Daily Brief United States: Cummins Inc, Lobo EV Technologies, Heartcore Enterprises , Seadrill , American Capital Agency Corp, Pvh Corp, Illumina Inc, Eog Resources, Godaddy Inc Class A, Baxter International and more

• Cummins Inc.’s Q1 2024 financial results revealed a decrease in revenues compared to Q1 2023, standing at $8.4 billion compared to the previous year’s $8.44 billion.
• This decrease was, however, marginal at 1%.
• EBITDA in Q1 2024 was doubled that of Q1 2023, being $2.6 billion or 30.6% compared to the previous year’s $1.4 billion or 16.1%.

• LOBO EV Technologies (LOBO) designs, develops, and manufactures micro mobility electric vehicles (EVs) and sells products through a broad-based dealership network in China, Southeast Asia, Latin America, and Europe.
• The company’s product lineup includes e-Bicycles, e-Mopeds, e-Tricycles, and electric off-highway four-wheeled shuttles (golf carts and scooters for elderly and disabled persons).
• In addition, LOBO provides automobile information and entertainment software development and design services.

• HeartCore Enterprises is an established software development and consulting company based in Tokyo, Japan and operates in five core offerings and solutions.
• These include 1) Content Management in which the core product is HeartCore CMS, 2) Digital Transformation which includes Controlio, myInvenio, Apromore and HeartCore Robo, 3) GO IPO, a consulting service that helps Japanese companies prepare for a U.S. Nasdaq public listing, 4) Sigmaways, that specializes in infrastructure modernization, and 5) other revenues.
• We believe the company is poised for strong growth due to its entry in the U.S. market and solid results from the Go IPO offering.

• SDRL reported first quarter results updating investors on the state of offshore drilling market that has shown little signs of change. Day rates have slowly climbed since last year
• SDRL disclosed a new contract for Sevan Louisiana. There was a considerable amount of time spent on the earnings call for the vessel and it’s 45-day contract.
• SDRL has entered a definitive contract to sell its three jack-up rigs and the joint venture stake that operates them for $338 million.

• Author discusses high-return opportunity in mortgage REIT preferreds, focusing on AGNC Investment Corp’s Series F preferred
• Systematic mispricing allows for 13-20% IRRs over 12-36 months with fairly safe investment
• Emphasis on safety and high yield of mREIT preferreds, highlighting potential for significant returns while minimizing borrower credit risk

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• We are initiating coverage of Vince Holding Corp., a leading ready to wear brand, offering luxury men’s and women’s apparel, accessories and home goods via their own stores, online and in wholesale partnerships with key retailers, with a Buy rating and $3 price target, or 6.5X our FY25 EBITDA projection.
• We believe, after a momentous FY23, where the company formed a partnership with Authentic Brands Group, a leading brand licensor, materially recast their balance sheet with debt paydowns and maturity extensions, and began a $30 million transformation program, Vince is ready to shine once again in 2HFY24 and return to top line growth, with higher returns and a more enduring business model.
• As such, and with investor skepticism remaining a drag, we view the longer term risk/reward as compelling, and are initiating coverage of VNCE with a Buy rating and $3 price target.

• Illumina Inc. has had a strong first quarter of 2024, which included an encouraging performance from its high throughput consumables, increased revenue from strategic partnerships, and the delivery of a number of NovaSeq X instruments.
• However, Chief Executive Officer Jacob Thaysen has warned about the persisting uncertain global economic environment and cited customer concerns affecting purchasing decisions.
• The year’s results were particularly promising considering the challenges posed by the Coronavirus pandemic.

• EOG Resources delivered a solid first quarter 2024 performance thanks to a range of factors, among them solid operational execution, underlining future value creation potential.
• EOG’s commitment to capital discipline, operational excellence, and pioneering sustainability initiatives have set the company up to deliver significant returns.
• It reported a strong financial performance during the quarter, with adjusted net income totaling $1.6 billion and free cash flow generation of $1.2 billion.

• GoDaddy’s first quarter results for 2024 demonstrate a strong start to the year and contribute to the positive reputation of the company.
• Notably, through their free cash flow, the company has achieved growth of 26% year-over-year, thanks to their profitable growth model that converts customer value to shareholder value.
• This has been largely driven by a surge in the applications and commerce sector, which has seen bookings growth of 22% and normalized EBITDA margin expansion of 400 basis points.

• Baxter International’s first quarter 2024 earnings report revealed that the company exceeded its guidance for that term, with 2% growth on a reported basis and 3% at constant currency rates compared to an initial projection of approximately 1% growth.
• This performance was underpinned by strong demand and favorable pricing for a broad range of Baxter’s products.
• The firm’s performance illustrates the benefits of its recent strategic transformation, with improved global visibility, enhanced accountability, and functional verticalization contributing to its success.