Category

United States

Feb 27
0

Daily Brief United States: Intel Corp and more

By | Daily Briefs, United States

In today’s briefing:

  • Intel’s Cut Its Dividend, But Should It Cut Its Foundry?

Intel’s Cut Its Dividend, But Should It Cut Its Foundry?

By Aaron Gabin

  • Intel cut its dividend by 2/3rd, freeing up $4B in cash.
  • The company revised own capital intensity guidance for 2023 to low 30s% from 35%, while maintaining 24/25 guidance.
  • Recent $11B debt raise and Mobile eye shares should provide enough capital for the next year.

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Feb 26
0

Daily Brief United States: Akamai Technologies, Biogen Inc, Chipotle Mexican Grill, Cisco Systems, DuPont, Enphase Energy, Fortinet Inc, Kraft Heinz Co, Synopsys Inc, Transdigm Group and more

By | Daily Briefs, United States

In today’s briefing:

  • Akamai Technologies Inc.: New Cloud Computing Services & Other Drivers
  • Biogen Inc.: Major Drivers
  • Chipotle Mexican Grill Inc.: Launch of Farmesa & Other Drivers
  • Cisco Systems Inc.: Major Drivers
  • Du Pont De Nemours and Company: Major Drivers
  • Enphase Energy Inc: Acquisition of 365 Pronto & Other Drivers
  • Fortinet Inc.: Launch of FortiSP5 & Other Drivers
  • The Kraft Heinz Company: Major Drivers
  • Synopsys Inc.: Major Drivers
  • TransDigm Group: Major Drivers

Akamai Technologies Inc.: New Cloud Computing Services & Other Drivers

By Baptista Research

  • Despite ongoing difficulties with the global economic environment, Akamai produced strong results in the fourth quarter, exceeding market expectations in terms of both, revenues as well as earnings.
  • Their rapidly expanding Compute business, the sustained high demand for their security solutions, and higher-than-anticipated shipping traffic contributed to their revenue growth.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Biogen Inc.: Major Drivers

By Baptista Research

  • Biogen delivered an all-around beat in the last result.
  • TECFIDERA generic competition, ongoing interferon declines and some pricing pressure mostly brought on this reduction.
  • Based on these positive results, they started the Phase II/III AMETHYST investigation of litifilimab in CLE.

Chipotle Mexican Grill Inc.: Launch of Farmesa & Other Drivers

By Baptista Research

  • Chipotle Mexican Grill delivered a highly disappointing result for the last quarter.
  • The company failed to meet the revenue expectations as well as the earnings expectations of Wall Street despite AUVs expansion and improved restaurant-level margin.
  • The management faced several challenges this quarter, including one of the highest inflationary periods and an uncertain macro environment.

Cisco Systems Inc.: Major Drivers

By Baptista Research

  • Cisco Systems delivered another strong quarter, exceeding the top and bottom line expectations of analysts.
  • The company saw consecutive double-digit growth in its customer markets’ commercial and enterprise sectors, and the public sector performed better than usual.
  • We give Cisco Systems a ‘Hold’ rating with a revised target price.

Du Pont De Nemours and Company: Major Drivers

By Baptista Research

  • DuPont had a mixed fourth quarter and its revenues were below analyst expectations but the company managed to deliver an earnings beat.
  • The company has also succeeded in enhancing its grip on industrial-end markets such as healthcare and aerospace.
  • There was a strong pricing growth as well that helped mitigate the impact of inflation.

Enphase Energy Inc: Acquisition of 365 Pronto & Other Drivers

By Baptista Research

  • Enphase delivered a strong quarter driven by amazing revenues through its microinverters.
  • The company witnessed amazing growth in the gross margin as well as in the operating income.
  • The overall supply environment of the microinverters remains stable throughout the quarter.

Fortinet Inc.: Launch of FortiSP5 & Other Drivers

By Baptista Research

  • Fortinet had a mixed set of fourth-quarter results with revenues failing to meet Wall Street expectations despite market share gains.
  • The company succeeded in delivering an earnings beat and held on to its market positioning.
  • Its 42% product revenue growth has made the company one of the top product revenue companies in the cybersecurity industry.

The Kraft Heinz Company: Major Drivers

By Baptista Research

  • Kraft Heinz saw strong revenue momentum in the last quarter and managed to deliver an all-around beat with a good growth in base volumes.
  • The management claims to be outperforming the competition in food service and emerging markets.
  • In 2023, the management is looking towards expanding its marketing technology and personnel investments to propel the company’s growth.

Synopsys Inc.: Major Drivers

By Baptista Research

  • Synopsys had a strong start to the year and managed to meet the revenue expectations of Wall Street driven by its execution and robust technology portfolio.
  • The company saw $6.9 billion in noncancelable backlog despite slower revenue growth in the semiconductor industry and robust, steady, time-based business models.
  • Synopsys has a wide IP portfolio and they expect a continuance of designs, requiring more communication bandwidth, processing, storage, and security in ever more sophisticated silicon technologies.

TransDigm Group: Major Drivers

By Baptista Research

  • TransDigm managed to have another strong quarter and delivered an all-around beat.
  • It was another strong quarter with healthy growth in commercial revenues and bookings.
  • We also have a dedicated analysis of the company’s Environmental, Social, and Governance (ESG) risk scores in order to evaluate the sustainability risk.

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Feb 25
0

Daily Brief United States: Crude Oil, NVIDIA Corp, Coca Cola Co, Airbnb Inc, Marriott International, Zoetis Inc, Devon Energy, Ecolab Inc, Gartner Inc and more

By | Daily Briefs, United States

In today’s briefing:

  • WTI Bear Triangle a Growth Negative
  • Nvidia: Don’t Let Narratives Fool You (Again)
  • The Coca-Cola Company: Major Drivers
  • Airbnb Inc.: Major Drivers
  • Marriott International Inc.: Major Drivers
  • Zoetis Inc.: Launch Of CircoMatch & Other Drivers
  • Devon Energy Corporation: Major Drivers
  • Ecolab Inc.: Collaboration With TotalEnergies & Other Drivers
  • Gartner Inc.: Major Drivers

WTI Bear Triangle a Growth Negative

By Thomas Schroeder

  • WTI’s bearish flat/triangle is setting up to break lower and a harbinger of weaker growth in coming months amid a stronger USD.
  • Bearish oil also gels with our stronger dollar and weaker demand view. It will also bring energy shares back to earth.
  • New low targets at 69 and 65 then review for a tactical recovery attempt.

Nvidia: Don’t Let Narratives Fool You (Again)

By Vladimir Dimitrov, CFA

  • Nvidia’s risk-reward profile remains unattractive, according to the company’s recent earnings report.
  • Nvidia’s stock-based compensation also highlights some problems related to inventory levels and the amount of stock- based compensation.
  • The company’s share price has risen 14% following recent earnings, the report says.

The Coca-Cola Company: Major Drivers

By Baptista Research

  • Coca-Cola had a successful year in 2022.
  • In spite of the difficult macro environment, the company performed well and expanded by concentrating on broadening the scope of its offerings.
  • 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.

Airbnb Inc.: Major Drivers

By Baptista Research

  • Airbnb had a solid year in 2022 with revenues growing 40% year-over-year.
  • Moreover, they saw that guest bookings for trips continued to rise, maintaining a robust backlog for Q1.
  • Excluding all of the Mainland China listings, the team increased supply by 900,000 listings, or 16%, in comparison to a year ago.

Marriott International Inc.: Major Drivers

By Baptista Research

  • Marriott International had a decent business recovery in 2022 and the company delivered an all-around beat in the last quarter.
  • The number of leisure transient room nights in the fourth quarter increased compared to 2019.
  • Their mobile app users, digital room nights, and digital income all increased in 2022, each by 32% year over year.

Zoetis Inc.: Launch Of CircoMatch & Other Drivers

By Baptista Research

  • Zoetis delivered a decent set of results for the last quarter of 2022 meeting analyst expectations as well as the high end of its management guidance.
  • Despite the economic challenges, ongoing pandemic recovery, and the political unpredictability brought on by the war in Ukraine, they delivered operational growth for the year in each of their top 13 markets.
  • The company’s unique companion animal portfolio drove its 8% operational revenue increase for the year, growing 14% operationally.

Devon Energy Corporation: Major Drivers

By Baptista Research

  • Devon Energy delivered a mixed performance in the last quarter of 2022.
  • The company managed to surpass the revenue expectations of Wall Street but its earnings were well below par.
  • We give Devon Energy Corporation a ‘Buy’ rating with a revised target price.

Ecolab Inc.: Collaboration With TotalEnergies & Other Drivers

By Baptista Research

  • Ecolab delivered a mixed performance in the fourth quarter.
  • Organic sales increased by 12%, and sector-wise growth was strong but the company failed to meet the revenue expectations of Wall Street.
  • Healthcare & Life Sciences resumed growth and delivered 7% organic growth.

Gartner Inc.: Major Drivers

By Baptista Research

  • Gartner drove a strong performance with double-digit growth in contract value, revenue, EBITDA and EPS.
  • Its research business continues to be its greatest and most lucrative segment, with a 9% year-over-year increase in revenue.
  • In addition, they helped 9 of their top 10 countries experience double-digit growth, with the tenth experiencing high single-digit growth.

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Feb 24
0

Daily Brief United States: Bitcoin Pro, S&P 500, Earthstone Energy, NVIDIA Corp and more

By | Daily Briefs, United States

In today’s briefing:

  • A Crypto Friendly Asia: What It Will Mean For Markets
  • SPX Range Ahead of Next Leg Down
  • FY23 Operating Outlook and Proved Reserve Update
  • NVIDIA Rebounds On ChatGPT Surge

A Crypto Friendly Asia: What It Will Mean For Markets

By Kaiko

  • On Monday, Hong Kong made its intentions clear to open the door to crypto trading for retail. 
  • Reports claim that China is quietly encouraging the move, using Hong Kong as a testing ground for what safe crypto trading might look like.
  • The Hong Kong Securities and Futures Commission (SFC) outlined various caveats for retail investing in crypto, namely hinting at only having a small subset of the largest tokens available to trade.

SPX Range Ahead of Next Leg Down

By Thomas Schroeder

  • SPX 3,980 is where a mild bounce should unfold. 4,060 sell resistance then the set-up calls for a break below 3,980 to test lower targets.
  • This next leg down will cause more damage in EM/Asia and Europe. MACD on the verge of an ugly break below the “0” acceleration line.
  • US 10yr yield dip is a buy for a push above the 3.95% pivot resistance with new highs in store.

FY23 Operating Outlook and Proved Reserve Update

By Water Tower Research

  • We are updating our estimates to reflect the operating outlook Earthstone provided on February 16, 2023, and changes to certain assumptions around commodity prices and costs.
  • We expect detailed 4Q22 financial results in early March.
  • 4Q22 production averaged ~104.8 MBOE/d, above the high end of management’s previous 98-102 MBOE/d guidance.

NVIDIA Rebounds On ChatGPT Surge

By Semicon Alpha

  • NVIDIA yesterday reported Q4 2022 revenues of $6.05 billion, in line with their forecast, down 21% from a year ago and up 2% sequentially.
  • Interestingly, NVIDIA’s current downturn is playing out almost exactly like their previous downturn back in 2019 as can clearly be seen in the above chart.
  • We expect to see this same recovery pattern continue throughout the remainder of 2023.

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Feb 23
0

Daily Brief United States: S&P 500, Palo Alto Networks, Nitro Software Ltd, The Walt Disney Co, Yum! Brands Inc, Fiserv Inc, Lattice Semiconductor, US 10Y, Cvs Health Corp, Assertio Holdings and more

By | Daily Briefs, United States

In today’s briefing:

  • Pullback Begins; How Low Can Indexes Go?; High Yield Spreads & DXY Following Treasury Yields Higher
  • Palo Alto Networks: Even Better Than Crowdstrike?
  • Nitro Software: Potentia’s Tiered-Bump. Expect Alludo To Cash In
  • The Walt Disney Company: First Ever Subscriber Decline Story For Disney+ & Other Drivers
  • Yum! Brands Inc.: Major Drivers
  • Fiserv Inc.: Major Drivers
  • Lattice Semiconductor Corporation: Major Drivers
  • US 10yr Yield (USGG10YR): We Have to Focus on the Big Picture (Multi-Year Uptrend)
  • CVS Health Corporation: Acquisitions Of Oak Street Health & Signify Health
  • ASRT: Updated Q4 Results Puts 2023 in Focus

Pullback Begins; How Low Can Indexes Go?; High Yield Spreads & DXY Following Treasury Yields Higher

By Joe Jasper

  • Since January, our expectation for 2023 has been for 4165 (and 4165-4200) to cap upside on the S&P 500.
  • We’ve been preaching caution with the indexes testing resistance, and we are now getting confirmation that suggests a pullback has officially begun
  • SPX, QQQ, and IWM all demonstrating false breakouts, alongside bullish inflections in Treasury yields, high yield spreads, and the U.S. dollar. Defensives also display bullish RS reversals

Palo Alto Networks: Even Better Than Crowdstrike?

By Aaron Gabin

  • Huge operating margin and FCF beat as PANW is maintaining efficiency with slower headcount growth and supply chain issues abating supporting gross margins. 
  • Deal sizes continue to grow dramatically: $1M deals grew 20% YoY, and  transactions size grew nearly 60%. $5M+ deals grew 84% YoY and $10M+ deals grew 140%.
  • Prisma’ Access’ SASE product continues to be the catalyst driving 2.5x revenue lift vs. legacy firewalls.

Nitro Software: Potentia’s Tiered-Bump. Expect Alludo To Cash In

By David Blennerhassett

  • After Alludo stated its $2.15/share Offer price was ‘best and final’, even if a superior proposal emerges, the ball was in Potentia’s court to just sneak in above those terms.
  • And so they have, with a $2.17/share unconditional Offer for Nitro (NTO AU), increasing to $2.20 if they get to 75% interest, and $2.25 if ≥25% tendering opt for scrip.
  • Expect Nitro’s board to announce its unanimous support for Potentia’s revised Offer. Expect Alludo to cash in as tendering nears 75%. 

The Walt Disney Company: First Ever Subscriber Decline Story For Disney+ & Other Drivers

By Baptista Research

  • Despite a challenging quarter, Walt Disney managed to deliver an all-around beat and expanded internationally.
  • The sequential improvement was driven by lower SG&A costs and higher revenue at DTC.
  • At Domestic Parks and Experiences, significant operating income and revenue growth in the quarter was achieved.

Yum! Brands Inc.: Major Drivers

By Baptista Research

  • Yum Brands delivered a decent growth in 2022 despite labor shortages and commodity inflation.
  • It ended the year with an all-around beat in the last quarter and more than 55,000 restaurants operating globally.
  • We give Yum Brands a ‘Hold’ rating with a revised target price.

Fiserv Inc.: Major Drivers

By Baptista Research

  • Fiserv had a decent 2022 and managed to surpass the revenue expectations of Wall Street in its last result.
  • The company’s better-than-expected growth against the challenging backdrop was a result of growth in organic revenue, improvement in operating margin, and adjusted earnings per share.
  • Fiserv also advanced its core banking cloud roadmap for its new and existing clients with the acquisition and integration of Finxact.

Lattice Semiconductor Corporation: Major Drivers

By Baptista Research

  • Lattice Semiconductor had a solid 2022 and ended the year on a positive note with an all-around beat.
  • The company increased its product portfolio and its core strategic markets for industrial, automotive, communications, and computing had a 28% increase in annual revenue.
  • Besides, the industrial and automotive market experienced double-digit growth for the third year as full-year revenue grew by 41%.

US 10yr Yield (USGG10YR): We Have to Focus on the Big Picture (Multi-Year Uptrend)

By David Coloretti, CMT

  • At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.
  • USGG10YR traded in a perfectly structured downtrend from 1981 to 2020. This downtrend was clearly broken in Q2 2022, confirming a dominant multi-year uptrend.
  • A mere 38.2% retracement of the 1981/2020 downtrend targets 6.24 in the coming 1-2 years. This is our big picture outlook. February may confirm the next leg in this uptrend.

CVS Health Corporation: Acquisitions Of Oak Street Health & Signify Health

By Baptista Research

  • CVS Health has been on an acquisition spree lately and has been in the news for the acquisitions of Oak Street Health and Signify Health.
  • The company delivered strong financial results that exceeded the revenue expectations as well as earnings expectations of Wall Street with high single-digit top-line growth.
  • CVS recently announced that it has entered into one definitive agreement to acquire the outstanding shares of Oak Street Health.

ASRT: Updated Q4 Results Puts 2023 in Focus

By Hamed Khorsand

  • ASRT issued preliminary fourth quarter 2022 results highlighting the continued growth in revenue. We assume the increase in revenue was due to uplift in Indocin usage in the quarter.
  • Heading into 2023, ASRT is carrying a larger than expected cash balance to deploy in making acquisitions
  • ASRT is forecasting fourth quarter sales of $49 to $50 million compared to our estimate of $47.1 million

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Feb 22
0

Daily Brief United States: Nitro Software Ltd, Mannkind Corp, General Mills, Inter Parfums, Kimberly Clark and more

By | Daily Briefs, United States

In today’s briefing:

  • Nitro Software: KKR’s Offer Unconditional. This Is Potentia’s For The Taking
  • Mannkind Corp (MNKD US): Stable Revenue Stream; High Hope for MNKD 101 for Rare Lung Disease
  • General Mills: I Am Once Again Bullish And Have 2 Areas Investors Should Watch Closely
  • IPAR: Fragrance of a Price Target Increase
  • Kimberly-Clark: Short-Term Tailwinds Dissipate

Nitro Software: KKR’s Offer Unconditional. This Is Potentia’s For The Taking

By David Blennerhassett

  • Alludo has declared its Offer of A$2.15 cash per Nitro Software Ltd (NTO AU) share free from all remaining conditions.
  • Separately, Potentia’s due diligence is expected to conclude tomorrow, the 22 February, with the expectation it bumps its current offer of A$2.00/share.
  • Currently trading at A$2.20 per share suggesting limited upside from here. 

Mannkind Corp (MNKD US): Stable Revenue Stream; High Hope for MNKD 101 for Rare Lung Disease

By Tina Banerjee

  • Mannkind Corp (MNKD US) has multiple revenue stream, with two marketed products. Flagship drug Afrezza, an inhaled insulin recorded 11% YoY revenue growth to $10.8M in Q3.
  • Due to high R&D and SG&A expenses, Mannkind records operating loss. However, gross profit margin is improving, with Afrezza gross margin improving to 81% in 3Q22 from 61% in 3Q21.
  • Mannkind’s inhaled clofazimine (MNKD 101) is advancing to Phase 2/3 study for potential treatment of nontuberculous mycobacterial (NTM) lung disease. ~86K people in US are living with NTM lung disease.

General Mills: I Am Once Again Bullish And Have 2 Areas Investors Should Watch Closely

By Vladimir Dimitrov, CFA

  • General Mills continued to outperform the market, in spite of the sharp drop in share price in recent months.
  • The company now trades closer to fair value, but weakness in the pet food segment was largely unexpected.
  • The drop in volumes is unsettling, but the company now trading closer to a fair value.

IPAR: Fragrance of a Price Target Increase

By Hamed Khorsand

  • Since our last update in January 2023, Inter Parfums (IPAR) has released its preliminary fourth quarter sales results and there has been more data affirming consumer demand for fragrances
  • The reopening of China was earlier than IPAR’s management’s forecasts, which could have a material boost to sales in 2023.
  • The addition of Lacoste to the product portfolio remains the catalyst for 2024 sales growth

Kimberly-Clark: Short-Term Tailwinds Dissipate

By Vladimir Dimitrov, CFA

  • Kimberly-Clark’s stock has enjoyed a brief period of at-par performance with the rest of the equity market.
  • Some of the tailwinds that made this rally possible are dissipating and are unlikely to provide a sustainable tailwind for shareholders.
  • In recent years, it has been next to impossible to conceive a long investment thesis for Kimberly-Clark (NYSE:KMB).

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Feb 21
0

Daily Brief United States: USD, Meta Platforms (Facebook), Huobi Token, Alight Inc, Borgwarner Inc, Hilton Worldwide Holdings, Kellogg Co, Dexcom Inc, Motorola Solutions and more

By | Daily Briefs, United States

In today’s briefing:

  • USDCNH: What Month End Close Will Confirm a Sustainable Multi-Month Uptrend with a 7.10/7.20 Target?
  • Dollar’O’Meter – Continued USD Weakening Ahead Based on Our Probability Weighted Models
  • Sporting Crypto – 20th Feb 2023: The Metaverse Might not Suck
  • BLUR’s Big Debut
  • Alight: A Highly Durable Business With Long-Term Potential
  • BorgWarner Inc.: Major Drivers
  • Hilton Worldwide Holdings Inc.: New Brand Addition & Other Drivers
  • Kellogg Company: Major Drivers
  • DexCom Inc.: G7 Upside & Other Drivers
  • Motorola Solutions Inc.: The ThinkPhone Launch & Other Drivers

USDCNH: What Month End Close Will Confirm a Sustainable Multi-Month Uptrend with a 7.10/7.20 Target?

By David Coloretti, CMT

  • At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.
  • USDCNH has delivered a most positive response to key Fibonacci support at 6.7143. February has the potential to confirm a renewed and sustainable multi-month uptrend.
  • A February month end close above 6.9213 will provide such confirmation and target 7.10/7.20 on a multi-month basis.

Dollar’O’Meter – Continued USD Weakening Ahead Based on Our Probability Weighted Models

By Andreas Steno

  • Our Dollar’O’Meter hints of further USD weakness on the cards in coming months
  • Relative liquidity, relative inflation and relative forward interest rates suggest a weaker USD
  • The outlook for the USD is a bit more muddy in H2-2023, but we remain negative for now

Sporting Crypto – 20th Feb 2023: The Metaverse Might not Suck

By Sporting Crypto

  • This weekend at the NBA All-Star weekend, we saw the NBA commissioner Adam Silver unveil an in-game streaming experience which had the internet in awe.
  • Many have decided to brand the ‘Metaverse’ a sham, a dystopian digital experience or something that just plain won’t work.
  • When Mark Zuckerberg changed Facebook’s name to ‘Meta’ to indicate the direction of travel he thinks the world is heading in — we should probably have sat up and said “there might be something there”

BLUR’s Big Debut

By Kaiko

  • Price Movements: Huobi listed a token representing a claim on FTX’s debt, which briefly surged to as high as $100 before crashing to $13. 
  • Market Liquidity: Coinbase trade volume is increasingly outpacing Uniswap’s, suggesting traders still prefer CEXs.
  • Derivatives: BTC open interest remains flat despite heavy volatility. 

Alight: A Highly Durable Business With Long-Term Potential

By Zippy Capital

  • Alight (NYSE: ALIT, $4.5b market cap) is a well-established company providing health, wealth, payroll administration, and human capital management cloud advisory services to most of the leading companies in the United States.
  • The company exhibits many qualities that make it an attractive long-term investment: this is an extremely sticky business with 97% revenue retention, high levels of recurring revenues, a market-leading position, and a blue-chip customer base.
  • Management also has many levers to accelerate growth further and improve profitability.

BorgWarner Inc.: Major Drivers

By Baptista Research

  • Despite the severe production unpredictability and inflationary pressures, BorgWarner performed strongly and delivered an all-around beat in the last quarter.
  • BorgWarner declared its intention to cut its absolute Scope 3 emissions by at least 25% by 2031.
  • The Scope 3 target was formally submitted to SBTi for certification together with their goal of achieving 85% absolute Scope 1 and Scope 2 emissions reductions by 2030.

Hilton Worldwide Holdings Inc.: New Brand Addition & Other Drivers

By Baptista Research

  • Hilton Worldwide Holdings delivered an all-around beat in its last result with strong free cash flows.
  • It distributed over $1.7 billion to shareholders for the entire year due to strong profits and increased margins.
  • We give Hilton Worldwide Holdings a ‘Hold’ rating with a revised target price.

Kellogg Company: Major Drivers

By Baptista Research

  • Kellogg ended the year with an all-around beat and double-digit net sales growth in every region, supported by end-market success.
  • The company continued to experience great growth in emerging countries, driven by its portfolio of noodles and other products in Africa.
  • They reduced the profit impact of abnormally high input costs that increased during the year using efficiency and well-planned activities for managing sales growth.

DexCom Inc.: G7 Upside & Other Drivers

By Baptista Research

  • DexCom’s performance in the quarter was strong, with total revenue increasing by 20%.
  • By the end of 2022, the company had over 1.7 million clients worldwide after adding nearly 450,000 new Dexcom users.
  • The management delivered an all-around beat and claims to have increased consumer engagement and growth while expanding the scope and effectiveness of its business.

Motorola Solutions Inc.: The ThinkPhone Launch & Other Drivers

By Baptista Research

  • Motorola’s Q4 results were an all-around beat as the company is seeing a strong demand for its business security products.
  • In the quarter, the company increased operating margins by 150 basis points, revenue by 17%, and profits per share by 26%.
  • They experienced 14% revenue growth in their Products and Systems Integration business, led by strong growth in both LMR and video security.

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Feb 19
0

Daily Brief United States: Advanced Micro Devices, Ford Motor Co, Hershey Co/The, Paypal Holdings, Philip Morris International and more

By | Daily Briefs, United States

In today’s briefing:

  • AMD: Underperforming The Market While Margins Hit All-Time Highs
  • Ford Motor Company: F1 Return In Collaboration With Red Bull & Other Developments
  • The Hershey Company: Major Drivers
  • PayPal Holdings Inc.: Major Drivers
  • Philip Morris International Inc.: Extended Long-Term Agreement With KT&G & Other Drivers

AMD: Underperforming The Market While Margins Hit All-Time Highs

By Vladimir Dimitrov, CFA

  • AMD’s revenue and margins hit an all-time high, and that’s bad news for AMD.
  • Investors should pay close attention to decisions regarding capital allocation, according to the product roadmap.
  • AMD is no longer the only game in town for semiconductors, and this is bad news to AMD.

Ford Motor Company: F1 Return In Collaboration With Red Bull & Other Developments

By Baptista Research

  • Ford Motor delivered a disappointing result in the last quarter.
  • The performance was below the expectation of the management as well as Wall Street and its industrial performance was not up to the mark.
  • However, Ford’s balance sheet liquidity stays strong, and the ability of the company to generate free cash flow has improved.

The Hershey Company: Major Drivers

By Baptista Research

  • Hershey ended the year on a strong note despite macroeconomic uncertainty, continued supply chain disruptions, and inflation.
  • Consolidated net sales, organic, constant currency net sales, and reported net income increased and the company managed an all-around beat.
  • The growth in net sales was driven mainly by net price realization, with steady consumer demand behind increased capacity and higher advertising levels.

PayPal Holdings Inc.: Major Drivers

By Baptista Research

  • PayPal Holdings delivered strong results in the last quarter surpassing Wall Street expectations in terms of revenues as well as earnings.
  • In the quarter, eBay Marketplaces revenue fell by 31%, and the take rate on these volumes dropped from 2.29% to 1.95%.
  • We give PayPal Holdings a ‘Buy’ rating with a revised target price.

Philip Morris International Inc.: Extended Long-Term Agreement With KT&G & Other Drivers

By Baptista Research

  • Philip Morris ended 2022 on a positive note and delivered another all-around beat.
  • The company’s volume increased significantly due to the ongoing IQOS development and steady cigarette volume.
  • Over a third of the total Philip Morris and more than 50% in 70 markets had smoke-free net revenues for the entire year.

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Feb 18
0

Daily Brief United States: Clorox Company, Estee Lauder Companies Cl A, Qualcomm Inc, Conocophillips, Honeywell International, Microchip Technology, Sirius Xm Holdings, Cardinal Health, Starbucks Corp, Copper and more

By | Daily Briefs, United States

In today’s briefing:

  • The Clorox Co: Major Drivers
  • The Estee Lauder Companies Inc.: Major Drivers
  • Qualcomm Technologies Inc.: New Launches & Other Drivers
  • ConocoPhillips: Collaboration With Sempra Infrastructure & Other Drivers
  • Honeywell International Inc.: Hydrogen Fuel Cells For Aviation & Other Drivers
  • Microchip Technology Inc: New Launches & Other Drivers
  • Sirius XM Holdings Inc.: Major Drivers
  • Cardinal Health Inc: Major Drivers
  • Starbucks Corporation: Web3 Odyssey Program & Other Drivers
  • Commodity Watch – What Super Cycle?

The Clorox Co: Major Drivers

By Baptista Research

  • Clorox delivered a solid set of results in the previous quarter with organic sales growth in 3 to 4 segments, double-digit earnings growth, and gross margin expansion, despite the challenges in the market due to an unstable global operating environment.
  • The company delivered an all-around beat and continued to work on the enhancement of its brand equity.
  • Clorox has been encountering different challenges in the macro environment for the past few quarters especially after the Covid-19 tailwinds have receded.

The Estee Lauder Companies Inc.: Major Drivers

By Baptista Research

  • Estee Lauder delivered a highly disappointing result despite surpassing Wall Street expectations in terms of revenues as well as earnings.
  • With its business continuing to be pressured by external headwinds resulting from the pandemic, the organic net sales and the earnings per share decreased in the quarter for Estee Lauder.
  • Estee Lauder should also benefit from the acquisition of Tom Ford in competing with L’Oréal.

Qualcomm Technologies Inc.: New Launches & Other Drivers

By Baptista Research

  • Qualcomm has been witnessing various short-term challenges impacting the semiconductor industry which is why its revenues in the last result were below Wall Street expectations.
  • In handsets, the recently announced Snapdragon Gen 2 mobile platform of the company in order to create AI-accelerated experiences for smartphones.
  • Within IoT, multiple end industries and the handset industry continue to experience weaker demand and elevated inventory levels.

ConocoPhillips: Collaboration With Sempra Infrastructure & Other Drivers

By Baptista Research

  • ConocoPhillips had a mixed result in the last quarter as the company was able to surpass the revenue expectations of Wall Street given its diversified and deep portfolio.
  • From a portfolio perspective, the company’s deep asset base is very well-positioned to generate solid cash flow and has generated a high return on capital.
  • The company has many new LNG opportunities in the United States and in Qatar which provide a strong upside.

Honeywell International Inc.: Hydrogen Fuel Cells For Aviation & Other Drivers

By Baptista Research

  • Honeywell had another challenging quarter with inflation headwinds and supply chain constraints still at play.
  • Modest improvement in the supply chain helped Honeywell to reduce its cost to use backlog and deliver more building management systems and fire products resulting in organic growth in the building products.
  • Advanced materials grew in the quarter, as seen from the strong value capture across the demand and portfolio in fluorine products.

Microchip Technology Inc: New Launches & Other Drivers

By Baptista Research

  • Microchip had a solid fourth quarter that surpassed Wall Street expectations in terms of revenues as well as earnings.
  • Microchip has also increased the raw materials inventory to protect the internal manufacturing chains.
  • In terms of new launches, Microchip launched the MIC69303RT, a 3A Low-Dropout Voltage Regulator in the previous quarter.

Sirius XM Holdings Inc.: Major Drivers

By Baptista Research

  • Sirius XM had a mixed quarterly result.
  • This was a challenging environment for the company as the auto sales were the lowest in 11 years in 2022.
  • Sirius XM is trying to attract more consumers to its platform and continues holding the largest share of car music outside combined terrestrial radio.

Cardinal Health Inc: Major Drivers

By Baptista Research

  • Cardinal Health, one of the largest wholesalers of the healthcare industry in the U.S., continued its strong performance in the last quarter and managed to deliver an all-around beat.
  • Cardinal Health’s total revenue has increased by 13% in the last quarter, and the gross margin increased by 3%, driven by the Pharma segment.
  • There was an increasing overall pharmaceutical demand and a strong performance from the Generics programs.

Starbucks Corporation: Web3 Odyssey Program & Other Drivers

By Baptista Research

  • Starbucks delivered a disappointing set of results as it failed to meet Wall Street expectations in terms of revenues as well as earnings.
  • The U.S. company-operated stores Starbucks have a decent revenue in the quarter, and so did North America overall.
  • In the quarter, it launched its first Starbucks reward named Reward Together partnership with Delta Airlines.

Commodity Watch – What Super Cycle?

By Andreas Steno

  • Where is the global commodity super cycle that everyone keeps predicting? 
  • Industrial metals have outperformed energy (as we predicted) and will likely continue to do so
  • Selective positioning in the commodity space remains of vital value with no super cycle in sight

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