What’s happened? Emerging Focus List constituent Tata Consumer Products
reported mixed Q4 results. Revenue grew 26.2% y/y, beating estimates by 6%,
while net profit was INR 0.54B, missing estimates by more than 70%. We
recommend that investors book profits and exit positions if it breaches below
INR 611 price levels.
Author: Tristan d'Aboville
Varun Beverages
What’s happened? Emerging Focus List constituent Varun beverages reported
strong Q1 results. Revenue grew 33% y/y beating estimates by 6% while net
profit grew 127% y/y beating estimates by 13%. We recommend investors to
hold on the stock and add to the positions if it breaks above INR 1130 price
level.
Penn National Gaming
What’s happened? Penn National Gaming reported strong Q1 FY21 results with
EBITDAR growing 77% y/y and 14% compared to 2019), driven by the
performance of Barstool Sportsbook and iCasino platforms, beating estimates
by 13%. It recorded an EBITDAR margin of 35% versus 30.5% in 2019. The stock
was down 8% yesterday post results and is testing the next level of support at
its 200-DMA. We recommend that investors hold positions and trim if the stock
breaches its 200-DMA.
Trigano
What’s happened? Trigano reported excellent H1 FY21 earnings, with operating
profit growth of 70% beating estimates after posting H1 sales (+17% LFL) at the
end of March. The stock is currently forming the right side of a flat base, being
up more than 7%. We would recommend that investors add to positions here.
Malibu Boats
What’s happened? MBUU reported strong Q3 FY21 results yesterday before
market close, with revenue growing 49.8%, beating estimates by 7%, driven by
the increase in unit volume (+37% y/y), ASP (+10%), and the acquisition of
Maverick. We would like investors to hold positions and look for support at its
50-DMA.
Fox Factory Holdings
What’s happened? Fox Factory reported solid Q1 FY21 results and significantly
raised its guidance yesterday after market. Revenue grew 52.5%, beating
estimates by 5%, driven by the continued strong performance of the specialty
sports segment. The stock was up 2.89% after market hours, on posting strong
Q1 results. We would like investors to add to positions as the stock is still
trading in a buyable range.
Estee Lauder
What’s happened? US Focus List constituent Estee Lauder reported mixed Q3
FY21 results. Revenue grew 16% y/y on a reported basis, missing estimates
slightly while adjusted EPS came at $1.62, comfortably beating estimates of
$1.33. We recommend investors to reduce positions as the stock has breached
50-DMA on strong volume.
Nomad Foods
What’s happened? US Focus List constituent NOMD reported strong Q1 results.
Revenue grew 3.6% y/y, beating estimates by 1%, while adjusted EPS grew 47%
y/y, beating estimates by 21%. We recommend that investors hold on to the
stock and add to the positions if it bounces off its 50-DMA on good volume.
Freshpet
What’s happened? US Focus List constituent Freshpet reported mixed Q1
results. Revenue grew 33% y/y, in line with estimates while EBITDA grew 35%
y/y, missing estimates by a wide margin. We recommend that investors book
profits as the stock looks extended from its key support levels and might
consolidate here.
Medifast
What’s happened? US Focus List constituent Medifast reported strong Q1
results. Revenue grew 91% y/y beating estimates by 21% while EPS grew 79%
y/y beating estimates by 27% y/y. We recommend investors to hold on to the
stock and add to the positions if it breaks above $280 on high volume.