Pepsico 1Q Revenue Beats Analyssts’ Estmates

/ / Consumer Staples /

PepsiCo is one of the most mentioned companies in the U.S. across all news items in the past 12 hours, according to Factiva data. PepsiCo earnings and sales jumped last quarter, as higher prices offset a drop in volumes. Sales were up 2.3% at $18.25 billion, clearing analysts’ projections. Volumes dropped 2% on an organic basis, largely driven by a slowdown in beverages, plus a subsidiary’s voluntary recall of certain granola bars and cereals. Revenue rose to $18.25 billion from $17.85 billion a year earlier, topping analysts’ forecasts for $18.08 billion, according to FactSet. Dow Jones & Co. owns Factiva.

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CFRA Keeps Hold Opinion On Shares Of Spotify Technology S.a.

/ / Consumer Discretionary /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our target by $83 to $325 using a forward P/E of 67.0x our ’24 earnings estimate, below the five-year historic average of 78.0x. We increase our 2024 EPS estimate to €4.85 from €2.40 and 2025’s to €6.30 from €3.95. SPOT posted Q1 2024 EPS of €0.97, a €0.32 earnings beat, driven by 20% Y/Y revenue growth (revenue in line with consensus) and significantly wider gross margins (27.6% vs. 25.2%). In Q1, total subscribers were 615M (+19% Y/Y), with premium subs at 239M (+14%) and lower priced ad-supported subs at 388M (+22%). By geography, Europe was 38% of total subscribers, North America (27%), Latin America (22%), and rest of world (13%), with strong growth in family and duo plans. On a sequential basis, SPOT’s Q2 guidance

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CFRA Cuts View On Shares Of Rtx Corporation To Hold From Buy

/ / Industrials /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our downgrade is on valuation, with shares up 21% year-to-date, well above the 7% average gain for the group. Our 12-month target price of $104, up $5, reflects a 17x multiple of projected 2025 EPS, slightly above RTX’s historical forward average, but merited by a strong medium-term outlook for commercial aircraft. We keep our 2024 EPS estimate at $5.39, but lift 2025’s by $0.02 to $6.14. Q1 adj. EPS of $1.34 vs. $1.22 beat consensus by $0.11. Backlog at March 31 was $202B, up 12% Y/Y. RTX reaffirmed 2024 guidance (EPS of $5.25-$5.40), but some of the concerns from the Q4 update persist, notably on materials sourcing and supply chain. We think RTX is at peak in addressing the powdered metal issue on its GTF engines and

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Nike Needs a Win, and It’s Giving Caitlin Clark Over $20 Million to Deliver One

/ / Consumer Discretionary /

By Weston Blasi Some Nike athletes’ careers are ‘winding down,’ one expert said, and the company is looking to make a big splash with Clark’s meteoric rise Caitlin Clark is reportedly adding to the $76,535 starting salary she’ll make in the WNBA in a big way: with an eight-figure endorsement deal with Nike Inc. Clark’s endorsement deal with Nike (NKE) will be for eight years and be worth “up to $28 million,” according to the Wall Street Journal. It comes after an iconic run for Clark through the women’s March Madness that saw her star rise to a point where the women’s tournament final had more viewers than the men’s final for the first time. As part of the Nike deal, Clark would be getting a signature shoe, something almost unheard of for a basketball player who has yet to play in a professional game. In the basketball space, Nike

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Spotify Stock Jumps After Earnings Top Expectations — WSJ

/ / Consumer Discretionary /

By Anne Steele Spotify stock surged after the audio-streaming company swung to a first-quarter profit. Shares jumped over 14% to trade at around $312.90, putting the stock on track for its highest close since March 2021. Spotify is turning 18 this quarter and topping it off with showing we’re a consistently profitable company, Chief Executive Daniel Ek said in an interview. After years of rapid subscriber growth and efforts to expand beyond music streaming into broader audio offerings including podcasts and audiobooks, the company has been focused on controlling costs and prioritizing profitability. Spotify reported a quarterly profit of 197 million euros, or 97 euro cents a share, versus a prior-year loss of 225 million. Analysts had expected 62 euro cents a share, according to FactSet. Monthly active users grew 19% to 615 million, 3 million shy of Spotifys guidance, amid moderated marketing activity. Some other key highlights from Spotifys

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Spotify Technology(SPOT) Q1 2024 Earnings Conference

/ / Consumer Discretionary /

The following is a summary of the Spotify Technology S.A. (SPOT) Q1 2024 Earnings Call Transcript: Financial Performance: Spotify’s Q1 revenue increased by 21% year-on-year to EUR3.6 billion on a constant currency basis. Q1 saw a record gross margin of 27.6%, surpassing predictions by 121 basis points. Q1’s operating income reached a new record of EUR168 million, thanks to a strong gross profit and lower operational expenses. Spotify had positive free cash flow, reaching EUR207 million. Revenue for Q2 is anticipated to increase by over 22% year-on-year, potentially reaching the EUR3.8 billion mark. 20% of the revenue growth was contributed by the premium product service, due in part to price increases. Gross margin expanded significantly in this quarter, with music improvements being the significant driver alongside the growth of the marketplace business. Business Progress: Q1 experienced slower user growth due to workforce reduction impact, slower start of the year, and

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IBM Seen to Maintain 2024 Guidance If Signings Momentum Continues, BofA Says

/ / Technology /

International Business Machines (IBM) would likely maintain its guidance for 2024 if the strength of the signings momentum continues for the company, BofA Securities said in a note Monday. The firm also expects IBM to guide revenue relatively in-line for Q2. “Heading into earnings we remain most concerned about continuing softness in consulting,” BofA said. The bottomline of IBM, which is set to release Q1 results after market close Wednesday, can be helped by gain on the sale of Weather assets, “offset somewhat by restructuring charges,” BofA said. For 2024, the firm said that it continues to expect free cash flow of about $12 billion for IBM “on higher profitability, lower cash requirement given changes to retirement plans, offset by higher [capital expenditures] and cash taxes.” BofA maintained IBM’s buy rating and $220 price objective.

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General Motors’ Core Business Strength Underpins Electric, Autonomous Vehicles Development, BofA Says

/ / Consumer Discretionary /

General Motors’ (GM) “well-managed” core business continues to underpin its future-proofing strategy of accelerating investments in electric and autonomous vehicles, BofA Securities said in a note Tuesday. “GM’s liquidity levels should be sufficient to manage through volatility in the macro environment, while also proactively investing for the future and returning value to shareholders,” the brokerage said. Following General Motors’ solid Q1 results, the brokerage said the company did not disappoint investors, who were looking for an upside to 2024 guidance. General Motors raised its full-year adjusted EPS outlook to between $9 and $10, from the previous range of $8.50 to $9.50, after reporting forecast-beating Q1 earnings. BofA reiterated its buy rating on the stock and a price target of $75.

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Fiserv(FI) Q1 2024 Earnings Conference

/ / Industrials /

The following is a summary of the Fiserv, Inc. (FI) Q1 2024 Earnings Call Transcript: Financial Performance: Fiserv reported Q1 adjusted earnings per share of $1.88, up 19%, reflecting ongoing revenue growth and operating margin expansion. Adjusted revenue growth was 7% and adjusted operating margin was 35.8%, an increase of 180 basis points. Organic revenue growth stood at 20%, leading to a raised outlook on adjusted earnings per share to a range of $8.60 to $8.75, a projected growth of 14% to 16%. The company revised their adjusted operating margin expansion forecast for the year to at least 125 basis points, up from a previous outlook of 100 basis points. Business Progress: Fiserv has restructured into two segments: Merchant Solution and Financial Solution, providing a clearer view of client engagement with their solutions. New Clover products are slated for launch within the year under Merchant Solutions, with strong demand anticipated

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CFRA Keeps Hold Opinion On Shares Of Msci Inc.

/ / Financials /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We decrease our target price by $165 to $465, 27.4x our 2025 EPS estimate, a discount to MSCI’s 10-year forward P/E average of 36.4x given reduced growth prospects and slowing sales. We lower our 2024 EPS view by $0.22 to $14.93 and cut 2025’s by $0.20 to $17.00. MSCI posted Q1 adjusted EPS of $3.52 vs. $3.14, a $0.05 consensus beat. All eyes were on MSCI’s retention rate as it fell 240 bps to an uncharacteristically low level of 92.8%. Although disappointing, we expect improvement in upcoming quarters as a large portion of the decline was out of MSCI’s control and related to the large Swiss bank merger. MSCI’s Index segment (55% of run-rate) continued to perform well as 12% growth was driven by market appreciation, while

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CFRA Upholds Buy Rating On Shares Of Fiserv, Inc.

/ / Industrials /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: FI’s Q1 earnings were strong and are being well received today, driven by 1) better-than-expected bottom line results (adj-EPS of $1.88 surpassed consensus by $0.09); 2) sustained Clover revenue uptick, up 30% Y/Y with VAS penetration of 20%; and 3) raised 2024 guidance for adj-EPS of $8.60-$8.75 and adj-operating margin expansion of at least 125 bps. Q1 adj-revenues came in at $4.54B (+7%, +20% organically), led by Merchant Solutions (+13%, +36% organically). Financial Solutions were a little softer (+2%, +5% organically), but we note key client wins should support demand for digital payment solutions. Our 12-month target price of $180 (unchanged), 18.1x our 2025 EPS estimate, is a slight premium to FI’s three-year average of 17.0x. We up our 2024 EPS view by $0.10 to $8.75 and

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Starbucks’ U.S., China Pressures Drive Estimates Lower

/ / Consumer Discretionary /

Starbucks remains well positioned despite current pressures, UBS analysts say in a research note. The coffee chain has a strong customer brand affinity and attractive growth profile. The U.S. challenges largely reflect a combination of Middle East conflict-related protests and consumer spending pressures, while China macro conditions and competition represent overhangs, the analysts say. These pressures are expected to weigh on Starbucks’ results. UBS lowers its 2Q North America same store sales to flat from an increase of 3%, and its international estimates to a decline of 2% from prior flat expectations. It also cuts its 2Q and FY EPS forecasts to 78 cents and $3.94, previously, noting that sales headwinds likely persisted in the 2Q.

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