In today’s briefing:
- Hyatt Hotels Corporation: Key Initiatives to Boost Loyalty and Attract New Guests! – Major Drivers
- Index Rebalance & ETF Flow Recap: HSI, HSCI, ASX, SET50, Wharf, SK Tel, Tata Motors, Midea, PCOMP
- Splunk and $28B Mega Deal: Will Cisco Overpay For San Francisco-Based Software Company?
- Teleflex Incorporated: Strategies Unveiled to Conquer Approvals and Surgeon Training! – Major Drivers
- Trimble Inc.: Can The New LIMS PRO Become A Major Growth Catalyst? – Major Drivers
- Amgen Inc.: Which New Medicines Became Their Growth Powerhouses? – Major Drivers
- ZoomInfo Technologies Inc.: The Brand Makeover to Establish Dominance in Go-To-Market! – Major Drivers
- IPG Photonics Corporation: The E-Mobility Surge Pushing the Revenue Boundaries! – Major Drivers
- Steelcase, Inc. – Early 3Q Order Flow Rebounding; Raising Estimates
Hyatt Hotels Corporation: Key Initiatives to Boost Loyalty and Attract New Guests! – Major Drivers
- Hyatt Hotels Corporation’s results were a major disappointment as the company failed to meet Wall Street’s revenue and earnings expectations.
- The ongoing transformation of Hyatt is gaining momentum, with second-quarter results reinforcing their confidence in executing the strategy outlined during the Investor Day in May.
- Hyatt has set ambitious targets, aiming to achieve $750 million in free cash flow and an 80% asset-light earnings mix by 2025.
Index Rebalance & ETF Flow Recap: HSI, HSCI, ASX, SET50, Wharf, SK Tel, Tata Motors, Midea, PCOMP
- The coming week has the rebalance implementation for the NIFTY family of indices on Thursday and the Nikkei 225 (NKY INDEX) on Friday.
- The review period for the December rebalance of the Hang Seng Index, Hang Seng China Enterprises Index, Hang Seng TECH Index and the HSCI Index ends on Friday.
- Inflows to mainland China ETFs resumed following a pause as markets continue to trade weak.
Splunk and $28B Mega Deal: Will Cisco Overpay For San Francisco-Based Software Company?
- Splunk shares outperformed in 2023 and rose ~69% as total ARR exceeded $4B, operating loss narrowed, and FCF margin improved. The company executed well to drive long-term durable growth.
- Over the past 2 years, Splunk transformed itself into a cloud company. In 2022, WSJ reported that Cisco made a $20B+ takeover offer. However, no deal was on the table.
- Following M&A rumors, the company’s cloud transition, and strong fundamentals, Cisco offered a $157 per share to acquire Splunk in a $28B mega all-cash deal on September 21, 2023.
Teleflex Incorporated: Strategies Unveiled to Conquer Approvals and Surgeon Training! – Major Drivers
- Teleflex managed to exceed analyst expectations in terms of revenue as well as earnings.
- Adjusted earnings per share for the same period were $3.41, reflecting a 0.6% increase compared to the previous year.
- The company observed a continued stabilization in hospital staffing, positively affecting second-quarter revenue growth, particularly in products tied to hospital settings.
Trimble Inc.: Can The New LIMS PRO Become A Major Growth Catalyst? – Major Drivers
- Trimble delivered a strong result and managed an all-around beat in the last quarter.
- Financially, Trimble demonstrated a robust performance, delivering an EBITDA margin of 25.3% and a strong gross margin of 64.2%, surpassing previous years.
- In the quarter, Trimble introduced LIMS PRO, a cloud-hosted iteration of its LIMS for sawmill raw material procurement.
Amgen Inc.: Which New Medicines Became Their Growth Powerhouses? – Major Drivers
- Amgen managed to exceed the revenue and earnings expectations of Wall Street, instilling confidence in its capacity for sustained long-term growth in both sales and earnings.
- This growth was underpinned by a global volume increase of 11% for the quarter, with contributions from all three therapeutic areas and geographical regions.
- Notable highlights included a 21% volume growth in their General Medicine segment and robust performance in the Asia Pacific region.
ZoomInfo Technologies Inc.: The Brand Makeover to Establish Dominance in Go-To-Market! – Major Drivers
- ZoomInfo Technologies delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
- In the second quarter, ZoomInfo reported $309 million in revenue and an adjusted operating income of $126 million, boasting a margin of 41%.
- While examining customer health, the company anticipates that budgetary constraints and downward renewal pressures will persist in the near future, resulting in adjusted full-year expectations of 12% revenue growth.
IPG Photonics Corporation: The E-Mobility Surge Pushing the Revenue Boundaries! – Major Drivers
- IPG Photonics Corporation delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.
- They achieved substantial revenue growth in the welding and cleaning applications, led by robust e-mobility and handheld welding solution sales.
- Additionally, 3D printing and solar cell manufacturing applications have seen increased revenue as a result of better investments in these industries.
Steelcase, Inc. – Early 3Q Order Flow Rebounding; Raising Estimates
We are raising our estimates following an upbeat conference call and follow-up with SCS management.
Our adjusted 3QFY24 estimate, now at $0.25, is up from $0.21 and at the midpoint of guidance.
Full-year FY24 guidance is now $0.80-0.90. Our new FY24 EPS estimate is $0.88, up from $0.71 pre-release and near the top end of guidance.
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