Uber on Course for Long-Term Growth Despite Recent Potholes, BofA Securities Says

/ / Consumer Discretionary /

Uber Technologies (UBER) topped Wall Street expectations on most measures when it reported its Q1 results earlier this week and the ride-hailing company is poised to to catch up and eventually surpass many of its peers over the next year and beyond, BofA Securities said Thursday in a research note. Uber took a 6% hit during Wednesday trading after reporting an unexpected Q1 net loss, but the BoA analysts hardly mentioned the earnings miss, instead focusing on metrics like bookings, revenue and free cash flow growth. By those measures, the company was rolling along well, they said, writing Thursday Uber shares are now “attractively valued.” BoA Securities also lowered its price target for Uber shares to $87 from $91 previously to reflect a small discount for the company to the so-called FANG stocks – Facebook (META); Amazon.com (AMZN); Netflix (NFLX) and Google (GOOG, GOOGL) – setting the pace for consumer-oriented […]

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Airbnb’s Revenue Growth Likely to Accelerate in Second Half, Wedbush Says

/ / Consumer Discretionary /

Airbnb’s (ABNB) revenue growth is likely to accelerate in the second half of this year, though higher marketing expenses are likely to affect profitability, Wedbush said in a note Thursday. The firm said a “modestly higher” marketing expense, which is one of the reasons behind the company’s lower-than-expected EBITDA guidance for Q2, is likely to persist through yearend. Airbnb’s Q2 revenue guidance of $2.68 billion to $2.74 billion is also seen as modestly below analyst estimates and implying slower-than-expected room night growth and slight margin compression, it said. “We think the room night guidance may ultimately prove conservative and note that bookings in [Q2] are likely back-half weighted and build through the quarter into the beginning of the peak summer travel season,” Wedbush said. According to Wedbush, the company is seeing bookings for stays in Q3 outpacing last year, resulting in a backlog that is expected to drive accelerating revenue

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Arm Holdings 4Q Revenue Jumps 47%, But Shipments Drop 10%

/ / Technology /

Arm Holdings is one of the most mentioned companies in the U.S. across all news items in the past 12 hours, according to Factiva data. The semiconductor and software design company on Wednesday posted a fiscal fourth-quarter net profit of $224 million, or 21 cents a share, with revenue jumping 47%, to $928 million. Analysts polled by FactSet had forecast sales of $865.9 million. Arm Holdings said chips reported as shipped declined to 7 billion. For the first quarter, revenue is expected to be $875 million to $925 million, exceeding analysts expectations of $866.4 million. It expects fiscal-year revenue of $3.8 billion to $4.1 billion, in line with analysts views. Shares are recently down 2%. Dow Jones & Co. owns Factiva.

Arm Holdings 4Q Revenue Jumps 47%, But Shipments Drop 10% Read Post »

Apple’s iPhone Shipments to China Surge by 12% in March, UBS Says

/ / Technology /

Apple’s (AAPL) iPhone shipments to China increased by 12% in March, UBS Securities said in a note emailed Thursday. “On Apple’s most recent earnings call, one of the biggest surprises was the disclosure that iPhone revenue increased YoY in the March quarter despite data that suggested ‘sell-through’ was down high-teens for the quarter,” UBS said. UBS highlighted that Apple’s revenue recognition policies, recognizing revenue upon shipment, partially explain the “surprise” between shipment and sell-through data. In March, Apple shipments in China rose by 12% year-over-year, while sell-through declined by 13%. Additionally, Apple reduced iPhone channel inventory during the quarter, particularly in March. “In China, we estimate sell-through was a just few hundred thousand above sell-in, modestly reducing channel inventory in that market,” UBS added. UBS has a neutral rating on Apple with a 12-month price target of $190.

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AKAMAI REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS

/ / Technology /

AKAMAI REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS PR Newswire CAMBRIDGE, Mass., May 9, 2024 First quarter revenue of $987 million, up 8% year-over-year and when adjusted for foreign exchange* Security and compute revenue represented 64% of total revenue in the first quarter and combined grew 22% year-over-year and when adjusted for foreign exchange* GAAP net income per diluted share of $1.11, up 79% year-over-year and up 81% when adjusted for foreign exchange*, and non-GAAP net income per diluted share* of $1.64, up 17% year-over-year and up 18% when adjusted for foreign exchange* Board of directors authorizes a new, three-year, $2.0 billion share repurchase program CAMBRIDGE, Mass., May 9, 2024 /PRNewswire/ — Akamai Technologies, Inc. (NASDAQ: AKAM), the cloud company that powers and protects life online, today reported financial results for the first quarter ended March 31, 2024. “We are pleased with our continuing execution on our long-term strategy to drive

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Akamai Techs Q1 2024 Adj EPS $1.64 Beats $1.61 Estimate, Sales $987.000M Miss $989.261M Estimate

/ / Technology /

Akamai Techs (NASDAQ:AKAM) reported quarterly earnings of $1.64 per share which beat the analyst consensus estimate of $1.61 by 1.86 percent. The company reported quarterly sales of $987.000 million which missed the analyst consensus estimate of $989.261 million by 0.23 percent. This is a 7.79 percent increase over sales of $915.698 million the same period last year.

Akamai Techs Q1 2024 Adj EPS $1.64 Beats $1.61 Estimate, Sales $987.000M Miss $989.261M Estimate Read Post »

Akamai(AKAM.US) Q1 2024 Earnings Conference

/ / Technology /

The following is a summary of the Akamai Technologies, Inc. (AKAM) Q1 2024 Earnings Call Transcript: Financial Performance: Akamai Technologies reported Q1 revenue of $987 million, up 8% year-over-year both as reported and in constant currency. Non-GAAP operating margin was 30%, with non-GAAP earnings per share at $1.64, up 17% year-over-year, and 18% in constant currency. Revenue from security and cloud computing, representing about two-thirds of total Q1 revenue, grew 22% over Q1 of 2023. The company’s Content Delivery Network (CDN) saw an 11% decline in revenue year-over-year. Akamai expects compute revenue growth of about 21% to 23% in fiscal year 2024. Projections for full year capital expenditure (CapEx) sit at around 16% of total revenue. Business Progress: The company progressed in its Security and Compute portfolios, with security revenue growing by 21% year-over-year in Q1, driven by demand for Akamai’s Guardicore Segmentation Solution. Akamai announced the upcoming acquisition of

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Warner Bros. Discovery Sees Wider-Than-Expected 1Q Loss

/ / Consumer Discretionary /

Warner Bros. Discovery is one of the most mentioned companies in the U.S. across all news items in the past 12 hours, according to Factiva data. Warner Bros. Discovery posted a wider-than-expected first-quarter loss and revenue that fell short of estimates. The company had a loss of $966 million, or 40 cents a share, narrower than the loss of $1.069 billion, or 44 cents a share, posted in the year-earlier period. Revenue fell to $9.958 billion from $10.700 billion. The FactSet consensus was for a loss of 20 cents and revenue of $10.223 billion. Dow Jones & Co. owns Factiva.

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CFRA Keeps Hold Opinion On Warner Bros. Discovery, Inc.

/ / Consumer Discretionary /

We think more work is needed to turn WBD around. We cut our target $0.50 to $8.50 on a forward TEV/EBITDA of 6.1x our ’24 EBITDA estimate of $9.9B, below peers. We lower our ’24 LPS to -$0.75 (-$0.50) and keep our ’25 EPS at $0.15; our respective revenue forecasts are $41.1B (prior $41.6B) and $42.2B ($42.5B). WBD posted a LPS of -$0.40, a wider loss than consensus. WBD will partner with Disney (DIS 105 ***) on a shared Direct to Consumer (DTC) platform for MAX, Disney+, and Hulu to drive revenue sharing, reduce customer churn, and remove middlemen like Roku (ROKU 59 ***) or Apple TV. DTC realized $86M adj. EBITDA and flat revenue Y/Y with advertising +70%, flat distribution, and content -46%. MAX’s domestic unit had 52.7M subs (+700K Q/Q) and ARPU of $11.72 vs. $11.65, while international had 46.9M subs (+1.3M) with ARPU of only $3.75 vs.

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McDonald’s Makes Digital Funding Shifts

/ / Consumer Discretionary /

McDonald’s is trying to make more uniformity across its system, and says it’s taking a global approach to how its app and other digital systems are funded by franchisees in the U.S. and four other countries next year. U.S. franchisees will pay a percentage of their digital sales for the app and other services, while McDonald’s says it will invest in new digital products and functions, the company says in a message viewed by WSJ. Restaurants increasingly rely on digital sales, as they are more efficient and allow for targeted marketing to consumers.

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Warner Bros. Discovery Q1 2024 GAAP EPS $(0.40) Misses $(0.27) Estimate, Sales $9.958B Miss $10.231B Estimate

/ / Consumer Discretionary /

Warner Bros. Discovery (NASDAQ:WBD) reported quarterly losses of $(0.40) per share which missed the analyst consensus estimate of $(0.27) by 48.15 percent. The company reported quarterly sales of $9.958 billion which missed the analyst consensus estimate of $10.231 billion by 2.67 percent. This is a 6.93 percent decrease over sales of $10.700 billion the same period last year.

Warner Bros. Discovery Q1 2024 GAAP EPS $(0.40) Misses $(0.27) Estimate, Sales $9.958B Miss $10.231B Estimate Read Post »

CFRA Maintains Hold Opinion On Shares Of Arm Holdings Plc

/ / Technology /

We adjust our 12-month target to $120 from $140, on a lower revised peer-premium P/E of 64.8x our CY 25 EPS estimate, warranted given our view of growth prospects. We adjust our FY 25 (Mar.) EPS estimate to $1.60 from $1.76 and FY 26’s to $1.92 from $2.00. ARM posts Mar-Q EPS of $0.36, beating the $0.31 consensus. Revenue rose 47%, well ahead of expectations, led by higher royalty (+37%) and licensing sales (+60%). Jun-Q revenue/EPS guide exceeded consensus views, but full-year FY 25 was more tempered (still implies +20% Y/Y growth). The shift towards v9-architecture from v8 remains an opportunity (20% of royalties), which is supporting higher revenue within smartphones and share gain opportunities in automotive/hyperscalers. Although valuation remains a concern, the growth trajectory is extremely attractive (we see +20% annually through FY 27) given cloud share gain from next-gen AI GPUs and CPUs expected to enter the market,

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