In today’s briefing:
- Salesforce Inc: New Real-Time CRM Platform & Other Drivers
- CrowdStrike Inc: Major Drivers
- Synopsys Inc: Collaboration With SiFive & Other Drivers
- Zscaler Inc: Zero Configuration Data Protection & Other Developments
- Kroger Co: Merger With Albertsons & Other Drivers
- General Mills: Delivering High Returns During Market Downturns
- Hewlett Packard Enterprises: New Product Launches & Other Drivers
- Ulta Beauty: Major Drivers
- Workday Inc: Cloud Transition Collaboration With KPMG & Other Drivers
- NetApp Inc: The BlueXP Launch & Other Drivers
Salesforce Inc: New Real-Time CRM Platform & Other Drivers
- Salesforce’s stock has been badly hit by the general bearishness in the markets towards tech stocks and is trading at a low.
- However, the company’s results were decent as it delivered strong sales growth and profitability surpassing Wall Street expectations on all fronts.
- This quarter, the ARR increased by more than 50% in seven of their 13 industry clouds.
CrowdStrike Inc: Major Drivers
- CrowdStrike had a solid quarter increasing its revenue by 53% year-over-year, surpassing Wall Street expectations.
- In the enterprise, sales cycles or average days to closure remain marginally higher than the previous quarter.
- Furthermore, LogScale experienced another solid quarter in Q3 thanks to their wins in the financial services, insurance, technology, retail, energy, and telecommunications industries.
Synopsys Inc: Collaboration With SiFive & Other Drivers
- Synopsys ended the year with a decent result meeting the revenue expectations of Wall Street and managing an earnings beat.
- The company reached the $5 billion yearly revenue milestone during this quarter as they extended customer relationships and altered their product lineup in order to sharpen their competitive edge.
- Despite a slowdown in revenue growth for the semiconductor business, design activity is still strong.
Zscaler Inc: Zero Configuration Data Protection & Other Developments
- Zscaler delivered good results in the last quarter surpassing Wall Street expectations in terms of revenues as well as earnings.
- Consumers are buying Zscaler for users, its complete platform for user protection, including ZDX, ZPA, and ZIA bundled together.
- We provide the stock of Zscaler a ‘Buy’ rating and a revision in the target price.
Kroger Co: Merger With Albertsons & Other Drivers
- Kroger announced another quarter of quite strong results powered by its strategy of accelerating with digital and leading with fresh.
- Kroger, along with Albertsons Companies, announces a definitive merger agreement whereby the companies will merge two complementary organizations with deep roots and iconic brands in their local communities.
- It launched its foremost in-app flash sales and also enabled its customers to clip the digital offers from their cart directly.
General Mills: Delivering High Returns During Market Downturns
- General Mills has significantly outperformed the broader equity market and the consumer staples industry as a whole.
- The share price seems to be running ahead of fundamentals which reduces expected returns going forward.
- The company would also need to dial-up investments in the coming year to secure its strong competitive positioning, according to the company.
Hewlett Packard Enterprises: New Product Launches & Other Drivers
- Hewlett Packard Enterprises had a decent fourth quarter as its revenues managed to surpass Wall Street expectations and strong quarterly free cash flow.
- The company managed to meet Wall Street expectations with respect to earnings.
- We remain neutral on Hewlett Packard Enterprises and maintain our ‘Hold’ rating with a revised target price.
Ulta Beauty: Major Drivers
- Ulta Beauty delivered a good performance in the last quarter with robust revenue growth driving double-digit earnings growth and operating margin expansion.
- The double-digit comp of Ulta Beauty in this quarter was an outcome of growth from its core assortment, compelling newness, and price increases.
- To support guest education and drive discovery, this quarter Ulta Beauty introduced its Skincare We Love All in every store.
Workday Inc: Cloud Transition Collaboration With KPMG & Other Drivers
- Workday delivered another solid quarter and managed an all around beat.
- The company’s APA won over a number of clients, including Trip.com, Fletcher Building, Bank of Queensland, and a pharmaceutical company.
- During the quarter, they also disclosed their collaboration with KPMG to launch Industry Accelerators in two important corporations, including banking and healthcare, based on their Industry Accelerator program.
NetApp Inc: The BlueXP Launch & Other Drivers
- NetApp generated a mixed set of results for the last quarter as it failed to meet Wall Street expectations with respect to revenues and billings but managed an earnings beat.
- It is evident that their cloud services’ growth has slowed down.
- Besides, they have significantly adjusted their revenue projection for the remaining months of the fiscal year in light of impending economic headwinds.
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