Daily Brief United States: Paypal Holdings, Qualcomm Inc, Wheaton Precious Metals, Immersion Corporation, Howard Hughes Corp, Cognizant Tech Solutions A, Fidelity National Info Serv, XWELL, AmerisourceBergen Corp, Yum! Brands Inc and more

• PayPal managed to surpass the revenue and earnings expectations of Wall Street.
• The company’s strategic priorities, including branded checkout, merchant solutions, and digital wallets, drive innovation and growth, supported by AI and data utilization investments.
• In addition, PayPal introduced the development of a stablecoin pegged to the U.S. dollar called PayPal USD.

• Qualcomm delivered a mixed result in the recent quarter, with revenues below market expectations, but it managed to surpass the analyst consensus in terms of earnings.
• Its chipset and licensing business’s strong performance supported the company’s revenues.
• Qualcomm’s success in delivering premium mobile experiences, advancing 5G adoption, and expanding its presence in areas like automotive and IoT underscores its commitment to innovation and market leadership.

Wheaton’s Q223 results exceeded our expectations. Production of gold equivalent ounces (GEOs) was 4.6% higher than our prior forecasts, while sales of GEOs were 6.9% higher, driving a positive variance in revenue of 6.6%, or US$16.4m. This was partially offset by costs but nevertheless resulted in a US$7.8m (or 5.4%) positive variance in earnings from operations that, to all intents and purposes, dropped through to the bottom line.

• IMMR reported second quarter results where the income from the Company’s securities portfolio led to earnings exceeding our expectations. 
• IMMR’s revenue declined more than expected as softer unit volumes resulted in lower royalty revenue. We would expect a recovery in smartphone units to result in higher revenue in 2024
• The utilization of haptics within automobiles remains the most promising source of revenue growth for IMMR. The market is broadening to lower priced models

• HHH continues to exhibit the benefits of having operating assets as part of its MPCs. These operating assets provide essential cash flow to the rest of HHH
• Operating assets becoming the core part of the business and HHH no longer requiring debt to fund its expansion needs
• The Company has six unstabilized properties that could add $13.7 million of NOI by 2025 and has another six properties under construction to be completed by 2026.

• Cognizant Technology Solutions managed to exceed the revenue expectations as well as the earnings expectations of Wall Street.
• The company exceeded expectations in the second quarter for adjusted operating margins and revenue at the high end of its target range.
• We give Cognizant Technology Solutions Corporation a ‘Hold’ rating with a revised target price.

• Fidelity National Information Services exceeded Wall Street’s revenue and earnings expectations in the last quarter.
• In the quarter, revenue, adjusted EBITDA, and adjusted EPS exceeded expectations, driven by strong execution across their three business divisions and a continued emphasis on expenditure restraint.
• Fidelity National Information is seeing strong traction, with increased penetration in atypical sectors like large corporates, insurance, and auto loan organizations.

• AmerisourceBergen Corporation managed to surpass the revenue and earnings expectations of Wall Street in the last quarter.
• The company observed continued progress across its businesses in the quarter, producing significant revenue growth.
• We give AmerisourceBergen Corporation a ‘Hold’ rating with a revised target price.

• Brands delivered mixed results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
• The company produced same-store sales growth of 9% and unit growth of 6% for the quarter, with KFC setting the standard with a remarkable system sales growth on the back of Yum’s industry-leading development momentum, standout marketing initiatives, and pertinent new product layers like the introduction of original recipe hand-breaded chicken nuggets in the U.S.
• Taco Bell’s global system sales increased for the quarter, driven by unit expansion and same-store sales growth as the management continued elevating the brand and launching digital initiatives.