Daily Brief United States: Advanced Micro Devices, Amazon.com Inc, Trimas Corp, A10 Networks, Abercrombie & Fitch Co Cl A, VAALCO Energy, Hilton Worldwide Holdings , Urban-Gro and more

• Q124 revenues of $5.5 billion, $100 million above the guided midpoint, down 11% QoQ but up 2% YoY.
• Looking ahead, AMD forecasted the current quarter revenues of $5.7 billion, up 3.6% sequentially.
• Share price down 7% in AH and down 35% from its recent 52 week high. We could see it retest the $100 level in the coming months

• Now that Meta, Alphabet, Microsoft, and Amazon all reported their quarters, we now have better context to how their quarters went.
• So, while I will mostly discuss Amazon’s earnings in this update, I will briefly touch on some broader themes as well.
• Overall revenue was slightly below the high end of Amazon’s guidance.

• TRS reported first quarter results confirming a turnaround in the packaging segment could be underway
• Packaging is TRS’s largest business segment and had undergone a restructuring last year. The increase in sales has done little to impress investors
• TRS reported first quarter sales of $227.1 million compared to our estimate of $216.2 million. The biggest driver for the outperformance was the packaging segment

• ATEN reported first quarter results exhibiting much of the issues that plagued the business in the past couple of years have not fully departed from the industry.
• ATEN reported revenue slightly higher than we were projecting resulting in year over year growth.
• ATEN’s stock has not reached previous highs with investors most likely waiting for a signal that revenue would surpass 2022 level. This is more likely a 2025 event

• We are reiterating our Buy rating, projections and price target for a.k.a. Brands with the company announcing 1Q24 (March) results after the close on Wednesday.
• We believe 1Q will be another period of rebuilding momentum and credibility, with the cleanup continuing at Culture Kings, Princess Polly adding new retail stores to the mix and rolling out new categories to become even more of a lifestyle brand and Petal & Pup leveraging new digital marketplace relationships and continued dress-driven expansion.
• Further, we believe management remains laser focused on reducing both inventory exposure and net debt.

• A diverse mix of producing assets in Gabon, Egypt, and Canada, coupled with future development projects in Equatorial Guinea and Cote d’Ivoire, positions VAALCO with an asset base that could generate substantial free cash flow to reinvest for growth and continue returning cash to shareholders in the coming years.
• VAALCO closed the Svenska acquisition on April 30, 2024, for $40.2 million in cash.
• The primary asset is a 27.39% non- operated working interest in the deepwater producing Baobab field in Block CI-40 offshore Cote d’Ivoire.

• Hilton is a well-established franchisor of hotel brands with a history dating back to 1919
• While not offering high expected returns, Hilton is viewed as a solid business opportunity with the potential for steady growth in intrinsic value
• Through significant events like its IPO, acquisition of Promus, LBO by Blackstone, and spin-offs, Hilton has positioned itself as a stable and well-run option for investment portfolios in the global travel industry

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• We are reiterating our Buy rating and $8 price target and conservatively leaving our 2024 and 2025 revenue and Adjusted EBITDA projections unchanged after urban-gro registered upside in 1Q top and Adjusted EBITDA and reiterated prior 2024 guidance.
• That said, with the Drug Enforcement Agency approving the reclassification of cannabis from a Schedule I to Schedule III drug, and the potential for Florida to approve recreational cannabis usage in November, we believe our 2H24 and especially 2025 projections could prove highly conservative.
• As such, we are reiterating our Buy rating and $8 price target.