In today’s briefing:
- Kenvue (KVUE US) Pre-IPO: Marquee Brands to Drive Profitable Growth
- Activision Blizzard – An Unsightly Mess
- ASRT: Rolling with Spectrum
- [ACM Research Inc. (ACMR US, BUY, TP US$30) Earnings Preview]: Tool Monopoly for Next YMTC Expansion
- Elastic N.V.: Revolutionizing Data Organization and Management – Key Drivers
- FLEETCOR Technologies Inc.: A Hidden Gem In Payment Solutions? – Key Drivers
- M&T Bank Corporation: Initiation of Coverage – Playing The Rate Hike Well And Creating An Investor Safe Haven – Key Drivers
- Nutanix Inc: The Next Amazon Of Hybrid Multi-Cloud Computing? – Key Drivers
- Teleflex Incorporated: Revolutionizing Gastric Sleeve Surgery with the Titan Stapler – Key Drivers
- AppLovin Corporation: Is AXON 2 The New Secret Weapon For Growth? – Key Drivers
Kenvue (KVUE US) Pre-IPO: Marquee Brands to Drive Profitable Growth
- Kenvue (KVUE US), a wholly owned subsidiary of Johnson & Johnson (JNJ US), is preparing for an IPO of 151M shares. The IPO price is expected to be $20–23/share.
- Goldman Sachs, J.P. Morgan, and BofA Securities are acting as joint lead bookrunning managers for the IPO. J&J will still own more than 90% of Kenvue’s shares after the IPO.
- In 1Q23, Kenvue’s revenue increased 7% YoY to $3.9B, driven by a 12% YoY revenue growth in self-care OTC products. Adjusted net income increased 3% YoY to $630M.
Activision Blizzard – An Unsightly Mess
- Last night the CMA chose to block the merger between Microsoft and Activision Blizzard in the UK on the grounds that it would harm competition in cloud gaming.
- The merits of that position are highly debatable in our view but that does not mean that the decision is bad for consumers.
- It also does not mean that the decision is bad for Microsoft in our view.
ASRT: Rolling with Spectrum
- ASRT is purchasing Spectrum Pharmaceuticals (SPPI) in an all-stock transaction that adds ROLVEDON to its product portfolio.
- The initial reaction to the deal has been materially negative after ASRT added it would maintain a majority of SPPI’s operating expenses.
- ASRT’s management has been looking for an asset that would help diversify the revenue stream away from Indocin. The purchase of SPPI achieves such a goal
[ACM Research Inc. (ACMR US, BUY, TP US$30) Earnings Preview]: Tool Monopoly for Next YMTC Expansion
- We expect ACMR to report C1Q23 top-line and IFRS net income 2.8% and 83% vs. consensus, respectively.
- We expect it to raise FY the mid-point of its guidance to US$560mn~, due to YMTC orders and 4Q23 order visibility;
- We are buyers into earnings but avoid long-positions between reporting dates due to geopolitical risk exposure.
Elastic N.V.: Revolutionizing Data Organization and Management – Key Drivers
- Elastic NV has managed to deliver another all-around beat in its last result and increased its revenue by 27% in the last quarter.
- Though there have been challenges and obstacles in the macro environment recently, such as problems regarding the supply chain, Elastic has maintained its growth trajectory.
- We also have a dedicated analysis of the company’s Environmental, Social, and Governance (ESG) risk scores in order to evaluate the sustainability risk.
FLEETCOR Technologies Inc.: A Hidden Gem In Payment Solutions? – Key Drivers
- Fleetcor Technologies’ Q4 results were stronger than anticipated, surpassing Wall Street expectations in terms of revenues as well as earnings and also surpassing the upper limit of the management’s guidance in terms of revenues.
- The company’s organic revenue increase was 7%.
- Its total sales increased by 19%, retention remained constant at 92%, and same-store results were up 2% for the quarter.
M&T Bank Corporation: Initiation of Coverage – Playing The Rate Hike Well And Creating An Investor Safe Haven – Key Drivers
- This is our first report on a regional lender that played the rate hike well with its high-quality deposit base – M&T Bank Corporation.
- Their interest-bearing bank deposits decreased from $41.9 billion to under $25 billion due to their repositioning the balance sheet to use surplus cash.
- We initiate coverage on the stock of M&T Bank Corporation with a ‘Buy’ rating.
Nutanix Inc: The Next Amazon Of Hybrid Multi-Cloud Computing? – Key Drivers
- Nutanix delivered a strong first quarter with an all-around beat.
- The company’s renewals continue to be strong, exceeding its projected metrics.
- Nutanix managed to deliver a successful quarter with efficient growth in the number of customers as well as in revenue and ACV billings.
Teleflex Incorporated: Revolutionizing Gastric Sleeve Surgery with the Titan Stapler – Key Drivers
- Teleflex had a mixed quarter with revenues of $758 million that was below Wall Street expectations given a year-over-year fall of 0.5%.
- Despite an unanticipated subcomponent supply chain issue in their Surgical business, their fourth quarter constant currency revenue growth remained steady.
- Teleflex’s Interventional, Surgical, and OEM product categories produced double-digit constant currency year-over-year revenue increase.
AppLovin Corporation: Is AXON 2 The New Secret Weapon For Growth? – Key Drivers
- AppLovin Corporation had a disappointing quarter as it delivered significantly wider-than-expected losses and a negative bottom-line even though its revenues were above Wall Street expectations.
- Its results in the quarter included the performance of the software platform, which increased 24% year over year.
- For the first quarter of the upcoming year, they anticipate total revenue and EBITDA to be roughly flat compared to the fourth quarter which implies another possible loss-making quarter.
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