Daily BriefsUnited States

Daily Brief United States: New Ruipeng Pet Group, Amazon.com Inc, Comcast Corp Class A, Intel Corp, Snap Inc, Sap Se Sponsored Adr, Assertio Holdings, Sherwin Williams Co and more

In today’s briefing:

  • New Ruipeng Pet Group Pre-IPO – The Negative – Loss-Making and Cash Burn Could Dampen Ambitions
  • Amazon: Recent Quarter Is A Reminder That Red Flags Should Not Be Ignored
  • Comcast Corporation: Major Drivers
  • Intel Corp: Launch Of 13th Generation Lineup & Other Drivers
  • Snap Inc: New Promotional Campaign & Other Developments
  • Amazon 4Q22: When Does AWS Trough?
  • SAP SE ADR: Launch Of SAP Build & Other Drivers
  • ASRT: Looking Ahead to 2023
  • Sherwin-Williams: Acquisition Of SIC & Other Drivers

New Ruipeng Pet Group Pre-IPO – The Negative – Loss-Making and Cash Burn Could Dampen Ambitions

By Clarence Chu

  • New Ruipeng Pet Group (RPET US) is looking to raise at least US$100m in its upcoming US IPO. 
  • New Ruipeng Pet Group (Ruipeng) is a pet services platform, primarily offering pet care services, supply chain services and local services, covering the entire lifecycle of pets.
  • In this note, we will talk about the not-so-positive aspects of the deal.

Amazon: Recent Quarter Is A Reminder That Red Flags Should Not Be Ignored

By Vladimir Dimitrov, CFA

  • Amazon’s share price has fallen 25% since April of last year, sparking a fear of missing out.
  • The pressure for cost-cutting measures will likely increase as profitability and free cash flow remain elusive, according to Amazon.
  • Amazon has seen a 25% drop in its share price in January.

Comcast Corporation: Major Drivers

By Baptista Research

  • Comcast achieved a strong result that surpassed Wall Street expectations in terms of revenues as well as earnings.
  • The company is slowly growing its ARPU as it is working towards building its customer relationships by steadily introducing new capabilities, services, and benefits.
  • In 2023, ARPU growth should continue to be the main factor influencing their residential broadband revenue growth.

Intel Corp: Launch Of 13th Generation Lineup & Other Drivers

By Baptista Research

  • Intel delivered a weak result, failing to meet Wall Street expectations in terms of revenues as well as earnings given the persisting macroeconomic headwinds in the semiconductor industry.
  • Intel continues to integrate AXG into CCG and DCAI to deliver a more effective go-to-market capability, accelerating the scale of these businesses while further cutting costs.
  • The management believes their first EUV-deploying modes, Intel 4 and 3, will significantly improve transistor performance per watt and density.

Snap Inc: New Promotional Campaign & Other Developments

By Baptista Research

  • Snap continued to encounter massive challenges due to increased competition and macroeconomic headwinds.
  • In the quarter, the company released communities to expand its content offerings and onboarded several new media partners.
  • The company has also launched new Snapchat+ features to increase audience engagement on the platform in the quarter.

Amazon 4Q22: When Does AWS Trough?

By Aaron Gabin

  • AWS revenue grew 20% YoY to $21.3B, about $400M or ~2% below consensus…and a 700bp deceleration.
  • AWS margins of 24% were down 200bps QoQ / 600bps YoY as continued optimization of customer contracts continues to weigh on margins.
  • Amazon advertising continues to dramatically outpace all other online platforms, highlighting the moat of first party data at the point of purchase, unimpacted by Apple.

SAP SE ADR: Launch Of SAP Build & Other Drivers

By Baptista Research

  • SAP delivered a mixed set of results in the final quarter of 2022 as it surpassed the revenue expectations of Wall Street but missed out on earnings.
  • This year, cloud revenue also surpassed support revenue to become SAP’s single-largest revenue stream.
  • Their overall SaaS and PaaS portfolio grew significantly, with SaaS cloud revenue increasing by 25% and PaaS cloud revenue increasing by 45%.

ASRT: Looking Ahead to 2023

By Hamed Khorsand

  • ASRT has setup 2023 with the potential for growth even though Cambia now has generic competition. ASRT had been mentioning the generic competition for more than a year.
  • Looking ahead to 2023, ASRT should benefit from having samples of Otrextup available for physicians.
  • Indocin remains the primary revenue generator for ASRT. We are expecting greater revenue contribution from Indocin to offset Cambia

Sherwin-Williams: Acquisition Of SIC & Other Drivers

By Baptista Research

  • Sherwin-Williams’ fourth quarter results were mixed as the company failed to meet the revenue expectations of Wall Street despite a high single-digit percentage sales growth.
  • The company managed an earnings beat as a result of the significant year-over-year gross margin improvement.
  • Sales in North and Latin America increased by double-digit percentages in the industrial sector, offsetting some of the weaker circumstances in Europe and Asia.

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