the expansion of organic operating income margin by 400 basis points.
• The company is also expected to maintain its long-term earnings growth of 12% to 15%.The CEO, Christophe Beck, expressed satisfaction with the level of dedication and the results obtained from Ecolab’s workforce.

• 1Q24 performance ahead of expectations. RYAM reported 1Q24 results that included EPS of ($0.02) versus consensus of ($0.10) and our estimate of ($0.19).
• While sales of $388 million fell short of our estimate of $402 million and consensus of $430 million, tight cost controls, lower raw material and transportation costs, and improved operating efficiencies drove EBITDA of $52 million versus our estimate of $39 million and consensus of $49 million.

• EBITDA guidance maintained, FCF guidance increased. With market fundamentals stabilizing and most of customer inventory work-downs winding down, management reiterated its EBITDA guidance of $180-200 million and raised its FCF guidance for the year from $20- 40 million to $80-100 million on a higher working capital benefit and $39 million in cash to be realized from the sale of softwood duty refund rights to OCP Lumber LLC.

• Stellantis has reported strong results in its Full Year 2023 Results, demonstrating the company’s high resilience even amid challenges.
• Stellantis’ CEO, Carlos Tavares reflected on the record net revenues, net profit, and free cash flow for the year, showing an increase of 6%, 11%, and 19% respectively.
• The CEO noted that Stellantis’ strategy is all about profitable growth.