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V.F. Corp (VFC) is facing another setback as its stock plummets by 11% following disappointing quarterly earnings results for Q3 (Dec). The outdoor apparel manufacturer, known for brands like North Face and Timberland, fell short of bottom-line estimates for the third consecutive quarter, experiencing a significant decline in revenue. After a challenging quarter, VFC withdrew its financial targets for FY24 (Mar) and announced a 70% reduction in its dividend, reflecting the severity of its performance woes. CEO Bracken Darrel openly acknowledged the company's struggles, citing a decline in its primary business and operational challenges in the US market, which have dampened employee morale. In line with its ongoing turnaround efforts, VFC continues to make strategic changes, with CFO Matthew Puckett departing following the lackluster Q3 performance. The company also initiated a strategic portfolio review to ensure sustained value creation across its brand portfolio. Despite the disappointing results, Darrel remains candid about the quarter's performance, emphasizing a 16.2% year-over-year decline in sales to $2.96 billion and nearly a 50% drop in adjusted EPS to $0.57. VFC attributes these contractions to continued headwinds, including unseasonably warm weather, challenging comparisons year-over-year, and underperforming markets in the Americas region. Looking ahead, VFC has not issued formal guidance but highlights encouraging developments, including a roadmap for growth in its Vans brand and progress toward achieving $300 million in cost savings. However, navigating a turnaround in the current economic landscape, characterized by inflationary pressures and elevated interest rates, presents significant challenges. Nonetheless, CEO Bracken Darrel's track record of successful turnarounds instills confidence in VFC's ability to navigate this volatile recovery phase.

Uber (UBER) experienced a brief skid in its stock price as investors engaged in profit-taking following the company's Q4 earnings report. Despite the initial market reaction, Uber delivered impressive results yet again, surpassing EPS estimates and reporting a 22% year-over-year increase in gross bookings to $37.6 billion. CEO Dara Khosrowshahi expressed confidence in the company's core business, highlighting its strength as Uber enters a busy period. Key metrics such as gross bookings and adjusted EBITDA exceeded Uber's guidance ranges, driven by robust growth in both Mobility and Delivery segments, as well as an uptick in its advertising business. The company's advertising business is on track to surpass a $1 billion run rate, contributing to record-high adjusted EBITDA margins in Q4. Additionally, Uber's consistent market share gains against Lyft and promising trends in its Delivery segment, particularly in grocery vertical, further bolster its outlook. Despite the profit-taking, Uber's guidance for Q1 suggests healthy business across both segments, with estimated year-over-year growth in gross bookings and adjusted EBITDA. The company's growing membership base and favorable rideshare trends position it well for continued success, despite short-term market fluctuations. Overall, Uber's strong execution and optimistic outlook underscore its resilience in a competitive market landscape.

CVS Health (CVS) continues its positive streak in Q4, reporting both top and bottom-line growth. Despite challenges in the Medicare Advantage (MA) market, CVS revised its FY24 adjusted EPS forecast to at least $8.30, a reduction of $0.20, reflecting cautiousness in MA utilization until industry trends become clearer. However, CVS remains committed to achieving a 4-5% margin in MA over time, starting next year. With CVS shares experiencing a roughly 9% decline since January, investors anticipated a less-than-ideal Q4 report, especially after UnitedHealth (UNH) and Humana (HUM) reported below-expectation earnings due to rising MA medical expenses. However, the trimmed guidance was more manageable for shareholders given ample time to react to the market correction. Offsetting the weaker FY24 outlook were several highlights from the quarter. In Health Care Benefits, CVS recorded a 16% year-over-year revenue growth to $26.73 billion, although adjusted operating income for MA declined by 26%. CVS aims to add at least 800,000 new MA members in 2024. Health Services expanded revenue by 12% to $49.15 billion, driven by strong growth in pharmacy services and brand inflation, supported by recent acquisitions. Pharmacy & Consumer Wellness sales rose 9% to $31.19 billion, with a 11% increase in same-store sales. CVS remains on track to close 900 stores by 2024 as part of its cost-cutting measures. Despite challenges, CVS achieved a consolidated 11.9% sales growth year-over-year to $93.81 billion, with a 6.5% expansion in adjusted EPS to $2.12. Although rising costs remain a concern, CVS is positioned to offset these challenges over time through MA membership growth and ongoing efforts to lower total care costs.

Chipotle (CMG) is experiencing a surge in its stock price following an impressive Q4 report, wherein the company beat earnings and revenue expectations and achieved solid comparable store sales growth. The success in 2023 was marked by strong transaction growth, surpassing $3 million in average revenue per restaurant, and significant digital sales. Notably, the company formed its first international partnership to open locations in the Middle East. Comparable store sales increased by 8.4% in Q4, attributed to demand driven by customer favorites like Carne Asada and improved employee efficiency. Looking ahead, CMG expects mid-single digit comparable store sales growth for FY24 and continues to focus on menu innovation. CMG has also enhanced its digital experience with app functionality improvements and introduced Freepotle for rewards members. Despite macro pressures impacting restaurant development, CMG opened a record number of new restaurants in 2023 and plans to open 285-350 new restaurants in 2024. Investors are impressed with CMG's performance, especially in comparison to other fast-food chains like McDonald's. CMG's higher price point and focus on throughput have contributed to its success, particularly appealing to mid-to-high income consumers. Overall, CMG's strong close to 2023 underscores its resilience and strategic initiatives for future growth.

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DuPont (DD) is experiencing a rebound after concerns over inventory destocking weighed heavily on its Q4 earnings report. Despite issuing guidance below expectations in late January, DD's stock is on the rise, driven by anticipation that the worst is behind it. The company's announcement of a $1.0 billion share repurchase program and a 6% increase in its quarterly dividend further buoyed investor sentiment. While challenging business conditions persist, particularly in China, where destocking trends continue, there are signs of stabilization. Sequential improvement in Semiconductor Technologies revenue and expectations of recovering orders post-Q1 indicate a potential turnaround.

Similarly, Spotify (SPOT) is seeing a surge in its stock price following a positive outlook for Q1 operating profit. Healthy subscriber growth, boosted by price increases and cost-cutting measures, contributed to meaningful improvements in the company's bottom line. With solid growth in premium subscribers and revenue, coupled with a strategy shift towards a more diverse audio platform, Spotify is making strides towards profitability. The company's focus on cost control and operational efficiency is reflected in record free cash flow and a workforce reduction initiative, signaling a newfound commitment to sustainable profitability.

Eli Lilly (LLY) has ended 2023 on a positive note, with its Q4 earnings report impressing investors despite trading flat. The pharmaceutical giant surpassed analyst expectations, recording a significant 28.1% year-over-year revenue growth to $9.35 billion. This growth was largely attributed to higher selling prices for its drugs, particularly in the US market. Notably, the revenue surge was primarily driven by a 16% increase in realized prices, while volume growth and favorable foreign exchange also contributed. Strong performance in weight loss drugs, especially Mounjaro, fueled revenue growth in the US by 39% year-over-year to $6.46 billion. However, excluding Mounjaro, realized prices in the US declined, highlighting the drug's significant impact. Looking ahead, investors are closely monitoring the potential of Zepbound, recently approved by the FDA for obesity treatment, as it bolsters LLY's GLP-1 class of drugs. Overall, despite the lack of a significant market reaction, Eli Lilly's strong performance and promising drug pipeline continue to instill confidence in its growth prospects.

Palantir Technologies (PLTR) is experiencing a surge in its stock price following a bullish revenue outlook for FY24, overshadowing its relatively modest Q4 numbers. While its earnings and revenues aligned with analyst forecasts and Q1 revenue guidance was conservative, the highlight of the quarter was PLTR surpassing $1.0 billion in commercial revenues over the past year for the first time. Additionally, PLTR witnessed a significant 70% year-over-year increase in its US commercial revenue in Q4, driven by the momentum in its AIP program. Despite slower growth in international commercial sales, PLTR's successful completion of more AIP boot camps than anticipated signifies a positive expansion trajectory. The accelerated pace of new customer acquisition and shortened sales cycles further buoy investor confidence in PLTR's growth potential. Although Q4 results were not stellar, PLTR's optimistic outlook for an accelerating demand environment in 2024, particularly in its US government business, is driving shares toward one-year highs.

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ON Semiconductor (ON) experiences a surge in its stock price after posting satisfactory Q4 results. Despite the modest top and bottom line beat and Q1 guidance slightly below analyst expectations, the stock witnessed renewed buying interest as it had been in a slump, down more than 30% from its August 2023 highs before the Q4 results. The positive momentum was further fueled by lukewarm results from peer companies like STMicroelectronics, Texas Instruments, and Wolfspeed. While On Semi faced challenges with a slowdown in industrial and automotive end-market activity, particularly affecting 80% of its total annual revenue, the quarter's industrial revenue decline of 10% wasn't as severe as anticipated. The Power Solutions Group (PSG) segment, the largest for On Semi, showed a 4% year-over-year revenue increase, supported by growth in silicon carbide (SiC) revenue from the automotive and energy sectors. The company remains confident in its market position, sustaining gross margins above the mid-40% floor and striving for long-term gross margins of 53%.

Caterpillar (CAT) achieves new record highs as it surpasses Q4 EPS expectations despite a decline in sales volumes. The heavy machinery maker navigated the impact of higher interest rates on equipment sales volume, especially in its Construction Industries segment, through effective price increases across its product lineup. The Financial Products business experienced robust revenue growth of 15% in Q4 to $981 million, driven by higher interest. Caterpillar revealed a positive sign for future supply and demand dynamics, as dealer inventories decreased by approximately $900 million year-over-year. Despite uncertainties, Caterpillar foresees no significant change in dealer inventories for 2024. The company aims to continue implementing price increases in the coming year, as evidenced by favorable price realization boosting adjusted operating profit margin by 190 basis points year-over-year to 18.9% in Q4. Caterpillar's outlook for FY24, including a forecast for revenue broadly similar to FY23, mitigates concerns about the impact of higher interest rates and macroeconomic challenges on demand for heavy construction and industrial equipment.

McDonald's (MCD) faces a decline in its stock value despite reporting strong EPS results, marking its first top-line miss since 2Q22. While global comp sales increased by 3.4%, US comps showed a stronger growth of 4.3%, driven by strategic menu price increases. However, international markets faced challenges, with the Middle East conflict impacting comps in that region. MCD acknowledges operating in a challenging environment with headwinds expected to persist in 2024. Lower income consumers, impacted the most, are opting for more affordable home-cooked meals. MCD anticipates 2024 comp growth moderation, returning to historical averages of +3-4% in the US and International Operated Markets segments. For International Developmental Licensed, improvement depends on a Middle East resolution.

Tyson Foods (TSN) reports a solid Q1 (Dec) earnings report, signaling ongoing recovery efforts. The food processing giant surpassed adjusted EPS forecasts, showcasing a double-digit beat. Adjusted operating margins improved, demonstrating early success in expense management. TSN's top line turned positive in Q1, expanding by 0.4%, with Beef, its largest segment, outperforming. Despite inflationary pressures and shifting consumer tastes, TSN's recovery efforts remain robust. The company is cautiously optimistic about the global economy, projecting relatively flat growth for FY24. TSN's story in 2024 revolves around recovery, overcoming past headwinds and positioning itself as an attractive turnaround play.

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Intel (INTC) is facing a challenging period as its shares have fallen nearly 15% since its Q4 earnings report, which included disappointing Q1 EPS and revenue guidance. Adding to the concerns, the Wall Street Journal reported a delay in the construction of Intel's $20 billion Ohio manufacturing facility, with completion now expected in 2026. The initial target for production commencement in the Ohio plant was set for next year. This delay is partly attributed to the slow disbursement of grant money under The Chips Act, passed about two years ago to incentivize semiconductor expansion. The postponement raises questions about Intel's anticipation of demand, especially since construction delays imply a lack of urgency. While Intel's core PC market is recovering, and it expresses confidence in AI technology opportunities, the company is dialing back short-term expectations, evident in its weak Q1 guidance. The decision to delay facility construction further challenges Intel's position in the competitive AI landscape.

On a different note, Clorox (CLX) is making a positive recovery after its Q2 (Dec) report, surpassing earnings estimates and providing optimistic FY24 (Jun) guidance. The cleaning product supplier experienced a rebound in retailer inventories following a cyberattack in September, which initially led to a decline in share value. CLX successfully rebuilt its shelf position ahead of schedule, dispelling fears of brand erosion. Despite facing private label competition and inflationary pressures, CLX maintained brand loyalty throughout the recovery. In Q2, CLX exceeded analyst expectations with adjusted EPS of $2.16, more than double the year-ago figure, and revenue of $1.99 billion, a 16% YoY increase. Growth was observed across all segments, with Health and Wellness and Lifestyle leading the way. CLX expects this positive momentum to continue in FY24, raising its adjusted EPS outlook and forecasting net sales growth to be down by just low single digits. Despite acknowledging a challenging operating environment, CLX's ability to sustain positive momentum following the cyberattack showcases its resilience and leadership position in the market.

Amazon (AMZN) is celebrating a robust Q4 performance, with the stock soaring 7% after reporting impressive results. Both EPS and revenue surpassed expectations, with operating income seeing a remarkable 383% YoY surge to $13.21 billion, exceeding prior guidance. The Q1 operating income guidance of $8-12 billion further contributes to the positive sentiment. Amazon's strategic moves, including regional fulfillment clusters and same-day facilities, have significantly improved delivery speeds, boosting sales and increasing purchase frequency for Prime members. AWS witnessed a +13% growth in constant currency, marking a positive turn after sequential declines. Advertising Services also posted strong growth, with a +26% YoY increase to $14.65 billion, primarily driven by sponsored ads. Overall, Amazon's Q4 report is impressive, showcasing notable improvements in operating income, demonstrating the benefits of its past strategic investments.

On the flip side, Apple (AAPL) faces a slight setback as shares inch lower due to disappointing China sales and Q2 (Mar) revenue guidance. While Q1 (Dec) results exceeded expectations, with iPhone and Services sales surpassing estimates, the Q2 revenue guidance signals a significant sequential decline, echoing the year-ago quarter's performance. China revenues fell 13.2% YoY to $20.8 billion, and challenges persisted in Mac, iPad, and Wearables, Home & Accessories segments. Apple's new product, the Vision Pro, launching today, brings enthusiasm, particularly in enterprise and other sectors. However, the Q2 guidance, predicting a roughly 25% sequential drop, has left some investors slightly disappointed. The China region, accounting for around 17% of total revenue, remains a crucial focus for Apple, and its pullback in Q1 raises concerns. Despite this, Apple's long-term future is seen as promising, especially with the Vision Pro's release and anticipation of a swift recovery in 2025.

Meta Platforms (META) has garnered widespread approval following a series of positive developments in its December quarter earnings report. Positioned as a standout in the "Most Impressive" category, META exceeded expectations by crushing Q4 EPS estimates and achieving a remarkable revenue growth of nearly 25%, marking the company's most robust expansion in over two years. Beyond these financial accomplishments, META unveiled two shareholder-friendly initiatives, introducing its inaugural quarterly dividend of $0.50 per share and augmenting its share repurchase program by $50 billion. Bolstered by a substantial free cash flow of $43.0 billion in FY23 and the anticipation of another robust year in FY24 driven by successful AI investments, META is well-equipped to provide substantial returns to its shareholders. Unsurprisingly, these positive revelations have propelled META's stock to new record highs. In tandem with META's success, Alphabet (GOOG) reported an encouraging Q4 with an 11% acceleration in advertising revenue growth from Q3's 9%. Indicating a healthy advertising market in Q4, META capitalized on this favorable environment, witnessing a 24% surge in Family of Apps ad revenue to $38.7 billion. META's stronger growth is not solely attributed to a flourishing advertising market but is also fueled by improving engagement trends and enhanced monetization efficiency across its applications. Notable metrics include a 6% YoY growth in Family monthly active people (MAP) to nearly 4.0 billion and a 6% increase in Facebook daily active users (DAUs). These positive user trends, coupled with improved marketing performance, are driving increased demand from advertisers. Ad impressions across META's platforms increased by 2%, accompanied by a 2% rise in the average price per ad. META is strategically leveraging AI to boost advertisers' return on investment, exemplified by the development of its Advantage+ suite of products, which automates advertising campaigns. META's earnings call highlighted the company's growing investments in AI, leading to an upward adjustment of its FY24 CapEx guidance by $2.0 billion to a projected range of $30-$37 billion. Unlike previous concerns, investors now view these increased investments positively due to META's accelerating growth, robust earnings, and strong cash flow generation. During the earnings call, Mark Zuckerberg acknowledged the prior underinvestment in GPUs during the launch of Reels, META's short-format video platform, and pledged to avoid such errors in the future as META expands its AI capabilities. The company plans to intensify its investments in data centers and servers in 2024, supporting the launch of Llama 3, a large language model, and enhancing the usefulness of its AI assistant. Even the challenged Reality Labs division reported positive news, with a 47% YoY revenue surge driven by strong demand for the Quest 3 VR device, surpassing the $1.0 billion threshold for the first time. Despite incurring an operating loss of ($4.6) billion, compared to ($4.3) billion in the year-earlier period, META's overall performance underscores its success in AI investments, evident in its decision to initiate its first-ever dividend and significantly increase its share buyback authorization, reflecting a high level of confidence in its future prospects.

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Qualcomm (QCOM), a prominent chip developer for smartphones, reported solid Q1 results that surpassed top and bottom-line expectations. However, a restrained outlook for the global handset market in 2024 has led to disappointment among investors, causing a decline in shares. QCOM's Q2 EPS and revenue guidance aligned with analysts' estimates, but with the stock up nearly 40% since early November, investors were anticipating more substantial gains. Despite the smartphone market emerging from a prolonged inventory correction, QCOM's forecast of flat to slightly up global handset units on a year-over-year basis in 2024 suggests a slower recovery than expected. The company also maintained its FY24 estimate for high-single-digit to low-double-digit growth in the 5G handset market. While demand for Android phones in China exceeded expectations, indicating stronger-than-anticipated handset revenue of $6.69 billion, QCOM anticipates flat revenue growth for Android in Q2. Notably, QCOM's automotive business experienced a significant acceleration in growth, with revenue increasing by 31%, driven by increased content in new vehicle launches. However, the IoT business witnessed a 32% decline in revenue to $1.14 billion. Despite the positive earnings report fueled by robust demand for Android handsets and automotive growth, QCOM's outlook for gradual handset growth in 2024 has tempered investor expectations.

On a different note, Qorvo (QRVO) has seen an uptick in its stock following its Q3 (Dec) earnings report. The chipmaker reported strong earnings, beating expectations on EPS and revenue, and provided upside guidance for Q4 (Mar). Qorvo attributes the improved demand for its products to proactive efforts aligning channel inventories with end-market demand and content gains on key customer programs. Notably, Qorvo plans to acquire Anokiwave, a chipmaker focusing on D&A, SATCOM, and 5G applications. The company has observed positive trends in various segments, including HPA (High Performance Analog), power management, automotive, and infrastructure. Qorvo, a major player in the smartphone sector with Apple and Samsung as its largest customers, has addressed concerns about high channel inventories in the Android ecosystem. The company reports a normalization of Android channel inventories, with improved demand for mobile Wi-Fis. Qorvo expects total smartphone units to grow in low single-digits for calendar 2024, with 5G units growing over 10%. The positive results and outlook have relieved investor concerns, with Qorvo's stock performing well after recent pullbacks.

Honeywell (HON) is facing a cool reception following its Q4 results, where it narrowly surpassed bottom-line expectations but fell short on revenue, contributing to a tepid FY24 revenue guidance. Although the aerospace segment showed a robust performance with its 11th consecutive quarter of double-digit growth, HON's overall growth was weighed down by declining revenue in the Honeywell Building Technologies (HBT) and Safety & Productivity Solutions (SPS) segments. Despite warnings of persistent headwinds in Q4, especially in the SPS segment, HON's FY23 revenue outlook was overly optimistic, and the worst-case scenario unfolded. HON managed to improve its adjusted earnings by 3.2% year-over-year in Q4 to $2.60, aided by an increase in segment margins to 23.5%. Looking forward, HON anticipates a potential short-cycle recovery in the second half of FY24, with adjusted EPS expected to be $9.80-10.10 and revenues in the range of $38.1-38.9 billion. However, caution prevails due to uncertainties in the macroeconomic environment, prompting a wait-and-see approach, particularly in the back half of the year.

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The Cigna Group (CI) is set to improve its profitability by divesting its Medicare Advantage business, responding to challenges posed by escalating medical expenses. The health insurer has decided to sell its Medicare unit and CareAllies to non-profit health insurer Health Care Service Corporation (HCSC) for approximately $3.7 billion. The move follows CI's decision to abandon its merger plans with Humana (HUM) in December, a decision that would have increased its exposure to the Medicare business. With HCSC being the country's second-largest Medicare insurer, CI's relatively smaller Medicare Advantage business, with around 600,000 members, is no longer deemed worth the effort, particularly amid rising medical costs. CI's CEO, David Cordani, highlighted the need for sustained investment and dedicated resources disproportionate to the business's size within The Cigna Group's portfolio. Despite the growth potential in the Medicare space due to demographic trends, CI aims to utilize the sale proceeds for earnings-enhancing initiatives and share repurchases. The company plans to allocate the majority of the proceeds to buy back shares, signaling a positive move for investors. While the divestiture creates a void in CI's portfolio, it is expected to contribute to long-term earnings benefits, steering clear of the challenges associated with rising medical costs in the Medicare business.

Starbucks (SBUX) experiences a decline in its initial gains after reporting underwhelming Q1 (Dec) results. Although the coffee retail giant initially saw a rise in its stock despite missing earnings and sales estimates, investors are now paying closer attention to the mild headline results and concerning remarks regarding SBUX's growth. The adjusted EPS increased by 20% to $0.90, reflecting the success of SBUX's "Reinvention" savings plan, which is part of a three-year $3.0 billion cost-savings initiative. However, revenue growth returned to single-digit territory in Q1, marking an 8.2% increase to $9.43 billion, below SBUX's previous FY24 outlook. Comps globally grew by +5%, with headwinds emerging in November, attributed to the Middle East conflict and slower-than-anticipated economic recovery in China. SBUX took immediate actions to address these challenges, implementing offers to attract occasional customers to its loyalty program and enhancing data analytics tools. Despite the Q1 performance, viewed as a surface issue, SBUX lowered its FY24 revenue and comp projections, aiming for +7-10% and +4-6%, respectively, down from +10-12% and +5-7%. The company maintained its EPS and global store growth estimates of +15-20% and +7%, emphasizing that the headwinds are addressable, and the structural integrity remains intact.

Alphabet (GOOG) fell short of the sky-high expectations fueled by AI advancements during its 4Q23 earnings report. The quarter saw robust growth in core advertising and cloud businesses, marking the fourth consecutive beat on both top and bottom lines. However, this performance failed to prevent a profit-taking pullback as investors anticipated improving advertising demand and the introduction of AI technologies, including the Gemini large language model. While Search and Cloud revenues improved by 12.7% and 26%, respectively, there were concerns as Search revenue slightly missed expectations, and Cloud's growth lagged behind Microsoft's Azure. The market reaction was influenced by uncertainties about the future financial impact of Alphabet's expanding AI capabilities, particularly Gemini and Bard. Capital expenditures are also on the rise as Alphabet invests significantly in developing AI technologies. Despite the AI-driven growth narrative, the lack of clarity on financial outcomes and increased capital expenditures contributed to the stock's decline. Noteworthy positives include a healthy advertising business, particularly in the APAC region, with YouTube's standout revenue growth. Paid subscriptions, generating $15.0 billion annually, showcased substantial growth. Although Alphabet delivered solid earnings with a 56% year-over-year surge in EPS, the stock's all-time high before the report suggests that investors may have priced in the AI technologies' impact on the top-line, which is yet to materialize.

Microsoft (MSFT) reported an impressive Q2 (Dec) with its fourth consecutive double-digit EPS beat and strong revenue upside. The inclusion of its recent Activision Blizzard acquisition marked Microsoft's first quarter with noteworthy contributions. Despite the positive results, the stock traded flat, possibly due to already high expectations reflected in a 28% increase since October. Azure, growing at +28% CC, outperformed with both AI and non-AI services contributing. Azure's growth rate stabilized, halting the previous downward trend. Management's stable guidance for MarQ indicates sustained growth in the high-20% range. In the commercial business, demand for Microsoft Cloud, including AI services, drove strong growth in long-term Azure contracts. The consumer business, with stable PC market volumes, was generally in line with expectations. Activision contributed to total revenue growth, but with a drag on adjusted operating income and a negative impact on EPS. Segment-wise, Productivity and Business Processes, Intelligent Cloud, and More Personal Computing all performed well. LinkedIn contributed to the upside in Productivity and Business Processes. The overall positive quarter for Microsoft, particularly Azure's performance, sets an optimistic tone for Amazon's AWS segment, set to report next. The muted market reaction may be attributed to a combination of smaller upside, in-line guidance, and the stock's recent significant run-up.

Advanced Micro Devices (AMD) experienced a flat Q4 performance, falling short of relatively high expectations, resulting in a 3% decline in its stock price. Despite meeting analyst forecasts for earnings and sales, buoyant demand for data center and PC GPUs and CPUs, and consistent performance with competitors NVIDIA (NVDA) and Intel (INTC), AMD's downbeat Q1 revenue guidance disappointed investors. The Q1 revenue outlook of $5.1-5.7 billion, representing just under 1% growth year-over-year at the midpoint, was notably below analyst expectations and marked a significant deceleration from the 10.2% improvement in Q4. AMD attributed the mixed demand environment to its minor segments, Gaming and Embedded, which faced contractions in their respective end markets. Gaming revenue declined by 17% year-over-year to $1.4 billion in Q4, primarily due to weaker gaming console demand, while Embedded revenue fell by 24% year-over-year to $1.1 billion. However, AMD's larger segments, Data Center and Client, were supported by the underlying growth factor of AI. Data Center sales increased by 38% year-over-year to $2.3 billion, with strong performance in data center GPU business and CPU server share gains. Client sales surged 62% higher to $1.5 billion, driven by expectations of a broader recovery across the PC landscape in 2024, particularly in the second half of the year as AI PCs ramp up. Despite uncertainties in the gaming and embedded segments, AMD's sustained demand for AI remains a key factor in its longer-term growth potential. However, the stock's recent climb of approximately 70% since November led to profit-taking today. The lack of formal FY24 guidance was supplemented by management's increased outlook for data center GPU revenue and positive growth expectations in Data Center and Client segments, contrasting with a projected double-digit decline in Gaming revenue and soft Embedded demand through 1H24 due to inventory normalization.

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UPS (United Parcel Service) faced a downturn in its stock price, dropping by 7%, after its earnings report failed to meet investors' expectations. While the company marginally exceeded earnings per share (EPS) projections, it fell short on revenue. UPS also announced plans to cut 12,000 jobs and explore strategic options for its truckload brokerage business, Coyote, citing its cyclical nature and significant earnings volatility. The macro environment in Q4 showed improvement, but challenges persisted in the transportation and logistics sector due to soft demand and overcapacity. In the US Domestic segment, daily volume decreased by 7.4%, with declines in retail, manufacturing, and high-tech sectors. Internationally, soft demand from Asia and recessionary conditions in Europe affected volumes. UPS acknowledged 2023 as a challenging year, marked by declines in volume, revenue, and operating profit across all segments. The company anticipates a modest growth of less than 1% in the US small package market (excluding Amazon) in 2024, with a contrast between earnings performances in the first and second halves of the year. Despite a challenging outlook, UPS aims for a US operating margin of 10% by the end of 2024.

Corning, on the other hand, witnessed a positive market response with a 6% increase in its stock following its Q4 earnings report. While Corning matched analyst earnings forecasts, its revenue fell below expectations, and the Q1 projections were below consensus. However, investors seem optimistic about a potential bottom in Q1 2024, leading to a continuation of the stock's ongoing rally. Despite a challenging economic backdrop, Corning's Q4 results demonstrated a 17% drop in adjusted EPS and a 12% decline in revenue. Supply chain constraints and macroeconomic factors impacted demand across various markets. Corning emphasized profitability and cash flow improvements throughout 2023, with gross margins holding steady at 37%, a 330 basis points expansion year-over-year. Management expressed confidence in the company's operational strength entering 2024, positioning itself for opportunities in the second half of the year as markets normalize. Corning anticipates a recovery, with the potential to increase sales by over $3.0 billion, representing a 20% jump from FY23 revenue. The company acknowledges a challenging quarter ahead but remains optimistic about the recovery in 2H24, aligning with similar industry expectations. Corning's positive outlook extends to its Optical Communications segment and the growing popularity of AI technology in network builds, contributing to a significant rebound in its stock.

F5 Networks (FFIV) delivered a strong Q1 earnings report, surpassing EPS expectations for the third consecutive quarter. The company's success was attributed to cost control efforts and operational discipline, leading to significant margin expansion. More importantly, F5 Networks expressed a positive outlook on current demand trends, noting improving systems demand and better predictability from customers. The CEO highlighted that some customers are realizing the necessity of prompt investment decisions. Despite a 22% decline in systems revenue in Q1, F5 Networks is encouraged by the growing pipeline, indicating a strong competitive position. On the software side, revenue increased by 2%, driven by a 19% rise in perpetual software licenses. F5 Networks anticipates a return to growth later in the year as backlog headwinds fade, and the company benefits from strengthening demand trends. The substantial improvement in margins, with a 900 basis points year-over-year expansion to 35.5%, adds to the positive performance. The encouraging demand outlook is seen as a positive data point for competitors like Juniper Networks (JNPR), Akamai Technologies (AKAM), and A10 Networks (ATEN).

General Motors (GM) experienced a significant boost, with its stock rising by 7% following the Q4 results announcement. GM reported substantial upside for both EPS and revenue and provided a strong guidance for FY24 adjusted EPS of $8.50-$9.50, surpassing analyst expectations. The FY24 adjusted EBIT guidance of $12-14 billion also exceeded the previous year's figure of $12.4 billion. Despite a 54% year-over-year decline in adjusted EBIT to $1.76 billion in Q4, impacted by UAW strikes, GM is optimistic about the resilience of the US economy, job market, and auto sales. Management expects healthy industry sales of around 16 million units, with the EV mix continuing to grow. In 2023, GM outpaced Honda and Toyota in US vehicle sales, gaining market share with strong margins. The company remains positive about its ICE (Internal Combustion Engine) models like the 2024 Chevrolet Traverse and 2025 Chevrolet Equinox. While acknowledging the slowdown in EV growth, GM anticipates record EV sales in 2024. The company's US EV portfolio is expected to turn variable profit positive in the second half of the year. Despite ongoing challenges in China, GM's robust Q4 results and optimistic 2024 guidance have pleased investors, setting a positive tone for the upcoming report from Ford (F) next week.

Whirlpool (WHR) faces a decline in its shares as the company provides bearish guidance for FY24. Despite surpassing expectations in Q4 with strong performance in both revenue and earnings, Whirlpool struggles to shake off its pessimistic outlook for the year ahead, causing its shares to hover around levels seen in May 2020. The projected FY24 adjusted EPS of $13.00-15.00 indicates another subdued year for Whirlpool, following earnings of $16.16 in FY23 and $19.64 in FY22. Flat adjusted operating margins at 6.8% in FY24, on a like-for-like basis, are expected due to cost reductions being offset by an increasingly competitive promotional environment. The disappointing earnings outlook is primarily attributed to soft sales, with net sales expected to drop by 13.2% to $16.9 billion in FY24, largely influenced by Whirlpool's exit from a significant portion of its EMEA business. Despite the company's positive Q4 performance and optimism about ongoing trends, including robust replacement demand and higher housing starts in 2H23, Whirlpool's revenue guidance falls short of analyst targets. The company anticipates challenging European economic conditions but remains committed to its long-term potential in India, where it plans to sell up to 24% of its business while retaining a majority interest. While the FY24 guidance is frustrating, there are signs of improvement on the horizon, with housing starts picking up, interest rates moderating, and inflation easing. Whirlpool, viewed as a compelling turnaround story, emphasizes its commitment to sustaining its attractive 5.9% dividend, supported by a healthy balance sheet with approximately $1.6 billion in cash for dividends and debt reduction. Despite the challenges, Whirlpool's shares have seen a decline of around 25% over the past year and 50% from their peak in May 2021.

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WillScot Mobile Mini Holdings (WSC) is experiencing limited market activity following its agreement to acquire McGrath RentCorp (MGRC) for $3.8 billion. The offer, either $123.00 per share in cash or 2.8211 shares of WSC, represents a 10% premium to the previous day's closing price. Market confidence in the deal's closure, expected in 2Q24, is evident as MGRC trades at a similar level to WSC's offer. Despite WSC's current lack of conviction, there are positive aspects to its acquisition of MGRC. WSC is strategically acquiring a significant competitor in modular space and portable storage, particularly in key U.S. markets like California, Texas, and Florida, where MGRC has a strong presence. The merger is estimated to generate around $700 million in combined free cash flow by 2025, surpassing WSC's trailing twelve-month free cash flow of just over $500 million as of Q3. Identified pre-tax operating synergies amount to $50 million. Valued at approximately 4.6x estimated FY23 revenue, MGRC has consistently expanded revenues by at least double-digit percentages year-over-year for eight consecutive quarters. The merger is expected to be accretive to WSC's EPS within the first year post-closing, with significant upside thereafter. Despite potential challenges related to WSC's dependence on non-residential construction activity, the merger positions WSC well in underpenetrated verticals like education, government, and healthcare. The outlook may be clouded by forecasts of a roughly flat demand environment year-over-year in non-residential construction activity, but with declining interest rates in the current year, WSC could benefit from increased construction market activity.

SoFi Technologies (SOFI) is soaring after a strong Q4 report showcasing various achievements, including the company's first positive non-GAAP EPS. Although SOFI's Q1 revenue guidance of $550-$560 million seems slightly below estimates, the company's overall momentum suggests a conservative outlook and an effort to manage expectations. The longer-term forecast, indicating 20-25% compound revenue growth for 2023-2026, reflects SOFI's optimism about its future prospects. In Q4, SOFI reported record revenue of $615.4 million, a nearly 35% increase, exceeding analysts' estimates. Each of SOFI's three main business segments, Lending, Financial Services, and Technology Platform, achieved record revenue. Despite high interest rates and inflation, demand for SOFI's loan products remained strong, with a 45% year-over-year increase in total loan origination volume. The company benefits from a more affluent customer base, illustrated by a median FICO score of 744 for new direct deposit accounts opened in Q4. Higher quality deposits, growing by 19% to $2.9 billion in Q4, result in lower funding costs for SOFI's loans. The cross-buying trend across the platform is evident in a 45% increase in total products for the Financial Services segment, with SoFi Relay posting a 74% year-over-year growth. The Technology Platform segment's revenue growth accelerated to 13%, reaching nearly $97 million. SOFI's acquisition of Galileo in April 2020 has strengthened its mobile offerings, contributing to the positive Q4 performance. Investors seem to believe that SOFI is downplaying its Q1 guidance, given the stock's spike higher, and the company's broad-based strength across businesses and optimistic longer-term outlook portrays a company firing on all cylinders

REV Group (REVG) is delivering positive returns for investors by streamlining its focus on stronger areas. The specialty vehicle supplier has sold its school bus business, Collins Bus Corp., for $303 million in cash and is exiting transit bus manufacturing by winding down operations at its ElDorado business after fulfilling existing customer orders. This strategic move, attributed to various challenges such as supply delays and intense competition in the bus market, is expected to generate at least $250 million in net cash proceeds. Remarkably, $180 million will be distributed to investors through a $3.00 per share special dividend, with the remainder allocated to debt reduction. REVG will be reorganized into two reporting segments, namely Specialty Vehicles and Recreational Vehicles. Investors appreciate this shift, anticipating a heightened focus on municipal end markets, particularly in fire trucks and ambulances, as well as the attractive special dividend.

Philips (PHG) is facing a sell-the-news reaction despite recording strong comparable sales growth and providing a positive outlook for order intake in FY24. The decline in share value is attributed to an FDA settlement related to Philips Respironics in the U.S., which mandates a halt in the sale of new sleep and respiratory products until FDA requirements are met, potentially taking several years. Despite the solid Q4 performance, with comparable sales growing 3%, reaching the high end of guidance, and improved order intake, the FDA-related charges negatively impacted comps by around 350 basis points. Growth was observed across Connected Care, Sleep & Respiratory Care, and Personal Health, with notable contributions from China and Western Europe. PHG remains cautiously optimistic about the demand backdrop and plans to manage costs efficiently. While projecting +3-5% comparable sales growth in FY24, slightly lower than in FY23, PHG is confident in its 2023-2025 plan, which includes mid-single-digit comparable sales growth and low-teens adjusted EBITDA margins. Despite the setback from the FDA settlement, PHG aims to offset this impact and maintain growth.