What’s happened? DKNG posted Q3 numbers on November 13.
Revenue came in line with expectations, while EPS missed by 55%. Since
these results were pre-announced, the main highlight was the guidance
for FY20 and FY21. We would wait for the stock to retake its 50-DMA
($46.50) before adding to positions.
Author: Tristan d'Aboville
Consumer & Retail Sector Overview
Carabao Group
What’s happened? Emerging Focus List constituent Carabao Group released its
Q3 performance yesterday. Revenue grew 14.1% y/y, while net profit grew 32%
y/y, beating estimates by 8%. We recommend that investors hold on to the
stock and add to positions once it breaks above THB 134.5 price level on good
volume.
Tata Consumers Limited
What’s happened? Emerging Focus List constituent TEA.IN reported Q2 results
on Friday. Revenue grew 19% y/y, beating estimates by 3% while EBITDA grew
26% y/y, in line with estimates. We remain bullish on the stock and recommend
investors to add to positions once the stock reclaims its 50-DMA.
CTS Eventim
CTS Eventim (EVDX.DE) Removal from Conviction
Laggards
CTS Eventim is the world’s second-largest provider of ticketing solutions and
third-largest company in live entertainment. It is the largest company in Europe
in both segments. H1 FY20 revenue by segment (y/y growth): live
entertainment, 56% (-77% y/y); ticketing, 42% (-55% y/y).
European Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- Out of the 16 indices we cover, 12 are now in a Confirmed Uptrend.
- Technically, yesterday’s move is not without significance, as the Stoxx 600 broke above key long-term resistance of 377.
- We reiterate our view that value has still room to lead the market at the expense of extended growth sectors such as Technology and Health Care. The current environment and H2 2016 share obvious similarities.
- In this report, we provide a list of European stocks that are clear “vaccine beneficiaries” and may be poised for short-term outperformance should value continue to lead growth.
Malibu Boats
What’s happened? MBUU reported strong Q1 FY21 numbers and delivered a
massive beat on EPS on the back of better product mix. The stock is still
consolidating, but recently had a strong move. We recommend that investors
hold positions and add when the stocks break above $63.88
Godrej consumer products
What’s happened? Emerging Focus List constituent GCD.IN reported reported
strong Q2 results. Revenue grew 12% y/y, beating estimates by 2%, while net
profit grew 11% y/y, in line with estimates. We recommend that investors hold
positions and trim if it breaks below its 200-DMA.
Freshpet
What’s happened? Freshpet (FRPT) down 3.8% pre-market despite good Q3
print. Market was probably expecting an upgrade of the guidance.
Nevertheless, we see management FY targets (reiterated during the call) – in
line with consensus estimates – as easily beatable. We continue to remain
bullish on the stock as premiumisation story in pet food remains intact. Visibility
remains strong in our view: as a fact, FRPT is among the few listed companies
that can still provide guidance in a blurry environment. The sector has been
fairly recession proof.
Yeti
What’s happened? Overall, YETI reported a blowout quarter, beating estimates
by a large margin in all metrics (+13% on revenue and 65% on EPS vs.
consensus). DTC (Direct to Consumer) was again the major driver of the beat, up
62% y/y (vs +34.5% expected by the Consensus). Combined with a solid margin
expansion, bottom line growth was exceptional: adj EPS grew 137% y/y. The
stock broke out of a consolidation base on heavy volume as it gained more than
16% yesterday post results. We would recommend investors to add to
positions.