Weekly Earnings Review: August 28, 2023- September 1, 2023

     We have reached a new month with September starting this week. August saw losses suffered for the overall month as the beginning looked like it was going to be a detrimental month for stocks. The indices recovered, but still were below where they started at the beginning of the month. In terms of earnings, we will take a look at two of my holdings that reported this week. One is a Cybersecurity company that is seeing demand soar. The other is a staple that has been around for what seems like centuries. Keep reading to get thoughts on the quarters and my opinion on what I think of the company's current state. 

Wednesday, August 30, 2023

CrowdStrike Holdings, Inc. (CRWD)-

    CrowdStrike saw a nice boost in share price as the company beat on both the top and bottom line. The outlook looks solid as it beat expectations as well. The platform strategy is setting the company apart from the competition which is resulting in high win rates. In my eyes, this is a growing moat that we can continue to watch. The company is expanding its clients and diversifying its products from other companies who offer the same type of service. Annual Recurring Revenue saw growth of 37% to $2.93 billion which is also a big win for the company. If CrowdStrike can continue to retain customers while continuing to grow, this company has maximum upside. The company achieved GAAP profitability for the second quarter in a row. This was all thanks to the interest income that they were able to generate over the quarter. I tip my cap to the CFO and finance department for putting the cash to good use and taking advantage of some of those high interest rates. The cash flow is phenomenal with Free Cash Flow of $189 million and current cash and equivalents sitting at $3.2 billion. Tying back to the platform that is setting the company apart, the momentum is increasing leading to record deal registrations for its products. Everything reported is to like here for CrowdStrike. I look forward to seeing the momentum continue to grow and my gains continue to flourish. I commend CrowdStrike for a wonderful quarter and wonderful job they are doing. 

Thursday, August 31, 2023

Hormel Foods Corporation (HRL)- 

    Hormel saw shares dip after missing expectations on both the top and bottom line. The company also cut its outlook as meat prices decline and sales slow down in China. A decline in sales was a common theme as all segments of the business saw declines in sales. The company is facing a tough condition in which consumers are becoming very "intentional" in their spending. The international market seems to be very tough with demand slowing down. I would think that with the diversification of the different subsidiaries that it would be stable. I guess the uncertainty is taking a toll on consumers and drastically changing consumption habits. I know Hormel's close peer Tyson Foods is exploring selling off its China poultry unit. I don't think cutting off any international segments would be worthy for Hormel. It is just a really difficult time for both the company and the industry. The famous saying of "be fearful when others are greedy" could come into play. I think what makes Hormel so attractive is its dividend. The company has increased its dividend for 57 years straight and looks to continue on this streak. This is my main reasoning for holding this company, I reinvest all dividends and accumulate more shares. I'm hoping that when the economy normalizes that the company will get back to its normal self. Tough times for Hormel, but I will be holding through the storm. \


Thank you for reading!

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