In today’s briefing:
- Broadcom’s Strong Quarterly Results In The Light Of Its Acquisition-Led Strategy
- S&P/ASX Index Rebalance (Mar 2023): Big Impact Changes as Adds Outperform Deletes
- Abbott Laboratories: Major Drivers
- Plug Power Inc.: Major Drivers
- Veeva Systems Inc.: Major Drivers
- Las Vegas Sands Corp: Major Drivers
- Gale-Force Headwinds Rage Against Culp Top Line and Profits
- Lowe’s Companies Inc.: Collaboration With Klein Tools & Other Drivers
- Merck & Co. Inc.: Licensing Agreement With Kelun Biotech & Other Drivers
- Okta Inc.: Major Drivers
Broadcom’s Strong Quarterly Results In The Light Of Its Acquisition-Led Strategy
- Broadcom remains as one of the best-positioned semiconductors stocks, but lower topline growth is to be expected going forward.
- Broadcom has so far done a great job at expanding its product and service offerings through M&A deals.
- Broadcom Inc. (NASDAQ:AVGO) has just reported yet another strong fiscal Q1 2023 quarter, marked by high top and bottom line growth.
S&P/ASX Index Rebalance (Mar 2023): Big Impact Changes as Adds Outperform Deletes
- There is one change for the ASX20, two for the ASX100, four for the S&P/ASX 200 INDEX and 12 adds/ 9 deletes for the ASX300 Index at the March rebalance.
- There will be between 7-20 days of ADV to trade on the ASX100 and ASX200 adds while the impact on the deletions is between 1-11 days of ADV.
- The adds have outperformed the deletes on all indices over the last few months. Short interest has jumped on a lot of the large deletes.
Abbott Laboratories: Major Drivers
- Abbott saw another highly successful quarter and managed an all-around beat as routine testing trends and hospital-based procedures continued to improve progressively in several areas.
- In the quarter, the sales growth was impacted negatively by a year-over-year decline in the Covid test sales.
- With the recovery of the manufacturing brand, production of its non-WIC brands has increased.
Plug Power Inc.: Major Drivers
- Plug Power’s performance in the quarter was very disappointing as it failed to meet the revenue expectations of analysts.
- The company reported wider than expected losses and it continues to deliver weak results adversely affecting its market sentiment.
- Plug electrolyzers and cryogenic equipment is anticipated to be used in their operations to create and deliver liquid hydrogen via Plug trailers.
Veeva Systems Inc.: Major Drivers
- Veeva Systems finished the year on a strong note with both, its revenues as well as earnings exceeding the expectations of analysts as well as the management.
- The management claims that it was a watershed year for clinical data management, with significant momentum in emergent areas like Safety, Link, and Compass.
- We give Veeva Systems a ‘Hold’ rating with a revised target price.
Las Vegas Sands Corp: Major Drivers
- Las Vegas Sands delivered a highly disappointing result as it failed to meet Wall Street expectations in terms of revenues as well as earnings.
- The track record in the non-gaming, scale, and diversity makes Las Vegas Sands uniquely position to cater to all the segments of the market.
- We provide the stock of Las Vegas Sands with a ‘Hold’ rating with a revision in the target price.
Gale-Force Headwinds Rage Against Culp Top Line and Profits
- After the close Wednesday, Culp reported a 3QFY23 GAAP EPS loss of $0.73 on sales of $52.5 million, both missing our estimates (loss of $0.49, sales of $57 million) and consensus (loss of $0.62 and $54.9 million).
- Adjusted for a restructuring charge, the EPS loss was $0.67.
- Culp continues to confront weak markets in both the Mattress Fabrics (CHF) and Upholstery Fabrics (CUF) segments.
Lowe’s Companies Inc.: Collaboration With Klein Tools & Other Drivers
- Lowe’s Companies delivered a mixed set of results in the fourth quarter.
- Another notable category, Paint, saw strong pro-growth driven by its MVPs Pro Paint Rewards and Pro JobSIGHT delivery.
- Among other updates, Lowe’s collaborated with Klein Tools to give Klein Tools a strong presence in the electrical and tool departments of Lowe’s.
Merck & Co. Inc.: Licensing Agreement With Kelun Biotech & Other Drivers
- Merck has delivered a strong quarterly result to end 2022 and surpassed the analyst consensus estimates in terms of revenues as well as earnings.
- The top-line performance was driven by strength across the company’s key pillars, hospitals, vaccines, and oncology, and a significant contribution from LAGEVRIO.
- The animal health business of Merck delivered strong operational growth.
Okta Inc.: Major Drivers
- Okta delivered a strong fourth-quarter performance which was highlighted by an all-around beat as well as a significant improvement in profitability and cash flow.
- The end of the 2023 fiscal was strong, with sustained improvement in its go-to-market business performance.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
💡 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
