In today’s briefing:
- Lowe’s Companies: A Dive Into Its Brand Strength & Market Position! – Major Drivers
- Oddity Tech: ~34% Downside Risk As Growth Will Slow Down
- Clarity Pharmaceuticals Ltd (CU6 AU): An Attractive Bet on Red Hot Radiopharmaceutical Field
- Cardinal Health Inc.: How Are They Achieving Specialty Business Growth Despite Nonrenewal Challenges! – Major Drivers
- Coherent Corp.: How Is The Management Executing Portfolio Optimization and Operational Execution Improvements! – Major Drivers
- Deere & Company: These Are The 4 Biggest Challenges In Its Path! – Major Drivers
- Estée Lauder Companies: A Tale Strategic Pricing & Precision Marketing! – Major Drivers
- Fabrinet (FN): A Bear’s Perspective! – Major Drivers
- JD.com Inc.: Enhancing Platform Ecosystem For Third-Party Sellers As A Key Growth Catalyst! – Major Drivers
- Lumentum Holdings Inc.: Expansion in High-Speed Optical Transceivers & Other Major Drivers
Lowe’s Companies: A Dive Into Its Brand Strength & Market Position! – Major Drivers
- Lowe’s Companies’ second quarter 2024 earnings outlined a mixed performance amid challenging market conditions, reflecting both the strengths and weaknesses of its current business strategy.
- The company reported Q2 sales of $23.6 billion, with comparable sales down by 5.1%.
- This decline was attributed to a decrease in demand for Do-It-Yourself (DIY) projects, partially mitigated by solid performance in the Professional (Pro) segment and a growth in online sales.
Oddity Tech: ~34% Downside Risk As Growth Will Slow Down
- Oddity Tech, owner of famous global brands IL MAKIAGE and SpoiledChild, is growing slower than in 2022 and 2023. The overall growth will slow down to ~20% y/y in 2025.
- According to my estimates and SEC filings, private equity firm L Catterton, the largest shareholder, reduced its stake in Oddity Tech to 18.4%, down from ~42% prior to an IPO.
- I see ~34% downside risk in Oddity Tech stock as growth will slow down and the company will launch new brands only in the second half of 2025.
Clarity Pharmaceuticals Ltd (CU6 AU): An Attractive Bet on Red Hot Radiopharmaceutical Field
- Clarity Pharmaceuticals Ltd (CU6 AU) received FDA fast track designation for its lead candidate 64Cu-SAR-bisPSMA for PET imaging of prostate cancer lesions. Currently, 64Cu-SAR-bisPSMA is in phase 3 trial.
- If approved, 64Cu-SAR-bisPSMA has the potential the best-in-class diagnostic as the product has improved lesion detection capability compared to existing prostate cancer diagnostics.
- Clarity’s copper platform, strong prostate pipeline and therapeutic and diagnostic efficacy data represents an attractive opportunity to grow a significant radiopharmaceutical franchise in oncology and other indications.
Cardinal Health Inc.: How Are They Achieving Specialty Business Growth Despite Nonrenewal Challenges! – Major Drivers
- Cardinal Health Incorporated has shown a remarkable year with strong operational performance, achieving a considerable improvement in key financial metrics as highlighted in their Fourth Quarter FY 2024 Earnings.
- During the fiscal year 2024, Cardinal Health reported striking growth in earnings per share (EPS), marking a 29% increase in both the fourth quarter and for the entire year.
- The substantial growth in EPS throughout FY 2024 to $7.53 indicates a positive trajectory exceeding the company’s initial guidance significantly.
Coherent Corp.: How Is The Management Executing Portfolio Optimization and Operational Execution Improvements! – Major Drivers
- Coherent Corp. concluded its fiscal year 2024 with financial results reflecting a positive trajectory, showing a 9% sequential and year-over-year revenue growth primarily driven by robust demand in datacom transceivers for AI data-centric deployments.
- This was further accentuated by Non-GAAP gross margin expansion of 145 basis points compared to the previous quarter, underpinned by resolution of prior transitory issues and a substantial growth in Non-GAAP EPS by 16% sequentially and almost 50% year-over-year.
- 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.
Deere & Company: These Are The 4 Biggest Challenges In Its Path! – Major Drivers
- Deere & Company reported its third-quarter earnings, revealing a mixed financial performance amid varied market conditions across its segments.
- Despite a tough macroeconomic environment, the company maintained a disciplined approach, particularly in managing inventory and costs, which was evident from an equipment operations margin of 18.5%.
- However, the reduced demand in both agricultural and construction sectors, coupled with price competition, led to a decline in net sales and revenues by 20% and 17% respectively, totaling $11.387 billion and $13.152 billion.
Estée Lauder Companies: A Tale Strategic Pricing & Precision Marketing! – Major Drivers
- Estée Lauder Companies’ fiscal 2024 results reflect a challenging environment particularly impacted by market conditions in China and the Asia-Pacific region.
- The fiscal year witnessed a 2% contraction in organic sales, with a modest gross margin expansion and a decline in adjusted operating margin by 120 basis points to 10.2%.
- The company’s performance in various regions displayed disparity, with noted declines in Mainland China contrasted by growth in EMEA (Europe, the Middle East, and Africa) primarily due to a recovery in Asia travel retail.
Fabrinet (FN): A Bear’s Perspective! – Major Drivers
- Fabrinet concluded the fiscal year 2024 on a strong note with record revenue and earnings per share, reflecting robust execution across its business segments.
- For the fourth quarter, the company posted revenue of $753 million, exceeding its guidance and marking a 15% year-over-year increase and a 3% increase sequentially.
- Non GAAP earnings per share for the quarter came in at $2.41, also surpassing the projected range.
JD.com Inc.: Enhancing Platform Ecosystem For Third-Party Sellers As A Key Growth Catalyst! – Major Drivers
- JD.com reported its second quarter and interim 2024 earnings, presenting a mixed performance amid challenging market conditions.
- The company achieved record non-GAAP net profit for a single quarter, indicating strong profitability and effective cost management.
- However, revenue growth was modest, reflecting the competitive and dynamic nature of the market JD.com operates in.
Lumentum Holdings Inc.: Expansion in High-Speed Optical Transceivers & Other Major Drivers
- Lumentum Holdings, a provider of optical and photonic solutions, reported mixed performance in its fourth quarter fiscal year 2024 results.
- The company experienced a decrease in both the Cloud & Networking and Industrial Tech segments but made significant progress in expanding its customer base and advancing its technology for future growth, particularly in high-speed optical transceivers and datacom components.
- 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.
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