In today’s briefing:
- Micron Management Calls Memory Price Trough, Improving Pricing & Profitability Ahead
- ARLO: Preview of the Discounted Value
- Block Inc.: Buy Now
- Take-Two Interactive Software: The Games Driving Their Billion-Dollar Bookings! – Major Drivers
- Parker-Hannifin Corporation: The Strategic Shift That Doubled Their Presence in Key Industries! – Major Drivers
- Royalty Pharma plc: How Trelegy and Spinraza Are Changing The Game! – Major Drivers
- Tyson Foods Inc.: Chicken’s Comeback and What That Means for the Market! – Major Drivers
- Bakkt Holdings, Inc – Bakkt Highlights the Latest in Cryptocurrencies
- DaVita Inc.: Improved Patient Care and Treatment Volumes Driving Growth! – Major Drivers
- Henry Schein Inc.: The Global Growth Engine Driven by Cloud-Based Solutions! – Major Drivers
Micron Management Calls Memory Price Trough, Improving Pricing & Profitability Ahead
- Micron’s FY4Q23 results beat expectations. The company expects to return to a positive margin by FY2H24, however projected a higher FY1Q24 loss than consensus expected.
- As suggested would be the case in our pre-results piece, the company said it sees memory prices bottoming and expects improving pricing and profitability ahead for the industry.
- While next quarter’s guidance may be weaker than some expected, we believe the key take-away is that Micron is seeing a memory prices bottom.
ARLO: Preview of the Discounted Value
- ARLO reporting better than expected third quarter results would rely on paid subscriber additions remaining on their current trajectory
- The pause in ARLO’s stock price creates greater upside potential as ARLO demonstrates its ability to generate positive earnings and free cash flow with each passing quarter
- ARLO has released a new line up of Essential cameras. ARLO had previously indicated it would update its Essentials cameras this year ahead of the holidays
Block Inc.: Buy Now
- Block, Inc. managed to surpass analyst prospects in terms of revenue as well as earnings, with gross profit reaching $1.87 billion, marking a 27% increase year-over-year.
- Turning to the performance of Square and Cash App, Square achieved $888 million in gross profit, reflecting an 18% increase year-over-year.
- The Buy Now, Pay Later (BNPL) platform contributed $84 million of gross profit to both Square and Cash App in the second quarter, with GMV reaching $6.4 billion, a 22% year-over-year increase.
Take-Two Interactive Software: The Games Driving Their Billion-Dollar Bookings! – Major Drivers
- Take-Two Interactive Software delivered a mixed set of results for the previous quarter with revenues above the analyst consensus.
- Notable successes were observed in titles like Graft Theft Auto Online, Grand Theft Auto V, and NBA 2K23, surpassing projections.
- The launch of San Andreas Mercenaries for Grand Theft Auto Online brought fresh content, including new missions, vehicles, and fan-requested improvements.
Parker-Hannifin Corporation: The Strategic Shift That Doubled Their Presence in Key Industries! – Major Drivers
- In the fourth quarter, Parker-Hannifin achieved a decent performance across all aspects of its operations.
- Safety remained a top priority, with a remarkable 20% reduction in recordable incidents, placing the company in the top quartile for safety.
- Sales for the quarter reached a record-breaking $5.1 billion, marking a substantial 22% increase compared to the previous year, with organic growth contributing to 6% of this growth.
Royalty Pharma plc: How Trelegy and Spinraza Are Changing The Game! – Major Drivers
- Royalty Pharma plc delivered a strong result and managed an all-around beat last quarter.
- As a result, the company delivered adjusted EBITDA growth of 4% for the quarter, substantially in line with the team’s top-line growth.
- The company’s total royalty receipts increased by 1%.
Tyson Foods Inc.: Chicken’s Comeback and What That Means for the Market! – Major Drivers
- Tyson Foods, Inc. delivered disappointing results as the company could not meet the revenue and earnings expectations of Wall Street.
- Lower profitability in their Beef and Chicken segments accounted for more than 90% of the reduction in adjusted operating profit.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Bakkt Holdings, Inc – Bakkt Highlights the Latest in Cryptocurrencies
Founded in 2018, Bakkt builds solutions that enable its clients to grow with the crypto economy.
Through institutional-grade custody, trading, and on-ramp capabilities, its clients leverage technology that’s built for sustainable, long-term involvement in crypto.
Bakkt Chief Product Officer Dan O’Prey joined us on The Water Tower Hour podcast to discuss Bakkt’s crypto infrastructure business, its history as part of ICE, cryptocurrency differences, its custody focus, and why it is different.
DaVita Inc.: Improved Patient Care and Treatment Volumes Driving Growth! – Major Drivers
- DaVita Inc. exceeded analyst expectations in revenue and earnings, with $432 million in adjusted operating revenue and $2.08 in adjusted profits per share.
- These outcomes were driven by advancements in their financial trinity of treatment volume, revenue per treatment, and patient care expenses.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Henry Schein Inc.: The Global Growth Engine Driven by Cloud-Based Solutions! – Major Drivers
- Henry Schein delivered a mixed set of results in the recent quarter with revenues falling short of Wall Street expectations but above-par earnings.
- Strong equipment sales and steady general merchandise sales, along with continued strength in technology and value-added services, implants, biomaterials, and endodontic products, have contributed to this performance.
- The technology and value-added services business, including Henry Schein One, is experiencing global growth, driven by cloud-based practice management software and revenue cycle management services.
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