In today’s briefing:
- GlobalFoundries Q1’23 Revenue $1.84 Billion, -12% QoQ, -5% YoY. Q2’23 Flat QoQ
- XPER: More Design Wins Pathing Revenue
- TPL: Free Cash Flow with Depressed Valuation
- Adtheorent Holding Company, Inc. -1Q23 Earnings at the High End of Guidance
- ASRT: Asserting a New Price Target, $10
- ECVT: Input Costs Deflating, Profits Inflating
- ACCO: Notes for Free Cash Flow
- HNI Corporation – HNI Handily Beats Estimates on WF Sales, Hearth Margins
- Marimed, Inc. – Exceeds 1Q Revenue and Adjusted EBITDA Estimates
- ATEN: Cycling Thru Revenue Bottom
GlobalFoundries Q1’23 Revenue $1.84 Billion, -12% QoQ, -5% YoY. Q2’23 Flat QoQ
- Q1’23 revenues of $1.84 billion, -12% QoQ ,- 5% YoY, but at the high end of the guided range
- Remains on track for >50% wafer capacity growth between 2021 and 2024
- Muted CY’23 outlook sends shares down ~10% by close. Buying opportunity?
XPER: More Design Wins Pathing Revenue
- XPER reported new customer wins with the release of first quarter results. Continued expansion of XPER’s customer base in connected TV and cars affirms our thesis
- XPER had already won a major TV OEM in Europe and has now won a second TV producer planning to use TiVo OS
- XPER announced a global program design win with a Japanese automaker for DTS AutoStage
TPL: Free Cash Flow with Depressed Valuation
- TPL reported first quarter results that included a larger than normal legal expense crippling the Company’s net income in the period
- TPL is disputing with its largest shareholder as to the voting agreement they have in place with them
- Increase in non-oil and gas royalty revenue during a seasonally soft quarter leads us to expect outperformance over the next two quarters.
Adtheorent Holding Company, Inc. -1Q23 Earnings at the High End of Guidance
- 1Q23 revenue of $32.7 million above the midpoint of guidance of $32 million. Challenging advertising market conditions have continued but adjusted gross profit of $20.9 million was slightly above the midpoint of guidance of $20.8 million.
- AdTheorent (which has no debt) generated $2.9 million in FCF in the quarter (up Y/Y) and reaffirmed its full-year guidance. The stock was flat in the aftermarket.
- The company’s number of Active Customers grew by 31 or 10% Y/Y to 346.
ASRT: Asserting a New Price Target, $10
- ASRT reporting better than expected first quarter results were positively overshadowed by the increase in sales of ROLVEDON at Spectrum Pharmaceuticals (SPPI)
- There had been concerns ROLVEDON sales would not grow fast enough to warrant the valuation ASRT was paying for SPPI. Those concerns were squashed
- ASRT reported first quarter revenue of $42.5 million compared to our estimate of $37.8 million
ECVT: Input Costs Deflating, Profits Inflating
- ECVT reported first quarter results depressed from the effects of a winter storm and a facility turnaround
- ECVT is maintaining the adjusted EBITDA and free cash flow guidance provided with fourth quarter 2022 results
- The biggest adjustment we are making to our earnings model is the reduction in sales due to deflation of pass-through costs
ACCO: Notes for Free Cash Flow
- ACCO reported first quarter results reaffirming the outlook provided three months ago where the business should begin to see gradual increase in orders from retailers later this year
- Retailers have reverted to their prior ordering patterns where much of the inventory carried is for the back-to-school shopping season
- ACCO reporting quarterly sales above $400 million did little to squash the concern related to sales declining in the first half of the year
HNI Corporation – HNI Handily Beats Estimates on WF Sales, Hearth Margins
- On May 9, HNI reported better-than-expected results, boosted by unexpected strength in Workplace Furnishings (WF) sales and a strong defense of margins in Residential Building Products (RBP) despite weak Hearth Products sales.
- 1Q23 GAAP EPS was $0.04 and $0.13 non-GAAP (adjusted) versus consensus of ($0.02) GAAP and ($0.03) non-GAAP (adjusted). Our non-GAAP (adjusted) forecast was ($0.02).
- Management noted improving results in its WF segment, driven by productivity and cost-cutting.
Marimed, Inc. – Exceeds 1Q Revenue and Adjusted EBITDA Estimates
- MariMed reported first-quarter revenue of $34.4 million, which exceeded our estimate of $32.5 million and consensus of $32.9 million.
- This is a 9.90% Y/Y increase and a 3.91% decline Q/Q. 1Q is typically a seasonally softer quarter for cannabis companies.
- With new stores opening in Massachusetts, Illinois, and Ohio, plus Maryland moving to adult-use sales in July, revenue should ramp up through 2023.
ATEN: Cycling Thru Revenue Bottom
- ATEN had already warned of the shortfall in Q1 revenue and the official release of the results was an update on the improvement the business has seen in recent months
- ATEN’s management used the first quarter earnings call asserting orders have increased in recent months and ATEN would post sequentially higher revenue in the second quarter
- Network security is not an area we would expect much penny pinching over the course of the year
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