In today’s briefing:
- Nitro Software Backs Potentia’s Offer
- Booking Holdings Inc.: Major Drivers
- Adobe Systems: Surprisingly Resilient
- TPL: Cash Cushion
- Deere & Company: New Dealer Business System & Other Drivers
- eBay Inc.: Major Drivers
- ECVT: Free Cash Flow Storm
- HHC: The Cash Flow Story Continues
- Hyatt Hotels Corporation: Dream Hotel Group Acquisition & Other Drivers
- Intuit Inc.: Major Drivers
Nitro Software Backs Potentia’s Offer
- As expected, Nitro Software Ltd (NTO AU)‘s board has unanimously backed Potentia’s three-tiered revised Offer.
- On the 23rd of February, Potentia bumped with a $2.17/share unconditional Offer, increasing to $2.20 if they get to 75% interest, and $2.25 if ≥25% tendering opt for scrip.
- Where does this leave Alludo? Nitro reckons Alludo can’t raise their offer because of ASIC’s Truth In Takeovers policy. But Alludo do pocket the A$5mn break fee for their troubles.
Booking Holdings Inc.: Major Drivers
- Booking reported a strong finish to 2022 as it delivered revenue and adjusted EBITDA above Wall Street expectations.
- Gross Booking increased as compared to the pre-pandemic time.
- Room night growth trends have strengthened in the quarter, with the improvements driven by the U.S. and Asia.
Adobe Systems: Surprisingly Resilient
- 4QFY22 results in-line with guidance and expectations; guidance for FY23 lower
- Growth outlook while weakening, is surprisingly stronger-than-expected
- Share price unlikely to move up materially due to overhang from Figma acquisition; but valuations seem fair given growth is holding up; fair value (FV) rises to USD365
TPL: Cash Cushion
- TPL reported fourth quarter revenue impacted by a trifecta of events. The decline in energy prices led to reduced production levels causing water sales to also decline in a period
- TPL had been seeing production rebound in the summer of 2022. The volatility in energy prices in the Permian Basin pushed some producers to slow down their well development plans
- The lower production was the biggest culprit to the decline in revenue as producers were not incentivized to produce oil and natural gas.
Deere & Company: New Dealer Business System & Other Drivers
- Deere managed to deliver an all-around beat in the first quarter of the new fiscal year.
- The equipment operations had a 20% margin in the financial results for the quarter.
- The management expects demand to exceed the industry’s ability to deliver for another year.
eBay Inc.: Major Drivers
- eBay delivered a solid set of results in the last quarter despite ongoing macro uncertainty and managed an all-around beat.
- In the previous quarter, eBay acquired myFitment and in this quarter, it started making the technology of myFitment accessible to all buyers beginning with the pilot group of P&A sellers.
- During the quarter, eBay scaled up several live events with select sellers.
ECVT: Free Cash Flow Storm
- ECVT suffered damage from winter storm Elliot towards the end of the fourth quarter, but that was not enough to prevent it from issuing upside adjusted EBITDA guidance
- ECVT has experienced continued demand for its ecoservices and catalyst technologies
- The pass-through costs of sulfuric acid makes sales figures look volatile, but adjusted EBITDA is the true measure, which continues to trend higher
HHC: The Cash Flow Story Continues
- HHC highlighted its self-funding business style that should contribute to growing the scale of the Company’s commercial operations within its master planned communities (“MPC”)
- HHC reported revenue of $482 million in Q4, bringing full year 2022 revenue to $1.61 billion. The full year revenue increase was expected as HHC recognizes condo sales upon delivery
- Since the seventh tower, Victoria Place, will be completed in 2024, which means, condo sales in 2023 would be limited
Hyatt Hotels Corporation: Dream Hotel Group Acquisition & Other Drivers
- Hyatt Hotels Corporation had a good quarter and delivered an all-around beat.
- The company generated positive free cash flows in 2022 primarily by optimizing capital allocation and investing in new growth platforms.
- We give Hyatt Hotels Corporation a ‘Hold’ rating with a revised target price.
Intuit Inc.: Major Drivers
- Intuit had another strong quarter managed to deliver an all-around beat with revenues, operating income, and earnings per share rising.
- In the Self-Employed Group and the Small Business, revenue grew during the quarter.
- This quarter, Intuit launched a QuickBooks business network for millions of QuickBooks customers for further digitizing B2B payments in the U.S.
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