A Mixed Bag Of Earnings

Despite the economic and banking issues capturing investors’ attention, some earnings reports are worth mentioning.

First up is software giant Adobe, which beat fiscal first-quarter expectations. Its adjusted earnings per share of $3.80 on revenues of $4.66 billion topped the expected $3.68 and $4.62 billion. Its cost-cutting efforts and adjustment of expectations are bearing fruit. As a result, the company raised its fiscal 2023 profit forecast to $15.30-$15.60 per share and $1.7 billion in net new annualized recurring revenue (ARR) from its Digital Media segment. That segment saw revenue grow 9% YoY last quarter, and it’s starting to monetize its recent acquisition of Frame.io. $ADBE shares were up about 5% on the news. 🌤️

Robotic process automation software company UiPath also reported better-than-expected results. Its first-quarter earnings per share of $0.15 and revenues of $308.5 million beat the expected $0.06 and $278.64 million. Its guidance also came in higher than the consensus view. It expects fiscal year 2024 revenue of $1.25-$1.26 billion, while analysts expected $1.21 billion. Overall, executives are optimistic about the company’s position in the current environment. They say companies need to do more with less in a tougher macroeconomic environment, which is where UiPath’s Business Automation Platform and other products help. $PATH shares were up about 13% after hours. 🦾

Insurance software provider Ebix didn’t have as much luck after its first-quarter earnings missed expectations. Its earnings per share of $0.36 were $0.32 short of the consensus estimate. However, revenues of $255.2 million did top the $251.05 million analysts expected. The company experienced the highest negative impact from foreign exchange movements in about five years. Rising interest rates also increased its debt servicing costs and pressured its profits. With its business still about 25% below pre-pandemic operating levels, executives are working with the board and outside advisors to refinance its credit facility. $EBIX shares were down roughly 11% on the day. 👎

Conversational commerce and AI software company LivePerson fell precipitously after missing earnings and revenue estimates. The company’s fourth-quarter loss per share of $0.55 was larger than the $0.33 loss expected. And sales fell 1.1% YoY to $122.4 million, below the expected $126.93 million. The company did make efforts to cut costs last year, reducing them by $80 million on an annualized basis. But investors remain concerned with the lack of revenue growth from the company. $LPSN shares are down over 35% after hours, trading at their lowest since early 2017. 🤖

Last up was cloud computing company PagerDuty, which also topped expectations. Its earnings per share beat by $0.02, and revenues beat by about $2 million. Executives forecasted full fiscal year 2024 earnings of $0.42-$0.50, well above the consensus view of $0.20. However, forecasted revenues of $446-$452 million were shy of the $451.43 million expected. Overall, it seems investors are pleased with the company’s efforts to cut costs and focus on profitability amidst slowing revenue growth. $PD shares were up 11% after hours. ⛈️

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Walmart Bets Big On Advertising

One of the core themes we’ve been discussing for a long time is the “ad-ification” of everything. No matter where you go or what you do, you’re likely being targeted by some form of advertising. And the reason why is because it’s such a high-margin, profitable business opportunity. 🎯

As a result, it’s no surprise to see America’s largest employer and big-box retailer, Walmart, leaning heavily into that narrative during its earnings call. 

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Another Day, Another Chip Rally

It’s another day, which means investors and traders were buying anything in the semiconductor space that isn’t tied down. Let’s see what you missed. 👇

First up, chip-equipment company Applied Materials soared to new all-time highs after citing “artificial intelligence” momentum during its earnings call. Adjusted earnings per share and revenues both topped expectations, while its current-quarter expectations also beat estimates. 🏭

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Target Hits Its Mark With Membership Push

Once companies discovered that membership and loyalty programs drove additional customer visits and spending, there became apps for everything. Trust me, I’ve got the McDonald’s app on my phone because I get free fries or something with my occasional purchase… 📱

Nonetheless, this shit clearly works, and everyone wants a part of it. Given Target’s recent struggle, it’s not surprising that it’s jumping on the bandwagon as part of its turnaround strategy. 

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Semis Continue To Tower Over Market

Semiconductors continue to dominate the market and thus dominate our headlines. With that said, today we’ve got a fresh stock breaking out and another setting up, so stick with us. 👇

First up is Tower Semiconductor, an Israeli chip manufacturer that reported results today. The company’s revenue fell 13% YoY to $351.7 million during the fourth quarter but topped the $350 million expected by analysts. Its earnings per share were down about 30% YoY to $0.48, but again, better than anticipated. 🔺

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