Daily Brief United States: Copper, Crude Oil, Arista Networks, Ligand Pharmaceuticals, Shift4 Payments, Genuine Parts Co, Occidental Petroleum, Medtronic Plc, Devon Energy and more

• Base metals, particularly copper, are sensitive to China specific tariffs, leading to a rise in copper prices in early 2025
• Near term market outlook is cautious due to supply and demand dynamics, with prices potentially pulling back towards $9,000 per ton
• Long term outlook for copper market tightening in 2025 due to slowing mine supply growth and modest deceleration in global demand growth, with potential risks in X Chinese demand.

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• How We Traded Wheat Short Wheat prices saw a small revival over the last month.
• From the rect bottom the forward futures contract recovered almost 15%.
• During last week new selling pressure started to effect the market and led prices down again. 

• Arista Networks’ results for the fourth quarter of 2024 reflect significant strides and some challenges in various segments.
• The company reported revenue of $1.93 billion for the quarter, contributing to an annual growth of approximately 19.5%, surpassing its initial forecast of 10-12% amidst robust AI-related demand.
• This performance helped achieve a non-GAAP operating margin of 47.5%, marking a solid financial standing.

• Ligand Pharmaceuticals holds a portfolio of revenue, royalty & milestone generating assets that have been vetted by its internal investment team.
• Ligand considers individual biopharmaceutical products, platforms, companies & income streams in its opportunity set.
• It targets late-stage and commercial income-producing assets when making investments.

• U.S. oil and gas rig count rose by one for the week ending 28/Feb, marking the fifth straight weekly gain and bringing the total to 593.
• For the week ending 21/Feb, U.S. oil production slightly rose to 13.50 million bpd from 13.49 million bpd last week.
• The number of active U.S. oil rigs fell by 2 to 486, while gas rigs rose by 3 to 102. Rig count in the Permian rose by one to 305. 

• Shift4 Payments Inc. reported robust financial results for the fourth quarter of 2024, setting records across several key performance indicators.
• The company announced a 49% year-over-year increase in end-to-end payment volumes to $47.9 billion and a 50% rise in gross revenue less network fees, amounting to $405 million.
• Adjusted EBITDA increased by 51% to $205.9 million, while adjusted free cash flow saw a significant rise of 78% to $134 million.

• Genuine Parts Company reported its financial performance for the fourth quarter and full year ending 2024, revealing a mixed set of results amidst challenging market conditions.
• The company’s total sales for 2024 were $23.5 billion, representing a growth of 1.7% compared to the previous year.
• This growth was bolstered by strategic acquisitions which contributed 260 basis points but was offset by weaker market conditions, particularly in the industrial segment.

• Occidental’s Q4 revenue fell 5.7% YoY, missing estimates by 3.1%. It also posted a net loss of USD 297 million. Lower sales and tight margins weighed on performance.
• However, adjusted EPS climbed 8.1% to USD 0.80 per share, beating estimates by 18.1%, while Occidental met its USD 4.5 billion short-term debt reduction goal for 2024.
• Occidental signed divestment deals worth USD 1.2 billion in Q1 2025. Proceeds will cover debt maturities. It raised its quarterly dividend by 9% to USD 0.24 per share.

• Medtronic’s third-quarter results of fiscal year 2025 present a mixed yet promising picture of the company’s performance and strategic initiatives.
• The company has reported mid-single-digit organic revenue growth for the ninth consecutive quarter, highlighting consistent market performance.
• Significant areas of growth include the Cardiac Ablation Solutions, which reported a 22% increase, as well as strong double-digit growth in leadless pacing, Neuromodulation, and Diabetes segments.

• Devon Energy Corporation’s fourth-quarter 2024 report presents both positive performance details and areas needing consideration.
• The company announced an impressive operational performance, yielding substantial financial results, particularly noted by the generation of $3 billion in free cash flow.
• This financial strength enabled a return of $2 billion to shareholders, aligning with Devon’s strategic commitment to delivering shareholder value.