Symbotic (SYM), a provider of AI-powered robotic systems for supply chain management, trimmed its Q1 FY25 revenue guidance by 3% and adjusted EBITDA guidance by 52%. The
move comes after the company said some accounting errors led to accelerated revenue recognition in FY24. It expects revenue and adjusted EBITDA for FY24 to be impacted by
$30M–40M. Annual report filing to be delayed. The stock gapped down ~33% following the announcement and breached all its key moving averages on more than 10x the a
Author: vipin khare
O’Neil Capital Equipment Sector Weekly
Taylor Morrison Home (TMHC) – $8B market cap; $63M ADV: We added Taylor Morrison Homes to the U.S. Focus List as the stock is making new highs after
breaking out of a stage-three, six-week flat base. The company is the fifth largest homebuilder in the U.S. Diversified offerings catering to various demographics, including entry-level and built-to-rent segments, and unique land acquisition and lot development strategy are the key growth drivers. Additionally, a fall in the 10-year Treasury yield O’Neil Capital Equipment Sector Weekly williamoneil.com • services@williamoneil.com • 800.545.8940 2 could potentially lower mortgage rates, thereby improving buyer demand. Consensus expects revenue and EPS CAGR of 7% and 14%, respectively, in FY23– 26. Fundamental & Technical note
O’Neil Capital Equipment Sector Weekly
Rheinmetall (RHMX.DE) – $28B market cap; $157M ADV: We added Rheinmetall to the Developed Markets Focus List as the stock broke out of a
stage-three, 30-week consolidation base on above average volume. Rheinmetall is Germany’s largest defense manufacturer and the world’s largest
artillery ammunition producer. Accelerated defense spending across Europe, massive demand for 155mm artillery shells since the start of the Ukraine
war, and expansion in the U.S., the world’s largest defense market, are the key growth drivers. Consensus expects revenue and EPS CAGR of 28%
and 45%, respectively, in FY23–26.
O’Neil Capital Equipment Sector Weekly
ABB India (AB.IN; ABB IN) – $17B market cap; $30M ADV: We booked a 50% gain and removed ABB India from the Emerging Markets Focus List as the stock breached its 200-DMA on above average volume. It
has been lagging after reporting a weak Q3 2024 print last week. Revenue and adjusted EPS missed estimates by 12% and 3%, respectively. Revenue growth has decelerated over the past couple of quarters due
to a slower pace of backlog execution. Next support is at INR 6,245 (-8%).
O’Neil Capital Equipment Sector Weekly
Praj Industries (PNS.IN; PRJ IN) – $1B market cap; $13M ADV: We removed Praj Industries from the Emerging Markets Focus List as the stock breached support along its 50- and 100-DMA. The company reported weaker-than-expected Q2 FY25 results on Friday. The slow pace of execution impacted revenue growth in the ethanol segment. The government’s relaxation on the use of sugar for ethanol production in late August has not resulted in any significant activity in the market, which could have weighed down on investor sentiment. Next support is at INR 650 (-9%), followed by its 200-DMA (-13%). Fundamental & Technical note
O’Neil Capital Equipment Sector Weekly
Prysmian (PRY.IT; PRY IM) – $21B market cap; $47M ADV: We added Prysmian to the Developed Markets Focus List as the stock is actionable after breaking out of a stage-one consolidation base. Prysmian is the world’s largest cable manufacturer. Increased exposure to the high-growth North American market after Encore acquisition, strong demand for highvoltage cables on the back of energy transition capex, and expected recovery in volumes in the telecom end market are the key growth drivers. Consensus expects sales and EPS CAGR of 10% and 34%, respectively, in FY23–26. Fundamental & Technical note
O’Neil Capital Equipment Sector Weekly
Triveni Turbine (TRV.IN; TRIV IN) – $3B market cap; $21M ADV: We added Triveni Turbine to the Emerging Markets Focus List as the stock bounced off its 100-DMA and retook support along its 50-DMA on 2x the average volume. Triveni Turbine is the world’s second largest manufacturer of steam turbines of up to 100 MW capacity and a market leader in India with ~60% share. Rising investments in captive power generation across energy-intensive industries and increasing share of high-margin export and aftermarket revenue by expanding
local presence are the key growth drivers. Consensus expects revenue CAGR of 26% and EPS CAGR of 30% in FY24–26.
O’Neil Capital Equipment Sector Weekly
FL-idea E Ink (PVI.TW) reported sales of TWD 3,096M (+0.5% m/m; +25.3% y/y) in September. Q3 FY24 sales now stand at TWD 9,189M (+20.0% q/q; +34.7% y/y), missing estimates by 0.7%. Support is at its 21-DMA (-1%), followed by its 50-DMA (-4%). It is 7% off highs.
Aerospace & Defense: Spending and Stock Performance During Conflicts
- Global defense budgets are expected to expand to $2.2T by 2027, at a CAGR of 6.5%, driven by:
• Rising geopolitical tensions in Europe and Asia-Pacific.
• Fleet recapitalization of key platforms in the U.S.
O’Neil Capital Equipment Sector Weekly
Cintas Corp (CTAS) – $82B market cap; $308M ADV: The company reported beat-and-raise Q1 FY25 results. Revenue (+7% y/y) came in slightly above estimates and EPS (+19% y/y) beat estimates by 10%. The stock is extended from an ideal entry point after breaking out of its stage-one seven week flat base. Immediate support is at its 21-DMA (-0.5%), followed by its 50-DMA (-3%).
