Daily Brief United States: Abercrombie & Fitch Co Cl A, Symbotic, USD, Academy Sports & Outdoors , Fortrea Holdings , Zephyr Energy, ACI Worldwide, Asbury Automotive, GameStop, Madison Square Garden Sports Corp. and more

• Abercrombie & Fitch Co.
• emerged from 2023 with significant achievements, marking it as a defining year for the company.
• The brand witnessed a 15.8% increase in sales, reaching $4.28 billion, which not only represents its second highest annual sales level in history but also a testament to its robust growth strategy.

• Symbotic is a warehouse automation technology leader and offers end-to-end AI-powered robotic and software platform for supply chains.
• SYM’s hi-tech platform forms its deep competitive moat underpinned by significant R&D spend of $800 million and 575 issued or pending patents.
• Our positive outlook for SYM is underpinned by its hi-tech platform , a large TAM, robust order backlog ($23.2B) and its JV deal with Softbank that opens a large market.

• Powell’s dovish tone at the press conference led to initial market reaction, but subsequent dollar rally due to revised growth and inflation forecasts in the SCP release
• Market leaning towards higher median dot in SCP, but overall outlook remains for shallower cutting cycle by Fed
• Yen vulnerability due to negative real yields despite BOJ rate hikes, yen weakening may impact other Asian currencies and markets

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• This is our first report on sports products major, Academy Sports and Outdoors.
• In the Q4 and 2023 fiscal year call of Academy Sports and Outdoors, the management reported impressive sales improvement during the quarter and significant progress in their long-term strategic objectives.
• Sales came in at $1.8 billion, which was a 2.8% increase in total and adjusted earnings per share increased by 8%.

• This is our first report on Fortrea Corporation, a renowned contract research organization (CRO).
• The company reported its fourth quarter 2023 earnings, recording revenue growth of 1.8% year-over-year to $775.4 million.
• CEO Tom Pike praised the company’s transformation over 2023, managing to transition from a division within a larger parent company to a stand-alone entity.

• In October 2023, Zephyr announced the acquisition of at least a 75% WI in the Salt Wash field, located ~3 miles to the south of the Paradox project.
• Salt Wash has a 15 feet oil rim, above which is an inert gas cap (~500 feet of gas column) which consists of ~72% nitrogen, 22% hydrocarbon gases, and 1.4% to 1.7% helium content.
• The field was abandoned in 2014 after having produced 1.65 mmbbl of oil and 11.7 bcf of natural gas.

• This is our first report on software player, ACI Worldwide Inc. The company delivered a solid earnings performance for the fourth quarter and full year ended 2023.
• The company witnessed a strong acceleration in growth, with a revenue growth of 9% and an EBITDA growth of 32% in its Biller segment.
• The company also demonstrated growth in its banking segment, with revenue growth of 35% and 24% in its anti-fraud and real-time payment solutions respectively.

• This is our first report on Asbury Automotive Group Inc. The company’s fourth quarter 2023 earnings showcased a year of considerable growth and progress.
• The company delivered $14.8 billion in revenue, had a gross profit margin of 18.6%, and an adjusted earnings per share of $32.60.
• Asbury generated an adjusted operating margin of 7.3% and an adjusted EBITDA of over $1.1 billion.

• This is our first report on popular meme stock, GameStop Corporation.
• GameStop’s transformation over the past two years is evident in its financial results and strategic shifts.
• In 2021, it faced bulky debt, a diminishing cash balance and strained vendor relationships.

• This is our first report on Madison Square Garden Sports Corp.
• The company’s Fiscal 2024 second quarter exhibited a mix of positives and negatives that provide a balanced perspective for potential investors.
• Beginning with the positives, the company’s performance reflected a positive operational momentum that has resulted in a growth in revenues and adjusted operating income.