Daily Brief United States: GLOBALFOUNDRIES , Fortinet Inc, Check Point Software Tech, Palantir Technologies , Cognizant Tech Solutions A, Estee Lauder Companies Cl A, Advance Auto Parts, Amkor Technology, Gilead Sciences, Ford Motor Co and more

• Globalfoundries (GFS) reported Q423 revenues of $1.854 billion, marginally above the midpoint of the guidance range, down 12% YoY and essentially flat sequentially.
• Guided Q124 down 18% QoQ with Gross Margin set to fall from 29% to 23%
• SMIC will outspend GFS 10x in CapEx terms this year

• Fortinet Inc., a cybersecurity solutions provider, saw its total billings rise 8.5% to $1.9 billion in Q4 2023.
• This growth, which was driven by an increased focus on secure operations (ops), Secure Access Service Edge (SASE), and improved execution of its sales strategy, led to six deals in excess of $10 million across five industry verticals.
• Fortinet’s customer base comprised 76% of businesses in the Fortune 100, including nine of the top 10 technology companies and manufacturers and nine of the top 10 healthcare providers.

• This is our first report on Check Point Software, a multinational cybersecurity firm based in Tel Aviv.
• The company had a particularly strong fourth quarter in 2023, according to their recent earnings call.
• The company’s operating income for Q4 2023 was at $309 million, a 7% increase year-overyear, and their non-GAAP operating margin of 47% was quite stable.

• Palantir, a leading developer of data analytics software, showcased strong results in the fourth quarter of 2023.
• The firm reported $608 million in fourth-quarter revenue, which represents 20% YoY and 9% sequential growth.
• The substantial contribution came from the commercial business which surpassed $1 billion in revenue over the last twelve months, marking this figure as a noteworthy milestone.

• Cognizant Technology Solutions reported its fourth-quarter 2023 results during the earnings conference call.
• The company’s Q4 revenue stood at $4.8 billion, aligning with the guidance range provided in the last quarter, despite ongoing macroeconomic pressures.
• However, this represented a year-over-year decrease of 1.7%.

• Estée Lauder Companies presented their fiscal 2024 second quarter earnings with a mix of performance trends.
• The earnings per share surpassed expectations, although an organic sales decline occurred of 8%.
• One of the significant challenges faced by the company was a decline of 28% in their global travel retail business, largely influenced by the impact of Covid-19 on international travel.

Key points

• Advance Auto Parts (AAP) is currently undervalued and presents a favorable investment opportunity.
• Despite perceived issues, AAP has a strong profitability history and is trading at a significantly lower valuation than its peers.
• Assuming AAP can achieve historical levels of free cash flow, there is potential for attractive value creation. The new CEO and CFO appointments and the sale of non-core assets are seen as positive developments that could further enhance AAP’s operations and potentially lead to a recovery in 2024.

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.

• Amkor Technology, Inc.’s Q4 2023 earnings call outlined a year of challenges due to macroeconomic headwinds, excess inventory, and geopolitical tensions, which led to an 8% decline in annual revenue.
• However, the firm also reported steady performance with Q4 revenue standing at $1.75 billion and full-year revenue at $6.5 billion.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Gilead Sciences exhibited a sturdy performance in 2023, driven by a 7% growth in product sales, excluding revenue from Veklury.
• Significant sales growth was witnessed in HIV and oncology, with HIV sales growing by about $1 billion and oncology sales growing 37%, largely offsetting the decline in Veklury revenue.
• The robust growth in product sales paves the way for Gilead’s outlook for 2024 and its commitment to addressing high-demand clinical portfolios.

• Ford Motor Company’s fourth-quarter 2023 earnings call highlights several significant achievements.
• CEO Jim Farley describes the past year as foundational for the company, with an increased focus on hybrid and electric vehicles proving advantageous.
• Ford’s hybrid sales were up 20% in the previous year and are expected to rise another 40% in the upcoming year.