Daily Sector Snapshot — 11/15/24
Q3 2024 Earnings Conference Call Recaps: Home Depot (HD)
Bespoke’s Conference Call Recaps use AI to summarize lengthy earnings calls. The commentary below is AI-generated and then edited by Bespoke for quality control. As always, none of these summaries should be construed as recommendations to buy or sell any securities, and investors should do their own research and/or consult with a financial professional before making any investment decisions.
Our latest recap available to Bespoke subscribers covers Home Depot’s (HD) Q3 2024 earnings call.
Home Depot (HD) is the world’s largest home improvement retailer, operating over 2,300 stores across North America. The company provides tools, construction materials, appliances, and services to DIY enthusiasts and professional contractors, making for a good read into consumer spending trends, housing market dynamics, and macroeconomic conditions. For its Q3 report, HD reported sales up 6.6%, with comps down 1.3%. Hurricanes Helene and Milton added $200 million to sales, offsetting macro headwinds like higher interest rates, which continue to pressure large remodeling projects and home turnover. Seasonal products, Halloween, and outdoor categories outperformed, while Pro sales outpaced DIY, bolstered by investments in Pro customer support and the SRS acquisition, which added $2.9 billion in sales. Shrink mitigation showed promising results, aiding margins. The company is also focused on improving delivery speeds and customer engagement through digital tools and marketing. HD recorded its first triple play since May 2022 and gapped up 1.5% at the open on 11/12, but fell intraday to close 1.3% in the red….
Continue reading our Conference Call Recap for HD by becoming a Bespoke Institutional subscriber. You can sign up for Bespoke Institutional now and receive a 14-day trial to read our newest Conference Call Recap. To sign up, choose either the monthly or annual checkout link below:
Q3 2024 Earnings Conference Call Recaps: Expedia (EXPE)
Bespoke’s Conference Call Recaps use AI to summarize lengthy earnings calls. The commentary below is AI-generated and then edited by Bespoke for quality control. As always, none of these summaries should be construed as recommendations to buy or sell any securities, and investors should do their own research and/or consult with a financial professional before making any investment decisions.
Our latest recap available to Bespoke subscribers covers Expedia’s (EXPE) Q3 2024 earnings call.
Expedia (EXPE) is an online travel platform offering services like hotel bookings, vacation rentals, flights, car rentals, and travel packages through brands such as Expedia, Vrbo, Hotels.com, and Orbitz. The company serves travelers, businesses, property owners, and advertisers worldwide. Comments on the company’s conference call can highlight global travel trends and consumer behavior. EXPE’s Q3 earnings showed strong consumer business growth, driven by a 25% rise in package bookings and Vrbo’s return to modest growth despite challenges like the hurricane season. Gross bookings increased by 7%, led by 8% growth in lodging. Advertising revenue surged 32%, fueled by innovations like video ads. International markets outpaced US growth, with Scandinavia highlighted as a success. AI advancements improved customer experiences through self-service tools and review summaries, while B2B bookings grew 19%, aided by partnerships with Hilton and Microsoft Bing. Even after reporting mixed results, EXPE shares rose 3.8% on 11/8…
Continue reading our Conference Call Recap for EXPE by becoming a Bespoke Institutional subscriber. You can sign up for Bespoke Institutional now and receive a 14-day trial to read our newest Conference Call Recap. To sign up, choose either the monthly or annual checkout link below:
Q3 2024 Earnings Conference Call Recaps: Axon (AXON)
Bespoke’s Conference Call Recaps use AI to summarize lengthy earnings calls. The commentary below is AI-generated and then edited by Bespoke for quality control. As always, none of these summaries should be construed as recommendations to buy or sell any securities, and investors should do their own research and/or consult with a financial professional before making any investment decisions.
Our latest recap available to Bespoke subscribers covers Axon’s (AXON) Q3 2024 earnings call.
Axon (AXON) develops cutting-edge technology and devices for public safety, serving law enforcement, federal agencies, and international markets. The company is known for its Taser line of non-lethal weapons but also leads in body cameras, cloud-based evidence management, and now AI-driven software. The company’s modernizing public safety products offer a deep read into technology reshaping of crime prevention and emergency response, which perhaps is of even greater importance with the incoming administration. Revenue grew 32% YoY this quarter, driven by strong adoption of Taser 10 and a 36% jump in cloud and services revenue. Bookings hit a record $1 billion, with federal and international markets showing 40% growth. AI was a key focus, with the launch of the “AI Era” bundle, including products like Draft One (an AI-powered tool that quickly generates draft police reports by analyzing audio from body-worn camera footage within minutes of an incident), priced at $199 per month. The Dedrone acquisition expanded capabilities in drones and counter-drone tech, gaining traction with law enforcement and enterprises. AXON reported its fourth consecutive triple play this quarter, and the stock was up 28.7% on 11/8 as a result, following the 18.4% gain after last quarter’s triple play…
Continue reading our Conference Call Recap for AXON by becoming a Bespoke Institutional subscriber. You can sign up for Bespoke Institutional now and receive a 14-day trial to read our newest Conference Call Recap. To sign up, choose either the monthly or annual checkout link below:
Q3 2024 Earnings Conference Call Recaps: DraftKings (DKNG)
Bespoke’s Conference Call Recaps use AI to summarize lengthy earnings calls. The commentary below is AI-generated and then edited by Bespoke for quality control. As always, none of these summaries should be construed as recommendations to buy or sell any securities, and investors should do their own research and/or consult with a financial professional before making any investment decisions.
Our latest recap available to Bespoke subscribers covers DraftKings’ (DKNG) Q3 2024 earnings call.
DraftKings (DKNG) is a leader in the digital sports entertainment and gaming industry, offering daily fantasy sports contests, regulated sports betting, and iGaming. The company serves millions of users in the US and internationally. Same-game parlays and its top-ranked sportsbook and iGaming apps, cater to casual bettors and seasoned players. As legal sports betting grows, DKNG offers insights into the market and broader trends in digital entertainment. This quarter, DKNG reported 39% YoY revenue growth to $1.095 billion, driven by increased sportsbook hold (the percentage of total money wagered that a sportsbook retains as revenue after paying out winnings to bettors) and a 500bp rise in NFL parlay mix. Customer acquisition costs (CAC) declined by nearly 20%, and the promotional reinvestment rate improved by 300bps. On the conference call, the company adjusted its revenue guidance due to unfavorable NFL outcomes (although favorable for bettors). Notable updates included new NBA markets, plans for expansion into Missouri, and improvements in live betting. Despite missing estimates on the top and bottom lines, DKNG shares rose 3% on 11/8…
Continue reading our Conference Call Recap for DKNG by becoming a Bespoke Institutional subscriber. You can sign up for Bespoke Institutional now and receive a 14-day trial to read our newest Conference Call Recap. To sign up, choose either the monthly or annual checkout link below:
B.I.G. Tips – Retail Sales Positive Revisions
Bespoke’s Morning Lineup – 11/15/24 – Halftime
See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week trial to Bespoke Premium. CLICK HERE to learn more and start your trial.
“The American press is a shame and a reproach to a civilized people.” – General William T. Sherman
Below is a snippet of commentary from today’s Morning Lineup. Start a two-week trial to Bespoke Premium to view the full report.
If you think antipathy towards the press is a new aspect of the current zeitgeist, think again. The quote above is from Civil War General Sherman who had plenty of disdain for the media in his writings and comments. He also once commented that if every reporter in the world was killed, “I am sure we would be getting reports from Hell before breakfast.” Loathing the press among many of the subjects it covers is nothing new. We bring up Sherman this morning because 160 years ago today, he led more than 50,000 soldiers across the state of Georgia from Atlanta to the coast in Savanah destroying nearly everything in its path. The purpose was to kill both the morale of Southerners as well as the supply lines of the Confederate Army, and it ultimately led to the end of the war. Now, on to the markets.
Heading into halftime for the month, equity futures are firmly lower again this morning as the S&P 500 is indicated to open down about half a percent while the Nasdaq is even weaker. The Nasdaq’s weakness can be chalked up to Applied Materials (AMAT) which is down about 8% after a cautious earnings report. Economic data as far this morning has been much stronger than expected with Empire Manufacturing, Retail Sales, and Import Prices topping expectations. Still ahead this morning, we’ll get Industrial Production and Capacity Utilization at 9:15. Yields are basically unchanged, crude oil is up fractionally, gold is trying to rebound from an 8% decline from its recent highs, and bitcoin is back to flirting with $90K after dropping down as low as $88,000 overnight.
In Asia, Japanese stocks finished the week just like they started it with modest gains sandwiching three days of losses in between. The same couldn’t be said for China where the Shanghai Composite fell over 1% taking its losses for the week to 3.5%. Offshore Chinese stocks fell even more for the week declining over 6%. Every other major benchmark also finished the week lower, and Australia was the only country to skate by with declines of less than 1%. The Chinese government released several notable economic reports, and the numbers were mixed with Industrial/Manufacturing data missing forecasts. Measures of the consumer (Retail Sales and Unemployment), however, came in better than expected.
European stocks are closing out the week on a more subdued note as the STOXX 600 is down less than half a percent putting its week-to-date performance into the red. UK GDP was weaker than expected while inflation data in Germany and France came in slightly higher than expected echoing the trend in the US where inflation has proven to be stickier than most economists had hoped.
In yesterday’s email, we noted that neutral sentiment plunged in the latest week as investors have seemingly become a lot more decisive now that the election has passed. Looking at sector performance, the market has also started to discern between winners and losers. The snapshot below from our Trend Analyzer shows where sectors finished the day yesterday relative to their short-term trading ranges. Of the eleven sectors, six settled at overbought levels, four were overbought, and just one – Utilities – was oversold. We touched on this Monday, but as the week has progressed, the dispersion has only become more extreme.
The Closer – Powell, EV Tax Credit, Best of Breed – 11/14/24
Log-in here if you’re a member with access to the Closer.
Looking for deeper insight into markets? In tonight’s Closer sent to Bespoke Institutional clients, we lead off with a discussion on Fed Chair Powell’s commentary today (page 1) followed by some news on EV tax credits (page 2). We also check in on tax and tariff mentions in conference calls (page 3) before switching over to an update of our Best of Breed baskets (pages 4 and 5). We close out with PPI (page 6) and EIA data updates (page 7).
See today’s full post-market Closer and everything else Bespoke publishes by starting a 14-day trial to Bespoke Institutional today!