In today’s briefing:
- KLAC. Priced For Perfection In 2025 & Beyond
- Exxon Mobil Corporation: The Pioneer Expansion & The Expansion of ExxonMobil’s Guyana Operations! – Major Drivers
- Phillips 66: Potential For Expanded Flexibility With Trans Mountain Pipeline & Other Major Developments
- ADT Inc.: A Streamlined Business Model Driving Growth! – Major Drivers
- Games Global IPO: Strong Profitability and Impressive Portfolios of IGaming Content
- Bentley Systems: The Infrastructure Software Giant Poised for a Major Buyout? What Value Can It Extract? – Major Drivers
- MHH: Mastech Sees Demand Improvement as Customers Loosen Their Purse Strings
- AppFolio Inc.: Is Its Revenue Growth Sustainable? – Major Drivers
- LyondellBasell Industries: A Tale Of Improved Seasonal Demand and Customers’ Downtime!
- Roper Technologies Inc.: Transition to Cloud and SaaS-based Offerings! – Major Drivers
KLAC. Priced For Perfection In 2025 & Beyond
- Q124 revenues of 2.36 billion, $60 million above the guided midpoint, down 5% QoQ and down 3% YoY.
- Current quarter revenue guidance of $2.5 billion representing a ~6% QoQ increase and about the same YoY.
- Share price close to record highs yet CY2024 outlook is tepid while the massive over reliance on China just keeps on going
Exxon Mobil Corporation: The Pioneer Expansion & The Expansion of ExxonMobil’s Guyana Operations! – Major Drivers
- ExxonMobil’s latest performance paints a promising picture, powered by strategic decisions, cost-saving measures, and a focus on long-term growth avenues.
- In Q1 2024, ExxonMobil delivered $8.2 billion in earnings and $14.7 billion in cash flow, demonstrating ongoing efforts to enhance the company’s earnings power.
- The company made big strides in cost savings, achieving $10.1 billion in Q1 compared to 2019, on track to reach their goal of $15 billion in savings by 2027.
Phillips 66: Potential For Expanded Flexibility With Trans Mountain Pipeline & Other Major Developments
- Phillips 66 reported its first-quarter earnings for fiscal 2024, emphasizing progress in strategic areas, despite some obstacles encountered during the quarter.
- Mark Lashier, President and CEO, noted strong crude utilization rates during the quarter.
- However, maintenance work limited the company’s ability to produce higher-value products, impacting the results.
ADT Inc.: A Streamlined Business Model Driving Growth! – Major Drivers
- The first quarter 2024 results of ADT Inc. highlight the company’s positive growth and future investment opportunities.
- The company continues to focus on its consumer-oriented core security and smart home business, serving a vast market.
- Being an industry leader, ADT benefits from its trusted brand, national footprints, and the ability to tap stable and predictable cash flows to service and reduce its debt obligations.
Games Global IPO: Strong Profitability and Impressive Portfolios of IGaming Content
- Games Global, a promising iGaming content provider and B2B online gaming supplier, set terms for its U.S. IPO. The IPO price is expected to be between $16 and $19/share.
- With the most recent F-1/A, the company may raise ~$114M at the high end of the range at $19/share. Zinnia Limited sells additional 8.5M shares in this offering.
- Games Global has created an impressive portfolios of iGaming content through a series of successful acquisitions, and I see upside potential vs. IPO price of $17.50 at the midpoint.
Bentley Systems: The Infrastructure Software Giant Poised for a Major Buyout? What Value Can It Extract? – Major Drivers
- This is a special one-time report on Bentley Systems, an infrastructure engineering software company.
- The company is currently exploring a sale and it presents a mixed but compelling case for potential acquisition.
- Several factors contribute to its attractiveness, balanced by challenges that might influence a buyer’s decision.
MHH: Mastech Sees Demand Improvement as Customers Loosen Their Purse Strings
- Mastech Digital, based outside Pittsburgh, PA is an IT staffing business with a data and analytics, consulting, and project management service serving blue-chip customers in the US. Both businesses have been affected by the rapid decline in the economy and IT hiring as customers pull back.
- The company trades well below its peers and we expect stock price appreciation when it returns to growth aided by stock buybacks.
- It also plans to grow through acquisition.
AppFolio Inc.: Is Its Revenue Growth Sustainable? – Major Drivers
- AppFolio, a property management software provider, showcased strong financial results for Q1 2024.
- The company reported a significant 38% year-over-year increase in revenue, which calculated to $187 million for the quarter.
- This substantial growth was primarily due to increases in units and customers, along with upgrades and further adoption of value-added services.
LyondellBasell Industries: A Tale Of Improved Seasonal Demand and Customers’ Downtime!
- The latest LyondellBasell earnings showcased several key trends and indicators that provide a comprehensive understanding of the company’s performance and future prospects.
- On the positive side, LyondellBasell has made promising strides in improving safety metrics for its workers, leading to an impressive rate of just one injury per two million hours worked.
- The operational excellence shown by this metric, as well as continued enhancements to LyondellBasell’s core business, has the potential to lead to consistent long-term growth.
Roper Technologies Inc.: Transition to Cloud and SaaS-based Offerings! – Major Drivers
- Roper Technologies had a robust start to the year, with double-digit growth in revenue, EBITDA, adjusted DEPS, and free cash flow noted for Q1, which has spurred an increased full-year outlook.
- The Q1 report highlighted the completion of another milestone for the company – the acquisition of Procare Solutions, a provider of software and integrated payments for the early childhood education market.
- The total revenue and organic revenue increased by 14% and 8% respectively while EBITDA saw a 16% growth, with EBITDA margin expanding by 60 basis points to 40.2%.
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