Optimism Within the Recession 👊👊

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• 💸 Markets optimistic

• 👜 MongoDB delivering the bag

• 🤝 Consumers are increasingly voting with their dollars for brands they love (we see you Lululemon)

Optimism Within the Recession 👊👊

CEOs at conferences are singing praises of the economy.🎤🎶 Brace yourself for a cool breeze as we're on the edge of a major disinflation wave. It could be a surfer's dream, ending monetary tightening and helping multiples. 🏄‍♂️ But beware, it could also turn into a shark-infested waters for earnings. One aggressive move in an industry can create a domino effect. 😨🦈

Bottom Line: The party isn't over yet, but don't forget to keep an eye on the potential poopers. Disinflation might bring some risks, but the rally still has room to rock! 🎉📈🤘

🎈 FIVE (Five Below), the teen-favorite value retailer, saw a profitable quarter with earnings per share (EPS) jumping 13.6% to $0.67, outpacing the Wall Street estimate of $0.63. It's like having a favorable tax wizard in the back room! Looking forward, the company expects next quarter's earnings to land between $0.80-$0.85, while Wall Street is at the mall sipping on $0.88 expectations. Still, given recent retail turbulence, a narrowing of full-year guidance might be the life preserver investors were hoping for.

🧘‍♀️ LULU (Lululemon), purveyor of leggings so comfy you could meditate in them, demonstrated some impressive flexibility this quarter. They're outstretching Wall Street's $1.97 EPS estimate, reaching a serene $2.28. Driven by a love of downward dog in China and some savvy shipping cost cuts, overall revenue rose 27% to approximately $2B - beating out the street's $1.925B guess. Lulu sees its financial health journey continuing, lifting its full-year outlook to an EPS of $11.84 and revenue between $9.44-$9.51B.

👁️ COO (Cooper Companies), vision and women's health heavyweight, opened eyes with a decent FQ2 report. They beat Wall Street's EPS estimate of $3.02, delivering $3.08. Imagine every penny as an extra patient, and you can see why they're now fine-tuning their full-year earnings outlook to $12.66-$12.96 per share.

🔧 NX (Quanex), your window to the industrials sector, reported a steady-as-she-goes FQ2 revenue. The real spectacle was their earnings, powering up to $0.66 per share and $40MM EBITDA against Wall Street's more modest $0.41 per share and $31MM EBITDA predictions. It's like finding extra nuts and bolts in the box! Despite the profit party, they're keeping their year guidance steady - not quite the manufacturing mosh pit some might have wanted.

📝 ASAN (Asana), your favorite project management tool, slimmed down losses more than expected this quarter, boasting an EPS loss of just 9 cents, while the Street was bracing for an 18 cent fall. It's like finding half of your to-do list already ticked off! Next quarter, they anticipate a further trimmed loss of 11-12 cents, outdoing the Street's gloomy 15 cent loss prediction.

🔌 AVGO (Broadcom), a key player in the world of chips and semiconductors, saw revenues increase 8% to $8.733B - slightly above Wall Street's $8.717B guess. Let's just say they're serving some tasty chips! They're guiding the next quarter's revenue to $8.85B, promising a spicy serving of profits.

🔍 ESTC (Elastic), the software maestro, pulled off a jazzy performance with an EPS of 22 cents that doubled Wall Street's humble 10 cent bet. Sure, their revenue beat was a modest one, but hey, every penny counts! Despite headwinds, they're finding new ways to trim costs and boost margins - it's like stumbling upon the golden goose of software tech.

🚗 GWRE (Guidewire), a software specialist for insurance companies, took a hit on revenues this quarter, missing Wall Street's estimate by a smidge. But, they still managed to soften the blow with impressive recurring revenues and lower-than-expected losses. It's like getting a fender bender but having great insurance coverage.

🔗 IOT (Samsara), the IoT provider, dished out solid results this quarter, topping expectations for EPS, revenue, and ARR. They've also cranked up their revenue growth outlook for the year from 28-30% to a more sizzling 33-34% - making investors swoon!

📚 MDB (MongoDB), the database whiz, floored us with an impressive performance, smashing estimates with an EPS of 56 cents and a revenue jump of 29% to $368.3MM. Now, that's one spicy database!

📟 PD (PagerDuty), the incident response platform, rang in EPS upside with revenues in line with expectations. However, they're dialing down their revenue guidance for the year. It's like your pager going off, but then finding out it's just a minor incident.

🔒 S (SentinelOne), the cybersecurity ace, slipped on their ARR, falling short of Wall Street's prediction. They've also trimmed their revenue outlook for the year. It's like forgetting to update your virus definitions before a scan.

🖨️ SSYS (Stratasys), the 3D printing guru, just received a buyout offer from 3D Systems (DDD) valuing it at a cool $17.91 per share. That's a sweet leap from its closing price of around $14.57 - talk about a plot twist!

🔌 VMW (VMware), the virtualization pioneer, fell a tad short this quarter with revenues of $3.28B, undershooting the Street's $3.31B forecast. But hey, their subscription and SaaS revenue outperformed, giving a silver lining to the cloud computing biz.

🛡️ ZS (Zscaler), the cloud security firm, came through with an earnings report that ticked all the right boxes and then some. While their FQ4 forecast is slightly upped, it's essentially a reiteration of the earlier preannouncement. But hey, consistent good news is still good news!

Thursday Action - Folks, Eurozone's CPI played hard to get with Street expectations, and the manufacturing ISM's Prices Paid decided to join the limbo dance. How low can you go? 🏭💲 Fed officials whispered sweet nothings of a steady policy, boosting everyone's spirits. Earnings were a mixed bag of candies, with some being sour. 🍬

There’s a lower chance now than the last couple of days of a Fed hike given some of the stronger statements made by various FOMC members.

🔮 The Finsight 🔮: 25 bps hike or not, markets will overcorrect pre-announcement.

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Fin-specto Revelio!