Daily Brief United States: NVIDIA Corp, Apple , Chipotle Mexican Grill, Cisco Systems, Zoom Video Communications Inc, American Water Works Co, Cms Energy Corp, Allient, Bitcoin Pro and more

• It’s about to be primetime for the AI semiconductor trade, and for the first time in a long time (maybe ever), I wanted to write an earnings preview. It might be the first time (ever) and hopefully the last time.
• Two critical companies report this week. I’ll start with Marvell, the less important but the one I like, and then talk about some exciting dynamics at Nvidia that could lead to volatility and why it might not even matter.
• Marvell has always been a favorite of this newsletter. I won’t lie; I root for the hometown on this one. Inphi was my first paid post, and it worked out with a buyout by Marvell only two weeks later.

• This Wednesday, after the Wall Street close, NVIDIA Corp (NVDA US) will release its second-quarter figures, concluding the current earnings season. The stock has returned 155% YTD.
• Nvidia’s results will be crucial in determining whether its stock recovery continues (+25% since its August 5 low and 11.8% below its all-time high of $140.76 on June 20).
• Historically, when Nvidia’s earnings and guidance have been strong, its stock has rebounded by c. 30% and over in four occasions.

• IOS 18 beta offers new Home Screen and Control Centre customization; AI features like Advanced Siri Capabilities delayed until iOS 18.1, set to arrive later this year. 
• Morgan Stanley forecasts Apple will ship five hundred million iPhones over two years, driven by the AI-powered Apple Intelligence, with a 4%-5% growth in iPhone average selling prices. 
• Only 15% of current Apple devices support new AI features, pushing a significant upgrade cycle; 24% of iPads are compatible, suggesting a mini-upgrade cycle in the tablet market.

• Chipotle has grown to 3500 restaurants without relying on franchising or compromising on food quality and people investments
• CFO Jack Hartung discusses Chipotle’s unique business model and competitive advantages on Magellan’s podcast
• Hartung’s background in finance led him to join Chipotle after working with McDonald’s and being impressed by the attention to detail and potential for growth

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Cisco Systems, Inc. reported its financial results for the fourth quarter and fiscal year 2024, demonstrating solid performance despite a challenging macroeconomic environment.
• The company closed the fiscal year with $13.6 billion in revenue for the fourth quarter and $53.8 billion for the year.
• Both annualized recurring revenue and subscription revenue grew, reflecting Cisco’s strategic pivot towards a more sustainable, subscription-based model.

• Zoom Video Communications delivered strong financial performance in the second quarter of fiscal year 2025, surpassing market expectations and demonstrating resilience in a competitive landscape.
• The company’s revenue rose by 2.1% year-over-year to $1.16 billion, slightly exceeding analyst forecasts.
• Adjusted earnings per share also impressed, reaching $1.39, which was significantly higher than the anticipated $1.21.

• American Water’s Second Quarter 2024 Earnings Conference Call highlighted a mixed financial performance with several strategic progresses and challenges.
• The company reported a slight decrease in quarterly earnings per share from $1.44 in the previous year to $1.42, maintaining steady performance year-on-year with earnings at $2.37 per share for both the first half of 2024 and 2023.
• Despite this slight dip, the company raised its 2024 earnings per share guidance to $5.25 – $5.30 from the previous range of $5.20 – $5.30, attributing this adjustment to less significant customer usage declines than anticipated.

• CMS Energy, a major energy company based in Michigan, continues to demonstrate resilience and strategic foresight amid regulatory, operational, and market challenges.
• The company’s latest quarterly results indicate a robust execution of its long-standing strategy, combining regulatory maneuvering, aggressive cost management, and substantial investments in system reliability and clean energy transition.
• 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.

• Allient, formerly Allied Motion, is a niche industrial company in motion/power/controls industry
• Strong returns on tangible capital and run by owner/operator Dick Warzala
• Undervalued at $26.75 per share, with potential for 20%+ IRRs over 3-4 year period

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

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