Salesforce’s Lackluster 1Q Backlog Not Denting FY25 Guidance

/ / Technology /

Salesforce management held its full-year revenue guidance steady, despite a key leading indicator showing some weakness. Current remaining performance obligations, a proxy the company uses for deferred revenue and backlog, came in below Wall Street expectations, which can signal a hit to sales in future quarters. CFO Amy Weaver says on a call with analysts that the measured buying environment is incorporated in guidance, but the company has also seen strong product demand. Attrition rates remain healthy and the company is central to customers’ businesses, she says. “When I step back and really take a holistic view of the full year, we do feel confident that we will be within our guided range,” she says.

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Salesforce, Inc. (CRM) Q1 2025 Earnings Call Transcript

/ / Technology /

Salesforce, Inc. (NYSE:CRM) Q1 2025 Results Conference Call May 29, 2024 5:00 PM ET Company Participants Mike Spencer – EVP, Finance and Strategy, IR Marc Benioff – Chair and CEO Amy Weaver – President and CFO Brian Millham – President and COO Conference Call Participants Keith Weiss – Morgan Stanley Brad Sills – Bank of America Brent Thill – Jefferies Kirk Materne – Evercore ISI Karl Keirstead – UBS Raimo Lenschow – Barclays Kash Rangan – Goldman Sachs Mark Murphy – JPMorgan Operator Welcome to Salesforce’s Fiscal 2025 First Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session [Operator Instructions]. I would now like to hand the conference over to your speaker, Mike Spencer, Executive Vice President of Finance and Strategy and Investor Relations. Sir, you may begin. Mike Spencer Thanks, and good

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Apple’s Adoption Of AI For IPhones Will Drive ‘Multi-Year Upgrade Cycle,’ Say Analysts Ahead Of WWDC: BofA Sets $230 Target For Its ‘Top Pick’

/ / Technology /

Analysts are predicting a significant shift in the smartphone industry with the introduction of AI-powered “IntelliPhones,” and are reiterating Apple Inc. (NASDAQ:AAPL) as a “top pick.” What Happened: Analysts at Bank of America are expecting the advent of AI smartphones, or “IntelliPhones,” to trigger a major upgrade cycle, akin to the introduction of smartphones. These devices are predicted to dominate edge AI, outperforming AI PCs due to their portability, features, and cost. “We expect the adoption curve of AI phones to be faster than the adoption of smartphones. With an installed base of over 4 billion smartphones, we see the opportunity for the next upgrade cycle to be once in a decade type of event,” the analysts at Bank of America Securities said in a note seen by Benzinga. While Apple is not expected to reveal all the AI features at the upcoming WWDC, a pathway for “IntelliPhones” to become mainstream is

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CFRA Maintains Buy Opinion On Shares Of Apple Inc.

/ / Technology /

According to data from the China Academy of Information and Communications Technology (CAICT), shipments of foreign-branded phones in China increased 52% in April. AAPL is not specifically broken out; the iPhone does represent an overwhelming majority of foreign-branded smartphone units. This builds on the momentum from March after sharp declines in the first 2 months of the year. We think more aggressive pricing discounts is helping unit growth return as CEO Tim Cook alluded to a more competitive environment in China earlier this month. We would note that we, as well as the consensus, currently forecast a decline in China for the Jun-Q (down about 3%-4% Y/Y), typically the trough of the iPhone cycle, providing potential upside should the momentum persist. Separately, we think AAPL’s ambitions towards greater AI capabilities ahead of the iPhone 16 launch this fall should appeal to China consumers and also better positions it at the

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Lululemon Athletica’s Fiscal Q1 US Sales Will Surprise to Upside, Trigger Stock Rerating Off Lows, Morgan Stanley Says

/ / Consumer Discretionary /

Lululemon Athletica’s (LULU) fiscal Q1 US sales likely grew at a high single-digit rate, which will surprise to the upside and is a potential catalyst for stock valuation rerating higher, Morgan Stanley said in a report Wednesday. The focus is expected to be on the company’s US sales when it releases its quarterly results on June 5, with a revenue-driven earnings per share growth upside and a fiscal 2024 EPS guidance raise in the cards, the firm said. “While our conversations suggest investors anticipate a US sales result as low as [roughly flat year on year], our high frequency demand/sales data argues an outcome as high as [low double digit-low-teens percentage] isn’t out of the question,” it said. “In a base case, we assume a more conservative [high single-digit percentage] US growth rate, and believe this result would not only surprise to the upside, but also deter the bear thesis

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American Airlines Stock Falls After Slashing Second-Quarter Outlook; Chief Commercial Officer to Leave in June

/ / Consumer Discretionary /

American Airlines (AAL) shares dropped early Wednesday after lowering its outlook for the second quarter, while the air carrier said its chief commercial officer will depart next month. The company now expects per-share adjusted earnings to be in a range of $1 to $1.15 for the ongoing three-month period, down from its prior guidance for $1.15 to $1.45, it said in a late Tuesday filing with the Securities and Exchange Commission. The consensus on Capital IQ is for normalized EPS of $1.21. The stock fell more than 6% in recent premarket activity. Total revenue per available seat mile, which is commonly used in the airline industry to measure efficiency, is now pegged to decline by roughly 5% to 6% on a yearly basis. The carrier previously forecast the metric to be down about 1% to 3% in the second quarter. Cost per available seat mile, excluding fuel, is set to

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American Airlines Revenue Challenged by Low-Cost Rivals

/ / Consumer Discretionary /

American Airlines has lowered guidance for the current quarter, and the carrier’s revenue challenges are probably going to persist past the summer given how many low- and ultra-low-cost rivals are now popping up at American’s top hubs, Seaport analyst David McKenzie says in a research note. Spirit Airlines and Frontier Airlines are shifting growth to Dallas Fort-Worth and Charlotte, American’s top two hubs, and pricing is starting to soften industrywide, the analyst says. “In short, AAL’s plans for high-single-digit growth this summer are running into challenges and proving premature,” he says, downgrading the stock to neutral. Shares fall 15% to $11.45.

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American Airlines Makes Changes, Cuts Guidance

/ / Consumer Discretionary /

American Airlines 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 airline carrier cut its second-quarter adjusted profit forecast to $1 to $1.15 a share, down from a previous range of $1.15 to $1.45 a share. Also, American said it would part ways with Vasu Raja, chief commercial officer. Raja was the executive behind Americans pivot away from selling tickets through agencies and prioritizing direct sales via the airlines app and website. The moves helped American cut expenses but cost the airline some market share among lucrative corporate travelers. Dow Jones & Co. owns Factiva.

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FactSet Research Systems Likely to Report Roughly ‘In-Line’ Fiscal Q3 Results, RBC Says

/ / Financials /

FactSet Research Systems (FDS) is expected to report roughly “in-line” fiscal Q3 results but the focus is on fiscal Q4 annual subscription value, RBC Capital Markets said in a note. RBC, said in a Tuesday note, it expects FactSet to report fiscal Q3 adjusted earnings of $3.90 per diluted share and revenue of $552.7 million. The brokerage said the key focus areas for fiscal Q3 are the impact of the UBS Group (UBS) and Credit Suisse merger, and the risk of a lower fiscal 2024 annual subscription value outlook. For fiscal 2024, RBC anticipates the annual subscription value at $2.27 billion, representing a $98 million year-over-year growth which is below the company’s guidance of $110 million to 150 million due to an extended sales cycle and soft hiring trends. The brokerage said they expect FactSet Research to reaffirm its fiscal 2024 annual subscription value outlook due to a strong sales

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Airbnb’s Upside Potential Offers Attractive Buying Opportunity, Wedbush Says

/ / Consumer Discretionary /

Airbnb’s (ABNB) upside potential following a conservative second-quarter guidance makes the stock an attractive buying opportunity amid recent underperformance, Wedbush Securities said in a note on Tuesday. The brokerage upgraded the stock to outperform from neutral and increased its price target to $165 from $160. Shares of Airbnb were up 2% in Tuesday trade. The stock has declined 8.5% since the vacation rental company’s first-quarter earnings report earlier this month, compared with gains reported by the Nasdaq and Booking Holdings (BKNG), according to Wedbush. “We think investors should take advantage of this period of relative weakness and see potential upside to near-term estimates following disappointing (second-quarter) guidance that we view as conservative given positive travel data points” so far in the quarter, a group of analysts including Scott Devitt said. Travel demand appears resilient through the near term, according to Devitt. Recent industry commentary has indicated healthy demand for the

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Airbnb Keeps Leading Position Amid Strong Travel Demand, Wedbush Says in Upgrade

/ / Consumer Discretionary /

Airbnb’s (ABNB) stock price declined recently, but it’s a good time to buy because travel demand is strong and the company continues to hold a leading competitive position in the alternative accommodation segment, Wedbush said in a note Tuesday. “We think investors should take advantage of this period of relative weakness and see potential upside to near-term estimates following disappointing [Q2] guidance that we view as conservative given positive travel data points thus far in [Q2],” Wedbush said, adding that the company’s long-term growth potential remains strong, with promising opportunities as it expands beyond its core business, Wedbush added. Near-term travel demand looks strong, boosted by events like the Paris Olympics from July 26 to Aug. 11, and Euro Cup from June 14 to July 14, according to the note. Positive engagement data and rising alternative accommodation demand suggest potential for Airbnb to exceed Q2 expectations, it added. Wedbush is

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CFRA Retains Strong Buy Opinion On Shares Of Eli Lilly And Company

/ / Health Care /

We lift our target price to $930 from $906, reflecting a 48.6x multiple on our 2025 EPS, above LLY’s historical forward P/E average, justified by LLY’s strong sales and earnings growth outlook in the next years. We lift our 2024 EPS view to $14.05 from $13.54 and 2025’s to $19.14 from $16.59 as we expect solid margin expansion. We updated our model and raised our revenue forecasts for 2024 and 2025 to $43.6B and $53.1B, respectively, pointing to 28% Y/Y and 22% Y/Y increases. We continue to see high top-line sales growth led by robust growth in Tirzepatide revenues (Mounjaro +Zepbound) both in the U.S. and internationally during 2024 and 2025, which we expect to be above $14B and $23B, respectively. We think the recently announced $9B manufacturing investment in Indiana, the largest in the firm’s history, to expand the manufacturing capacity for the active pharmaceutical ingredients in Tirzepatide products,

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