Daily Brief United States: Tesla , Visa, Netflix Inc, S&P 500 INDEX, Pepsico Inc, Texas Instruments, GCC SAB de CV, Matthews Intl Corp Class A, WD-40 Company, Cleveland-Cliffs Inc and more

• Tesla Inc.’s first-quarter earnings for 2024 offered a critical and insightful update on the electric vehicle manufacturer’s strategy and financial performance.
• Tesla appears committed to its strategic focus on vehicle autonomy and digitisation, with CEO Elon Musk stating that the company should be viewed primarily as an AI (Artificial Intelligence) and robotics firm, underlining its commitment to Full Self-Driving (FSD) as a key future revenue stream.
• 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.

• Visa’s Fiscal Second Quarter 2024 Earnings indicate that Visa appears to be standing on solid financial ground with plenty of room for growth.
• The leading global payments technology company recorded $8.8 billion in net revenue for the quarter, marking a 10% increase.
• Its GAAP Earnings Per Share (EPS) rose by 12%, while non-GAAP EPS also saw an upward movement by 20%.

• Netflix Inc.’s Q1 2024 earnings highlighted a number of impactful developments and strategic shifts that investors should consider.
• The company’s management team made it clear that while they’ll no longer be reporting quarterly membership in ARM data starting in 2025, they will continue to provide updates on key metrics including revenue, OI, OI margin, net income, EPS, and free cash flow.
• 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.

• While we are not yet out of the woods, we continue to see evidence that suggests the lows may be “in” for this pullback.
• Last week (4/23/24 Compass) we discussed the possibility that further downside was limited on the S&P 500 due to a multitude of reasons
• We view the latest pullback to 100-day MA on SPX as healthy/normal within the ongoing bull market. Pullbacks to the 100-day provided ideal entry points throughout the 2021 bull market

• PepsiCo’s recorded performance in the Q1 2024 earnings signaled steady growth and improvement across a range of business areas.
• The company’s leadership tone was grounded in its strong performance, highlighting several positive aspects as well as acknowledging a few challenges faced during the fiscal quarter.
• PepsiCo’s robust international performance was repeatedly underlined as one of the highlights of Q1 2024.

• Texas Instruments (TI) reported a first quarter of 2024 revenue that met expectations, despite witnessing a 10% sequential and 16% year-over-year decrease to $3.7bn.
• Revenue declined across all of its end markets as customers continued to pare their inventory levels.
• In terms of individual revenue components, Analog revenue declined 14% year-over-year, Embedded Processing declined 22%, and the Other segment declined 33% from the year-ago quarter.

• GCC (Outperform): posted positive results, which are above our estimates.
• Higher prices in cement and ready-mix supported solid results.
• Consolidated EBITDA increased +32% YoY, while the EBITDA margin reached 30.4% (+4.6 pp. YoY).

• Matthews International is an undervalued diversified industrial company
• The potential IPO of its machinery segment for dry battery electrodes could unlock value
• The Industrial Technology segment, with Tesla as a customer, has significant potential for growth and value creation

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Shorting suggestion for WD-40 due to potential decrease in earnings growth
• High multiple of earnings guidance and projected 50% decrease in stock price
• Factors including temporary demand spike, significant price hike, and concerns about future growth cited as reasons for shorting suggestion

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Cleveland-Cliffs Inc in their Q1 2024 Earnings has placed particular emphasize on their tactic of share buybacks as an essential capital allocation method.
• During this time period, the firm was able to procure over 30 million of its own shares, utilizing approximately $608 million from a previous $1 billion share buyback program announced in 2022.
• Over the past few years, the company’s diluted share count has been lowered by over 100 million shares, reflecting a significant 17% reduction and pointing to an average purchase price of $18.79 per share, a price point considerably lower than the current trading price.