Wizz Air disappointed the market last week with a Net Income figure of £342m, about 25% lower than Bloomberg consensus. This was primarily due to costs increasing faster than expected. Management also provided more detail on the required grounding of aircraft next year, necessary for Pratt & Whitney to carry…

CNH Industrial CNH released disappointing results last week, as Q3 sales missed expectations and management warned of weaker industry demand into 2024. Meanwhile our software picked up a number of flags associated with the balance sheet, in particular an increase in the level of finished goods inventory. A casual look…

IPG has suffered over the past two quarters due to weaker than expected revenue. Following a period of outperformance, the shine has come off the company and the rating has dropped substantially. The weakness is derived from areas that were previously driving growth, such as the tech sector and the…

Smith and Nephew reported a mixed set of H1 results on 3rd August, with strong top-line growth but weaker margins. Our own analysis focused on inventories, which continued to rise in H1 from what were already-high levels at the end of FY22. The extract from the balance sheet shows the…

Bloom Energy released 2Q results last week, with most of the discussion focused around the technology and the market opportunity for that technology. The balance sheet in contrast got little to no attention. Following publication of the 10-Q our system picked up a highly unusual increase in the level of…

Good news has a way of getting out when you’re trying to raise capital…. American Water Works published 2Q EPS of $1.44, which was far ahead of Street estimates, but with no apparent impact on the share price. When we see a company raising a large amount of capital it…

Embracer released Q4 results back in May, at the same time reporting the loss of an important strategic partnership which they had expected to sign just ahead of the release. Guidance for 2024 was reduced from SEK 10.6–13.6bn to SEK 7–9bn, and as result the stock dropped by 45% on…

One of the flags that caught our attention this week was the sharp reduction in “Deferred Revenue” at Universal Display Corporation (OLED). It stood out because of the quantum of the change (see extract from our report below). Deferred revenue arises when a company receives upfront payment on a contract…

GN Store Nord recently surprised the market with the announcement of a DKK 7bn rights issue, coinciding with the release of FY22 results. …