We believe Fortinet will pleasantly surprise investors in the second quarter. We expect to see strong quarterly earnings that exceed market expectations. Strong demand for network security products and cloud solutions is having a positive effect on the company’s business. Fortinet records high demand in all regions of its presence. The company plans to publish its financial statements on August 6. We raise our target valuation for the company’s shares from $ 250 to $ 270.
Tag: CASH MANAGEMENT
Activision will continue to make money from major franchises
Activision Blizzard increased its net profit by 51% in the second quarter of 2021, with results that exceeded market expectations. Revenue rose 19% to $ 2.296 billion from $ 1.932 billion a year earlier. Net income in April-June was $ 876 million, or $ 1.12 per share, compared with $ 580 million, or 75 cents per share, in the same period last year. At the same time, profit excluding one-time factors increased to $ 1.20 per share from 81 cents. The market consensus assumed the company would have net income of 80 cents per share, adjusted earnings of 76 cents, and revenues of $ 1.89 billion.
A bet on the hydrogen economy
Air Products and Chemicals (APD) posted marginally gains following positive management communication. The press release states that the Jazan and Lu’An projects have returned to normal operating rhythm. This is a positive signal, which should lead to a positive revision of the forecast for the company’s financial indicators and an increase in capitalization. We believe that the comments regarding Lu’An were not understood by all market participants, therefore the news was not taken into account by the market in full. However, the fact that the Jazan project has been relaunched and is likely to be operational by the end of this year is great news that has yet to be played out. We raise our target price for the stock from $ 340 to $ 360.
McDonald’s increased its quarterly profit almost 5 times
McDonald’s, the world’s largest fast food restaurant chain, saw its second-quarter net profit quadrupled, with revenue McDonald’s, the world’s largest fast food restaurant chain, saw its second-quarter net profit nearly fivefold, with revenue growing 57% and beating both market forecasts and the same pre-pandemic period of 2019. Revenue rose to $ 5.888 billion from $ 3.762 billion a year earlier. Excluding changes in currency exchange rates, the indicator increased by 49%. Net income in April-June was $ 2.219 billion, or $ 2.95 per share, compared to $ 483.8 million, or $ 0.65 per share, in the same period last year. Adjusted earnings rose to $ 2.37 per share from $ 0.66 from the market forecast of $ 2.11 per share on revenue of $ 5.584 billion.
Probably the world’s best diesel engine manufacturer
Cummins is a well-managed company with a positive track record and promising long-term growth prospects. The company has a unique business profile and a well-recognized brand, which is why many market participants consider Cummins to be the best diesel engine manufacturer in the world. Thanks to its strong market position, the company has significant potential to grow its market share in truck diesel engines as OEMs exit the market. The downward trend in emissions as the global economy moves towards green energy, innovative technologies and the growth of the aftermarket segment are important triggers that will support Cummins’ business in the long term.
AMD doubles quarterly revenue and improved its annual forecast
Advanced Micro Devices increased its second-quarter net profit 4.5 times and doubled its revenue. AMD’s quarterly revenue increased to $ 3.9 billion from $ 1.9 billion a year earlier on the consensus forecast of $ 3.6 billion. The company’s net income last quarter was $ 710 million, or $ 0.58 per share, up from $ 157 million , or $ 0.13 per share, for the same period of the previous year. Earnings excluding one-off factors were $ 0.63 per share, beating the market consensus of $ 0.54 per share. The management noted that the company’s business is growing faster than the market as a whole.
Demand for passenger air travel returned to pre-pandemic level
Delta’s 2Q21 results were better than expected, driven by higher air ticket prices and increased demand for cargo transportation, which significantly supported the company’s top line. According to a press release from the air carrier, revenue fell to $ 7.126 billion from $ 12.536 billion two years earlier (2Q19), which was above the market consensus of $ 6.2 billion. Net profit in April-June amounted to $ 652 million, or $ 1.02 per calculation. per share, up from $ 1.44 billion, or $ 2.21 per share, received in the same period in 2019. Excluding one-off income and expenses, including government support, the company posted a loss of $ 1.07 per share versus earnings of $ 2.35 per share in the year before last, which was also better than market expectations. The market consensus was for an adjusted loss of $ 1.38 per share.
Indices re-tested all-time highs
According to the results of the first week of August, the major American indices S&P 500 and Nasdaq 100 each added about 1%. On Thursday, the Nasdaq 100 tech index renewed its all-time high and closed at 15,182 points. However, on the last trading day of the week, the index’s capitalization fell by 0.4%. On Friday, the S&P 500 continued to rise 0.2%, ending the trading session at 4,436.5 points, which is an all-time high. Investors continue to closely monitor the global spread of the new COVID-19 delta strain in an effort to assess the potential impact on the global economy. The number of registered infections with the coronavirus COVID-19 in the world as of Thursday morning was 200 million 239 thousand 381, said Johns Hopkins University of America. Since the beginning of the spread of the virus, the number of victims of diseases related to COVID-19 has reached 4 million 256 thousand 797 people.
PepsiCo has improved its forecast for 2021
PepsiCo increased its net profit by 43.3% and revenues by 20.5% in the second quarter of fiscal year 2021, while the results exceeded market expectations. The company’s net income for the twelve weeks ended June 12 was $ 2.358 billion, or $ 1.7 per share, compared to $ 1.646 billion, or $ 1.18 per share, earned in the comparable period a year earlier. Profit excluding one-off factors rose to $ 1.72 from $ 1.32 per share. Revenue increased to $ 19.217 billion from $ 15.945 billion. Organic growth was 12.8%. Market consensus assumed adjusted earnings of $ 1.53 per share on revenue of $ 17.96 billion.
Google Triples Quarterly Profits And Revenues Hit Record
Google’s holding company Alphabet nearly tripled its net profit in the second quarter of 2021, while its revenue climbed 62%, to another record. Alphabet’s quarterly revenue rose to $ 61.9 billion from $ 38.3 billion a year earlier. The consensus forecast for this indicator was $ 56.2 billion. Net income in April-June was $ 18.5 billion, compared with $ 7 billion in the same period last year. Earnings per share rose to $ 27.26 from $ 10.13, beating Wall Street’s median forecast of $ 19.35. The company’s management attributes Alphabet’s strong quarterly results to increased user activity on the Internet, as well as a widespread increase in advertiser spending.