Daily Brief United States: Amazon.com Inc, Crude Oil, Exxon Mobil, Meta Platforms (Facebook), Sharecare , Laureate Education, American Tower, Radiant Logistics, Hawkins Inc, JAKKS Pacific and more

• Amazon anticipates a 13% YoY rise in Q2 2024 revenue to $148.67 billion and a 58% YoY jump in EPS to $1.03, highlighting robust earnings.
• AWS is expected to see a $1 billion increase in quarterly revenue, reflecting an 18% year-over-year growth, driven by custom AI chips and model training services.
• Analysts have reaffirmed buy ratings for Amazon, with an average target price of $228, reflecting strong confidence in the company’s growth prospects.

• US crude inventories fell for the fifth consecutive week by 3.4 mb, exceeding the 1.6 mb decline expected by analysts. Gasoline stocks also decreased by 3.7 mb.
• As of the week ending 26/Jul, US natural gas inventories were up 8.4% YoY and 15.7% above the 5-year seasonal average.
• European oil majors beat Q2 profit estimates. BP’s Q2 underlying net profit beat estimates by 7.7%. Shell’s Q2 EPS beat estimates by 5.1%. 

• ExxonMobil anticipates a USD 1.1 billion to USD 1.5 billion dent on its Q2 earnings due to the industry-wide contraction in refining margins.
• Exxon Mobil anticipates the USD 300 million to USD 700 million negative impact on earnings from lower gas prices to be offset by gains from higher oil prices.
• Since acquiring Pioneer, Exxon more than doubled production to 1.3 mboepd from 2023. Full merger effects are expected in Q3.

• Meta’s Q2 revenue of $39.1B surpassed expectations, up 22% YoY. EPS jumped 73% YoY to $5.16, beating estimates.
• Ad revenue within the Family of Apps rose 22% YoY, driven by online commerce and strong performance in Europe and the Rest of the World.
• Q3 revenue forecasted between $38.5B and $41B. Meta’s AI investments are set to enhance ad delivery and support long-term growth, despite increasing CapEx.

• Sharecare is a data-driven healthcare platform with three segments and access to a large amount of data from claims and eligibility information for 13 million covered lives
• The company has a market cap of $243 million and generates around $445 million in revenue, with an adjusted EBITDA breakeven
• Sharecare has a strong cash position, no debt, and a promising outlook for their life sciences segment, making it a potentially valuable investment opportunity

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.

• Laureate is a branded consumer business in the private higher education market in Mexico and Peru with strong growth potential
• The company has a solid balance sheet, is trading at low earnings multiples, and has untapped growth opportunities
• Laureate’s shares are undervalued due to potential association with the troubled for-profit education sector, but management may explore selling assets if shares remain undervalued, providing downside protection for investors

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.

• American Tower is a leading owner, operator, and developer of communications real estate with a large portfolio in the US
• The author sees the current trading in American Tower as an attractive entry point for investors
• The tower business is described as having valuable real estate, organic growth driven by data consumption, and strong demand for communication infrastructure

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.

• Despite significant improvements in financial performance, Radiant Logistics’ share price has not reflected the company’s growth over the past seven years.
• The company’s strong balance sheet, free cash flow generation, and potential for growth through acquisitions make the stock appear undervalued.
• Radiant, a provider of third-party logistics services, may be an attractive acquisition target for larger logistics companies in the future.

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.

• HWKN reported fiscal first quarter (June) where the water treatment business surpassed the industrial segment in sales and helped HWKN exceed our earnings estimate. 
• The water treatment business has grown through acquisition to a point where the segment has become a dominant portion of HWKN’s sales. 
• A higher earnings profile for HWKN and earnings continuing to grow in fiscals 2025 and 2026 leads us to raise our price target to $122 from $96.

• We are reiterating our Buy rating and $24 price target and raising our 2024 and 2025 projections for JAKKS Pacific after the company handily beat our 2Q24 projections, as gains in the core business offset expected material weakness in content-led (i.e. movie driven) offerings.
• Further, with the recent launch of The Simpsons and Authentic Brands driven licensed offerings, the upcoming launch of key Holiday movie properties (Moana 2 and Sonic the Hedgehog 3), new owned properties and a continued focus on international expansion, we view our projections, even after our top and bottom line increases, as conservative.
• Further, with JAKK continuing to trade at a material discount to their peers, we believe the risk/reward in the name remains impressive, and we reiterate our Buy rating and $24 price target.