We are launching coverage of Sony with a target valuation of the company’s stock of $ 144. Sony is a world-renowned company with a leading position in computer games and music, as well as a popular film and television business. Sony also has a leading position in the high-sensitivity CMOS sensor market.
Tag: CRYPTO
Sustainable growth while maintaining high profit margins
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.
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.
Amazon disappointed investors
Amazon, the world’s largest online retailer, increased its net profit by more than 48% in Q2, but the online shopping boom fueled by the pandemic appears to be fading away. Revenue increased by 27% and reached $ 113.080 billion against $ 88.912 billion a year earlier. Net income in April-June was $ 7.778 billion, or $ 15.12 per share, compared to $ 5.243 billion, or $ 10.3 per share, received in the same period last year. Although the company’s revenue surpassed the $ 100 billion mark for the third quarter in a row, the market regarded last quarter’s growth as weak, as it jumped 44% in January-March. Experts, on average, expected the company to receive earnings of $ 12.28 per share in the second quarter on revenue of $ 115.4 billion. The financial statements disappointed investors, so the company’s stock prices fell 7% after the publication of the financial statements.
Stepped back from the highs
Last week, major US indices lost about 1%. Investors were evaluating the new portion of the quarterly reports of companies, statistics and the speech of the US Federal Reserve Chairman Jerome Powell. The first half of the week was successful. The Nasdaq 100 managed to test a new all-time high at 15,000 points. The S&P 500 came close to the level of 4,400 points. However, on Thursday and Friday, the indicators lost all growth and corrected. June inflation data and the spread of a new strain of coronavirus have put pressure on asset values around the world. In our opinion, it is too early to talk about a global correction. From a technical point of view, American indicators look pretty confident. In addition, a successful 2Q corporate reporting season can bring many surprises to investor sentiment.
In June, the pace of US consumer price increases peaked in nearly 13 years as the economic recovery picks up steam. The CPI jumped 5.4% compared to June last year. Prices excluding food and energy (Core CPI) in June increased 4.5% year-on-year, a record rise since November 1991. Statistics released Thursday showed that US jobless claims fell last week in line with forecast. The volume of industrial production in the United States in June increased by 0.4% from the previous month, according to data from the Federal Reserve System. Analysts polled by Trading Economics predicted an average growth of 0.6%.
Apple surprised with record quarterly revenue
Apple increased its net profit by 93%, the revenue was a record for 3 financial quarters. Apple increased its fiscal third quarter net income by 93% and revenue by 36%, both of which beat market forecasts. Apple’s revenue was $ 81.43 billion and was a record for the third financial quarter. The consensus forecast of experts for this indicator was $ 73.34 billion. The company showed record revenue figures in all geographic segments and double-digit revenue growth rates in each product category. Net income for the quarter ended June 26 was $ 21.74 billion, up from $ 11.25 billion in the third quarter of the previous fiscal year. Earnings per share increased to $ 1.3 from $ 0.65, beating the market consensus of $ 1.01.
Wine is gaining popularity
We begin coverage of Vintage Wine Estates. We believe that, driven by strong M&A activities, double-digit revenue growth and market share growth will continue in the medium term, allowing the company to invest the generated cash flows in business development. VWE expects to increase its Adjusted EBITDA margin by more than 1,000 basis points to 25.9% between 2020-2023. The increase in gross profitability from capital expenditures will be supported by mergers and acquisitions that increase margins, as the last deal had an adjusted EBITDA margin of 60%.
FDA Approves Intelligent Knee Implant
Zimmer Biomet Holdings announced that the FDA has approved Persona IQ, which will enable ZBH to launch the world’s first intelligent implant that can completely replace the knee joint. Persona IQ will be a significant addition to ZBEdge ZBH’s growing portfolio, contributing to the expected acceleration in Kneefranchise’s revenue growth
Facebook doubled profit for the quarter
Facebook in the second quarter doubled its net profit and revenue by 56%. Net income in April-June was $ 10.394 billion, or $ 3.61 per share, compared to $ 5.178 billion, or $ 1.8 per share, received in the same period last year. Revenue increased to $ 29.077 billion from $ 18.687 billion a year earlier, while advertising revenues increased by 56% – to $ 28.58 billion. The market consensus assumed earnings growth to $ 3.04 per share on revenue of $ 27.85 billion.