United States

• Splunk Inc. delivered a decent result and managed an all-around beat in the last quarter, marked by solid execution, operational discipline, and favorable customer engagement.
• Total revenue experienced a healthy year-over-year increase, demonstrating Splunk’s ability to achieve this growth while managing costs underscores its strategic approach.
• Additionally, Splunk continued to innovate by leveraging AI in security and observability, introducing the concept of Splunk AI to empower organizations to detect, investigate, and respond more efficiently.

• Salesforce delivered an all-around beat in the previous quarter.
• The company’s non-GAAP operating margin increased in the quarter.
• Salesforce also had fantastic victories throughout the quarter with JPMorgan, Bayer, FedEx, Maersk, as well as the Department of Veterans Affairs.

• CrowdStrike Holdings managed to exceed analyst expectations in terms of revenue as well as earnings.
• The company outperformed top and bottom line metrics expectations, achieving strong, scalable growth, amazing leverage, and operating within its target model overall.
• CrowdStrike also successfully implemented a go-to-market strategy centered on cloud security this past quarter, hosting a virtual cloud security summit with over 12,500 security and DevOp attendees, followed by cloud-focused partner and sales plays.

• Dollar Tree delivered a solid result and managed an all-around beat in the last quarter.
• For the quarter, Dollar Tree produced a combined increase in sales of 8.2% to $7.3 billion, 6.9% enterprise comp growth, and operating income of $287.8 million, resulting in earnings per share of $0.91.
• In the Dollar Tree sector, with a slight offset from average ticket, their 7.8% comp was driven by 9.6% increased visitation.

• Freshworks, a cloud-based customer services software unicorn, held its first Investor Day on September 7, 2023. Management highlighted the long-term target to deliver the Rule of 40 by 2025. 
• The 2023 Investor Day agenda included company vision and strategy, solutions in action, strategy for durable growth, customer spotlight, and financial overview, among others. 
• Management plans to deliver a long-term balance of growth and profitability, with the 2026 model leading to an FCF margin of 20%+ and $1B+ revenue. 

• Veeva Systems managed to exceed the revenue expectations as well as the earnings expectations of Wall Street, with a total revenue of $590 million and a non-GAAP operating income of $212 million.
• The Veeva team has made some truly impressive accomplishments as they develop the next generation of CRM.
• Nearly 25% of their revenue comes from Veeva CRM and their add-ons.

• Burlington Stores managed to exceed the revenue expectations and the earnings expectations of Wall Street.
• Comparable store sales increased by 4%, while overall sales increased by 9%.
• This was caused by a 130 basis point drop in freight costs and a 150 basis point increase in merchandise margin.

• Marvell Technology delivered a positive result and managed an all-around beat in the last quarter, producing $1.34 billion in revenue.
• Revenue in their data center end market was $460 million, up 6% sequentially and significantly more than their forecast of a flat outlook.
• Notably, revenue from cloud AI and common cloud infrastructure both increased sequentially, with AI expanding more quickly.

• Ulta Beauty surpassed the revenue and earnings expectations of Wall Street.
• For the quarter, all major categories produced comp growth.
• The quarter saw double-digit growth in both prestige and mass skin care.

• The Gap, Inc. delivered a mixed result in the quarter, with revenues below expectations but surpassed the analyst consensus regarding earnings.
• The company continued to enhance its cash flows and strengthen its balance sheet by reducing inventory by 29% year over year, generating over $300 million in free cash flow.
• Second quarter sales were down in the mid- to high single digits, with net sales of $3.5 billion, down 8% from last year.

• Williams-Sonoma delivered a mixed result in the recent quarter, with revenues below market expectations, but it managed to surpass the analyst consensus in terms of earnings.
• Williams-Sonoma achieved these outcomes despite a more promotional environment and softer industry metrics by focusing on regular price selling, leveraging the company’s market advantages, enhancing customer service, and managing costs.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• Intuit Inc. managed to exceed the revenue expectations as well as the earnings expectations of Wall Street.
• The company raised revenue by 13% for the entire year, produced good operating margin growth, and finished the year on a high note.
• Revenue from the desktop environment and QuickBooks Desktop Enterprise revenue increased significantly.

• Advance Auto Parts delivered a mixed set of results for the previous quarter with revenues above the analyst consensus.
• Their net sales increased during the quarter.
• During Q2, Advance Auto Parts observed increase in DIY omnichannel and DIFM.

• NetApp delivered an all-around beat in the most recent quarterly result.
• The company’s rigorous operational management and the enthusiastic customer response to its innovation continue to yield positive results.
• They are also making strategic purchases in order to lock in significant loan NAND pricing and reduce future price increases.

• Royal Bank of Canada managed to exceed analyst expectations in terms of revenue and earnings.
• Revenue increased by 19% to $14.5 billion because of the strength of their diversified business strategy, which delivered revenue growth across all of their businesses.
• In Corporate Banking and Investment Banking, the Royal Bank of Canada kept moving its operations toward globalization and expanded the range of industries and products it served.

SIGA Technologies has announced the appointment of Dr Jay K Varma as executive vice president and chief medical officer, while he remains a director on the board. Leveraging his prior leadership roles managing COVID-19 and other infectious diseases, Dr Varma will have practical insights that could aid SIGA’s efforts in raising awareness of infectious diseases and could enhance the company’s global procurement and treatment strategies. We believe Dr Varma’s appointment could support efforts for generating new procurement contracts.

• Analog Devices delivered a disappointing set of results as the company was unable to meet the revenue and earnings expectations of Wall Street.
• The operating margin was almost 48%, the gross margin was above 72%, and the EPS was $249 million.
• Analog Devices anticipates revenue of around $2.7 billion for the fourth quarter.

• HHH held its annual investor day updating investors on the continued increase in population at its MPC, but that was not enough to offset the decline in NAV
• HHH’s management reiterated the trends that have fueled the business have continued with price per square foot and acre having increased over the past year.
• HHH is now estimating its NAV at $129 compared to $170 last year. We are lowering our price target to $110 from $150 to reflect the erosion in the NAV

• The agreement helps Intel fill up some long-underutilised fab capacity at their Rio Rancho, New Mexico facility
• Tower likely gets a bargain-basement opportunity to increase their percentage of 300mm wafer capacity
• Tower’s automotive business grew from 11% of revenues in 2022 to 19% of revenues in H1’23. Greater 300mm capacity will help them meet this demand once foundry starts to recover. 

• NVIDIA Corporation delivered an all-around beat in the previous quarter.
• Notably, the Data Center segment experienced remarkable growth, driven by solid demand from prominent cloud service providers and major internet companies.
• In the quarter, Google Cloud and NVIDIA have recently introduced advanced AI infrastructure and tools.

• Snowflake Inc. delivered a solid result and managed an all-around beat in the last quarter.
• In terms of the booking aspect, Snowflake observed encouraging indications of stabilization since the number of new bookings surpassed its initial projections.
• The company’s strong developer support, expansion of application providers, and successful events like Snowflake Summit reflected positive momentum and a growing ecosystem.

• Chewy (CHWY US) reported a strong quarter but provided weak 3Q revenue guidance, pushing shares down over 10% on heavy volume during regular trading session.
• Chewy (CHWY US) shares massively underperformed in 2023, with shares down ~34% year-to-date vs a 16% gain on the S&P 500 index.
• In July, Chewy CFO Mario Marte stepped down after 8 years in the company. He sold ~$10M worth of Chewy shares in 2023.

• Zoom Video Communications surpassed Wall Street’s revenue and earnings expectations for both revenue and profitability.
• Notably, Zoom Phone reached a notable annualized run rate revenue, and Zoom Contact Center quickly gained an impressive customer base.
• The company’s efforts to enhance its gross margin were evident, and it continued to invest in expanding its product offerings, including AI and Zoom Contact Center.

• Macy’s delivered a positive result and managed an all-around beat last quarter, with notable achievements in net sales, gross margin rate, and SG&A rate.
• These outcomes were primarily driven by better-than-expected sales, gross margin results, and SG&A.
• Macy’s demonstrated effective inventory management strategies, resulting in reduced inventories compared to previous periods.

• Palo Alto Networks delivered an all-around beat in the previous quarter.
• Palo Alto’s focus on operational excellence translated into robust Q4 results, characterized by substantial revenue growth and consistent momentum in its core offerings.
• Palo Alto observed a consistent consumption increase in Q4, with credits consumed rising by 45%.

• Synopsys managed to exceed analyst expectations in terms of revenue as well as earnings.
• With the increase in the number of companies designing AI chips, use cases for AI are rapidly increasing.
• This quarter, Synopsis exceeded 30 design wins in 5-nanometer and won its first 3-nanometer design at the marquee automotive OEM.

• The CN-3 well encountered 67 feet of oil pay in two Ubaque zones plus 23 feet of oil pay in the C7 and 59 feet in the Lower Gacheta formations.
• The oil pay encountered in the Ubaque at CN-3 is thicker than at CN-2 (~60 feet). The characteristics of the reservoir are very good and similar to those encountered in the CN-1 and CN-2 wells.
• The Lower Ubaque zone was initially tested at 593 bbl/d of oil with a 30% water cut. The water cut subsequently increased and the test was terminated. 

• Super Seven are chiefly responsible for the rally in the S&P 500. >80% of the index gains this year were due in large part to the Super Seven.
• Amazon, Apple, Google, Meta, Microsoft, Nvidia, & Tesla are referred to as Super Seven. S&P is market-cap weighted. Little wonder that Super Seven have an outsized impact on it.
• Having strongly priced in expectations, investors wait for the Super Seven to deliver. Falling short can result in sharp price pullback. What next for the Super Seven?

• VNG (VinaGame) (VNG US), Vietnam’s leading internet platform, aims to raise up to US$300m in its US IPO.
• VNG is Vietnam’s leading homegrown digital ecosystem, as per the company, with diverse product offerings across games, communications and media, fintech and other opportunities
• We looked at the company’s past performance in our earlier notes. In this note, we undertake a comparison versus its local competitors.

• Over the last two weeks we discussed expectations for an oversold bounce; the bounce has continued. We believe it is possible we’ve seen the lows for this pause/pullback on SPX.
• We see low probability of a meaningful correction if SPX is above 4300-4325 (1.5-year support), but would not be surprised to see another month+ of consolidation between 4325 and 4600.
• Shorter-Term, as long as 4460 short-term support holds, we expect a test of 4600. Today we highlight several buys within Energy.

• A few quick takes before SEMICON. I’ll have an ARM IPO piece coming.

• The funniest meme on the internet is the incredulous “Nvidia is a fraud” meme. Given the recent rise in Nvidia’s stock, some brains are breaking on the internet.
• The thread/train of thought seems to be spreading, and I’m here to try to stop it.

• Softbank Group (9984 JP) aims to raise around US$8-10bn via selling some of its stake in ARM Holdings‘ US IPO.
• ARM develops and licences high-performance, low-cost, and energy-efficient CPU products and related technology, which is used by semiconductor companies and OEMs to develop their own products.
• In our earlier note, we looked at Arm’s past performance and undertook a peer comparison. In this note, we talk about valuations.

• Globalfoundries may be considering filing a complaint regarding TSMC’s recently announced European JV with three of their customers, Bosch, Infineon and NXP
• Yet they just inked their own deal for a JV with ST Micro in France. What gives?
• In conjunction with their recent CFO hiring fiasco, one wonders if all is well with the GF leadership team. 

• Tower Semi will pay Intel $300 million to acquire and own equipment and other fixed assets to be installed in the New Mexico facility
• Intel’s termination fee on the failure of the proposed Tower Semi acquisition was $353 million
• It’s quite the clever move and doesn’t require China’s approval…

• Medtronic Plc (MDT US) announced better-than-expected Q1FY24 result. Revenue of $7.7B increased 6% on organic basis, ahead of guidance of 4.5%. Each of four segments delivered 6% organic revenue growth.
• Adjusted EPS increased 6% YoY to $1.20, ahead of guidance of $1.10–1.12. Outperformance was driven by better-than-expected operational performance and lesser-than-expected unfavorable impact from foreign currency translation.
• The company increased FY24 organic revenue growth guidance to 4.5% versus the prior range of 4.0% to 4.5% and adjusted EPS guidance to $5.08–5.16, 7 cent increase at midpoint.

• Softbank Group (9984 JP) aims to raisebetween US$4.5-4.9bn via selling some of its stake in ARM Holdings‘ US IPO.
• ARM develops and licences high-performance, low-cost, and energy-efficient CPU products and related technology, which is used by semiconductor companies and OEMs to develop their own products.
• In our previous notes, we looked at the company’s past performance. In this note, we talk about valuation.

• Softbank Group (9984 JP) aims to raise around US$8-10bn via selling some of its stake in ARM Holdings’ US IPO.
• ARM develops and licences high-performance, low-cost, and energy-efficient CPU products and related technology, which is used by semiconductor companies and OEMs to develop their own products.
• In our earlier note, we looked at Arm’s past performance. In this note, we undertake a peer comparison.

• Elastic NV (ESTC US) delivered a high quality beat and raise and reported a modest upside to revenue and profitability. The start of the fiscal year looked strong.
• The leading provider of search engine for enterprises and SMBs guided FY24 ahead of consensus estimates. I reiterate our Overweight rating on ESTC.
• The 1Q print was outstanding, with +17% y/y revenue growth, a record non-GAAP Op Margin of ~10% and FCF margin of ~13%.

• Deere & Company delivered a solid result and managed an all-around beat in the last quarter.
• Deere & Company demonstrated resilience amid healthy agricultural fundamentals, maintaining a whole order book and positive customer sentiment that drove a solid close to fiscal year 2023.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• The Estée Lauder Companies Inc. delivered a mixed set of results in the quarter, with revenues above market expectations.
• Estée Lauder produced a 4% rise in organic revenue, returning to growth for the quarter as predicted.
• Despite challenges, Estée Lauder Companies grew in the EMEA and Asia Pacific markets, compensating for the decline in organic sales.

• Ross Stores Inc. delivered a positive result and managed an all-around beat last quarter, with a 5% increase in comparable store sales primarily attributed to heightened customer traffic.
• Despite remaining cautious due to ongoing challenges in the economic landscape, Ross Stores raised its outlook for the second half of the year, indicating an upward trend in comparable store sales for the upcoming quarters.
• This resilient approach and the company’s strategic planning position Ross Stores for continued growth and success in the retail industry.

• Tapestry has been in the news for its $8.5 billion acquisition of Capri Holdings.
• Meanwhile, we delivered a disappointing set of results as the company was unable to meet the revenue and earnings expectations of Wall Street.
• Tapestry achieved remarkable and strategic progress, showcasing robust brand-building strategies, consumer-centric approaches, and effective execution, resulting in significant earnings per share.

• Applied Materials delivered an all-around beat in the most recent quarterly result.
• Applied Materials’s strategic focus on the IoT AI era yielded substantial growth and innovation within the semiconductor industry.
• This transition aligns with Applied’s strengths in materials engineering and allows the company to offer comprehensive solutions to manage complexity.

• Walmart delivered a strong result and managed an all-around beat last quarter.
• The company continued gaining market share across various formats and markets, achieving positive growth in units sold and transaction counts.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• BILL Holdings Inc. managed to exceed analyst expectations in terms of revenue and earnings.
• The company demonstrated robust growth in total revenue and core revenue, reflecting the success of its various services.
• In the fourth quarter, BILL Holdings continued to exhibit impressive growth, reporting a significant increase in total revenue and attaining non-GAAP net income.

• Mavacamten is expected to be LianBio’s first commercialized product. Due to low diagnostic rate/doctors’ insufficient cognition of HCM, whether it can become a blockbuster drug in China is still uncertain.
• There’s an “insurmountable obstacle” to license-in model, and its “fault-tolerant space” is small. LianBio has to go all the way to the end.Otherwise, the license-in projects will eventually become worthless.
• Due to high cost rate, it’s difficult for LianBio to make profit even with large drug sales. Although pipeline is good, LianBio could still fail to bring investors good returns.

• A 100-year-old firm, Next Era Energy is America’s largest utility firm and the world’s largest renewable energy producer commanding a market cap of USD 136.6B.
• Significant capex into Next Era Energy Resources combined with the benefits of the Inflation Reduction Act to drive stock outperformance.
• Downside exposure remains from idiosyncratic risks, weather shocks and an economic recovery which warrants risk management considerations.

• LianBio (LIAN US)‘s new drug application for its lead asset mavacamten is under priority review in China for the treatment of symptomatic obstructive hypertrophic cardiomyopathy, with approval expected in mid-2024.  
• The company is expected to start commercialize mavacamten in Singapore and Macau this year. As of June 30, 2023, LianBio has cash balance of $267M, with runway into H1 2025.
• LianBio is currently conducting phase 3 trial to evaluate the efficacy and safety of TP-03 in Chinese adult patients with Demodex blepharitis. Topline data is expected in 4Q23.

• Herein we revise our estimates for Culp, which reported 1QFY24 results and issued guidance in the face of continued weak demand juxtaposed against improving and better-than-expected margins.
• Gross margin for CHF, Culp’s mattress fabrics segment, is recovering faster than expected (up ~700 bps in 1QFY24 versus 1QFY23).
• For CUF, Culp’s upholstery fabrics segment, management grew 1QFY24 gross margin by 667 bps despite a significantly down Y/Y sales comparison (~ -17.4%).

• AppLovin Corporation managed to exceed the revenue and earnings expectations of Wall Street.
• The Software Platform sector achieved significant revenue of $406 million, which reflects an increase of 28% over the previous year.
• With $334 million in sales from apps and $61 million in adjusted EBITDA for the second quarter, the company had an 18% margin.

• Cisco Systems delivered an all-around beat in the previous quarter, accomplishing the company’s financial and operational goals.
• Additionally, Cisco produced solid margins, a significant operational cash flow, and solid shareholder value, returning $10.6 billion through share repurchases and rising cash dividends.
• Cisco Systems generated approximately $57 billion in sales, up 11% from the previous year and the fastest annual revenue growth rate in more than ten years.

• BlackRock delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
• BlackRock achieved $190 billion in total net inflows, indicating favorable flows from wealth and institutional customers across regions.
• BlackRock generated $48 billion in net inflows during the quarter, taking the leading market share of ETF industry flows.

• Wynn Resorts delivered a positive result and managed an all-around beat in the last quarter.
• During the quarter, Wynn Las Vegas generated $224.1 million in adjusted property EBITDA on $578.1 million in operating revenue, resulting in an EBITDA margin of 38.8%.
• Additionally, Wynn Resorts had strong hotel occupancy and excellent tenant retail sales in July.

• Ecolab delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
• The company’s effective execution and easing inflationary pressures contributed to reaching the upper end of its projected Q2 earnings growth range.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• IDEXX Laboratories surpassed Wall Street’s revenue and earnings expectations, showcasing strong growth and financial performance.
• The company achieved a 10% organic increase in overall revenues, driven by remarkable growth in CAG Diagnostics’ recurring payments.
• IDEXX’s solid performance was particularly evident in the significant placements of premium instruments, sustained new business gains, and strong growth in recurring veterinary software revenues.

• Illumina managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
• Illumina exceeded its expectations, with approximately $1.18 billion in revenue and diluted non-GAAP EPS of $0.32.
• In the quarter, the company sold 109 NovaSeq X instruments, and their team plans to offer more than 390 instruments over the entire year.

• The Walt Disney Company delivered mixed results in the quarter, with revenues well below analyst expectations, but managed an earnings beat.
• The company made significant management adjustments and productivity enhancements to develop a more economical, coordinated, and streamlined approach to operations.
• Disney+ core subscribers increased during the quarter, with foreign growth more than balancing small domestic net losses.

• Aflac managed to exceed analyst expectations in terms of revenue and earnings.
• The company’s diligent efforts and strategic initiatives in the United States and Japan have yielded strong results, positioning Aflac for future growth.
• In Japan, the rollout of new products like WINGS cancer insurance and refreshed policies have contributed to significant sales growth, particularly in the cancer insurance segment.

• The Home Depot delivered a solid result and managed an all-around beat in the last quarter, with sales of $42.9 billion.
• Comp sales for the entire firm, as well as for the company’s US locations, fell in the quarter.
• The second quarter’s pro sales performance was slightly worse than the DIY customer’s performance.