Tag: IPOs

United Airlines posted strong Q3 results last week. The company’s revenue increased to $ 7.8 billion from $ 2.5 billion a year earlier, which turned out to be the best market forecast of $ 7.64 billion. However, revenue was lower than in the third quarter of 2019, which was $ 11.4 billion. July-September was $ 473 million, or $ 1.44 per share, compared with a loss of $ 1.8 billion, or $ 6.33 per share, in the same period last year. On a one-off basis, the company posted an adjusted loss of $ 1.02 per share, while market consensus assumed the company would post a net loss of $ 1.58 per share.

Snap released Q3 earnings late last week. The company’s revenue in the third quarter was $ 1.07 billion, up 57%. This is the first quarter for the company when its revenues exceeded $ 1 billion. At the same time, the indicator turned out to be weaker than market expectations, which had predicted revenue at $ 1.1 billion. Net loss in July-October decreased to $ 71.9 million from $ 199.8 million for the same period of the previous year. Loss per share fell to $ 0.05 from $ 0.14 on the average market forecast of $ 0.1. Snapchat had 306 million daily active users against a forecast of 301.8 million. Despite strong performance, the company’s shares fell 27% on the back of a disappointing 4Q forecast.

Abbott posted good 3Q results. The company was able to generate revenues of $ 10.9 billion and net income of $ 1.4 per share, which was significantly better than not only our forecasts of $ 9.6 billion and $ 0.94, but also the market consensus of $ 9.6 billion and $ 0.93. Earlier we wrote that we admit that we are too conservative in our assessment of the dynamics of the results for the third quarter. COVID test sales totaled $ 1.9 billion, more than triple our $ 600 million forecast. Excluding COVID test sales, organic sales growth was 11.7% Q3 2019. We love Abbott’s business and keep our valuation at $ 140 per share

Johnson & Johnson posted good 3Q results. J&J’s quarterly revenue amounted to $ 23.34 billion against $ 21.08 billion a year earlier, with an average market forecast of $ 23.64 billion. Revenue for the consumer health products division increased 5.3% to $ 3.7 billion, beating market consensus. Pharmaceuticals revenue rose 13.8% to $ 12.99 billion. Pharmaceuticals continued to grow above the market average, overcoming lingering COVID-19 exposure and generic headwinds. Medical device revenues rose 8% to $ 6.64 billion, falling short of market expectations. Net income in July-September rose to $ 3.67 billion, or $ 1.37 per share, up from $ 3.55 billion, or $ 1.33 per share, in the same period last year. Earnings excluding one-off factors were $ 2.6 per share, beating the consensus forecast of $ 2.35 per share.

Air Products and Chemicals announced plans to invest $ 4.5 billion to build the world’s largest blue hydrogen (H2) plant in East Louisiana with a total production capacity of approximately 1,850 tonnes per day. The company intends to build and commission its own 700-mile pipeline to export its products around the world. The project, which is slated to launch in 2026, will be the third low-carbon H2 megaproject in the company’s last 1.5 years. At present, Air Products and Chemicals’ investment program for the development of capital investments in the low carbon H2 segment will be approximately $ 9 billion. The company’s total production capacity by 2026 will be able to increase to 4 thousand tons per day. By comparison, Plug Power has confirmed its plan to produce 500 tonnes of green hydrogen per day by 2025 and over 1,000 tonnes per day by 2028.

Plug Power hosted a symposium late last week announcing further plans to build a “hydrogen pipeline” or holistic hydrogen ecosystem in the US and around the world. We were optimistic about the results of the event and believe that the announced plans will allow the company to strengthen its financial profile by increasing revenue in new areas of activity. The company has expressed confidence in meeting or even exceeding its financial targets for 2024. We increasingly believe in the corporate transformation of the company as it expands into adjacent verticals such as stationary power and fuel. We believe that the company’s expertise in logistics solutions can be used for other areas of growth. We maintain a positive attitude towards the Plug Power business. Our target estimate for the fair value of the company’s shares is $ 41.

As we expected, Delta Airlines’ 3Q results turned out to be better than expected, however, investors were alarmed by rather conservative expectations of management for 4Q, which provoked sales in the company’s shares, which led to a 5% decrease in capitalization at the end of yesterday’s trading session. Delta’s adjusted net income per share for the past quarter was $ 0.3 versus our estimate of $ 0.21. Adjusted operating revenue excluding refinery sales was $ 8.3 billion, 66% of 2019 levels. Management noted that domestic flights and flights to Latin America continued to recover moderately, but transatlantic flights showed the best performance in the third quarter. Compared to 2019, domestic flights decreased by 28%, international flights by 58%, and transatlantic flights by 65%. The management said corporate flights dismantled good performance in July, but stopped growing in August and September.

Domino’s Pizza in the third quarter of fiscal year 2021, which ended on September 12, increased its net profit by 21.5%, but received worse-than-expected revenue, which triggered a drop in quotations, but towards the end of the trading series, the decline in securities was practically bought out. Domino’s Pizza’s revenue grew 3.1% to $ 998 million versus $ 967.7 million a year earlier, slightly below the consensus forecast of $ 1.04 billion. Net income rose to $ 120.4 million, or $ 3.24 based on share, up from $ 99.1 million, or $ 2.49 per share, received in the comparable period last year. Adjusted earnings were also $ 3.24 per share, better than market expectations of $ 3.11 per share.

We’re raising our target price for Airbnb stock from $ 160 to $ 220. First, we expect the growth of the alternative housing market to continue in the long term. According to our estimates, the share of alternative housing in the global rental market has increased from 24%, recorded before the pandemic, to 33% as of now, and almost peaked in absolute terms at $ 200 billion. According to our estimates, the traditional rental market, on the contrary, has declined in 2021 by 40% to $ 400 billion, while at the end of 2019 its volume was $ 640 billion. The change in consumer preferences during the pandemic will continue to support the alternative housing market and Airbnb’s business in particular.

Constellation Brands posted strong results for the second quarter of fiscal 2022, primarily driven by its brewery division. Beer shipments in the last quarter increased by 12% yoy primarily due to the strong dynamics of the Modelo division, whose sales increased by 16%, while the Corona division, which accounts for 11% of the beer portfolio, showed more modest growth rate at the level of 3%. Constellation Brands management improved its beer division revenue forecast by 2H21 from 7-9% to 9-11%. Revenues from the sale of wines and spirits increased by 15% year-on-year. Expectations for the division’s revenue growth in 3Q22 remain high on the back of the expansion of the product line, including wine seltzer, as well as the geographic expansion of the SVEDKA RTD division. Due to worsening sales in the “strong seltzers” category, the company made a one-time write-off of $ 80 mn and slightly downgraded its forecasts for the next quarter. The management plans to reduce the focus on this segment while, according to the press release, Constellation Brands’ medium-term sales growth rates are not based on the dynamics of the “strong seltzer” category.

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