The Weekly Brief (As of September 11)
- Salesforce (CRM) reported an EPS and revenue of $2.91 on a revenue of $10.24 billion, beating expectations on both fronts of $2.78 and $10.14 billion, respectively, while cutting 4,000 customer service jobs during the quarter and announcing a $20 billion increase to its share buyback program to a total of $50 billion.
- Lululemon (LULU) stock tumbles as the company reported weak U.S. demand with a same-store sales decline of 4% for the quarter, along with tariff costs.
- Nebius Group (NBIS)’s share price jumped materially as the company announced the deal to supply Artificial Intelligence (AI) infrastructure to Microsoft (MSFT) over a five-year period.
- Oracle (ORCL)’s shares skyrocketed despite a slight earnings miss, as the company reported solid remaining performance obligations – a measure of contracted revenue that has not yet been recognized, which was up 359% from the prior year.
- Synopsys (SNPS) – the parent company of the chip design software- reported an EPS of $3.39 on a total revenue of $1.74 billion, which missed the expectation of $3.75 on the topline of $1.77 billion, while signalling a potential slowdown in China, which led to a tumble in share price.
*Analysts of 5i Research responsible for this report ave a financial or other interest in SNPS, MSFT, LULU. The i2i Fund has a financial or other interest in NBIS.
New Podcast Episode!
Join your hosts, Chris and Ryan, as they go over trends in the broader markets, tweets of the week, review noteworthy Canadian stock dividend cuts and raises, review a recent Canadian MoneySaver issue, highlight four noteworthy questions from our Q&A, spotlight a recent 5i Research report, and talk about an important piece of investor education.
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Join us at the MoneyShow on Friday, September 12, and Saturday, September 13. On September 13, Chris White will explore the unexpected yet common traits of long-term “compounder” stocks. Plus, Ryan teams up with Jon Erlichman for a special live edition of Ticker Takes — answering YOUR questions.
Flash Reports
We have posted a flash report on nine of our coverage companies. In it, we highlight themes of structural weakness and cases where stocks appear “cheap for a reason.” At the same time, we identify areas where companies are improving the quality of their earnings. The report includes several upgrades and downgrades, which we believe point to where the future winners are most likely to emerge.
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Report Update
We have posted a report update on FirstService Corp (FSV). FSV is a leader in a highly fragmented outsourced property service industry in North America. FSV has competitive advantages like scale, brands, and national coverage, and its business model is highly sticky and durable. We like its proven business model with a track record of consistent growth and solid shareholder returns over the last 30 years. Amid a challenging macro environment, we think FSV has executed tremendously well.
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