In today’s briefing:
- Occidental Petroleum Corporation: Major Drivers
- Salesforce Inc.: Major Drivers
- Viatris Inc.: Major Drivers
- When Bond Yields Exceed 4%, UK Governments Fall
- Domino’s Pizza Inc.: Major Drivers
- HEICO Corporation: Precise Engineering Acquisition & Other Drivers
- IPAR: 2024 in the Spotlight, Target Now $172
- 4Q22 Outperformance in a Tough Ad Market; Guides Growth in 2023
- Workday Inc.: Major Drivers
- ASRT: ASEG Guideline a Significant Positive, PT to $8
Occidental Petroleum Corporation: Major Drivers
- Occidental Petroleum had a weak financial performance in the last quarter and failed to meet Wall Street expectations with respect to revenues as well as earnings.
- Storm effects in the Permian and Rockies were largely countered by superior performance in the Gulf of Mexico and the Al Hosn.
- While Midstream and marketing earnings were within projections, OxyChem’s performance exceeded expectations due to stronger-than-anticipated market dynamics.
Salesforce Inc.: Major Drivers
- Salesforce had another strong quarter and delivered an all-around beat.
- Besides, the Data cloud became their most crucial cloud, enhancing each Salesforce cloud and enhancing the automation, intelligence, and real-time of every aspect of their Customer 360.
- With native integration of Tableau and Data Cloud, they recently released Tableau plus Data Cloud.
Viatris Inc.: Major Drivers
- Viatris delivered a mixed set of results as it failed to meet the revenue expectations of Wall Street but managed an earnings beat.
- They dealt with intense competition for important products like Wixela and the loss of exclusivity for Miacalcin and Perforomist.
- In addition, they acquired Oyster Point Pharma and Famy Life Sciences in January to create their new Viatris Eye Care division.
When Bond Yields Exceed 4%, UK Governments Fall
- In 2020 and 2021, investors opted for TIPS over conventional bonds, yet over the past year, they have moved the other way.
- The TIPS ETF has fallen from $40bn of assets to $20bn, while the long bond ETF has doubled from $15bn to $30bn.
- The loud and clear message from this shift is that investors are woefully unprepared for an inflation shock.
Domino’s Pizza Inc.: Major Drivers
- Domino’s gave a mixed performance in the last quarter as its revenues were below par after facing significant challenges in the U.S.
- The carryout business of the company continues to be its core strength.
- In light of the permitting as well as store construction supply challenges it faced, a deceleration in growth was expected.
HEICO Corporation: Precise Engineering Acquisition & Other Drivers
- Heico delivered a mixed quarter with a decent organic growth in revenues that reflects higher demand for the bulk of its commercial aircraft products and services given the ongoing recovery in commercial air travel.
- Operating income for the Flight Support Group climbed by 60% to $83.6 million in the first quarter of fiscal 2023.
- This acquisition is anticipated to drive the company’s growth prospects.
IPAR: 2024 in the Spotlight, Target Now $172
- IPAR disclosing the sales benefit from the Lacoste license was the most notable item from the Company’s fourth quarter earnings call
- IPAR had previously reported preliminary Q4 sales results making it less of a surprise as to how well the business was doing. Consumer demand for fragrances has yet to wane
- In 2022 IPAR experienced growth from all regions and all its major brands. Montblanc, Jimmy Choo, Coach, and Guess grew by double-digits
4Q22 Outperformance in a Tough Ad Market; Guides Growth in 2023
- 4Q22 revenue of $51.8 million above high end of guidance of $50.7 million.
- Despite the challenging market conditions, AdTheorent was able to keep adjusted gross profit roughly flat at 65%, down less than 1%.
- The company (which has no debt) generated more cash, as a percentage of AGP, than in 2021.
Workday Inc.: Major Drivers
- Workday produced strong Q4 results and delivered an all-around beat with a decent performance in key operating measures and a 22% increase in subscription revenue for the quarter and the entire fiscal year.
- While Talent Optimization is Workday’s fastest-growing SKU with an attach rate on new transactions of more than 85% in fiscal year 2023, approximately 50% of all active Workday HCM customers currently use Workday Skills Cloud.
- The company intends to boost margin expansion in fiscal 2024 while returning to a 20% plus subscription revenue growth when the environment recovers.
ASRT: ASEG Guideline a Significant Positive, PT to $8
- ASRT could significantly benefit from a new guideline set by American Society for Gastrointestinal Endoscopy (“ASEG”) this week related to the use of indomethacin (Indocin) post ERCP surgery.
- Indocin is ASRT’s largest source of revenue and nearly all the revenue from off-line use related to post ERCP surgery.
- We updated our earnings model when ASRT issued preliminary fourth quarter results. We believe the ASEG guidance could lead to accelerated market expansion in coming months
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