United States

The Hershey Company delivered mixed results for the previous quarter, with revenues well below analyst expectations but managed earnings beat.
The categories continued performing pretty well, with consumer demand for every great-tasting snack staying quite buoyant across the globe.
Advertisements, as well as related consumer marketing expenses, increased.

Mettler-Toledo International Inc.: 5 Facts About Strong Service Growth You Need to Know! – Financial Forecasts

Mettler-Toledo International delivered a mixed result in the recent quarter, with revenues below market expectations but managed to surpass the analyst consensus regarding earnings.
The sales growth included strong growth in the company’s service business as well as solid performance across its industrial product classes.
In China, market demand deteriorated due to growing uncertainty around the pace of limited government stimulus and economic growth.

WW Grainger Inc.: What Is Their Biggest Competitive Edge? – Key Drivers

WW Grainger Inc. delivered mixed results for the previous quarter, with revenues below the analyst consensus.
The quarter finished with daily sales growth.
Along with the strong top-line growth of WW Grainger, it delivered continued ROIC, robust operating cash flow, and substantial EPS growth.

Keurig Dr Pepper Inc.: Collaboration with La Colombe & Other Major Developments

Keurig Dr Pepper delivered a solid result and managed an all-around beat in the last quarter.
The consolidated results of the quarter were quite healthy, with strong revenue momentum and sequentially accelerating EPS and income growth.
In the CSD category, Dr Pepper gained market share, strengthened by the success of Strawberries and Cream and the continued momentum of Dr Pepper Zero Sugar.

Royal Caribbean Cruises Ltd.: 3 Reasons Behind Their Recent Growth! – Financial Forecasts

Royal Caribbean managed to exceed analyst expectations in terms of revenue as well as earnings.
During the quarter, the company delivered an increase in the number of vacations and saw good guest satisfaction scores.
For Royal Caribbean Cruises, new hardware has been quite a great differentiator enabling it to attract new customers into its vacation ecosystem and drive quality demand.

Valero Energy Corporation: 4 Major Drivers Responsible For Their Future Growth – Financial Forecasts

Valero Energy Corporation delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
The refineries of Valero ran well with the throughput capacity utilization because refinery margins were supported by continuous demand balances and tight product supply.
We give Valero Energy Corporation a ‘Hold’ rating with a revised target price.

Martin Marietta Materials Inc.: 5 Critical Highlights From The Recent Financial Performance! – Financial Forecasts

Martin Marietta Materials delivered an all-around beat in the most recent quarterly results.
Martin Marietta achieved robust results across many areas, which includes an increase in consolidated total revenues, consolidated gross profit, adjusted EBITDA, and aggregates gross profit.
We give Martin Marietta Materials a ‘Hold’ rating with a revised target price.

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Aug 05

Daily Brief United States: Amazon.com Inc, Ideanomics Inc, Texas Pacific Land , O’Reilly Automotive, Shenandoah Telecommunications Company, Intuit Inc, Assertio Holdings, AdTheorent and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Amazon 2Q’23 Earnings Update
Ideanomics Inc.: 4 Major Drivers That Are Taking The Company Forward! – Financial Forecasts
TPL: Not Just Oil and Gas Story Anymore
O’Reilly Automotive Inc.: Continued Store Additions & Other Factors Driving Growth! – Financial Forecasts
SHEN: Calling to Sidelines, Neutral Rating
Intuit: 30% Year-To-Date Return Is Something You Should Extrapolate Into The Future
ASRT: Generic Risk Extends Timeline, PT $6
UPDATE NOTE – AdTheorent Holding Company, Inc.

Amazon 2Q’23 Earnings Update

By MBI Deep Dives

3P, subscription, and AWS grew by mid to high teen while ad segment increased by 20%+
The mix-shift from product to services in Amazon continues as services mix increased from ~40% in 2018 to ~60% in 2023.
Let’s start more segment level discussion with AWS.

Ideanomics Inc.: 4 Major Drivers That Are Taking The Company Forward! – Financial Forecasts

Ideanomics had a strong quarter.
Solectrac and Energica, in particular, demonstrated strong growth and demand in the agriculture and motorcycle markets.
Ideanomics remains committed to its capital investment for future profitability, with an optimistic outlook driven by the increasing demand for the company’s products and services.

TPL: Not Just Oil and Gas Story Anymore

TPL captured more water business in the second quarter than the Company had previously achieved leading to revenue and earnings exceeding our expectations
The water business has been a revenue source smoothing out the volatility associated with the movement in oil and gas prices and production levels
While TPL is not expecting to repeat second quarter levels in the third quarter, the water business should continue to perform better than previously expected

O’Reilly Automotive Inc.: Continued Store Additions & Other Factors Driving Growth! – Financial Forecasts

O’Reilly Automotive managed to exceed the revenue as well as earnings expectations of Wall Street driven by strength in consumption and a robust increase of 16% in diluted earnings per share.
Strength in the ticket count comps, particularly in the company’s professional business was a great contributor to the outperformance.
We give O’Reilly Automotive a ‘Hold’ rating with a revised target price.

SHEN: Calling to Sidelines, Neutral Rating

SHEN Continued to add subscribers to the Glo Fiber service. The rate of subscriber growth has steadily increased with the expansion in the number of homes passed
We are upgrading our rating to Neutral in reflection of the progress SHEN has made
SHEN is planning to reach approximately 500 thousand homes passed by 2026 from approximately 183 thousand currently

Intuit: 30% Year-To-Date Return Is Something You Should Extrapolate Into The Future

By Vladimir Dimitrov, CFA

The recent rally in growth stocks has supported the share price, but this trend may not last for long.
In spite of the company’s strong pricing power, margins are under pressure and risks related to capital allocation remain.
The company’s stock has performed well but this is not reflective of its actual business performance.

ASRT: Generic Risk Extends Timeline, PT $6

ASRT reported better than expected second quarter revenue, but surprised investors with the announcement of a generic competitor for Indocin leading to management pulling guidance.
Indocin has been on the market for many years and generic competition was likely. Yet, there is no information on how well the competitor could manufacture enough indomethacin
We do not believe the third quarter is at risk and we doubt more generic competitors would surface.

UPDATE NOTE – AdTheorent Holding Company, Inc.

2Q23 revenue of $37.6 million was above consensus of $36.4 million.
The challenging advertising market conditions have continued but EPS of $0.09 was significantly ahead of consensus of a loss of $0.01.
The company (which has no debt) has more than $73 million in cash and reaffirmed its full-year guidance.

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Aug 04

Daily Brief United States: Dopex, Intel Corp, Curve DAO Token, Riley Exploration Permian, Comcast Corp Class A, T Mobile Us Inc, HNI Corp, Mastercard and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

DeFi Options Protocols Series (#4): Bringing Real World Risks On-Chain?
Intel Corporation: Can The 4th Gen AI Capabilities and Global Expansion Plans Change The Game? – Key Drivers
Loans, Buy Walls, and OTC Deals: The Curve Finance Exploit
Riley Exploration Permian, Inc. – New Mexico Acquisition to Lift 2Q23 Results
Comcast Corporation: Notable Advancements On The Xfinity X1 Platform! – Key Drivers
T-Mobile US Inc.: Exploring the Massive Growth
HNI Corporation – 2Q Preview: Adjusting 2QFY23 Estimate for Kimball Closing
Mastercard Incorporated: A Groundbreaking Multi-Market Strategy & What It Means for Investors! – Key Drivers

DeFi Options Protocols Series (#4): Bringing Real World Risks On-Chain?

By Alec Tseung

Bringing yields from real-world assets on-chain is one of the major themes for DeFi, given the high interest rate environment.
The natural extension to that would be bringing yields from real-world risks on-chain, a space that has not been explored extensively yet.
DeFi options protocols could look to cover these real-world risks as they seek further growth.

Intel Corporation: Can The 4th Gen AI Capabilities and Global Expansion Plans Change The Game? – Key Drivers

Intel Corporation delivered a positive result and managed an all-around beat last quarter, demonstrating ongoing financial improvement and validating its market approach.
As per the management, Intel’s ability to successfully implement all of its process and product roadmaps is restoring consumer trust in the company.
We give Intel Corporation a ‘Hold’ rating with a revised target price.

Loans, Buy Walls, and OTC Deals: The Curve Finance Exploit

By Kaiko

Curve Finance is back as the center of attention in DeFi just a few weeks after CEO Michael Egorov’s large CRV-backed loans drew scrutiny.
This time, however, the inciting incident was an exploit.
Rekt and Llama Risk have done a nice job breaking down the technical aspects of the exploit.

Riley Exploration Permian, Inc. – New Mexico Acquisition to Lift 2Q23 Results

Riley’s 2Q23 financial and operating results will include the impact of the $330-million New Mexico acquisition, which closed on April 3, 2023.
Around the time of the closing, the acquired assets were producing ~7.2 MBOE/d (58% oil / 81% liquids).
1Q23 production averaged ~13.2 MBOE/d. Riley’s 2Q23 production guidance range is 20.0-21.0 MBOE/d, representing a 56% Q/Q increase and a 101% Y/Y increase at the midpoints.

Comcast Corporation: Notable Advancements On The Xfinity X1 Platform! – Key Drivers

Comcast Corporation delivered an all-around beat in the most recent quarterly result.
Total revenue increased, driven by ongoing operating leverage at the company’s high-margin Connectivity & Platforms business as well as significant growth at studios and theme parks.
Residential connectivity revenue increased with growth in domestic broadband, wireless revenue, and international connectivity.

T-Mobile US Inc.: Exploring the Massive Growth

T-Mobile delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.
Additionally, free cash flow increased and the free cash flow to service revenue margin was the greatest among their competitors year to date.
The company also enjoyed a significant quarter for T-Mobile for Business, with its lowest phone churn and best-ever phone net additions.

HNI Corporation – 2Q Preview: Adjusting 2QFY23 Estimate for Kimball Closing

Ahead of the HNI’s 2QFY23 earnings report on Tuesday, August 8, we are only adjusting our estimates for 2QFY23.
HNI completed its acquisition of Kimball International on June 1.
Our revised 2QFY23 estimate relies on our in-place HNI estimate plus an interpolation of our KBAL estimates for the time owned by HNI (the closing occurred after two months had passed).

Mastercard Incorporated: A Groundbreaking Multi-Market Strategy & What It Means for Investors! – Key Drivers

Mastercard managed to exceed analyst expectations in terms of revenue and earnings.
The broader labor market is still robust, with pay growth included, and credit and savings continue to support consumers.
They introduced Mastercard Receivables Manager with Billtrust on the supplier side and MasterCard Multi-Token Network in the blockchain.

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Aug 03

Daily Brief United States: S&P 500 INDEX, Intel Corp, Teradyne Inc, PTC Inc, Quest Diagnostics, ACM Research, Tyler Technologies, Ebay Inc, Fortive and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

EQD | SPX INDEX WEEKLY Supports After US Credit Downgrade
Intel. PC Recovery Nigh As Incentives No Longer Required To Shift Client CPUs
Teradyne Inc.: Can The New Archimedes Analytics Solution Be A Game Changer? – Key Drivers
PTC Inc.: Will The Creo+ SaaS CAD Solution Catalyze Their Growth? – Key Drivers
Quest Diagnostics: Can The Haystack Acquisition & The Enhancements To The Cancer Diagnostics Portfolio Give Them A Boost? – Key Drivers
[ACM Research (ACMR US, BUY, TP US$30) Preview]: CXMT Order Volume Could Be Ahead of Expectations
Tyler Technologies Inc.: Partnership With Carbyne & Other Major Developments
eBay Inc.: Enhancing The Fashion Shopping Experience With The Certilogo Acquisition! – Key Drivers
Fortive Corporation: Revolutionizing Facility Management for Multi-Unit Operators! – Key Drivers

EQD | SPX INDEX WEEKLY Supports After US Credit Downgrade

By Nico Rosti

The S&P 500 INDEX rally that started in October 2022 is currently encountering some turbulence, possibly due to various factors including the recent US credit downgrade by Fitch.
The current WEEKLY pullback may be an opportunity to accumulate LONG position, buy& hold trade.
The price area to buy where is between 4540 and 4332: probability of the uptrend resuming from there is between 50% and 75% based on current pattern readings.

Intel. PC Recovery Nigh As Incentives No Longer Required To Shift Client CPUs

By William Keating

Q2’23 revenues of $12.9 billion, down 15% YoY but up ~10% QoQ and handily beating the guided midpoint of $12 billion.
Q3 outlook for $13.4 billion at the midpoint, up 3.8% sequentially
Mr Gelsinger envisages a centrino-like era of AI-enabled PCs, starting with Meteor Lake in H2’23. Is this realistic?

Teradyne Inc.: Can The New Archimedes Analytics Solution Be A Game Changer? – Key Drivers

Teradyne delivered an all-around beat in the previous quarter.
The company’s performance met expectations, but segment-wise, the test business showed more strength, while robotics faced challenges with softer demand.
Teradyne also recently introduced the Teradyne Archimedes analytics solution, an open architecture that brings real-time analytics to semiconductor testing.

PTC Inc.: Will The Creo+ SaaS CAD Solution Catalyze Their Growth? – Key Drivers

PTC Inc. delivered a mixed set of results in its most recent result, with revenues above Wall Street expectations but below-par earnings.
The company’s top-line ARR growth showed resilience, solid performance across product groups and geographies, benefiting from cross-selling efforts, and improved sales productivity.
A mix shift has driven margin expansion to higher-margin software, go-to-market improvements, R&D offshoring, and leveraging scale in a recurring subscription business.

Quest Diagnostics: Can The Haystack Acquisition & The Enhancements To The Cancer Diagnostics Portfolio Give Them A Boost? – Key Drivers

Quest Diagnostics delivered a solid result and managed an all-around beat in the quarter.
Quest Diagnostics remained focused on driving growth through specialized advanced diagnostics, acquisitions, and operational improvements.
We give Quest Diagnostics Incorporated a ‘Hold’ rating with a revised target price.

[ACM Research (ACMR US, BUY, TP US$30) Preview]: CXMT Order Volume Could Be Ahead of Expectations

By Shawn Yang

We expect ACMR to report C2Q23 top-line and non-IFRS net profit in-line and 12.7% vs. consensus, respectively.
Peers guided that a major ACMR customer, CXMT, made purchase orders greater than they had previously anticipated. We raised our FY23 revenue estimate by 2% to US$ 574mn.
ACMR remains position to capture demand from export restricted local manufacturers. As a result, we maintain our BUY rating and US$ 30 TP.

Tyler Technologies Inc.: Partnership With Carbyne & Other Major Developments

Tyler Technologies delivered a strong result and managed an all-around beat in the quarter.
The company’s focus on cloud transition and recurring SaaS revenue proved successful, with SaaS revenues growing organically by 20% for the tenth consecutive quarter.
Tyler Technologies Inc. showcased its success in the public safety market, achieving its best first-half sales performance since acquiring New World in 2015.

eBay Inc.: Enhancing The Fashion Shopping Experience With The Certilogo Acquisition! – Key Drivers

eBay delivered a mixed set of results for the previous quarter, with revenues well below analyst expectations but managed an earnings beat.
Over the past three years, eBay’s tech-led re-imagination journey aimed to become the best global marketplace, focusing on products that provide value and meaningful customer choices.
The management is working towards overhauling the user experience and design to offer personalized browsing experiences and are rapidly deploying AI-driven features like Magical Listing.

Fortive Corporation: Revolutionizing Facility Management for Multi-Unit Operators! – Key Drivers

Fortive Corporation delivered a strong result and managed an all-around beat in the last quarter, showcasing its portfolio’s durability and the strength of its execution.
The company achieved higher core growth, margins, earnings, and free cash flows.
Their focus on building leading positions across customers’ critical connected workflows has paid off, demonstrated by the significant margins and expansion in adjusted operating margins.

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Aug 02

Daily Brief United States: ATN International, iShares Russell 2000 ETF, Fiserv Inc, Moody’s Corp, Lam Research, Gaia, Crude Oil, Chubb , 3M Co, At&T Inc and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

ATNI: Leveraging the Network
Expecting Russell 2000 (IWM) Breakout Above $199; Highlighting Buys in Energy
Fiserv Inc: Can The New AppMarket Offering For Financial Institutions Aid Revenue Growth? – Key Drivers
Moody’s Corporation: Recent Acquisitions
Lam Research Corp: 4 Major Drivers That Can Lam Research to New Heights! – Financial Forecasts
Gaia, Inc. – Reports Continued Member Growth in a Seasonally Weak Quarter
The Energy Cable #31 – Crack Spreads and Positioning Support the Bull-Case!
Chubb Limited: Is The New Cyber Central Tool Streamlining Insurance Coverage? – Key Drivers
3M Company: 4 Key Factors Driving Growth! – Financial Forecasts
AT&T Inc: Collaboration With Cherish Health & Other Developments

ATNI: Leveraging the Network

ATNI is in the last stretch of its capital expenditure spending plan and subscriber count is beginning to support the larger and faster network
ATNI has grown the number of high-speed broadband and mobile customers, which is fueling the efficiency in the operating model.
The transition away from wholesale wireless roaming to network management should further improve the operating structure of the business.

Expecting Russell 2000 (IWM) Breakout Above $199; Highlighting Buys in Energy

By Joe Jasper

We continue to believe the path of least resistance is higher for the major equity indexes, which has been our stance since our 5/30/23 ETF Pathfinder.
Beginning with our 7/18/23 Compass, we discussed our expectation for major 1+ year breakouts on the equal-weighted S&P 500 (RSP), Dow, and Russell 2000 (IWM).
The breakouts happened later that day on the RSP and Dow (above $153 and 34,280, respectively), and the IWM is now on the cusp of breaking out above $199.

Fiserv Inc: Can The New AppMarket Offering For Financial Institutions Aid Revenue Growth? – Key Drivers

Fiserv delivered a positive result and managed an all-around beat in the last quarter.
With the continued success of their market-leading cloud-based operating system, Clover, and the unified commerce offering, Carat, Fiserv expects future growth acceleration.
Other growth areas include digital payments and digital banking, expansion in Latin America, and opportunities presented by the cloud-native core banking system, Finxact.

Moody’s Corporation: Recent Acquisitions

Moodys delivered a positive result and managed an all-around beat in the last quarter.
Amid a consistent improvement in issuance, Moody’s Investor Services (MIS) had its first quarter of revenue gain in six quarters.
Its revenue growth exceeded issuance growth by growing by 6%.

Lam Research Corp: 4 Major Drivers That Can Lam Research to New Heights! – Financial Forecasts

Lam Research delivered a positive result and managed an all-around beat in the last quarter.
Additionally, Lam Research experienced a decline in memory spending, particularly in the NAND segment, impacting its revenue concentration.
Lam Research also announced its plans to advance India’s semiconductor workforce development goals.

Gaia, Inc. – Reports Continued Member Growth in a Seasonally Weak Quarter

Gaia reported sequential revenue growth and increased member count during its seasonally weakest quarter.
Revenues were $19.8 million versus $20.7 million in 2Q22, but up sequentially.
Member count was up 8,000 to 774,500.

The Energy Cable #31 – Crack Spreads and Positioning Support the Bull-Case!

By Andreas Steno

Welcome to your weekly maverick energy newsletter with views from both sides of the pond! Steno Research and 3Fourteen models align – see how we view the risk/reward in various proxy trades below!
Apparently with the spikes in volatility over the last couple of weeks we need to talk about natural gas in Europe again.
Various people have been harping about the Natural Gas markets in Europe, so let’s once and for all lay it out. Nooo, we are not going to run out of gas this winter.

Chubb Limited: Is The New Cyber Central Tool Streamlining Insurance Coverage? – Key Drivers

Chubb managed to deliver a mixed set of results in its most recent result, with revenues below analysts’ expectations but above-par earnings.
This quarter, Chubb experienced double-digit growth in its consumer and commercial P&C businesses in North America and abroad and in its life business.
Commercial premiums increased in the quarter.

3M Company: 4 Key Factors Driving Growth! – Financial Forecasts

3M Company delivered a strong result and managed an all-around beat in the last quarter.
Their cost management efforts and restructuring initiatives primarily drove these margin increases.
We give 3M Company a ‘Hold’ rating with a revised target price.

AT&T Inc: Collaboration With Cherish Health & Other Developments

By Pearl Gray Equity and Research

AT&T delivered a mixed set of results for the previous quarter, with revenues well below analyst expectations but managed an earnings beat.
The last quarter for AT&T showcased the company’s strong execution of its strategic vision, resulting in continued growth and progress toward its objectives.
Their fiber business has also succeeded, substantially increasing AT&T Fiber net adds, driving higher penetration rates and broadband revenues.

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Aug 01

Daily Brief United States: Copper, Bitcoin Pro, Spdr Portfolio High Yield Bo and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Stocks Vs. Commodities Ratio // China Wants to Boost Its Property Sector (But How)
Analysis: The Impact of Binance’s Zero-Fee Markets
SPHY ETF: Rare Opportunity For Price Gains

Stocks Vs. Commodities Ratio // China Wants to Boost Its Property Sector (But How)

By The Commodity Report

The Chinese Communist Party’s Politburo, one of the country’s top decision-making bodies, on Monday, released a statement outlining plans to boost the country’s ailing property sector.
But it didn’t give much detail or signal any major measures as some commodity traders had hoped.
This uncertainty was also perfectly displayed in the price action of copper.

Analysis: The Impact of Binance’s Zero-Fee Markets

By Kaiko

About a year ago, right as crypto trade volumes started to slump in the aftermath of the Celsius and Terra collapses, Binance vastly expanded its zero-fee trading promotions to 13 BTC pairs.
This practice, though not new, had never been implemented on such a large scale.
However, just nine months later the exchange decided to reverse this strategy and adopt a more selective approach.

SPHY ETF: Rare Opportunity For Price Gains

Key indicators suggest the SPDR® Portfolio High Yield Bond ETF might benefit from price returns in the coming quarters.
Investors will soon “down credit” and “down duration” amid receding market risk premiums coupled with an improving U.S. current account, we say.
Today’s analysis covers the SPDR® Portfolio High Yield Bond ETF (NYSEARCA:SPHY), which is a U.S.-centric high-yield corporate bond exchange-traded fund, or ETF, managed by State Street Global Advisors.

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Jul 31

Daily Brief United States: Intel Corp, Kenvue , Cadence Design Sys, Financial Select Sector SPDR F, Archer Daniels Midland Co, Corning Inc, Dow , General Electric Co, Kimberly Clark, Meta Platforms (Facebook) and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Intel Results #1 Take-Away: Major Readthrough for PC Upgrade Cycle and Edge AI
Kenvue (KVUE US): Q2 Result Beats Estimates; Initiated 2023 Guidance; J&J Launches Exchange Offer
Cadence Design Systems Inc.: Shaping the Future of AI with its Unique Products? – Key Drivers
Will A Credit Event Derail the Equity Bull?
Archer-Daniels-Midland Company: Catering To The Rising Demand For Health Products! – Key Drivers
Corning Incorporated: Redefining Resilience & Emerging More Assertive Amid the Global Economic Recovery! – Key Drivers
Dow Inc.: New Partnership with New Energy Blue to Pioneer Sustainable Bio-Based Plastics & Other Developments
General Electric Company: A Successful Turnaround?- Key Drivers
Kimberly-Clark Corporation: Winning the Race in Key Markets Worldwide? – Major Drivers
Meta Platforms Inc.: Interesting Progress On The VR Front! – Key Drivers

Intel Results #1 Take-Away: Major Readthrough for PC Upgrade Cycle and Edge AI

By Vincent Fernando, CFA

Intel’s latest results imply a potential bottoming of its business & nascent turn-around; however the greater take-away is that the PC industry is heading into a major AI-driven up-cycle.
PC industry inventories are now “healthy” and Intel’s Client Computing segment (PCs) showed the strongest QoQ revenue growth. Management is guiding for continued improvement next quarter.
Edge AI will drive a major upgrade cycle for PCs worldwide and Intel’s new Meteor Lake chip could be a catalyst. Invest ahead of AI PCs having their “ChatGPT Moment”.

Kenvue (KVUE US): Q2 Result Beats Estimates; Initiated 2023 Guidance; J&J Launches Exchange Offer

By Tina Banerjee

Kenvue (KVUE US) reported 5% YoY revenue growth to $4B in 2Q23, driven by continued demand of self-care portfolio, mainly consisting of cough, cold, and allergy, and pain care products.
The company has guided for 4.5–5.5% revenue growth and EPS of $1.26–1.31 for 2023. Kenvue has declared a cash dividend of $0.20 for 3Q23.
J&J is offering its shareholders the option to exchange shares for Kenvue’s at a 7% discount. The exchange offer is scheduled to close on August 18, 2023.

Cadence Design Systems Inc.: Shaping the Future of AI with its Unique Products? – Key Drivers

Cadence exceeded the revenue and earnings expectations of Wall Street for the second quarter of 2023, resulting in year-over-year 14% revenue growth and 19% non-GAAP EPS growth.
In terms of Generative AI, the customers of Cadence are adopting its chip, Generative AI portfolio, system, board, and package as they are achieving exceptional productivity benefits and quality results with these solutions.
We give Cadence Design Systems a ‘Hold’ rating with a revised target price.

Will A Credit Event Derail the Equity Bull?

By Cam Hui

We believe equity bulls run the risk of a credit event which could spark a bear market.
Market-Based indicators used by technicians have failed to anticipate and discount well-telegraphed events such as the GFC and the start of the Russo-Ukraine War.
If you want to be bullish, we wouldn’t argue with you. Just be careful.

Archer-Daniels-Midland Company: Catering To The Rising Demand For Health Products! – Key Drivers

Archer-Daniels-Midland delivered a mixed result in the recent quarter, with revenues below market expectations, but it surpassed the analyst consensus in earnings.
The company reported second-quarter adjusted earnings per share of $1.89 and an adjusted segment operating profit of $1.6 billion.
ADM’s team expects continued strength in Brazil’s origination, solid biofuel demand, and resilient food demand, leading them to raise their earnings expectations for 2023.

Corning Incorporated: Redefining Resilience & Emerging More Assertive Amid the Global Economic Recovery! – Key Drivers

Corning delivered mixed results in its most recent quarter, with revenues above analysts’ expectations but below-par earnings.
During the last quarter, Corning made significant progress in improving profitability and cash flow in response to the challenging post-pandemic economic conditions.
As a result, the gross margin improved, and the free cash flow increased.

Dow Inc.: New Partnership with New Energy Blue to Pioneer Sustainable Bio-Based Plastics & Other Developments

Dow delivered a positive result and managed an all-around beat in the last quarter.
The last quarter was challenging for Dow, with lower year-over-year sales and earnings due to the slow global economic growth.
Despite these headwinds, the company demonstrated resilience by executing its financial and operational strategies, resulting in sequential earnings improvement.

General Electric Company: A Successful Turnaround?- Key Drivers

General Electric managed to exceed Wall Street expectations in terms of revenue and earnings.
GE Vernova is also increasing spin with significant orders, improved profitability in Renewable Energy, and continuing margin expansion in Power.
We give General Electric a ‘Hold’ rating with a revised target price.

Kimberly-Clark Corporation: Winning the Race in Key Markets Worldwide? – Major Drivers

Kimberly-Clark delivered mixed results for the previous quarter, with revenues below analyst expectations but managed an earnings beat.
The company delivered strong organic growth across all segments.
Significant progress was made on margin recovery, leading to increased adjusted gross margin, operating profit, and earnings per share.

Meta Platforms Inc.: Interesting Progress On The VR Front! – Key Drivers

Meta Platforms managed to exceed analyst expectations in terms of revenue as well as earnings.
On Facebook, engagement trends have been stronger than the company’s management anticipated.
We give Meta Platforms a ‘Hold’ rating with a revised target price.

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Jul 30

Daily Brief United States: Novelis Corporation and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Novelis – ESG Report – Lucror Analytics

Novelis – ESG Report – Lucror Analytics

By Charles Macgregor

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Novelis’ ESG as “Adequate”, in line with its Social and Governance scores. The company has a “Strong” score for the Environmental pillar. Controversies are “Immaterial” and Disclosure is “Adequate”.
Novelis is the world’s largest producer of flat-rolled aluminium products and the largest recycler of aluminium globally.

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Jul 29

Daily Brief United States: NVIDIA Corp, Ford Motor Co, Steel Dynamics, Impinj Inc, Equifax Inc, Texas Instruments, United Airlines Holdings, Sap Se Sponsored Adr, Alcoa , Verizon Communications and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

NVIDIA: Global Funds Hit New Highs
US Mutual Funds: Is Ford Motor Company Uninvestible?
Steel Dynamics Inc: 4 Surprising Reasons For Their Growth – Financial Forecasts
PI: Frequency Scrambled
Equifax Inc: 4 Key Takeaways From The Recent Performance – Financial Forecasts
Texas Instruments: The Investments Shaping their Competitive Advantage! – Key Drivers
United Airlines Holdings Inc: 4 Factors That Are Driving Growth – Financial Forecasts
SAP SE ADR: Carbon Footprint Management Offering & Other Developments
Alcoa Corp: New Carbon Capture Technology & Other Developments
Verizon Communications Inc.: Can myPlan Be A Game Changer? – Key Drivers

NVIDIA: Global Funds Hit New Highs

By Steven Holden

Global Fund exposure in NVIDIA Corp (NVDA US) has moved to record levels after a doubling of the share price this year.
New positions from UniNachhaltig Global, JP Morgan Global Focus and BNY Mellon Global Equity (3.36%) were among a total of 14 funds who opened exposure to NVIDIA Corp in 2023.
Growth and Aggressive Growth funds are at maximum levels of ownership, whilst Value managers are showing some hesitancy here.

US Mutual Funds: Is Ford Motor Company Uninvestible?

By Steven Holden

US Mutual Fund exposure in Ford Motor Company hits all-time lows with just 11 out of 295 funds holding a position.
Ford Motor Company is now the 6th most widely held Auto stock after Tesla, General Motors, Rivian Automotive, Harley Davidson and Oshkosh Corp.
Ford tops the list of unloved companies in the US, with the vast majority of active managers expecting Ford to underperform.

Steel Dynamics Inc: 4 Surprising Reasons For Their Growth – Financial Forecasts

Steel Dynamics had a disappointing second quarter with revenues below Wall Street expectations though they did manage to report improved net income and EBITDA.
The management noted increased pricing and metal spread across flat-rolled and long-product steel operations.
Steel Dynamics’ net income stood at $812 million, operating income at $1.1 billion, and EBITDA at $1.2 billion.

PI: Frequency Scrambled

Impinj warned revenue would decline sequentially in the third quarter due to weaker than expected demand from retail apparel customers. The shortfall started towards the end of the second quarter
Impinj increased inventory in the first quarter and more so in the second quarter. Inventory within the channel has also increased compared to the first quarter
Impinj’s stock continues to price the downward revenue scenario as a short-term event. Previous downturns have lasted more than one quarter

Equifax Inc: 4 Key Takeaways From The Recent Performance – Financial Forecasts

Equifax delivered a mixed result in the recent quarter, with revenues below market expectations but managed to surpass the analyst consensus regarding earnings.
Last quarter, the company faced a challenge, particularly in the mortgage and hiring markets.
While the U.S. mortgage market weakened, they delivered adjusted EPS and EBITDA margins above guidance.

Texas Instruments: The Investments Shaping their Competitive Advantage! – Key Drivers

Texas Instruments delivered a positive result and managed an all-around beat last quarter.
The decline in gross profit from the prior year was principally brought on by reduced revenue, higher capital expenses, and the shifting of LFAB-related costs to the cost of revenue.
For the third quarter, Texas Instruments’ team anticipated the sale to be in the $4.36 billion to $4.74 billion range, with $1.68 to $1.92 earnings per share.

United Airlines Holdings Inc: 4 Factors That Are Driving Growth – Financial Forecasts

United Airlines delivered an all-around beat in the most recent quarterly result.
The strategic initiatives, including aggressive pilot hiring, fleet expansion, and route optimization, have paid off and put United on a path toward delivering impressive earnings per share.
We give United Airlines Holdings a ‘Buy’ rating with a revised target price.

SAP SE ADR: Carbon Footprint Management Offering & Other Developments

SAP delivered a mixed set of results in its most recent result with revenues above Wall Street expectations but below-par earnings.
RISE with SAP and GROW with SAP have been well-received offerings, driving significant cross and upsell opportunities across their portfolio.
SAP’s approach with SAP Business AI is unmatched in the industry, delivering relevant, reliable, and responsible AI solutions to customers, with plans to introduce new premium RISE offerings and an uplift of up to 30% in the fall.

Alcoa Corp: New Carbon Capture Technology & Other Developments

Alcoa delivered a solid result and managed an all-around beat in the last quarter.
The company had a mixed last quarter and reported slightly higher revenue and increased shipments but experienced challenges due to market conditions.
Despite lower alumina and aluminum prices, they improved net loss due to the nonrecurrence of specific charges.

Verizon Communications Inc.: Can myPlan Be A Game Changer? – Key Drivers