Asian Equities Traded in the US as American Depositary Receipts Rise in Tuesday Trading

Commvault Systems (CVLT) came out with quarterly earnings of $0.83 per share, beating the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.70 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 10.67%. A quarter ago, it was expected that this data-management software company would post earnings of $0.75 per share when it actually produced earnings of $0.85, delivering a surprise of 13.33%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Commvault, which belongs to the Zacks Computer - Software industry, posted revenues of $233.28 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 5.53%. This compares to year-ago revenues of $201 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Commvault shares have added about 71.5% since the beginning of the year versus the S&P 500's gain of 22.1%.

What's Next for Commvault?

While Commvault has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Commvault: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.83 on $237.45 million in revenues for the coming quarter and $3.29 on $928.8 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Software is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Canaan (CAN), is yet to report results for the quarter ended September 2024. The results are expected to be released on November 4.

This cryptocurrency-mining computer maker is expected to post quarterly loss of $0.15 per share in its upcoming report, which represents a year-over-year change of +63.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Canaan's revenues are expected to be $72.77 million, up 118.4% from the year-ago quarter.

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U.S. stock futures were mixed this morning, with the Dow futures falling around 50 points on Tuesday.

Shares of TransMedics Group, Inc. fell in today's pre-market trading following downbeat quarterly results.

TransMedics reported quarterly earnings of 12 cents per share which missed the analyst consensus estimate of 30 cents per share. The company reported quarterly sales of $108.76 million which missed the analyst consensus estimate of $115.00 million.

TransMedics Group shares dipped 25.8% to $93.69 in pre-market trading.

Here are some big stocks recording losses in today's pre-market trading session.

• CVR Energy, Inc. shares dipped 25.8% to $17.68 in pre-market trading after the company reported weak quarterly results and said it will not pay cash dividend for the third quarter.
• Xerox Holdings Corporation shares fell 16.4% to $8.59 in pre-market trading after the company reported worse-than-expected third-quarter financial results and cut annual outlook.
• Harmonic Inc. shares fell 15.8% to $12.48 in pre-market trading after reporting third-quarter results
• Amkor Technology, Inc. shares declined 11% to $26.27 after the company reported mixed third-quarter financial results.
• Janus International Group, Inc. fell 10.3% to $9.25 in pre-market trading after the company posted downbeat third-quarter results and lowered its sales forecast.
• Crocs, Inc. shares fell 10.3% to $123.80 in pre-market trading following third-quarter results.
• Daqo New Energy Corp. dipped 10.1% to $26.20 in pre-market trading after gaining 14% on Monday.
• D.R. Horton, Inc. shares fell 8% to $165.87 in pre-market trading after the company reported worse-than-expected fourth-quarter EPS and sales.
• Check Point Software Technologies Ltd fell 6% to $195.40 in pre-market trading following weak quarterly sales.

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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Shares of V.F. Corporation rose sharply in today's pre-market trading after the company reported better-than-expected second-quarter financial results.

VF Corp, the parent company of Vans and The North Face, reported second-quarter revenue of $2.8 billion, beating the consensus estimate of $2.7 billion, according to Benzinga Pro. The company reported second-quarter earnings of 60 cents per share, beating analyst estimates of 37 cents per share.

V.F. Corporation shares jumped 21.4% to $20.70 in the pre-market trading session.

Here are some other stocks moving in pre-market trading.

Gainers

• Shuttle Pharmaceuticals Holdings, Inc. gained 68.2% to $2.22 in pre-market trading after the company announced it finalized agreements with all six of the planned site enrollment locations to administer the Phase 2 clinical trial of Ropidoxuridine.
• Lixte Biotechnology Holdings, Inc. rose 67.6% to $2.23 in pre-market trading after falling 18% on Monday.
• American Rebel Holdings, Inc. shares surged 30% to $3.51 in pre-market trading.
• Immuron Limited shares rose 29% to $2.49 in pre-market trading.
• Lightbridge Corporation climbed 15.4% to $10.48 in pre-market trading after jumping around 24% on Monday.
• Quantum Computing Inc. gained 14.8% to $1.47 in pre-market trading. Quantum Computing will host a conference call and webcast on Wednesday, Nov. 6, to review the Company’s operational progress for the third quarter.
• F5, Inc. gained 11.1% to $242.50 in pre-market trading after the company reported better-than-expected fourth-quarter financial results and approved an additional $1 billion buyback program.
• Veea Inc. shares gained 10.7% to $4.32 in pre-market trading. Veea, O.N.E. Amazon, and AECOM partnered on ‘Internet of Forests’ to digitally safeguard rainforests and empower Colombian communities.
• Griid Infrastructure Inc. shares rose 9.4% to $1.01 in pre-market trading after dipping 16% on Monday.

Losers

• Hanryu Holdings, Inc. shares dipped 40.4% to $0.3031 in pre-market trading after jumping 125% on Monday.
• TransMedics Group, Inc. shares fell 25.8% to $93.69 in pre-market trading following downbeat quarterly results.
• CVR Energy, Inc. shares fell 25.8% to $17.68 in pre-market trading after the company reported weak quarterly results and said it will not pay cash dividend for the third quarter.
• Digital Brands Group, Inc. fell 21.3% to $0.1217 in today's pre-market trading after the company announced the pricing of $3 million public offering of common stock and/or pre-funded warrants.
• Cardio Diagnostics Holdings, Inc. fell 16.6% to $0.26 in pre-market trading after jumping 40% on Monday.
• Evoke Pharma, Inc. fell 16% to $5.95 in pre-market trading. Evoke Pharma shares jumped 38% on Monday after the company announced the presentation of GLP-1 data for users with diabetic gastoparesis using GIMOTI and showed statistically significant improvements.
• Harmonic Inc. shares declined 15.8% to $12.48 in pre-market trading after reporting third-quarter results.
• Iveda Solutions, Inc. I declined 15.6% to $1.40 in pre-market trading.
• Amkor Technology, Inc. shares fell 11% to $26.27 after the company reported mixed third-quarter financial results.
• Daqo New Energy Corp. fell 10.1% to $26.20 in pre-market trading after gaining 14% on Monday.

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• Dow Surges Over 250 Points Ahead Of Alphabet, Pfizer Earnings: Investor Sentiment Improves, Fear Index Remains In ‘Greed’ Zone

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Asian equities traded in the US as American depositary receipts opened the week moving moderately higher Monday morning, rising 0.61% to 2,098.55 on the S&P Asia 50 ADR Index.

From North Asia, the gainers were led by automotive ecommerce platform Cango and and game live-streaming platform HUYA , which advanced 17% and 10%, respectively. They were followed by electric vehicle maker NIO and game-centric live streaming platform DouYu International , which climbed 9.1% and 7%, respectively.

The decliners from North Asia were led by financial services company Shinhan Financial and education company 17 Education & Technology Group , which fell 2.1% and 1.9%, respectively. They were followed by brand platform 36Kr K and fintech firm Qifu Technology , which were down 1.8% and 1.3%, respectively.

From South Asia, the gainers were led pharmaceutical company Dr. Reddy's Laboratories and IT firm Sify Technologies , which rose 1.8% and 1.5%, respectively. They were followed by tech conglomerate Sea and IT firm Infosys (INFY), which were up 1.3% and 1.2%, respectively.

The lone decliner from South Asia was telecommunications operator PLDT (PHI), which was off 0.3%.

Asian equities traded in the US as American depositary receipts were moving sharply higher Friday morning, rising 1.43% to 2,096.58 on the S&P Asia 50 ADR Index.

From North Asia, the gainers were led by polysilicon manufacturer Daqo New Energy and solar panel maker JinkoSolar , which climbed 14% and 11% higher respectively. They were followed by automotive ecommerce platform Cango and video-sharing platform Bilibili , which rose 5.6% and 8.5% respectively.

The decliners from North Asia were led by automotive ecommerce platform TuanChe and diagnostic imaging centers company Concord Medical Services , which fell 10% and 5.4% respectively. They were followed by pet-focused platform Boqii and biotech firm Zai Lab , which were down 3.8% and 2.6% respectively.

From South Asia, the gainers were led by IT firm Sify Technologies , which rose 1.2%, followed by tech conglomerate Sea and telecommunications operator Telekomunikasi Indonesia , which were up 1% and 0.3% respectively.

The decliners from South Asia were led by Dr. Reddy's Laboratories pharmaceutical company , which fell 1.1%, followed by telecommunications operator PLDT and IT firm Infosys , which were off 0.6% and 0.1% respectively.

Emerging market (EM) stocks are having an exceptional year, with the MSCI Emerging Markets Investable Market Index up 15% year-to-date. As the Federal Reserve and other central banks begin cutting interest rates, these markets are set to keep climbing.

In this environment, companies like Taiwan Semiconductor Manufacturing Company Limited , Infosys Limited , and Deutsche Bank Aktiengesellschaft are well-positioned to take advantage of the changing global landscape.

Promisingly, EM equities outperformed developed markets (DM) last quarter, gaining 8.7% versus 6.4%, marking two straight quarters of EM outperformance since 2020. The rally began with the Fed’s rate cuts in mid-September and accelerated as China introduced stimulus measures. Further, these equities are poised to thrive, supported by stronger economic growth and rising corporate earnings.

According to S&P Global, EMs are projected to drive global economic growth over the next decade, with an average GDP growth rate of 4.06% through 2035, compared to just 1.59% for advanced economies. Moreover, these markets are likely to contribute 65% of global growth, with economies like China, India, Vietnam, and the Philippines leading the charge.

Furthermore, investors’ interest in emerging market stocks is evident from the iShares MSCI Emerging Markets ETF’s 11.8% returns over the past six months. For those looking to tap into this momentum, companies like TSM, INFY, and DB offer strong fundamentals and the potential for continued growth in the evolving global market. Let’s discuss them in detail:

Taiwan Semiconductor Manufacturing Company Limited (TSM)

Headquartered in Hsinchu City, Taiwan, TSM manufactures, tests, and markets integrated circuits and other semiconductor products globally. Its products are used in automotive electronics, high-performance computing, and mobile device markets.

On October 4, the company signed a memorandum of understanding with Amkor Technology, Inc. to enhance Arizona’s advanced packaging and testing capabilities, bolstering the region’s semiconductor ecosystem. Under this agreement, TSM will contract AMKR for turnkey packaging and testing services at a planned facility in Peoria. These services will support TSM’s customers, particularly those utilizing Phoenix’s advanced wafer fabrication facilities.

In terms of trailing-12-month, TSM’s levered FCF margin of 22.86% is 117.9% higher than the 10.50% industry average. Similarly, its trailing-12-month net income margin and ROCE of 39.12% and 28.27% are considerably higher than the respective industry averages of 3.87% and 4.65%.

TSM’s net sales increased 38.9% year-over-year to NT$759.69 billion ($23.67 billion) in the third quarter that ended September 30, 2024. Its gross profit grew 48.1% from the prior year’s quarter to NT$439.34 billion ($13.69 billion), while its income from operations came in at NT$360.77 billion ($11.24 billion), up 58.2% year-over-year. In addition, the company’s net income and EPS increased 54.2% year-over-year to NT$325.26 billion ($10.14 billion) and NT$12.54, respectively.

The consensus revenue estimate of $26.22 billion for the fiscal fourth quarter (ending December 2024) represents a 32.3% increase year-over-year. The consensus EPS estimate of $2.17 for the same quarter indicates a 50.9% improvement year-over-year. The company has an excellent surprise history; it surpassed the consensus revenue and EPS estimates in each of the trailing four quarters.

The stock has gained 120.5% over the past year and 93.1% year-to-date to close the last trading session at $200.86.

TSM’s promising fundamentals are apparent in its POWR Ratings. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

It has an A grade for Sentiment and Quality. In the 91-stock Semiconductor & Wireless Chip industry, it is ranked #8.

Beyond what we stated above, we also have TSM ratings for Growth, Value, Momentum, and Stability. Get all TSM ratings here.

Infosys Limited (INFY)

Headquartered in Bengaluru, India, INFY provides consulting, technology, outsourcing, and next-generation digital services in North America, Europe, India, and internationally.

On October 23, INFY announced an expanded strategic collaboration with Meta Platforms, Inc. to accelerate generative AI innovation through open-source initiatives. As a strong advocate of open-source software, the company is committed to democratizing AI by leveraging Meta’s Llama stack, a suite of open-source large language models and tools.

By integrating Llama into its Topaz platform, INFY aims to drive AI-powered transformation, helping businesses scale, innovate, and compete more effectively.

The stock’s trailing-12-month EBITDA margin of 22.60% is 129.4% higher than the 9.85% industry average. INFY’s 17.16% trailing-12-month net income margin is 342.9% higher than the 3.87% industry average. Likewise, its trailing-12-month ROCE of 31.52% compares to the industry average of 4.65%.

For the fiscal second quarter ended September 30, 2024, INFY’s revenues amounted to $4.89 billion, up 3.7% year-over-year. Its gross profit rose 3.2% over the prior-year quarter to $1.49 billion. The company’s net profit and EPS came at $778 million and $0.19, representing an increase of 3.6% and 5.6% year-over-year, respectively. As of September 30, 2024, its cash and cash equivalents stood at $2.60 billion, compared to $1.77 billion as of March 31, 2024.

Street expects INFY’s revenue for the third quarter (ending December 2024) to increase 4.6% year-over-year to $4.89 billion, and its EPS is expected to grow 6.7% year-over-year to $0.19 for the same quarter. Moreover, the company has topped the consensus revenue estimates in three of the trailing four quarters, which is promising.

The stock has gained 32.4% over the past year to close the last trading session at $22.21.

INFY’s bright prospects are reflected in its POWR Ratings. The stock has an A grade for Stability and Quality. It is ranked #5 among nine stocks in the A-rated Outsourcing – Tech Services industry.

Click here to see additional ratings for INFY (Growth, Value, Momentum, and Sentiment).

Deutsche Bank Aktiengesellschaft (DB)

Based in Frankfurt am Main, Germany, DB provides corporate and investment banking and asset management products and services to private clients, corporate entities, and institutional clients worldwide. It operates through the Corporate Bank, Private Bank, and Asset Management segments.

On September 18, the bank announced a decrease in the prime lending rate from 8.5% to 8% at its New York Branch, Deutsche Bank New York (DBNY), and its affiliate, Deutsche Bank Trust Company Americas (DBTCA). This reduction could enhance DB’s competitiveness in the lending market, potentially boosting borrowing activity and supporting growth in its loan portfolio.

DB’s total net revenues for the fiscal third quarter that ended September 30, 2024, increased 1.3% year-over-year to €7.50 billion ($8.09 billion), while its net interest income amounted to €3.26 billion ($3.51 billion). The company’s profit attributable to DB shareholders rose 41.7% from the prior-year quarter to €1.46 billion ($1.38 billion). Also, its EPS came in at €0.81, representing an increase of 44.6% year-over-year.

For the quarter ending December 31, 2024, DB’s revenue is expected to increase 6.2% from the prior year to $7.68 billion. Its revenue for the fiscal years 2024 and 2025 is expected to register a year-over-year growth of 2.3% and 3.8%, respectively.

Over the past year, the stock has gained 70.6%, closing the last trading session at $17.32.

DB’s POWR Ratings reflect this positive outlook. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.

It has a B grade for Value and Stability. Out of 90 stocks in the Foreign Banks industry, it is ranked #8. To see the other ratings of DB for Growth, Momentum, Sentiment, and Quality, click here.

What To Do Next?

43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.

2024 Stock Market Outlook >

TSM shares were trading at $198.36 per share on Thursday morning, down $2.50 (-1.24%). Year-to-date, TSM has gained 92.38%, versus a 22.92% rise in the benchmark S&P 500 index during the same period.