In today’s briefing:
- Allegro MicroSystems Inc.: Enhanced Product Portfolio With Focus on Automotive & E-mobility Applications Driving Our Bullishness! – Major Drivers
- Asian Dividend Gems: Puregold Price Club
- NextAge (3186): What Went Wrong?
- Blackbaud Inc.: Is The Recent Underperformance Here To Stay? – Major Drivers
- frontdoor Inc.: Engagement & Upscaling via Technological Advancements & Other Major Developments
- Gentex Corporation: Recent Expansion of Full Display Mirror (FDM) Adoption
- Monthly Container Shipping Tracker: As Momentum Wanes, Best to Avoid Carriers’ Shares (October 2024)
- Halozyme Therapeutics Inc.: New Launches
- Braze Inc.: These Are The 5 Factors Driving Our ‘Buy’ Rating! – Major Drivers
- 10x Genomics Inc.: How Are They Adapting to Market Conditions & Customer Needs? – Major Drivers
Allegro MicroSystems Inc.: Enhanced Product Portfolio With Focus on Automotive & E-mobility Applications Driving Our Bullishness! – Major Drivers
- Allegro MicroSystems presented their first fiscal quarter 2025 results, positioning themselves within a competitive and challenging market environment.
- Positive indicators can be discerned from their performance, although there remain areas of concern which reflect broader market conditions and segment-specific issues.
- Starting with the positives, Allegro MicroSystems reported first-quarter sales of $167 million, which was above the midpoint of their guidance.
Asian Dividend Gems: Puregold Price Club
- Puregold has built an enormous moat in the Philippines around its hypermarket, supermarket, and discount/membership stores, which is evident on its steady growth in sales and profits amid challenging environment.
- Puregold has attractive valuations. Puregold is trading at attractive valuations of 2.7x EV/EBITDA, P/E of 8.6x, and P/B of 0.9x, based on 2025 consensus earnings estimates.
- In the next several years, the Philippines is expected to move into the upper middle-income economy which should have a positive impact on the consumption-led categories including supermarkets and hypermarkets.
NextAge (3186): What Went Wrong?
- Sales per outlet and gross margin per vehicle were supposed to rise in Q3. Instead, both went south, causing management to lower FY guidance about 50%.
- Evidence from the 1st and 2nd quarters that indicated an immanent turnaround simply vanished in the 3rd quarter.
- We lower our rating form “Massive Growth at Huge Discount” to “Decent Growth at Reasonable Price, No immanent catalyst.”
Blackbaud Inc.: Is The Recent Underperformance Here To Stay? – Major Drivers
- Blackbaud, Inc. reported a strong second quarter in 2024, showing significant improvement in various financial metrics and advancing its strategic initiatives.
- The company, a leading provider of software to power social impact, has focused on product innovation tailored for non-profit organizations while implementing crucial revenue initiatives and maintaining careful attention to cost management and cash flow enhancement.
- 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.
frontdoor Inc.: Engagement & Upscaling via Technological Advancements & Other Major Developments
- Frontdoor, Inc. delivered a robust financial performance for the second quarter of 2024, with notable progress on strategic fronts, despite facing macroeconomic challenges and a tough real estate environment.
- The company reported a revenue increase of 4% reaching $542 million and observed a significant expansion in gross margin, up by 470 basis points to 56%.
- Adjusted EBITDA improved by 31% to $158 million, and free cash flow saw a substantial rise, more than doubling to $91 million.
Gentex Corporation: Recent Expansion of Full Display Mirror (FDM) Adoption
- Gentex Corporation reported its financial results for the second quarter of 2024, revealing challenges in light vehicle production and sales.
- Net sales for the quarter were $572.9 million, a decrease from $583.5 million in the same period last year.
- The decline is attributed to a 3% drop in light vehicle production in North America, Europe, and Japan/Korea.
Monthly Container Shipping Tracker: As Momentum Wanes, Best to Avoid Carriers’ Shares (October 2024)
- In the September data are clear signs of slowing momentum & price moderation
- Seasonality, NAM de-stocking, anniversary of Red Sea re-routes all contributing
- Without catalysts, we would AVOID holding shares of global container names
Halozyme Therapeutics Inc.: New Launches
- Halozyme’s recent quarterly performance underscored a strong trajectory in its financial and operational fronts.
- The company, which specializes in the ENHANZE drug delivery technology, reported robust second-quarter earnings, with total revenue hitting $231 million, showing a growth that aligns with the company’s full-year expectations of 13% to 22%.
- Notably, royalty revenues increased by 12%, reaching $125 million.
Braze Inc.: These Are The 5 Factors Driving Our ‘Buy’ Rating! – Major Drivers
- Braze, a prominent player in customer engagement technology, showcased a robust fiscal second quarter for 2025, demonstrating continued growth and financial improvements.
- The company reported a 26% rise in revenue, reaching $145.5 million, driven by both existing customer expansions and new client acquisitions.
- Notably, non-GAAP gross margin improved by 90 basis points year-over-year to 70.9%, reflecting operational efficiencies.
10x Genomics Inc.: How Are They Adapting to Market Conditions & Customer Needs? – Major Drivers
- 10x Genomics, a leader in single-cell and spatial technologies, presented a mixed financial and operational report for Q2 2024, characterized by modest revenue growth alongside strategic advancements and evident pressures from the external economic environment.
- On the financial front, 10x Genomics reported a revenue increment of 4% year-over-year, reaching $153 million, driven particularly by robust demand for spatial consumables and a sequential increase in single-cell consumables.
- Notably, the company achieved a free cash flow positive status during the quarter.
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