In today’s briefing:
- Pre-IPO Lu DaoPei Medical Group – Profitability Is Disappointing Despite Big Potential Theoretically
- AT&T Inc.: Low Churn & Rising ARPU Saving The Day? – Key Drivers
- F5 Inc.: A Resilient Performer Amidst Macro Uncertainty – Key Drivers
- Nucor Corporation: Upside From Steel Recycling & Other Drivers
Pre-IPO Lu DaoPei Medical Group – Profitability Is Disappointing Despite Big Potential Theoretically
- The government has started to encourage social capital to run hospitals. By entering the market that haven’t been fully covered by public hospitals, LDP has large development space theoretically.
- The current gross profit margin of LDP isn’t satisfactory. Together with continuous expansion of new hospitals with large investment, LDP could face either continuous loss or very low profit margin.
- China’s high degree of regulation depresses medical service price.The benefit chain of hospitals is complicated.In essence, an industry with low level of terminal payment is hard to generate high profits.
AT&T Inc.: Low Churn & Rising ARPU Saving The Day? – Key Drivers
- AT&T delivered mixed results in the quarter with below-par revenues but profitability above expectations.
- As a result, wireless service revenues and EBITDA may increase, and margins may improve.
- Despite a slowdown in industry growth, their Business Solutions wireless service revenues increased by almost 7%.
F5 Inc.: A Resilient Performer Amidst Macro Uncertainty – Key Drivers
- F5 managed an all-around beat in its second quarter results despite ongoing macro-uncertainty.
- Global Services revenue increased by 8% to $363 million, owing to high maintenance renewals and the effects of the price increase implemented in Q4 of last year.
- Product sales increased 14% year on year, reflecting strong system shipments compared to a more difficult comparison in the previous quarter.
Nucor Corporation: Upside From Steel Recycling & Other Drivers
- Nucor Corporation delivered a mixed set of results in the quarter, failing to meet revenue expectations of Wall Street but managing an earnings beat.
- Its result was largely attributed to Nucor’s steel products segments’ continued profitability as well as higher volumes and margins at its steel mills segment.
- Shipments from Nucor’s steel mills increased by 18%, increasing their utilization to almost 80% in Q1 from 70% in Q1 of last year.
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