Adobe in the third quarter of fiscal 2021 increased its net profit by 27% yoy, while the figure exceeded forecasts of experts. The company’s revenue jumped to $ 3.94 billion from $ 3.23 billion a year earlier. Net income for the three months ended September 3 was $ 1.21 billion, or $ 2.52 per share, compared to $ 955 million, or $ 1.97 per share, in the comparable period a year earlier. Adjusted Adobe’s earnings rose to $ 3.11 per share. The market consensus implied an increase in net income to $ 2.3 per share on revenue of $ 3.89 billion. Management of the company predicted earnings at $ 2.27 per share and revenue of $ 3.88 billion.
Tag: CASH MANAGEMENT
High potential for business growth
We kick off the Deluxe coverage and assign a fair value to the company at $ 55. We see significant growth potential for Deluxe’s business as the company continues to help corporate clients improve payment discipline, streamline operational processes and grow business volumes. First American’s recent acquisition of online and mobile payments significantly improves the Deluxe platform, which combines high cash flow (checks, promotions) with strong revenue growth (cloud services, payments).
Uber is ready for positive EBITDA
Uber Technologies reported that it received positive EBITDA in July and August, which improved its forecast for the entire current quarter. Now the company expects to receive adjusted EBITDA for the third quarter in the range from minus $ 25 million to plus $ 25 million, while the earlier expected loss of $ 100 million. The total volume of orders is projected in the range of $ 22.3-23.2 billion against the previous estimate of $ 22 -24 billion. Also, Uber has clarified the forecast for the fourth quarter and now intends to receive adjusted EBITDA in the amount of up to $ 100 million, while previously expected just a positive figure. We have improved our valuation of the company from $ 80 per share to $ 82. Our assessment is based on a differentiated approach, thanks to the global scale of the company and its market leadership position in various transport and logistics segments, coordinated by means of applications.
Walmart has improved its annual forecast
Walmart saw net income fall 34% in the second quarter of fiscal year 2022 ended July 31, but both adjusted numbers and revenue beat analysts’ forecasts. Revenue increased 2.4% to $ 141.05 billion versus $ 137.74 billion a year earlier compared to the market consensus of $ 137.02 billion. Net income for the financial quarter was $ 4.276 billion, or $ 1.52 per share, per compared to $ 6.476 billion, or $ 2.27 per share, received in the comparable period last year. Meanwhile, adjusted earnings rose to $ 1.78 per share from $ 1.56, beating market expectations of $ 1.57. The company’s online sales in the US climbed 6%. At the same time, over the past two years, their volume has more than doubled.
ASML announces new buyback program
The Netherlands-based ASML Holding NV, Europe’s largest chip maker, increased its second-quarter net profit and improved its annual revenue forecast, and announced a share buyback program of up to € 9 billion by the end of 2023. ASML’s revenue last quarter was € 4.02 billion, up from € 3.33 billion in the same period in 2020. The market consensus assumed the figure at the level of 4.09 billion eurosю
FedEx Reports Record Profit
FedEx Corp. received a record net profit for the fourth quarter of fiscal year 2021. The company’s March-May net income was $ 1.87 billion, or $ 6.88 per share, compared with a net loss of $ 334 million, or $ 1.28 per share, for the comparable period last year. Earnings excluding one-off factors rose to $ 5.01 per share from $ 2.53. Revenue rose to $ 22.6 billion from $ 17.4 billion a year earlier. Market analysts had forecast FedEx’s adjusted earnings of $ 5.02 per share on $ 21.5 billion in revenue.
Keeping pace with mega trends
Taking into account the company’s latest results and management’s outlook, we have updated the TE Connectivity model and raised our target share price from $ 135 to $ 160. The company’s business combines four key mega trends, namely: 1). safer and more environmentally friendly cars 2). Digitalization and automation of the real sector of the economy 3). Growth in global bandwidth demand 4). A growing sector of robotics that requires twice as many microelectronic components. The main risks for business include growing competition, in particular from Chinese companies, and the continuing uncertainty surrounding the situation with the restoration of supply chains.
Southwest Airlines Returns to Profits in Q2
Southwest Airlines recorded net income of $ 348 million, or $ 0.57 per share, in the second quarter of 2021, thanks to a one-off payment of $ 724 million received under the government’s anti-crisis employment program. A year earlier, Southwest Airlines had a net loss of $ 915 million, or $ 1.63 per share. The loss excluding one-off factors in April-June amounted to $ 206 million, or $ 0.35 per share. Market consensus assumed a loss of $ 0.23 per share. Southwest is the largest local airline in the United States and is considered by many to be the industry’s pricing trendsetter. We maintain a positive outlook on the company’s business.
Markets Are Positive
Major US stock indexes closed the week with growth. The S&P 500 added just under 3% and closed the trading session on Friday at an all-time high of 4,280.7 points. The Nasdaq 100 tech index rose 2.1% over the week and hit its all-time highs, ending trading at 14,345 points. The improvement in investor sentiment was facilitated by the statements of the head of the US Federal Reserve, Jerome Powell, who on Tuesday confirmed his opinion that the rise in inflation in the country is temporary. He also noted that the Fed will continue to support the economy. At the same time, Powell acknowledged the existence of significant uncertainty amid the opening of the economy after the restrictive measures introduced due to the COVID-19 pandemic. However, Powell considers it unlikely that the rate of growth in consumer prices in the country will reach the level of the 1970s, when inflation was in double digits.
Nvidia quadruples net profit
Nvidia posted record-breaking net income and revenues in the second quarter of fiscal 2022. Revenue jumped 68% to $ 6.51 billion from $ 3.87 billion a year earlier. Net income for the quarter ended Aug. 1 nearly quadrupled to $ 2.37 billion, or $ 0.94 per share, from $ 622 million, or $ 0.25 per share, in the prior year’s comparable period. Adjusted earnings rose to $ 1.04 per share from $ 0.55. According to market consensus, the company’s adjusted earnings were expected at $ 1.02 per share on revenue of $ 6.33 billion. The company itself forecast revenue in May in the range of $ 6.17 billion to $ 6.43 billion. Nvidia expects to receive revenue in the third financial quarter. the level of $ 6.66 billion – $ 6.94 billion. The consensus forecast assumes $ 6.57 billion.