Daily Brief United States: Cintas Corp, Dow Inc, Eastman Chemical Co, General Mills, Immix Biopharma Inc, Qualcomm Inc, Steelcase Inc Cl A and more

• This is our first report on Cintas Corporation, a specialized provider of uniform rental services.
• Its revenue increased 13.1% to $2.17 billion in the second quarter and each segment experienced double-digit revenue growth.
• The Uniform Rental and Facility Services operational segment’s revenue increased from $1.54 billion to $1.71 billion.

• Cintas Corporation is a specialized provider of uniform rental services and has a leading market position in its domain.
• The Uniform Rental and Facility Services operational segment, which is its core business, has been growing well, particularly through organic means although the company does carry out the occasional acquisition from time to time.
• Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.

• This is our first report on Dow Inc., a behemoth in the global chemicals industry.
• The company proactively reduced operating rates to manage working capital, effectively implemented operational mitigation plans and cost-saving measures and lowered operating rates.
• In the Deer Park acrylic monomer plant in Performance Monomers, Dow anticipates higher scheduled maintenance turnaround costs in this segment.

• Dow Inc is a giant in the global chemicals industry and a material science leader providing customers with cutting-edge, eco-friendly packaging and infrastructure solutions.
• The company is dealing with its fair share of challenges on account of slower GDP growth, complex energy markets, and client destocking.
• The company proactively reduced operating rates to manage working capital, effectively implemented operational mitigation plans and cost-saving measures and lowered operating rates.

• Eastman Chemical Company is a major player in the chemical industry.
• The company has been facing the adverse effect of macroeconomic volatility and its top-line performance has been below-par despite the impact of price increases.
• Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.

• This is our first report on the renowned chemical industry giant, Eastman Chemical Company.
• The company delivered a highly disappointing set of results given the macroeconomic volatility.
• We initiate coverage on the stock of Eastman Chemical Company with a ‘Hold’ rating.

• General Mills continues to perform exceptionally well relative to the broader equity market.
• The ability to offset a record high input cost inflation highlights the importance of a strong brand portfolio in strategic areas.
• As volumes return to positive territory, profitability in the pet food segment remains an area of concern, according to the company.

Immix Biopharma has announced additional data from the ongoing Phase Ib/II open-label NEXICART-1 trial investigating the company’s CAR-T therapy, NXC-201, for the treatment of multiple myeloma (MM) and light chain amyloidosis (ALA). The latest data from the study are related to a subset of the trial population with ALA (n=8) in which all patients have demonstrated a 100% complete hematologic response and 100% organ response rate. NXC-201 also continues to demonstrate a favorable safety profile, which management believes provides the therapy with potential to be used as an outpatient treatment. In our view, this could be an advantage compared to existing CAR-T therapies, which require specialized dosing centers and diligent patient monitoring post treatment.

• Qualcomm has appeared on the radar for attractive dividend plays.
• The current yield is among the highest in the sector and also appears safe based on historical data.
• There are a number of important risks that overshadow Qualcomm’s ability to consistently increase its dividend.

• Steelcase reported 4QFY23 on March 22 after the close, with a beat on adjusted EPS and revenues. Guidance for FY24 beat estimates, then in print.
• 4QFY23 adjusted EPS was $0.19, above our estimate of $0.12 and consensus of $0.11. GAAP EPS was $0.13, above our estimate of $0.06. 4QFY23 revenue of $802 million was a ~$50 million positive surprise.
• The positive earnings and revenue surprises were due primarily to core corporate business in the Americas and EMEA segments.