In today’s briefing:
- Applied Materials: The Stock Is Reasonably Valued on Modest Expectations. More Attractive than ASML.
- CCC Intelligent Solutions Holdings Inc.: Can Its Adoption of New Solutions Give Them A Competitive Edge? – Major Drivers
- [Earnings Review] Shell Exceeds Expectations as Robust LNG Sales Counter Weak Refining Margins
- Cadence Design Systems: Its Efforts Towards Diversification & Growth in System Design & Analysis & Other Major Drivers
- EB: Ticketing a Turnaround
- Crypto Moves #52 – Are You Ready for Altcoin Season?
- Leggett & Platt’s Innovation Push: Will New Product Launches & Tech Upgrades Drive a Turnaround? – Major Drivers
- Balchem Corporation: An Analysis Of Its Expanded Product Portfolio & Other Major Drivers
- Cavco Industries Inc.: Enhancements in Sales Strategies & Market Penetration As A Critical Growth Lever! – Major Drivers
- Is Ford’s Future on the Line? The Impact of Trump’s Tariffs and EV Tax Cuts Explained!
Applied Materials: The Stock Is Reasonably Valued on Modest Expectations. More Attractive than ASML.
- Management reiterates 1) growth accelerating on Advanced Logic (Gate All Around, Back Side Power), Advanced Packaging incl HBM, DRAM capacity additions 2) improving margins 3) energy-efficient computing driving materials innovation.
- The risk is Mature node Capex slowdown in China, which we think is underestimated for 2025. China revenue: AMAT 30%, ASML 47%.
- AMAT is trading at reasonable multiples on modest Consensus expectations, upside possible as 2nm and HBM accelerate. ASML is trading on rich multiples, on rich expectations, less room for upside.
CCC Intelligent Solutions Holdings Inc.: Can Its Adoption of New Solutions Give Them A Competitive Edge? – Major Drivers
- CCC Intelligent Solutions’ third-quarter fiscal 2024 performance highlighted both consistent financial growth and evolving challenges within the insurance and vehicle repair industries.
- The company reported a total revenue of $238 million, reflecting an 8% increase year-over-year, slightly exceeding their guidance range.
- Adjusted EBITDA was $102 million, a 9% improvement from the previous year, supporting a strengthened adjusted EBITDA margin of 43%.
[Earnings Review] Shell Exceeds Expectations as Robust LNG Sales Counter Weak Refining Margins
- Shell’s Q2 revenue fell by 7.4% YoY and its adjusted earnings dropped by 3.1%. However, its revenue and EPS surpassed analyst expectations by 2.3% and 13.1%, respectively.
- Shell’s free cash flow rose 44.4% YoY to USD 10.8 billion, while its net debt fell to its lowest since 2015, dropping by 13.1% YoY to USD 35.2 billion.
- Shell’s LNG sales grew 6.4% YoY, while oil and gas production earnings rose 9% YoY, supported by a 3.1% production increase from new fields.
Cadence Design Systems: Its Efforts Towards Diversification & Growth in System Design & Analysis & Other Major Drivers
- Cadence Design Systems, Inc. reported its financial results for the third quarter of 2024, recording impressive performance across various aspects of its business.
- Total revenue for the quarter surpassed $1.2 billion, reflecting a 19% year-over-year growth.
- This was accompanied by a non-GAAP operating margin of 44.8% and non-GAAP earnings per share (EPS) of $1.64.
EB: Ticketing a Turnaround
- EB showed a gradual sequential improvement in operating metrics in the third quarter. EB is anticipating greater positive gains in the number of event creators in the fourth quarter
- EB reported third quarter revenue of $77.8 million compared to our estimate of $76.1 million. EB did have a year over year decline in paid tickets and paying creators.
- EB is projecting Q4 revenue of $74 million to $77 million and an adjusted EBITDA margin of 10 percent. We were anticipating revenue of $74 million due to the seasonality.
Crypto Moves #52 – Are You Ready for Altcoin Season?
- In Crypto Moves #18 from early March this year, we referred to this crypto bull market as the least speculative in the history of the crypto market.
- By Crypto Moves #35 in early July, we reaffirmed this view.
- Meanwhile, during this period, Bitcoin had outpaced almost every other altcoin.
Leggett & Platt’s Innovation Push: Will New Product Launches & Tech Upgrades Drive a Turnaround? – Major Drivers
- Leggett & Platt’s third quarter 2024 results reflect a challenging performance environment driven by several demand and operational pressures.
- Overall sales amounted to $1.1 billion, representing a 6% decline year-over-year.
- The decrease was primarily attributed to volume declines across all three business segments—Bedding Products, Specialized Products, and Furniture, Flooring and Textile Products—coupled with reductions in raw material-related selling prices.
Balchem Corporation: An Analysis Of Its Expanded Product Portfolio & Other Major Drivers
- Balchem Corporation’s third-quarter results for 2024 highlight its resilience and adaptability amid a mixed economic environment, showcasing strengths that bolster its growth potential while also signaling areas for investor caution.
- The company posted impressive financial results, with revenues reaching $240 million, a 4.3% increase compared to the previous year.
- This growth was mainly driven by robust performances in the Human Nutrition & Health and Specialty Products segments.
Cavco Industries Inc.: Enhancements in Sales Strategies & Market Penetration As A Critical Growth Lever! – Major Drivers
- Cavco Industries, Inc. has presented its second quarter results for the fiscal year 2025, reflecting a period mixed with challenges and growth opportunities.
- As a manufacturer of manufactured homes, modular homes, park model RVs, and commercial structures, Cavco’s performance in the quarter was notably impacted by external factors, particularly Hurricanes Helene and Milton, which caused disruptions in the Southeast United States, a key market for the company.
- Despite these disruptions, the company’s proactive measures and resilience contributed to minimal operational damage and a swift recovery, showcasing strong crisis management.
Is Ford’s Future on the Line? The Impact of Trump’s Tariffs and EV Tax Cuts Explained!
- Ford Motor Company presented its results for the third quarter of 2024, revealing a blend of strategic maneuvers and ongoing challenges.
- The earnings call highlighted several key points that could form the basis of an investment thesis.
- On the positive side, Ford has demonstrated significant progress in restructuring its global operations.
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