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Smartkarma Daily Briefs

Jul 27
0

Daily Brief Industrials: ZTO Express Cayman , Grab Holdings , Greenland Technologies Holdi, American Airlines Group, Csx Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Monthly Chinese Express Tracker | Mainstream ASPs Down 10% in June | J&T IPO Impact? | (July 2023)
  • Grab Holdings (GRAB IJ) – Winning with Trans-Cab and Deposits in Singapore
  • CLIMATETECH & SUSTAINABLE INVESTING – Greenland Technologies Holding Corp.
  • American Airlines Group Inc.: New Flight Additions To Cater To Rising Demand! – Key Drivers
  • CSX Corporation: Major Factors Responsible For The Good Results! – Financial Forecasts

Monthly Chinese Express Tracker | Mainstream ASPs Down 10% in June | J&T IPO Impact? | (July 2023)

By Daniel Hellberg

  • In June, mainstream parcel pricing declined by over 10% Y/Y, but SF Holding saw ASPs rise
  • We believe J&T Global Express’ planned IPO could negatively impact the industry in H2
  • Pricing pressure has increased, in our view, and we expect margins to decline in H2 23

Grab Holdings (GRAB IJ) – Winning with Trans-Cab and Deposits in Singapore

By Angus Mackintosh

  • Grab recently announced the acquisition of Trans-cab in Singapore, the 3rd largest taxi operator there. This will help to solve driver shortage issues and improve cost efficiencies.
  • Taxis pay the lowest COE prices plus Grab can improve the productivity of taxi drivers through access to the Grab app. Trans-cab gives Grab access to street hailing. 
  • Grab‘s Singapore digital bank recently raised new capital but has also seen its deposit cap lifted significantly, which is helping to significantly boost deposit growth.

CLIMATETECH & SUSTAINABLE INVESTING – Greenland Technologies Holding Corp.

By Water Tower Research

  • Greenland Technologies President and CEO Raymond Wang joined WTR’s Tim Regan and Graham Mattison for a discussion of the company’s transmission business and its evolution to selling all-electric powered industrial equipment in the US through its HEVI division.

  • Here are a number of highlights from our podcast episode.

  • All-electric HEVI front loaders and excavators match a comparable diesel’s performance. 

American Airlines Group Inc.: New Flight Additions To Cater To Rising Demand! – Key Drivers

By Baptista Research

  • American Airlines Group managed to surpass the revenue expectations as well as the earnings expectations of analysts.
  • While overseas unit revenue increased, domestic unit revenue decreased.
  • In the first half of the year, American Airlines received 13 deliveries, and by the end of the year, it anticipates receiving 10 more planes.

CSX Corporation: Major Factors Responsible For The Good Results! – Financial Forecasts

By Baptista Research

  • CSX Corporation’s performance in the second quarter was largely disappointing with revenues below par and earnings in line with expectations.
  • The only silver lining was the successful performance of its merchandise sector.
  • In the second quarter, CSX moved more than 1.5 million carloads, driven by a 3% volume increase in merchandise and a 4% volume increase in coal.

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Jul 27
0

Daily Brief Industrials: ZTO Express Cayman , Grab Holdings , Greenland Technologies Holdi, American Airlines Group, Csx Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Monthly Chinese Express Tracker | Mainstream ASPs Down 10% in June | J&T IPO Impact? | (July 2023)
  • Grab Holdings (GRAB IJ) – Winning with Trans-Cab and Deposits in Singapore
  • CLIMATETECH & SUSTAINABLE INVESTING – Greenland Technologies Holding Corp.
  • American Airlines Group Inc.: New Flight Additions To Cater To Rising Demand! – Key Drivers
  • CSX Corporation: Major Factors Responsible For The Good Results! – Financial Forecasts

Monthly Chinese Express Tracker | Mainstream ASPs Down 10% in June | J&T IPO Impact? | (July 2023)

By Daniel Hellberg

  • In June, mainstream parcel pricing declined by over 10% Y/Y, but SF Holding saw ASPs rise
  • We believe J&T Global Express’ planned IPO could negatively impact the industry in H2
  • Pricing pressure has increased, in our view, and we expect margins to decline in H2 23

Grab Holdings (GRAB IJ) – Winning with Trans-Cab and Deposits in Singapore

By Angus Mackintosh

  • Grab recently announced the acquisition of Trans-cab in Singapore, the 3rd largest taxi operator there. This will help to solve driver shortage issues and improve cost efficiencies.
  • Taxis pay the lowest COE prices plus Grab can improve the productivity of taxi drivers through access to the Grab app. Trans-cab gives Grab access to street hailing. 
  • Grab‘s Singapore digital bank recently raised new capital but has also seen its deposit cap lifted significantly, which is helping to significantly boost deposit growth.

CLIMATETECH & SUSTAINABLE INVESTING – Greenland Technologies Holding Corp.

By Water Tower Research

  • Greenland Technologies President and CEO Raymond Wang joined WTR’s Tim Regan and Graham Mattison for a discussion of the company’s transmission business and its evolution to selling all-electric powered industrial equipment in the US through its HEVI division.

  • Here are a number of highlights from our podcast episode.

  • All-electric HEVI front loaders and excavators match a comparable diesel’s performance. 

American Airlines Group Inc.: New Flight Additions To Cater To Rising Demand! – Key Drivers

By Baptista Research

  • American Airlines Group managed to surpass the revenue expectations as well as the earnings expectations of analysts.
  • While overseas unit revenue increased, domestic unit revenue decreased.
  • In the first half of the year, American Airlines received 13 deliveries, and by the end of the year, it anticipates receiving 10 more planes.

CSX Corporation: Major Factors Responsible For The Good Results! – Financial Forecasts

By Baptista Research

  • CSX Corporation’s performance in the second quarter was largely disappointing with revenues below par and earnings in line with expectations.
  • The only silver lining was the successful performance of its merchandise sector.
  • In the second quarter, CSX moved more than 1.5 million carloads, driven by a 3% volume increase in merchandise and a 4% volume increase in coal.

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Jul 27
0

Daily Brief Health Care: BeiGene , Oryzon Genomics, Insulet Corp, Elevance Health , Intuitive Surgical and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Quiddity HSCEI Sep 23 Flow Expectations Update: US$367mn One-Way, Beigene Vs Peers Interesting
  • Oryzon Genomics – H123 progress and results came in as expected
  • Insulet Corp (PODD US): Slow Recovery Is Expected on Easing Competition Fear; 2023 Guidance Raised
  • Elevance Health Inc.: An Unstoppable Force Revolutionizing Healthcare? – Key Drivers
  • Intuitive Surgical Inc.: Can The da Vinci System Be A Game Changer For The Medical Industry? – Key Drivers

Quiddity HSCEI Sep 23 Flow Expectations Update: US$367mn One-Way, Beigene Vs Peers Interesting

By Janaghan Jeyakumar, CFA

  • In three more weeks, the index changes and the indicative capping changes for the September 2023 rebalance will be officially announced. 
  • We first looked at the potential HSCEI index changes and the resultant capping flows for September 2023 in Quiddity HSCEI Sep 23 Flow Expectations: Two Changes Likely, US$276mn One-Way 
  • In this insight, we take a look at Quiddity’s updated flow expectations which account for the changes in prices in the last ~1.5 months.

Oryzon Genomics – H123 progress and results came in as expected

By Edison Investment Research

Oryzon’s H123 results highlight the continued progress of its lead clinical-stage assets, including positive aggregate safety data from the Phase IIb PORTICO trial assessing vafidemstat in borderline personality disorder. The company also indicated that enrolment is proceeding for the Phase IIb EVOLUTION trial (assessing vafidemstat in schizophrenia) and for the Phase Ib FRIDA trial (evaluating iadademstat in acute myeloid leukaemia, (AML)). Total H123 operating expenses were up by only 0.5% y-o-y (to €10.95m), despite a 6.3% increase in R&D costs (to $8.63m). With gross cash of $14.6m at the end of H123, we estimate a cash runway into Q224. We anticipate that top-line data readouts from the PORTICO trial (expected in Q124) may be the company’s next significant catalyst.

Insulet Corp (PODD US): Slow Recovery Is Expected on Easing Competition Fear; 2023 Guidance Raised

By Tina Banerjee

  • Insulet Corp (PODD US), with expanding user-base and product innovation, is well-positioned to face competition in the US patch pump market. Large and underpenetrated target market offers immense growth potential.  
  • Insulet raised Omnipod 2023 revenue growth guidance to 21–25% from 17–22% previously. The U.S. Omnipod revenue growth guidance has been raised to 27–31% from 21–26% earlier.
  • For 2023, Insulet expects gross profit margin of 65–66%, compared with 61.7% in 2022. Insulet has reaffirmed high-single-digit operating profit margin for 2023 compared with 2.9% in 2022.

Elevance Health Inc.: An Unstoppable Force Revolutionizing Healthcare? – Key Drivers

By Baptista Research

  • Elevance Health managed to exceed analyst expectations in terms of revenue as well as earnings.
  • This strong result was driven by solid execution and progress in its mission to become a trusted health partner for life.
  • They achieved double-digit growth in GAAP and adjusted earnings per share, raising their adjusted earnings outlook for the year.

Intuitive Surgical Inc.: Can The da Vinci System Be A Game Changer For The Medical Industry? – Key Drivers

By Baptista Research

  • Intuitive Surgical managed to exceed analyst expectations in terms of revenue as well as earnings.
  • Cholecystectomy and hernia repair procedures grew more frequently in general surgery.
  • SP procedure growth was accretive in the quarter, with a 40% global increase driven by accelerated growth in the United States.

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Jul 27
0

Daily Brief Financials: Pacific Current, Krung Thai Bank Pub, Agung Podomoro Land, Morgan Stanley and more

By | Daily Briefs, Financials

In today’s briefing:

  • Pacific Current Group (PAC AU): Regal Partners’ Attractive Indicative Offer
  • Thai Banks 2Q23 Screener; We Reiterate Our Positive Picks Krung Thai and Ayudhya
  • Morning Views Asia: Agung Podomoro Land
  • Morgan Stanley: 4 Major Factors Driving This Financial Services Giant – Financial Forecasts

Pacific Current Group (PAC AU): Regal Partners’ Attractive Indicative Offer

By Arun George

  • Pacific Current (PAC AU) has disclosed a non-binding indicative proposal from Regal Partners (RPL AU) at A$7.50 cash per share and 2.2 GQG Partners (GQG AU) shares per PAC share.
  • The implied offer price of A$11.12 per share based on GQG’s last close price is a juicy 42.6% premium to the undisturbed price of A$7.80 per share (26 July).
  • The offer is attractive compared to historical ranges and peer multiples. Expect the Board to grant due diligence access to facilitate a binding proposal.

Thai Banks 2Q23 Screener; We Reiterate Our Positive Picks Krung Thai and Ayudhya

By Victor Galliano

  • Krung Thai remains our pick; it ranks second from top in terms of post-provision profitability, screens well on NPL coverage, funding as well as PBV ratios and PE multiples
  • We also like Ayudhya, with its sound pre and post-provision profitability metrics in 2Q23, its sound credit quality metrics and attractive valuations
  • Kasikorn has seen its TTM cost of risk remain high, and it is the negative outlier versus its peers; yet Kasikorn’s poor share performance makes it one for the watchlist

Morning Views Asia: Agung Podomoro Land

By Charles Macgregor

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

Morgan Stanley: 4 Major Factors Driving This Financial Services Giant – Financial Forecasts

By Baptista Research

  • Morgan Stanley delivered a positive result and managed an all-around beat in the last quarter.
  • In Wealth Management, Morgan Stanley saw a decrease in sweep outflows and a stabilizing of retail assets in cash and cash equivalents.
  • We give Morgan Stanley a ‘Hold’ rating with a revised target price.

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Jul 27
0

Daily Brief Consumer: Rakuten Group , Tata Motors DVR, Tongcheng Travel Holdings , Lalatech Holdings Co Ltd, CyberAgent Inc, Feng Tay Enterprise, Netflix Inc, Pepsico Inc, Las Vegas Sands, Inter Parfums and more

By | Consumer, Daily Briefs

In today’s briefing:

  • July TOPIX FFW Rebal – Update With 2 Days To Go on $3bn a Side
  • Tata Motors (TTMT IN) – Goodbye to the DVR Arb
  • Quiddity HSTECH Sep 23 Flow Expectations Update: Last Trade Sucessful; Some New Trade Ideas
  • Lalatech IPO Valuation Analysis: Discount To Last Round Valuation Is Justified
  • CyberAgent 3Q: Gaming Collapses and Spurs Downward Revision
  • Feng Tay Enterprise: Risks from Higher Inventory at Nike & Unattractive Valuations
  • Netflix Inc.: Crackdown On Password Sharing A Temporary Subscriber Growth Boost! – Key Drivers
  • PepsiCo Inc.: Can The Product Price Increase Be A Deterrent For Consumers? – Key Drivers
  • Las Vegas Sands Corp.: The Comeback King of the Casino Industry! – Major Drivers
  • IPAR: Adding and Growing

July TOPIX FFW Rebal – Update With 2 Days To Go on $3bn a Side

By Travis Lundy

  • In the two weeks since the announcement, Large ADDs (>2d ADV, >$5mm) have outperformed Large DELs by 1.3%. Smaller ADDs vs DELs (>2d, >$2<$5mm) have outperformed by 1.3%.
  • Using only >$20mm >2d DELs vs Top 5 $amt >2d ADDs, that’s a bit better than 1%. And the really obvious large ones? Not so obvious.
  • There is still a large reverse funding trade, with some large sells. 

Tata Motors (TTMT IN) – Goodbye to the DVR Arb

By Brian Freitas

Quiddity HSTECH Sep 23 Flow Expectations Update: Last Trade Sucessful; Some New Trade Ideas

By Janaghan Jeyakumar, CFA

Lalatech IPO Valuation Analysis: Discount To Last Round Valuation Is Justified

By Andrei Zakharov

  • Lalatech Holdings filed for an IPO in March. I have tried to come at an IPO valuation for the company using a mix of methodologies: EV/Revenue, EV/GTV and EV/Gross Profit.
  • Taking a weighted average of peer group multiples-based valuation methodologies, I arrived at a ~$7B IPO valuation for Lalatech Holdings, including ~$1.65B of cash and cash equivalents.
  • From a peer group perspective, I arrived at a fair IPO valuation close to ~$7B, using a ~5x EV/CY22 Revenue, ~0.7x EV/CY22 GTV, and a 10x EV/CY22 Gross Profit multiple. 

CyberAgent 3Q: Gaming Collapses and Spurs Downward Revision

By Shifara Samsudeen, ACMA, CGMA

  • CyberAgent Inc (4751 JP) reported 3QFY09/2023 results today. Revenue decreased 0.2% YoY to ¥171.7n (vs consensus ¥177.8bn) while operating income decreased 86.2% YoY to ¥1.4bn (vs consensus ¥11.0bn).
  • The game business has further deteriorated during 3Q with the absence of hit title launches and drop in UMA MUSUME Rankings. Segment reported losses during the quarter.
  • CA has opened pre-registrations for two new games, we are not convinced that these could become top performers as the company has not given a hit title since UMA MUSUME.

Feng Tay Enterprise: Risks from Higher Inventory at Nike & Unattractive Valuations

By Douglas Kim

  • We are negative on Feng Tay Enterprise’s share price in the next 6-12 months mainly due to inventory/margin concerns at its largest customer Nike combined with unattractive valuations.
  • In the next several months, we think there is a higher probability of Feng Tay’s share price underperforming versus Nike.
  • Feng Tay Enterprise is one of the largest global OEM/ODM companies that specializes the design and manufacturing of footwear. Nike is one of the largest customers of Feng Tay Enterprise. 

Netflix Inc.: Crackdown On Password Sharing A Temporary Subscriber Growth Boost! – Key Drivers

By Baptista Research

  • Netflix delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.
  • Key second quarter results indicated revenue of $8.19 billion, adjusted earnings per share (EPS) at $3.29, and a surge in subscribers with 5.89 million net additions, all of which are above expectations.
  • The shortfall in revenue was counteracted by strong performance in profitability metrics, such as the operating margin and free cash flow, which surpassed expectations.

PepsiCo Inc.: Can The Product Price Increase Be A Deterrent For Consumers? – Key Drivers

By Baptista Research

  • PepsiCo delivered an all-around beat in the previous quarter.
  • The labor market is generally improving, which has improved how PepsiCo conducts its business.
  • Another good news for the company was that PBNA’s margins decreased in the second quarter.

Las Vegas Sands Corp.: The Comeback King of the Casino Industry! – Major Drivers

By Baptista Research

  • Las Vegas Sands managed to exceed analyst expectations in terms of revenue as well as earnings.
  • With its scale and substantial investment, Las Vegas Sands is well-positioned to benefit from this trend.
  • We give Las Vegas Sands Corp. a ‘Hold’ rating with a revised target price.

IPAR: Adding and Growing

By Hamed Khorsand

  • IPAR continued to experience momentum in demand in the second quarter with preliminary sales ending up at $309 million compared to our Street high estimate of $283.7 million
  • IPAR’s management is taking a conservative approach with sales forecast given the supply chain and sales volatility in certain regions. 
  • The strength in second quarter sales was across multiple brands and in both segments

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Jul 26
0

Daily Brief Utilities: Tokyo Stock Exchange Tokyo Price Index Topix and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • Why Do Only 13% of Companies Mention P/B in Mid-Term Management Plans While Half Had P/Bs Below 1x?

Why Do Only 13% of Companies Mention P/B in Mid-Term Management Plans While Half Had P/Bs Below 1x?

By Aki Matsumoto

  • Considering that about half of the listed companies had P/Bs below 1x, the fact that 13% of the companies that published medium-term management plans mentioned P/Bs is too small.
  • More companies should mention ROE in mid-term business plans, but the reason they don’t is because they recognize that the company isn’t generating return that exceeds its cost of capital.
  • While P/B is rising due to rising stock prices, foreign ownership is increasing. In exchange, managers must realize that they need to develop measures for sustainable expansion of corporate value.

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Jul 26
0

Daily Brief Industrials: Titagarh Wagons, Applus Services SA, Lockheed Martin, Hidrovias Do Brasil S.A., Hunt (Jb) Transprt Svcs and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Titagarh Rail Systems Ltd- Forensic Analysis
  • Apollo/Applus: Blocking Minorities
  • Lockheed Martin Corporation: 4 Reasons Behind Lockheed Martin’s Successful Quarter! – Financial Forecasts
  • Hidrovias – ESG Report – Lucror Analytics
  • J.B. Hunt Transport Services Inc.: 4 Factors Why The Company Is Thriving in an Uncertain Environment! – Financial Forecasts

Titagarh Rail Systems Ltd- Forensic Analysis

By Nitin Mangal

  • Titagarh Wagons (TWL IN) (now ‘Titagarh Rail Systems’) has seen an extraordinary momentum in its share price in last couple of years, especially after bagging crucial contracts for Indian Railways.
  • The company was limping until F22 due to its Italian subsidiary (TFA). However, the recapitalization of TFA (including change in accounting) in F23 should make the balance sheet look better.
  • Forensic analysis revealed several takeaways, ranging from write-offs and internal audit issues to heavy contingent liabilities.

Apollo/Applus: Blocking Minorities

By Jesus Rodriguez Aguilar

  • The spread has been in positive territory since the announcement. Apollo only bid the minimum requested by the Board. Investors hope for a counteroffer or Apollo sweetening its offer. 
  • Exceeding the 75% threshold is key for Apollo to be able to quickly and effectively carry out the delisting of Applus+, the objective stated in the  offer announcement. 
  • Risk arbitrageurs holding now over 25%, may give that gentle push, otherwise delisting will be in jeopardy. A sweetening/counteroffer in the range €10-10.5/share seems very likely.

Lockheed Martin Corporation: 4 Reasons Behind Lockheed Martin’s Successful Quarter! – Financial Forecasts

By Baptista Research

  • Lockheed Martin Corporation delivered a positive result and managed an all-around beat in the last quarter.
  • Lockheed had revenues of $16.7 billion, an increase of 8% year on year, and double-digit growth in both Aeronautics and Space.
  • We give Lockheed Martin Corporation a ‘Hold’ rating with a revised target price.

Hidrovias – ESG Report – Lucror Analytics

By Charles Macgregor

  • Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
  • We assess Hidrovias’ ESG as “Adequate”, in line with its “Adequate” Social and Governance scores. The company has a “Strong” score for the Environmental pillar. Controversies are “Immaterial” and Disclosure is “Adequate”.
  • Headquartered in Sao Paulo, Hidrovias Do Brasil SA is South America’s largest independent provider of integrated inland waterway logistics transport services. Its operations include shipping, trans-shipment, storage and port services for dry-bulk cargo (including agricultural commodities, iron ore and bauxite) in the Paraguay-Parana and Trombetas-Tapajos-Amazon river systems.

J.B. Hunt Transport Services Inc.: 4 Factors Why The Company Is Thriving in an Uncertain Environment! – Financial Forecasts

By Baptista Research

  • J.B.
  • Hunt Transport Services delivered a disappointing set of results as the company was unable to meet the revenue as well as the earnings expectations of Wall Street.
  • Revenue for the quarter decreased 18% from the prior year on a consolidated GAAP basis.

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Jul 26
0

Daily Brief Industrials: Titagarh Wagons, Applus Services SA, Lockheed Martin, Hidrovias Do Brasil S.A., Hunt (Jb) Transprt Svcs and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Titagarh Rail Systems Ltd- Forensic Analysis
  • Apollo/Applus: Blocking Minorities
  • Lockheed Martin Corporation: 4 Reasons Behind Lockheed Martin’s Successful Quarter! – Financial Forecasts
  • Hidrovias – ESG Report – Lucror Analytics
  • J.B. Hunt Transport Services Inc.: 4 Factors Why The Company Is Thriving in an Uncertain Environment! – Financial Forecasts

Titagarh Rail Systems Ltd- Forensic Analysis

By Nitin Mangal

  • Titagarh Wagons (TWL IN) (now ‘Titagarh Rail Systems’) has seen an extraordinary momentum in its share price in last couple of years, especially after bagging crucial contracts for Indian Railways.
  • The company was limping until F22 due to its Italian subsidiary (TFA). However, the recapitalization of TFA (including change in accounting) in F23 should make the balance sheet look better.
  • Forensic analysis revealed several takeaways, ranging from write-offs and internal audit issues to heavy contingent liabilities.

Apollo/Applus: Blocking Minorities

By Jesus Rodriguez Aguilar

  • The spread has been in positive territory since the announcement. Apollo only bid the minimum requested by the Board. Investors hope for a counteroffer or Apollo sweetening its offer. 
  • Exceeding the 75% threshold is key for Apollo to be able to quickly and effectively carry out the delisting of Applus+, the objective stated in the  offer announcement. 
  • Risk arbitrageurs holding now over 25%, may give that gentle push, otherwise delisting will be in jeopardy. A sweetening/counteroffer in the range €10-10.5/share seems very likely.

Lockheed Martin Corporation: 4 Reasons Behind Lockheed Martin’s Successful Quarter! – Financial Forecasts

By Baptista Research

  • Lockheed Martin Corporation delivered a positive result and managed an all-around beat in the last quarter.
  • Lockheed had revenues of $16.7 billion, an increase of 8% year on year, and double-digit growth in both Aeronautics and Space.
  • We give Lockheed Martin Corporation a ‘Hold’ rating with a revised target price.

Hidrovias – ESG Report – Lucror Analytics

By Charles Macgregor

  • Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
  • We assess Hidrovias’ ESG as “Adequate”, in line with its “Adequate” Social and Governance scores. The company has a “Strong” score for the Environmental pillar. Controversies are “Immaterial” and Disclosure is “Adequate”.
  • Headquartered in Sao Paulo, Hidrovias Do Brasil SA is South America’s largest independent provider of integrated inland waterway logistics transport services. Its operations include shipping, trans-shipment, storage and port services for dry-bulk cargo (including agricultural commodities, iron ore and bauxite) in the Paraguay-Parana and Trombetas-Tapajos-Amazon river systems.

J.B. Hunt Transport Services Inc.: 4 Factors Why The Company Is Thriving in an Uncertain Environment! – Financial Forecasts

By Baptista Research

  • J.B.
  • Hunt Transport Services delivered a disappointing set of results as the company was unable to meet the revenue as well as the earnings expectations of Wall Street.
  • Revenue for the quarter decreased 18% from the prior year on a consolidated GAAP basis.

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Jul 26
0

Daily Brief United States: Alphabet , Applied Blockchain Inc, Lockheed Martin, Omnicom Group, W&T Offshore, Crude Oil, Conagra Foods, Aflac Inc, Hunt (Jb) Transprt Svcs and more

By | Daily Briefs, United States

In today’s briefing:

  • Alphabet 2Q’23 Earnings Update
  • APLD – 4Q Review
  • Lockheed Martin Corporation: 4 Reasons Behind Lockheed Martin’s Successful Quarter! – Financial Forecasts
  • Omnicom Group Inc.: Acquisition of Grabarz & Partner
  • W&T Offshore, Inc. – Adjusting Realized 2Q23 Commodity Price Estimates
  • The Energy Cable #30 – Progress for The Bulls
  • Conagra Brands Inc.: Summer 2023 Product Launches & Other Drivers
  • Aflac Incorporated: Initiation of Coverage – Business Structure and Competitive Edge
  • J.B. Hunt Transport Services Inc.: 4 Factors Why The Company Is Thriving in an Uncertain Environment! – Financial Forecasts

Alphabet 2Q’23 Earnings Update

By MBI Deep Dives

  • Topline grew +9% FXN. While Google Services revenue growth was flat in 1Q’23, it was 5.5% YoY in 2Q’23, with growth re-accelerating in every component of Google Services.
  • Despite cost optimization efforts by customers, Google Cloud maintained its momentum with ~28% YoY growth (same as it was in 1Q’23).
  • So, on an apple-to-apple basis, Google Services margin would be slightly lower this quarter than reported (say, ~$500 Mn opex for Google Brain).

APLD – 4Q Review

By Guasty Winds

  • APLD released 4Q earnings last night. The stock performed well, +14%.
  • The key highlight was the huge guidance. In this post I will run through how the numbers make no sense.

  • Jamestown, North Dakota (JT) – 100MW – JT has been operating since 2022. It has ~100MW of capacity and has been running at full capacity over the past two quarters, according to comments made on the company’s 3Q and 4Q earnings calls. Here is a snip for the 3Q call.

Lockheed Martin Corporation: 4 Reasons Behind Lockheed Martin’s Successful Quarter! – Financial Forecasts

By Baptista Research

  • Lockheed Martin Corporation delivered a positive result and managed an all-around beat in the last quarter.
  • Lockheed had revenues of $16.7 billion, an increase of 8% year on year, and double-digit growth in both Aeronautics and Space.
  • We give Lockheed Martin Corporation a ‘Hold’ rating with a revised target price.

Omnicom Group Inc.: Acquisition of Grabarz & Partner

By Baptista Research

  • Omnicom Group delivered a mixed set of results for the previous quarter, with revenues below analyst expectations but managed earnings beat.
  • Organic growth for the quarter was impressive and the company’s liquidity is strong while its cash flow supports its principal cash uses, including dividends, purchases, and share repurchases.
  • Omnicom made considerable headway on its AI strategy by incorporating generative AI into Omni, their market-leading technology platform, and forming important first-of-their-kind technological partnerships.

W&T Offshore, Inc. – Adjusting Realized 2Q23 Commodity Price Estimates

By Water Tower Research

  • We are updating our 2Q23 commodity prices and realizations.

  • Our NYMEX reference prices averaged $73.78/barrel of oil and $2.32/MMBtu for natural gas.

  • Our previous estimates were $75/bbl and $2.50/Mcf.

The Energy Cable #30 – Progress for The Bulls

By Ulrik Simmelholt

  • Stars are aligning and both Steno Research and 3Fourteen research are now energy bullish.
  • Last week at Steno Research we looked at the potential for a bounce in Manufacturing PMI numbers and we thought it would be natural to look at both hard and soft data through the lens of one of the most important signals in the energy markets, namely the flip from contango to backwardation.
  • In general it can be said that the flip brings more volatility to soft data than hard data. Given PMIs general tendency to converge with hard data and its current levels (Almost GFC bearishness) we feel like there are plenty of reasons for betting on higher Manufacturing PMI numbers.  

Conagra Brands Inc.: Summer 2023 Product Launches & Other Drivers

By Baptista Research

  • Conagra Brands delivered a mixed set of results in its most recent quarter, with revenues falling short of Wall Street expectations.
  • As Conagra made significant headway on its cost-saving initiatives and consequently saw a significant rise in service standards, its supply chain kept becoming better.
  • Conagra Brands further expanded its product line by introducing more than 50 new items across its frozen, grocery, and snacking divisions.

Aflac Incorporated: Initiation of Coverage – Business Structure and Competitive Edge

By Baptista Research

  • This is our first report on Aflac Incorporated, a prominent player in the American insurance industry.
  • The year’s first quarter proved promising for Aflac, as the company reported solid earnings results despite a material yen weakening.
  • The operations in Japan saw continued sales improvements, driven by the rollout of new and refreshed products, particularly the cancer insurance policy.

J.B. Hunt Transport Services Inc.: 4 Factors Why The Company Is Thriving in an Uncertain Environment! – Financial Forecasts

By Baptista Research

  • J.B.
  • Hunt Transport Services delivered a disappointing set of results as the company was unable to meet the revenue as well as the earnings expectations of Wall Street.
  • Revenue for the quarter decreased 18% from the prior year on a consolidated GAAP basis.

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Jul 26
0

Daily Brief Australia: Talon Energy , Schrole Group Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Strike Energy Yanks Its NBIO For Talon
  • Schrole Group Ltd – Another Record Quarter, Closing in on Break Even

Strike Energy Yanks Its NBIO For Talon

By David Blennerhassett

  • O&G junior Talon Energy (TPD AU) announced it had received a non-binding Offer from Strike Energy (STX AU). 
  • The all-scrip bid – by way of a Scheme – entailed an implied A$0.20/share in Strike shares plus Talon shareholders retaining their holding in Talon’s Mongolia gas project.
  • After Talon said it intended to undertake a process of evaluation of the Proposal before offering due diligence, Strike promptly withdrew its bid.

Schrole Group Ltd – Another Record Quarter, Closing in on Break Even

By Research as a Service (RaaS)

  • Schrole Group Ltd (ASX:SCL) is an Australian software company focused on providing human resource technology solutions to the international education and training sector.
  • Schrole has developed a suite of five HR Software-as-a-Service (SaaS) offerings including the core product, Schrole Connect, a SaaS-based staff recruitment platform.
  • Schrole Group has reported a 24% increase in quarter-on-quarter cash receipts to $1.32m and a narrowed operating cash loss of $0.20m, a 39% reduction when compared with the same quarter a year ago. Schrole Group ended the quarter with cash of $1.36m and no debt. 

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