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Welcome back! I hope everyone gets to cozy up and relax today. We've got you covered on the latest news so you can chill out today. |
Here's a look at earnings this week. |
Earnings Corner 📜 |
Trending Up 📈 |
Burlington Stores (BURL) reported earnings that beat estimates, as comparable sales increased 1%, and gross margins expanded 70 bps, driving the stock up 2.6% at Wednesday's close |
Trending Down 📉 |
Dell (DELL) shares were a big hit to the broader market on Wednesday after posting Q4 revenue guidance of $24B-$25B — less than the street's projection of $25.57B. Dell's shares are up 86% YTD, as the PC maker has profited from the AI boom by selling computer clusters needed to deploy Nvidia's GPUs. However, on the call, mgmt. warned that AI growth will not be linear. The stock was down 12.3% at Wednesday's close |
Macy's (M) was slated to report earnings on Tuesday, but postponed the announcement due to an accounting error. Macy's stated that a rogue accounting member (who has since been fired) has quietly been robbing the company blind since 2021. The employee concealed $132mm-$154mm of delivery expenses over the past few years. This is a poor look for their auditor, KPMG. The company released preliminary results Monday, which showed revenue falling by 2.4% y/y. The stock was down 2.4% at Wednesday's close |
Best Buy (BBY) reported earnings that missed estimates, as comparable sales slumped 2.9% y/y. While new iPhone and electronics sales helped stabilize the top line, mgmt. noted that consumers remain cautious due to economic uncertainty. Appliance and gaming sales continued to be weak. Mgmt. projected FY comparable sales would decline by 2.5%-3% (vs. 1.5%-3% previously). The stock was down 5.6% at Wednesday's close |
CrowdStrike (CRWD) reported earnings that beat estimates, with revenue of $1.01B up 29% y/y (vs. 983MM expected) and EPS of $0.93 (vs. $0.81 expected). Despite the cybersecurity provider's July outage, mgmt. noted strong performance in attracting new enterprise customer commitments. However, analysts were unimpressed by FY 2024 revenue projections of $3.92B-$3.93B (vs. $3.89B-$3.9B previously). The stock was down 4.6% at Wednesday's close |
Dick's Sporting Goods (DKS) reported earnings that beat estimates. Strong back-to-school performance drove comparable sales growth of 4.2%, and, unlike many competitors in the Southeast, this year's unusually warm fall weather did not materially impact performance. Mgmt. expects robust holiday performance, raising its FY 2024 comparable sales growth outlook to 3.6%-4.2% (vs. 2.5%-3.5% previously). The stock was down 2.4% at Wednesday's close |
Zoom (ZM) reported earnings that beat estimates, with revenue of $1.18B up 4% y/y (vs. $1.16B expected) and EPS of $1.38 (vs. $1.31 expected). Mgmt. upped its FY 2025 guidance, projecting EPS of $5.41-$5.43 (vs. $5.29-$5.32 previously) and revenue of $4.656B-$4.661B (vs. $4.63B-$4.64B previously). The stock was down 4.1% at Wednesday's close |
Nordstrom (JWN) reported earnings that beat estimates on the back of strong apparel and shoe sales. The announcement is a surprise as the discretionary and luxury merchandise sectors have lately been under pressure. Yet, the stock still fell 7.5% at Wednesday's close as net income was down y/y |
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More Headlines 🍿 |
New Trump Tariffs: Trump announced he would impose 10% tariffs on Chinese goods and 25% tariffs on all products from Canada and Mexico, as punishment for drugs and illegal immigration flowing into the country Walmart is cutting their DEI initiatives: While Tractor Supply was a notable instance of DEI backlash, this is the first notable, publicized cut from a large corporate. Walmart will phase out the term DEI, review supplier programs to ensure there isn't any preferential treatment, and is winding down its Center for Racial Equity nonprofit Jamie Dimon expects a 3.5 day workweek in the future and "your children living to 100" due to technological improvements Kohl's CEO Tom Kingsbury will step down in January, and will be replaced by Michaels CEO Ashley Buchanan. Note, this is the 2nd big exit at Michaels, the Apollo backed retailer, as they lost their CFO recently as well Starbucks was forced to turn to pens and paper to track barista pay after a vendor, Blue Yonder dealt with a ransomware attack BlackRock has a handshake agreement to acquire HPS for $12B, with general terms expected to be released after the holidays. Creditor-on-Creditor violence: On Bloomberg podcast Odd Lots, Joe and Tracy spoke to Caesar's Palace Coup co-author Sujeet Indap to talk about the current state of creditor-on-creditor violence Deutsche Bank expects the S&P 500 to hit 7,000 by the end of 2025 Jefferies, an Investment banking firm, has come under scrutiny for its relationship with Indian conglomerate Adani Group, which is facing fraud allegations. Jefferies, which has rapidly expanded in India, had previously assisted Adani in raising financing Rumble, a video platform, plans to buy up to $20 million in bitcoin in new treasury strategy Sweden's Northvolt filed for bankruptcy, in a blow to Europe's EV ambitions China is bombarding Tech talent with job offers. Firms like Huawei Technologies are poaching talent, worrying western companies trying to stay competitive Taylor Swift's newest book on the Eras Tour, dropping this Friday, is expected to help drive traffic to Target stores The Hawk Tuah girl, Haliey Welch, is launching a $HAWK memecoin on December 4th….drawing scorn from the crypto community who are worried this is a quick money grab The "reverse" super-commuter: There was a bizarre NY Post story on a woman who lives in Manhattan but commutes regularly to Baltimore for work Chipotle's new CFO is taking a hard look at pricing after dealing with higher costs for avocados, queso, and sour cream. Chipotle has raised pricing 6 times over the past 3 years, but their price hikes of ~41% lag the broader restaurant industry raising prices by 50% over the last decade OpenAI received a new $1.5 billion investment from SoftBank, allowing employees to sell shares in a tender offer Ramp, the business card and expense software startup, has seen its valuation rise up to $11B following a secondary shares sale Our Black Friday beehiiv newsletter offer: As you guys know, I'm a big fan of beehiiv. They're an awesome platform for creating and scaling a newsletter. If you're looking to start your own newsletter you can Join beehiiv through us and you'll get 20% off beehiiv!
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M&A Transactions💭 |
ARC Document Solutions, a world-wide document solutions, was acquired for $118.26M by TechPrint Holdings. EV/EBITDA was 5.64x and EV/Revenue was 0.51x. William Blair & Company advised on the sale. |
EnLink Midstream (NYS: ENLC), an integrated midstream company, has reached a definitive agreement to be acquired for $4.3B by ONEOK(NYS: OKE). EV/EBITDA was 6.07x and EV/Revenue was 1.13x. Evercore Group advised on the sale. |
Tricentis, a testing and quality engineering firm, has reached a definitive agreement to sell a $1.3B minority stake to GTCR at a $4.5B valuation. Insight Partners is the current Sponsor and Tricentis has an expected 2024 ARR of $425mm. |
Toshiba Materials, manufacturer of ceramic products, has reached a definitive agreement to be acquired for $976.29M by Niterra (TKS: 5334). |
The Silicas Product Business of PPG Industrials was acquired by Qemetica for $310.0M. Morgan Stanley advised on the sale. |
Envestnet, provides wealth-management technology, was acquired for $4.5B by Bain Capital, Reverence Capital Partners, Fidelity Investments, Franklin Templeton, State Street Global Advisors, and BlackRock. EV/Revenue was 3.37x. Morgan Stanley advised on the sale. |
Distilled, operator of an online shopping platform was acquired for $267.38M by Blacksheep Fund Management. Barclays advised on the sale. |
Cowan Systems, provider of logistics and transportation services, has reached a definitive agreement to be acquired for $390.0M by Schneider National (NYS: SNDR). |
Bremer Bank, provider of financial services, has reached a definitive agreement to be acquired for $1.401B by Old National Bank (NAS: ONB). J.P. Morgan and Keefe, Bruyette & Woods advised on the sale. |
Berry Global, provider of tapes, was acquired for $540.0M by Nautic Partners. Santander and Goldman Sachs advised on the sale. |
Peabody Energy (NYS: BTU) reached a definitive agreement to acquire the Steelmaking Coal Business of Anglo American (LON: AAL) for $3.775B. The agreement comprises of an upfront cash consideration of $2.05B, a deferred cash consideration of $725M, and a $550M in price linked earnout and a contingent cash consideration of $450.0M linked to the reopening of Grosvenor Mine. |
Poseida Therapeutics (NAS: PSTX), a clinical-stage biopharmaceutical, has reached a definitive agreement to be acquired for $959.912M by Roche (SWX: ROG). EV/Revenue was 6.36x. Centerview Partners advised on the sale. |
d'Alba, operator of a beauty brand, was acquired for $502.74M by DSC Investment (KRX: 241520). EV/Revenue was 2.42x. |
Corporacion Pesquera Inca, producer of fish meal and fish oil, was acquired for $1.0B by Cooke Aquaculture. Antarctica Advisors and Deutsche Bank advised on the sale. |
A 398087.49 Square Feet Building of Mirae Asset Securities in Seoul, Korea was acquired by Woori Financials Group for $267.5M. |
Private Placement Transactions💭 |
Halcyon, operator of a cybersecurity platform, raised $115.0M of venture funding led by Evolution Equity Partners at a pre-money valuation of $885.0M. |
Adcendo, developer of antibody-drug conjugates, raised $135.0M of Series B venture funding led by TCG Crossover Management. |
All Things Baby, operator of an e-commerce portal, raised $300.47M of Series A venture funding led by Richa Choksi and Inoventures. |
Eyewa, operator of an online optical store, raised $100.0M of Series C venture funding led by General Atlantic. |
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Noteworthy Chart 🧭 |
A look into how much Bitcoin public companies own: |
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Meme Cleanser 😆 |
 | High Yield Harry @HighyieldHarry |  |
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Me at the Thanksgiving table when someone brings up stocks & Bitcoin | |  | | | 3:15 PM • Nov 27, 2024 | | | | | | 159 Likes 4 Retweets | 0 Replies |
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 | Murray Hill Hardo @hedgefundhardo |  |
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future son coming home saying he got an internship at a "big financial firm" *Northwestern Mutual* | |  | | | 3:02 PM • Nov 25, 2024 | | | | | | 16.2K Likes 288 Retweets | 39 Replies |
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Until next time! |
Obviously, none of this constitutes financial or investment advice. |
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