In today’s briefing:
- Tandem Diabetes Care (TNDM US): Missed Earnings + Severe Competition = A Bitter Pill to Swallow
- Focus On Profitability Expansion And Durable Growth: PT Reduced To $112 From $133
- Coinbase: The Outlook Is Cloudy After The SEC Lawsuit
- Henry Schein Inc.: Acquisition of Regional Health Care Group & Other Drivers
- Roblox Corporation: Launch Of Generative AI Game Creation Tools & Other Drivers
- Fox Corporation: Formation of Tubi Media Group To Lead Fox’s Digital Expansion Efforts – Key Drivers
- Twilio Inc.: Sale Of IoT Business
- Tyson Foods Inc.: Continued Challenges In Beef
- Waters Corporation: Can It Weather the Storm in China? – Key Drivers
- Wynn Resorts
Tandem Diabetes Care (TNDM US): Missed Earnings + Severe Competition = A Bitter Pill to Swallow
- Tandem Diabetes Care (TNDM US) has been consistently missing earnings expectations. This is taking a toll on the share price performance, with shares plunging ~61% over the last one year.
- Tandem’s nearest rival has recently launched its new insulin pump in the U.S. This will affect Tandem’s Q2 sales growth. Tandem guided for 10–12% revenue growth in 2023.
- Tandem is a hugely beaten down stock. However, it will be wise to wait for Tandem to launch new product, ensure its good uptake amid competition, and exhibit earnings stability.
Focus On Profitability Expansion And Durable Growth: PT Reduced To $112 From $133
- Elastic NV (ESTC US) reported a solid 4QFY23, reflecting a stronger-than-expected non-GAAP operating margin of ~9% and GAAP subscription gross margin of ~79%.
- Elastic cloud revenue grew 28% y/y, representing 40% of total revenue. Elastic cloud is scaling well, and margins improved faster-than-anticipated.
- We are concerned about slowing H1 FY24 y/y growth in total revenue and failure to achieve the $2B revenue mark in FY25. Price target to $112.
Coinbase: The Outlook Is Cloudy After The SEC Lawsuit
- Coinbase lost 16% of its value after the SEC announced a lawsuit against the company.
- The lawsuit comes 24 hours after a similar action against rival exchange Binance, which saw $780 million in outflows.
- Coinbase may continue to make quarterly losses due to market uncertainty, loss of deposits and potential SEC fines.
Henry Schein Inc.: Acquisition of Regional Health Care Group & Other Drivers
- Henry Schein delivered a mixed set of results for the previous quarter, with revenues above analyst expectations but below-par earnings.
- The global dental specialties business saw increased sales growth, particularly in premium product lines and implant sales.
- Henry Schein made notable acquisitions, including a majority stake in Biotech Dental, a leading provider of dental implants and clear aligners, and the planned entry into the Brazilian implant market with the acquisition of S.I.N.
Roblox Corporation: Launch Of Generative AI Game Creation Tools & Other Drivers
- Roblox delivered a mixed result in the recent quarter, with revenues above market expectations, but it failed to surpass the analyst consensus in terms of earnings.
- They achieved positive cash flow and generated substantial free cash during the quarter.
- 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.
Fox Corporation: Formation of Tubi Media Group To Lead Fox’s Digital Expansion Efforts – Key Drivers
- Fox Corporation delivered an all-around beat in the previous quarter.
- The significant Super Bowl LVII bolstered the quarter’s success on the Fox Broadcast Network, which generated significant advertising revenue across their businesses and contributed to a remarkable 61% growth in advertising revenue in the Television segment.
- Despite the industry challenges, We give Fox Corporation a ‘Hold’ rating with a revised target price.
Twilio Inc.: Sale Of IoT Business
- Twilio delivered an all-around beat in the previous quarter.
- It was a challenging quarter as the company navigated through changes and headwinds in a demanding macro environment.
- The management acknowledged the moderation in consumer-facing usage patterns and the impact of lapping peak crypto usage from the previous year.
Tyson Foods Inc.: Continued Challenges In Beef
- Tyson Foods delivered a disappointing set of results as the company was unable to meet the revenue expectations as well as earnings expectations of Wall Street.
- While the overall performance was disappointing compared to the previous year, Tyson Foods claims to have performed reasonably in volume and dollar sales, gaining market share in the retail core business lines.
- Despite these challenges, Tyson Foods remains focused on strengthening its branded foods business.
Waters Corporation: Can It Weather the Storm in China? – Key Drivers
- Waters Corporation delivered a disappointing set of results as the company was unable to meet the revenue expectations as well as earnings expectations of Wall Street.
- Waters Corporation continues to invest in high-growth adjacencies and has a pending acquisition of Wyatt.
- Waters Corporation is focused on managing the challenges and maintaining its growth trajectory, emphasizing customer needs and market opportunities.
Wynn Resorts
- Wynn Resorts managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
- In Las Vegas, Wynn Resorts achieved significant results in Q1, supported by a thriving consumer base.
- In Macau, Wynn Resorts generated significant earnings despite some challenges, including a lower VIP hold.
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