Smartkarma Daily Briefs

• Markets are still active, with major moves in rates and currency
• There are conflicting signals in the bond market, with concerns over inflation and the economy slowing down
• Steven Englander from Standard Chartered discusses the dynamics of JGB and UST yields

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• SLR reform is a high priority for US banking regulators, with potential changes to how Treasuries are calculated
• The timeline for SLR reform is still in the early stages, with regulatory processes and personnel confirmations needing to be completed first
• Potential scenarios for SLR reform include carving out reserves and dealer holdings of Treasuries from the SLR denominator to address liquidity and market functioning concerns

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• MNTN, Inc., a high-growth provider of CTV performance marketing platform, priced its IPO at $16.00 per share, high end of range.
• The offering was ~14x times oversubscribed, according to Mark Douglas, Founder & CEO of MNTN. The IPO opened at $21.00 and closed at $26.36 per share, up ~65%.
• I think the stock was attractively priced vs. peers, given 30%+ growth rates, FCF positive business and top-tier backers.

• After adding ~2,300 Boe/d of shallow-decline production in the Lime Rock acquisition, management altered its FY25 capital program to favor allocating free cash flow to debt reduction.
• 2Q25 capital spending guidance was lowered by more than 50% from prior expectations, yet production guidance was maintained at 20,500-22,500 Boe/d (13,700-14,700 Bo/d).
• Updated full-year guidance reflects a 36% capital spending reduction from management’s initial outlook and a 5% production reduction. 

• IDEX Corporation recently reported its first-quarter results for 2025, outlining both positive performances and areas of challenge.
• The company exceeded expectations across revenue, profitability, and adjusted earnings per share, thanks to incremental cost savings and strategic price adjustments.
• This highlights IDEX’s effective operational management, despite an environment marked by policy-driven uncertainties, such as newly introduced tariffs.

• Avnet, Inc. reported its financial results for the third quarter of fiscal year 2025, demonstrating a performance that exceeded some expectations despite challenging market conditions.
• The company achieved sales of $5.3 billion, reaching near the high end of its guidance, while adjusted earnings per share (EPS) of $0.84 surpassed expectations.
• Cash flow from operations amounted to $141 million for the quarter, driven largely by a better-than expected performance in Asia and positive developments from Farnell, although the company faced ongoing weaknesses in the Western markets, with Europe providing the most difficult environment.

• Parker Hannifin Corporation’s Q3 earnings report for fiscal year 2025 highlights a robust performance characterized by record-setting profitability metrics amid challenging macroeconomic conditions.
• The company reported a solid adjusted segment operating margin of 26.3% and an adjusted EBITDA margin of 27%, marking notable achievements as both figures reached record highs.
• Total cash flow from operations hit $2.3 billion year to-date, underscoring the strong cash generation capabilities of the business.

• KKR & Co. Inc. reported its first quarter 2025 results, showcasing a robust performance and strategic initiatives.
• The fee-related earnings per share increased to $0.92, marking a 22% rise year-over-year, while total operating earnings per share climbed 16% to $1.24.
• Adjusted net income per share noted a 19% uptick to $1.15.

• Cardinal Health, Incorporated reported robust third-quarter fiscal year 2025 results, demonstrating resilience and growth across its business segments.
• The company’s performance was particularly driven by strong utilization trends and execution in its Pharmaceutical and Specialty Solutions segment, as well as growth from three other businesses grouped under “Other.” The positive financial outcomes led Cardinal Health to raise its fiscal year 2025 EPS guidance.
• 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.

• Broadridge Financial Solutions Inc. reported strong third-quarter results for fiscal year 2025, reflecting robust performance across its various business segments, with total revenue increasing by 5% to $1.8 billion.
• The company achieved 8% growth in recurring revenues, constant currency, and a 9% increase in adjusted EPS, supported by solid execution of its growth strategy and a high level of visibility into its revenue streams driven by a 98% revenue retention rate and a significant recurring revenue backlog of $450 million.
• 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.

• Vulcan Materials is a major player in the construction aggregates market, providing the foundation for buildings, roads, and infrastructure in the United States.
• The company owns and operates quarries across the country, with a market cap close to $30 billion.
• Aggregates are essential for asphalt and concrete production, with Vulcan playing a crucial role in supplying this key material for construction projects.

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• VEON returned to billion-dollar quarterly revenue in 1Q25; EBITDA grew 13.7% YoY on strong digital execution.
• Digital revenues rose 50% YoY, now 14.3% of group total.
• Kyivstar IPO on track for 3Q25 at US$2.3bn valuation; fintech optionality in Bangladesh and Ukraine emerging.

• F1 is evolving to be more than just a sport, focusing on entertainment and business development
• The fan base is becoming younger and more diverse, with 40% women and 60% men, average age 35
• F1 is balancing historic venues with new races, aiming for 24 races per season and considering new markets in Asia and Africa

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• For the week ending 16/May, U.S. crude inventories grew by 1.3m barrels (vs. expectations of a 0.9m barrel fall). Similarly, gasoline and distillate stockpiles unexpectedly rose.
• The EIA reported a 120 Bcf storage build, exceeding analyst forecasts of an 118 Bcf increase. Storage levels are 3.9% above the five-year average.
• Barclays initiated coverage on Saudi Aramco with an ‘Overweight’ rating. Jefferies downgraded BP to ‘Hold’ from ‘Buy’, and Citigroup lifted its price target on Occidental Petroleum.

• Greetings from Copenhagen.
• We’ve previously advocated a long tilt toward commodities, as both the U.S. and global growth outlooks are being repriced amid the reopening of trade and the sudden realization that the U.S., China, and even Europe have collectively slammed the deficit accelerator—rather than the brakes.
• Everywhere you look, countries are ramping up fiscal spending to cushion the blow of tariffs.

• Tuya delivered a strong 1Q25, outperforming seasonal trends, with a record GAAP net profit of $11.0 million and a net margin of 14.8% (more than 20 percentage points higher Y/Y).
• Non-GAAP net profit also surged to $19.3 million, with margins reaching an impressive 25.8%.
• The company’s success reflects disciplined expense control, strong revenue momentum across all segments, and a growing emphasis on AI-driven solutions. 

• The Marqeta house of cards may come tumbling down: an FBI investigation could prompt MQ to lose up to 70% of its business.
• Future revenue looks​ weak for this “dinosaur” of a payments-processing company.
• Marqeta (MQ) is (mostly) a payment processor. MQ helps fintechs host their own payments tools by contracting with a Banking as a Service (BaaS) partner bank to manage client deposits. 

• Carrier Global Corporation reported a robust performance for the first quarter of 2025, showcasing strong results across various segments despite facing some challenges in certain areas.
• The company, which specializes in HVAC (heating, ventilation, and air conditioning), refrigeration, and fire and security solutions, provided a comprehensive view of its financial performance, including significant areas of growth and concern, setting the stage for the remainder of the year.
• 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.

• MNTN priced a full-size deal of 11.7mm shares at the high-end of the range, $16.00, and opened at $21.00 for a gain of 31.3% at first trade. 
• The fireworks continued as the stock traded to a high of $26.88 before closing its opening session at $26.36 for a first day return of 65%.
• The deal was considered multiple-times oversubscribed and our sources stated that the final deal finished north of 12-times oversubscribed.

• Newton Golf (NASDAQ: NWTG) is an innovative, technology driven golf company with a growing portfolio of golf products, including putters, golf shafts, golf grips, and other golf-related accessories.
• The company went public in August 2023 raising $11.6 million in net proceeds.
• The company announced its entry into the golf shaft market in November 2023.