Tag: STOCKS & FUNDS

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.

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.

Airbnb nearly quadrupled its revenue in the second quarter of 2021 amid a pickup in local tourism activity. Revenue in April-June increased by 299% and reached $ 1.3 billion compared to $ 335 million in the same period a year earlier, which exceeded market expectations of $ 1.26 billion. The total volume of orders of the company jumped by 320%, to $ 13.4 billion, beating the market consensus forecast of $ 11.56 billion. Airbnb’s net loss in the last quarter fell to $ 68 million, or 11 cents per share, from $ 576 million, or $ 2.18 per share, a year earlier. The market had expected the figure at the level of $ 264 million, or 36 cents per share. In the second quarter, the company posted positive EBITDA of $ 217 versus negative EBITDA of minus $ 397 million in the same period last year.

Johnson & Johnson posted strong 2Q2021 results. The company increased its net profit in the second quarter of 2021 by 73% thanks to the growth of revenue in all major divisions. J&J’s quarterly revenue increased 27% to $ 23.312 from $ 18.336 billion. The consensus forecast for this indicator was $ 22.49 billion. According to a J&J press release, net profit in April-June rose to $ 6.278 billion, or $ 2.35 per share, up from $ 3.626 billion, or $ 1.36 per share, in the same period the previous year. Profit excluding one-off factors was $ 2.48 per share, beating the market average forecast of $ 2.29 per share.

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.

Snap, the owner of the Snapchat app, posted excellent quarterly results. The company reduced its net loss in the second quarter of 2021 and more than doubled its revenue as the advertising market continues to recover. The company’s revenue in the second quarter was $ 982 million, compared with $ 454 million a year earlier. The indicator exceeded the consensus forecast of analysts at $ 846 million. Snap’s net loss in April-June decreased by 53% – to $ 151.6 million compared to $ 326 million in the same period last year. Loss on a per share basis declined to $ 0.1 from $ 0.23 on the average market forecast of $ 0.21.

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.

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.

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.

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.