In today’s briefing:
- Amazon 2Q’23 Earnings Update
- Ideanomics Inc.: 4 Major Drivers That Are Taking The Company Forward! – Financial Forecasts
- TPL: Not Just Oil and Gas Story Anymore
- O’Reilly Automotive Inc.: Continued Store Additions & Other Factors Driving Growth! – Financial Forecasts
- SHEN: Calling to Sidelines, Neutral Rating
- Intuit: 30% Year-To-Date Return Is Something You Should Extrapolate Into The Future
- ASRT: Generic Risk Extends Timeline, PT $6
- UPDATE NOTE – AdTheorent Holding Company, Inc.
Amazon 2Q’23 Earnings Update
- 3P, subscription, and AWS grew by mid to high teen while ad segment increased by 20%+
- The mix-shift from product to services in Amazon continues as services mix increased from ~40% in 2018 to ~60% in 2023.
- Let’s start more segment level discussion with AWS.
Ideanomics Inc.: 4 Major Drivers That Are Taking The Company Forward! – Financial Forecasts
- Ideanomics had a strong quarter.
- Solectrac and Energica, in particular, demonstrated strong growth and demand in the agriculture and motorcycle markets.
- Ideanomics remains committed to its capital investment for future profitability, with an optimistic outlook driven by the increasing demand for the company’s products and services.
TPL: Not Just Oil and Gas Story Anymore
- TPL captured more water business in the second quarter than the Company had previously achieved leading to revenue and earnings exceeding our expectations
- The water business has been a revenue source smoothing out the volatility associated with the movement in oil and gas prices and production levels
- While TPL is not expecting to repeat second quarter levels in the third quarter, the water business should continue to perform better than previously expected
O’Reilly Automotive Inc.: Continued Store Additions & Other Factors Driving Growth! – Financial Forecasts
- O’Reilly Automotive managed to exceed the revenue as well as earnings expectations of Wall Street driven by strength in consumption and a robust increase of 16% in diluted earnings per share.
- Strength in the ticket count comps, particularly in the company’s professional business was a great contributor to the outperformance.
- We give O’Reilly Automotive a ‘Hold’ rating with a revised target price.
SHEN: Calling to Sidelines, Neutral Rating
- SHEN Continued to add subscribers to the Glo Fiber service. The rate of subscriber growth has steadily increased with the expansion in the number of homes passed
- We are upgrading our rating to Neutral in reflection of the progress SHEN has made
- SHEN is planning to reach approximately 500 thousand homes passed by 2026 from approximately 183 thousand currently
Intuit: 30% Year-To-Date Return Is Something You Should Extrapolate Into The Future
- The recent rally in growth stocks has supported the share price, but this trend may not last for long.
- In spite of the company’s strong pricing power, margins are under pressure and risks related to capital allocation remain.
- The company’s stock has performed well but this is not reflective of its actual business performance.
ASRT: Generic Risk Extends Timeline, PT $6
- ASRT reported better than expected second quarter revenue, but surprised investors with the announcement of a generic competitor for Indocin leading to management pulling guidance.
- Indocin has been on the market for many years and generic competition was likely. Yet, there is no information on how well the competitor could manufacture enough indomethacin
- We do not believe the third quarter is at risk and we doubt more generic competitors would surface.
UPDATE NOTE – AdTheorent Holding Company, Inc.
2Q23 revenue of $37.6 million was above consensus of $36.4 million.
The challenging advertising market conditions have continued but EPS of $0.09 was significantly ahead of consensus of a loss of $0.01.
The company (which has no debt) has more than $73 million in cash and reaffirmed its full-year guidance.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
