Daily Brief United States: Criterium Energy, Warner Bros Discovery , Universal Display, McCormick & Company, Qualys Inc, Pan American Silver, Sunpower Corp, Wayfair Inc Class A, Teladoc Health, Inc., Viavi Solutions and more

• Calima Energy (CE1 AU); target price of A$0.45 per share: Operating update in Canada – The 3-well Pisces drilling programme has now been completed.
• 3Q23 production levels continue to be affected by weather related energy cuts and unforeseen work-overs.
• Valeura Energy (VLE CN)C; target price of C$6.40 per share: 3Q23 update – 3Q23 production was 19,961 boe/d.

• Discovery, Inc. delivered a disappointing set of results as the company could not meet the revenue and earnings expectations of Wall Street.
• The company generated almost $1.7 billion in free cash flow this quarter, and the team anticipates around the same in Q3.
• Their global direct-to-consumer business was mildly EBITDA positive for the first half of this year and nearly breakeven in the second quarter.

• Universal Display Corporation managed to exceed the revenue expectations as well as the earnings expectations of Wall Street.
• The company announced $147 million in revenue, $59 million in operating profit, and $50 million in net income, or $1.04 per diluted share, for the second quarter of 2023.
• Universal Display’s revenue guidance range for the year has been reduced from $560 million to $600 million.

• During the recent quarter, McCormick showcased mediocre performance with below-par revenues and on-par earnings.
• In terms of highlights, the company reported constant currency sales growth and noted an improvement in volume performance, excluding China, throughout the year.
• In the Flavor Solutions segment, McCormick continued its exceptional growth momentum, with the third quarter marking its tenth consecutive quarter of double-digit constant currency sales growth.

• Qualys, Inc. delivered an all-around beat in the previous quarter.
• The channel’s share of revenue stayed at 43% from the previous quarter.
• By geo, their overseas business rose 12%, outpacing the 16% rise in the U.S.

Pan American Silver (PAAS) announced the temporary suspension of all operating activities at its La Colorada mine in Mexico due to security concerns at the mine site following the concentrate robbery. The company has not yet provided any indication of the potential restart of mining activities. We currently maintain our estimates and valuation, awaiting more clarity on the timing of the restart.

• SunPower Corporation’s results were a major disappointment as the company failed to meet the revenue expectations as well as earnings expectations of Wall Street.
• This led to a revision of the 2023 guidance, reflecting market conditions, lower operating expenses, reduced platform investment, and a delay in certain projects.
• Adjusted revenue grew by 9%, partly offsetting higher product costs with price increases.

• Wayfair Inc. exceeded analyst expectations in terms of revenue as well as earnings.
• With net revenue down 3% year-over-year in Q2 compared to a category that continues to be down 10% to 20% for widely-tracked estimates like credit card and email receipt data, Wayfair significantly outperformed the competition.
• Total adjusted EBITDA for the quarter was $128 million due to the revenue strength and significant expense reductions they have made across their entire P&L.

• Teladoc managed to exceed analyst expectations in terms of revenue as well as earnings with a robust result, characterized by a 10% YoY growth in consolidated revenue and consolidated adjusted EBITDA exceeding expectations at $72 million.
• Notably, the Integrated Care and BetterHelp segments both performed exceptionally well, with the former seeing 5% YoY revenue growth driven by higher enrollment in the chronic care program.
• BetterHelp, the leading player in mental health services, reported an 18% YoY revenue growth in the second quarter, in line with expectations, emphasizing the sustained demand for mental health services.

• Viavi Solutions Inc. managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
• Although NSE revenue decreased sequentially but increased year over year, it was primarily driven by the company’s NE business sector.
• Nevertheless, a stronger demand for anti-counterfeiting products helped the fourth quarter’s revenue increase somewhat than anticipated.