Daily Brief United States: KLA-Tencor Corp, Goldman Sachs Group, Sprout Social Inc, S&P 500 INDEX, LianBio, Rapid7 Inc, Boeing Co, Globalstar Inc, Cogent Communications Holdings, JFrog and more

• Q423 revenues of $2.49 billion, marginally above the guided midpoint, up 3.6% QoQ but down 15.6% YoY. Net income was $583 million, down $158 million QoQ.
• Current quarter guidance of $2.3 billion, down 8% QoQ and also down around 5% YoY
• Interesting Q&A discussion on backlog. KLAC’s order book is risker than their peers due to their shorter lead times. Something to watch…

• Outlook for interest rates in 2024 remains uncertain with market expectations diverging from Fed’s dot plot. Overall, rate cuts are expected in 2024.
• Lower rate outlook for 2024 will drive higher deal-making which is likely to benefit Goldman. A slowdown in the US economy could hamper Goldman’s recovery.
• Market metrics point to a positive sentiment around Goldman Sachs stock amongst analysts with summary analyst recommendation pointing to a Buy rating and average upside of 11%.

• This is our first report on web-based social media management solution provider, Sprout Social.
• In its most recent quarter, a comprehensive social media management software company, delivered positive Q3 results reflecting good progress in meeting their objectives.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• The S&P 500 INDEX is WEEKLY OVERBOUGHT, it may continue higher this week or the next but a pullback is behind the corner.
• Currently the index has reached beyond the Q3 resistance target (4897) and it’s up 4 weeks in a row.
• Cover your LONG holdings for the upcoming pullback, going SHORT is also possible but maybe won’t be much profitable as we expect the index main rally to last into April.

Key points (machine generated)

• LianBio is winding down its portfolio of in-licensed drug candidates and returning cash to shareholders.
• The company recently sold exclusive rights to develop and commercialize mavacamten in certain areas of Asia to Bristol Myers Squibb for $350 million.
• LianBio will have approximately $600 million in net cash after the transaction, exceeding its current market capitalization of around $434 million. A strategic review is ongoing, and it is expected that the company will wind down its business and distribute cash to shareholders, potentially leading to a higher share price reflecting its cash holdings.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• This is our first report on Rapid7, a renowned cybersecurity solutions provider.
• The company posted its third quarter 2023 financial results, highlighting an Annual Recurring Revenue (ARR) of $777 million and a growth of 14% over the previous year.
• Rapid7 also showcased strong demand for its integrated security operations solutions, particularly its consolidated offerings.

• Now that the U.S Big 4 airlines have all reported their earnings, let’s look at some of the key trends underpinning the airline industry this quarter.
• The industry continues to be marred by several macro trends, including a triple whammy of inflation-driven increasing maintenance and labor costs, supply chain issues, and the unreliability of a major supplier (Boeing).
• Boeing’s perennial woes seemed to be a major point of discussion as every Big 4 airline faced an analyst question about it during their earnings calls.

• This is our first report on mobile satellite services provider, Globalstar.
• 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.
• We have added reasonable forecasts of the annualized income statement and cash flows and carried out a DCF valuation of the company using its Weighted Average Cost of Capital (WACC) to determine a forecasted share price.

• This is our first report on Cogent Communications Holdings.
• The company had a decent performance in the third quarter of 2023 highlighting the recent acquisition of the Sprint business on May 1, 2023, which expanded Cogent’s network and customer base and materially increased the scope and scale of their business.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• This is our first report on DevOps platform provider, JFrog.
• Most importantly, the year-over-year growth of JFrog’s cloud business rose by 46%, contributing $30.6 million to the total revenue.
• Non-GAAP profit stood at $16.6 million, generating a free cash flow of $25.4 million.