Weekend Update #73
Welcome to Blue Room's Weekend Update. Each week, we're sharing what companies we're researching and the what, the who and the how that we think makes the companies interesting and unique. This roundup is brought to you weekly by a group of interns, creative minds, artists and investors who believe that through best in class investing along with the democratization of financial education we can do great things together. Enjoy, Explore and Share.
After starting off the week strong, markets took a dive on Thursday and Friday, continuing its correction from the start of this year. The S&P 500, Nasdaq and Dow Jones finished the week off down by 0.2%, 1.5% and 0.2%, respectively. The Dow, which has dropped for the sixth straight week, and the Nasdaq both experienced the worst single day drops since March 2020, while the S&P 500 had its second worst day of the year. The cryptocurrency market, which continues to be strongly correlated with equity markets, also fell 5.6% over the course of the week, with Bitcoin and Ethereum down 6.5% and 3.4%, respectively. Conversely, the 10-year treasury yield rose to 3.13% for the first time since 2018.
Major events this week included the FOMC meeting where Fed. Powell announced a 50 basis point interest rate hike, with the expectation of another 50 basis point hike at the June meeting. In addition, economic data showed U.S. productivity dropped in the first quarter by the most since 1947 while GDP shrank in the first quarter and labor costs surged. However, the US Jobs report showed nonfarm payrolls grew 428,000 while the unemployment rate held steady at 3.6% indicating the job market remains strong.
Next week, investors will be closely watching the CPI data release which economists estimate to be 8.1% year-over-year.
It was also a big week for company earnings, with results and outlook coming in mixed. Among our coverage list included:
ABNB: beat revenue, earnings
GH: beat revenue, earnings
HBI: beat revenue, earnings
IRBT: missed revenue, beat earnings
MRNA: beat revenue, earnings
REGN: beat revenue, missed earnings
RGLD: beat revenue, earnings
SDGR: beat revenue, earnings
SHOP: missed revenue, earnings
VMEO: beat revenue, missed earnings
VRTX: beat revenue, missed earnings
Thank you Blue Room Analyst NICK PEART.
Summary and Outlook
Shares Outstanding 27,051,000 as of April 2, 2022
10.00% 2,705,100
1.00% 270,510
0.10% 27,051
0.01% 2,705
Market Capitalization
$52.25 $ 1,413,414,750 Stock price and Market Cap as of 5/4/22
$150.00 $ 4,057,650,000
$200.00 $ 5,410,200,000
$500.00 $13,525,500,000
$1,000.00 per share $27,051,000,000
— Press Release —
BEDFORD, Mass.,
May 4, 2022
Colin Angle, chairman and chief executive officer of iRobot, stated, "Our recent tariff exclusion, combined with prudent cost management, enabled us to outperform our initial operating loss and net loss per share expectations for the first quarter of 2022. In terms of our first-quarter 2022 revenue, we delivered solid performances in the U.S. and Japan, which mostly was offset by a decline in EMEA. The first quarter was also highlighted by important progress to advance each element of our 'INNOVATE. GET. KEEP. GROW.' strategy."
Commenting on the company's outlook, Angle concluded, "Looking ahead, we plan to manage our business in ways that will enable us to navigate the potential for disruptions in the consumer marketplace, particularly in EMEA, primarily driven by a combination of heightened inflation and reduced consumer confidence stemming from the Russia-Ukraine war. While we still anticipate solid revenue growth in North America and our prospects in Japan are strengthening, we have reduced our full-year revenue growth expectations due primarily to the prospect of muted category growth in EMEA. Nevertheless, the combination of tariff-related savings and ongoing actions to carefully manage spending will help us preserve our profitability and enable us to slightly increase the high end of our FY22 EPS targets. We believe that our anticipated revenue and EPS trajectory in the second half of FY22 will leave us well positioned to deliver on our long-term financial targets."
Financial Performance Highlights
Revenue for the first quarter of 2022 was $292.0 million, compared with $303.3 million in the first quarter of 2021
iRobot's revenue in the U.S. grew 33% and the company's revenue increased 25% in Japan for the first quarter of 2022 versus the same period one year ago. iRobot's first-quarter 2022 revenue in EMEA declined 44% against a very strong quarter in EMEA one year ago.
Revenue from premium robots with an MSRP of $500 or more grew by over 30% in the first quarter of 2022. Mid-tier robots (with an MSRP between $300 and $499) and premium robots accounted for 86% of first-quarter 2022 robot sales, versus 84% from the prior year's first quarter.
Aeris air purifier revenue was approximately $3 million in the first quarter of 2022.
We estimate that iRobot's first-quarter 2022 revenue to support e-commerce, which spans the company's own website and app, dedicated e-commerce websites and the online arms of traditional retailers, grew by 6% from the same period last year and represented approximately 62% of total quarterly revenue. Direct-to-consumer revenue of $41 million in the first quarter of 2022 grew 17% from the same quarter last year and represented 14% of total revenue.
Summary and Outlook
Ticker: VMEO
Market Capitalization: $1.7 billion
Shares Outstanding: 156,900,000
Share Price History
April 25, 2022 $10.54
April 26, 2022 $10.29
April 27, 2022 $10.32
April 28, 2022 $10.71
April 29, 2022 $10.19
May 2, 2022 $10.62
May 3, 2022 $10.79
May 6, 2022 $11.04
May 5, 2022 $10.36 ← -6.2% following release of Q1 ‘22 Financial Results
May 6, 2022$10.01
Actual Q1 2022 Earnings
Revenue M: $108.4 (21% increase Y/Y compared to Q1 2021, beat expectations)
Operating Income: ($26.3) M
Diluted EPS: ($0.16) per share (missed expectations)
Total Paid Subscribers: 1.689 M (6% increase Y/Y)
ARPU: $260 (12% increase Y/Y)
Forward Guidance:
Q2 Revenue: 12 - 14% Y/Y growth
Q2 Operating margin: -28%
Q2 Adjusted EBITDA: $11.0 - $13.0 million loss
Full Year Operating Income: 93.2 - 98.2 million
Full Year Adjusted EBITDA: $25.0 - $30.0 million loss
HANESBRANDS, INC. 1Q2022 Summary and Outlook
Earnings Press Release (link to PDF)
Earnings Call (link to webcast)
Q1 2022 Earnings Expectations (Bloomberg)
Revenue: $1.546 billion
GAAP Net Income: $95.267 million
GAAP Diluted EPS: $0.26
Q1 2022 Earnings Expectations (BLUE ROOM)
Revenue: N/A
GAAP Net Income: N/A
GAAP Diluted EPS: N/A
Q1 2022 Actual ~ Reported May 05, 2022
Revenue: $1.576 billion ~ beat estimates
GAAP Net Income: $118.702 million ~ beat estimates
GAAP Diluted EPS: $0.32 ~ beat estimates
HANESBRANDS ANNOUNCES FIRST-QUARTER 2022 RESULTS, EXCEEDING EXPECTATIONS FOR SALES AND EPS AS COMPANY CONTINUES TO EXECUTE FULL POTENTIAL PLAN
Net sales from continuing operations of $1.58 billion, an increase of 5% YoY; increase of 7% on a constant currency basis
GAAP EPS from continuing operations of $0.32; adjusted EPS of $0.34
Global Champion brand sales increase 6% on a constant currency basis YoY; growth on a two-year stacked basis accelerated for a second consecutive quarter to 28%
U.S. Innerwear sales increased 1.5% YoY and 37% on a two-year stacked basis, driven by retail space gains, price increases and product mix
Repurchased $25 million, or approximately 1.6 million shares, of stock in the quarter
Provided 2Q22 guidance:
Constant currency net sales consistent with prior year as underlying business fundamentals position Company to anniversary last year’s substantial 88% growth, excluding PPE sales; GAAP EPS of $0.28 to $0.32; Adj. EPS of $0.32 to $0.36
The S&P Global released its U.S. manufacturing purchasing managers' index for April, posting a rise to 59.2 from 58.8 in March. The rate of overall factory growth accelerated for the third month and was the strongest since September 2021, driven by a quicker expansion in output, a softer deterioration in vendor performance and a series-record rise in pre-production inventories. Although lead times lengthened further, severe material and capacity shortages at suppliers led to sharper increases in cost burdens and selling prices. Meanwhile, firms continued to hire additional staff to ease pressure on capacity, as backlogs of work rose at the slowest pace since February 2021. At the same time, firms were strongly upbeat regarding the 12-month outlook for output, but concerns regarding inflation and geopolitical tensions pushed confidence to the lowest for six months.
Summary and Outlook
Ticker: VRTX
Market Capitalization: $64.9 billion
Shares Outstanding: 255,800,000
Share Price History
April 25, 2022 $271.68
April 26, 2022 $267.69
April 27, 2022 $267.25
April 28, 2022 $268.64
April 29, 2022 $273.22
May 2, 2022 $261.96
May 3, 2022 $269.11
May 4, 2022 $273.70
May 5, 2022 $266.37
May 6, 2022 $253.93 ← -4.7% following Q1 ‘22 Financial Results released
Actual Q1 2022 Earnings
Revenue: $2.1 B (22% Y/Y increase, beat expectations)
Operating Income: $1.04 B (17% Y/Y increase, beat expectations)
Net Income: $0.76 B (17% Y/Y increase, missed expectations)
Diluted GAAP EPS: $2.96 per share (missed expectations)
Diluted Non-GAAP EPS: $3.52 per share (missed expectations)
Summary and Outlook
Earnings Press Release (link to PDF)
Earnings Call (link to webcast)
Q1 2022 Earnings Expectations (Bloomberg)
Revenue: $2.687 billion
GAAP Net Income: $988.786 million
GAAP Diluted EPS: $8.96
Q1 2022 Earnings Expectations (BLUE ROOM)
Revenue: $2.445 billion
GAAP Net Income: $956.609 million
GAAP Diluted EPS: $8.51
Q1 2022 Actual ~ Reported May 4, 2022
Revenue: $2.965 billion ~beat expectations (+17% YoY)
GAAP Net Income: $974 million ~missed expectations (-13% YoY)
GAAP Diluted EPS: $8.61 ~missed expectations (-14.71% YoY)
The lower profitability this quarter was mostly due to collaboration expenses and the cost of additional R&D expenses incurred in relation to acquisition.
Summary and Outlook
Ticker: ABNB
Market Capitalization: $87.7 billion
Shares Outstanding: 635,314,000
Share Price History
April 25, 2022 $158.39
April 26, 2022 $153.04
April 27, 2022 $152.23
April 28, 2022 $159.74
April 29, 2022 $153.21
May 2, 2022 $152.78
May 3, 2022 $145.00
May 4, 2022 $156.18 ← +7.7% following release of Q1 ‘22 Financial Results
May 5, 2022 $143.09
May 6, 2022 $135.84
Actual Q1 2022 Earnings
Revenue: $1.51 B (70% Y/Y increase compared to Q1 2021, beat expectations)
Operating Income: ($5.1) M
Diluted EPS: ($0.03) per share (beat expectations)
Nights and Experiences Booked: 102.1 M (59% Y/Y, beat expectations)
Gross Bookings Value: $17.2 B (67% Y/Y, beat expectations)
Average Daily Rate: $168.46
Net Take Rate: $14.78
Q2 2022 Guidance:
Revenue: $2.03 — $2.13 billion
Summary and Outlook
Shares Outstanding 61,973,968 as of April 19, 2022
10.00% 6,197,397
1.00% 619,740
0.10% 61,974
0.01% 6,197
Market Capitalization
$20.00 per share $1,549,349,200
$50.00 $3,098,698,400
$100.00 $6,197,396,800
$150.00 $9,296,095,200
$250.00 $15,493,492,000
$500.00 per share $30,986,984,000
Initial Public Offering 11,500,000 shares
Filing: $16.00 per share
Pricing:$17.00 per share
Summary and Outlook
Shares Outstanding 65,621,025 as of February 16, 2022
10.00% 6,562,103
1.00% 656,210
0.10% 65,621
0.01% 6,562
Market Capitalization
$50.00 $3,281,051,250
$100.00 $6,562,102,500
$120.06 $7,878,460,262 As of February 18, 2022
$200.00 $13,124,205,000
$300.00 $19,686,307,500
$500.00 $32,810,512,500
Q1 2022 Earnings Expectations (via Bloomberg)
Revenue: $143.3 million (+0.5% year-over-year vs. $142.6 million in Q1 021)
Net Income, Adj+: $32.1 million (-40.8% year-over-year vs. $54.2 million in Q1 2021)
GAAP EPS: $0.78 per share (-5.2% year-over-year vs. $0.82 per share in Q1 2021)
Q1 2022 BR Estimates
Revenue: $169.8 million (+19.1% year-over-year vs. $142.6 million in Q1 021)
Net Income, Adj+: $52.7 million (-2.8% year-over-year vs. $54.2 million in Q1 2021)
GAAP EPS: $0.80 per share (-2.4% year-over-year vs. $0.82 per share in Q1 2021)
Q1 2022 Actuals
Revenue: $162.355 million (+14% year-over-year vs. $158.4 million in Q2 FY 2021)
GAAP Net Income: $66.0 million (+22% year-over-year vs. $59.9 million in Q2 FY 2021)
GAAP EPS: $1.00 per share (+22% year-over-year vs. $0.91 per share in Q2 FY 2021)
Summary and Outlook
Shares Outstanding 101,923,322 as of April 29, 2022
10.00% 10,192,332 shares
1.00% 1,019,233 shares
0.10% 101,923 shares
0.01% 10,192 shares
Market Capitalization
$40.00 per share $4,076,932,880
$75.00 $7,644,249,150
$100.00 $10,192,332,200
$200.00 $20,384,664,400
$250.00 $25,480,830,500
$500.00 $50,961,661,000
Initial Public Offering 12,500,000 shares
Filing: $17.00 per share
Pricing: $19.00 per share
Stock Price History
April 25, 2022 $69.76
April 26, 2022 $66.05
April 27, 2022 $64.69
April 28, 2022 $64.36
April 29, 2022 $61.70
May 2, 2022 $62.21
May 3, 2022 $54.66
May 4, 2022 $56.21
May 5, 2022 $50.72
May 6, 2022 $39.32 ← -22.5% day after Q1 2022 earnings release
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ARTIST CONVERSATION AND EXHIBITION TOUR WITH DYANI WHITE HAWK @ MCA DENVER 05/05/22 DOORS 6PM
05/05/2022
ABOUT THE EVENT:
Join nationally-recognized artist Dyani White Hawk for an exhibition walk-through of the exhibition Dyani White Hawk: Speaking to Relatives at the MCA Denver Fries Building. White Hawk will describe the trajectory of her artistic practice and the motivations behind her methods. Guests are invited to begin the evening with drinks in the Cafe at 6PM with the artist, followed by an exclusive tour of White Hawk’s stunning exhibition.
Dyani White Hawk: Speaking to Relatives
LOCATION:
MCA Denver at the Fries Building: 1485 Delgany Street, Denver, CO 80202
MCA Denver rooftop café and bar.
Continues through Dyani White Hawk's exhibit on the first floor and basement of MCA Denver.
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