Dj Ibd: Workday Joins Elite List Of Stocks With 95-Plus Composite Rating

Nokia Corporation NOK recently announced that it has completed the acquisition of Rapid’s API technology assets for an undisclosed amount. Rapid’s industry-leading API technology includes the world's largest application programming interface (API) hub, which enables businesses to securely design, test and share APIs within their organization and with external associates. In addition, Rapid’s public API marketplace, boasting an extensive developer base worldwide, allows users to list and monetize their APIs while giving access to a wide array of third-party APIs.

Significance of Network APIs

Network APIs act as bridges through which developers can tap into different functionalities of the telecommunication network, such as location services, latency control, network slicing and bandwidth management. The process streamlines the application development process for developers and enables them to drive innovation without requiring any deep expertise in underlying network infrastructure.

For telecom operators who have heavily invested in building 4G and 5G infrastructure, network APIs allow them to sell the various network capabilities to businesses and developers and create new revenue streams. For instance, operators can sell real-time location data to businesses creating location-based services; it can also monetize the network’s low latency features for video streaming apps.

Will This Buyout Drive NOK Share Performance?

Nokia’s Network as Code platform, launched in 2023, is designed to make network capabilities easily accessible through APIs for developers. Since its introduction, the solution has witnessed healthy market traction from major enterprises worldwide, including Google Cloud, Telefonica, Telecom Argentina, DISH and more.

The integration of Rapid’s industry-leading API technology and R&D unit will strengthen NOK’s Network as Code platform, creating a robust API infrastructure. This advanced API ecosystem will enhance API lifecycle management, allowing operators to control API usage and exposure. It is likely to drive Nokia’s commercial expansion in the network API space.

The telecom industry is looking to unlock new avenues of monetization following massive 5G investments. By expanding the capabilities of its Network as a Code platform, Nokia is aiming to capitalize on these emerging market trends. This strategic buyout will accelerate network API-related product development and empower operators to derive a sustainable return against their 5G investment by engaging the broader global developer community.

NOK’s Stock Price Movement

Shares of Nokia have gained 24.3% over the past year compared with the industry's growth of 43.6%.

Jabil Inc. JBL recently launched ID8 Global, a joint venture with Cyferd Inc., a pioneer in AI and data technologies. This collaborative endeavor intends to provide a cutting-edge, generative AI-driven software platform capable of autonomously transforming supply chain and procurement management globally.

Digging Deep Into JBL- Cyferd Deal

By combining Jabil’s extensive expertise in global supply chain operations with Cyferd’s advanced AI capabilities, particularly its proprietary self-learning AI engine Neural Genesis, the partnership is set to deliver a highly customizable, scalable AI-powered platform that enables businesses to streamline their complex, multi-tiered supply chains with precision and speed.

The new platform is expected to become a cornerstone for companies looking to scale faster and improve supply chain resilience. It is expected to enable businesses to proactively identify and resolve disruptions, streamline sourcing and procurement processes and respond to market changes as they occur.

By embedding AI-driven automation directly into procurement and supply chain functions, companies are likely to get a competitive edge in the increasingly dynamic and disruptive global market. This level of automation and real-time adaptation will be game changers for companies dealing with rising global market volatility.

ID8 Global's debut will take place at Electronica 2024 in Munich, Germany, from Nov. 12 to 15, 2024, where attendees can learn more about the platform’s potential.

Increasing Client Base to Drive Performance for JBL

Jabil has an established global presence and a worldwide connected factory network, which enables it to scale up production in line with evolving market dynamics. With the launch of ID8 Global, Jabil and Cyferd are setting the stage for a major shift in supply-chain management, offering organizations a powerful tool to navigate the complexities of modern procurement and logistics.

The deal is also expected to enable the company to generate higher revenues in the upcoming quarters. Improving financial performance is likely to propel the stock upward.

JBL’s Stock Price Performance

Shares of Jabil have gained 2.6% over the past year compared with the industry’s growth of 45.6%.

Light and Wonder LNW reported relatively healthy third-quarter 2024 results, with adjusted earnings beating the Zacks Consensus Estimate but revenues missing the same.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The Las Vegas-based cross-platform games and entertainment company reported the ninth consecutive quarter of double-digit revenue growth, exemplifying its portfolio strength and resilient business model.

Bottom Line

Net income in the reported quarter was $64 million or 71 cents per share compared with $75 million or 81 cents per share in the year-ago quarter. The decrease in GAAP earnings despite top-line growth was primarily due to higher operating costs.

Non-GAAP net income was $1.34 per share, which beat the Zacks Consensus Estimate by 18 cents.

Light & Wonder, Inc. Price, Consensus and EPS Surprise

Light & Wonder, Inc. price-consensus-eps-surprise-chart | Light & Wonder, Inc. Quote

Revenues

Total revenues in the third quarter of 2024 rose to $817 million from $731 million in the prior-year quarter, propelled by growth in all business verticals. However, the top line missed the consensus estimate of $827 million.

Services revenues increased to $530 million from $503 million in the year-ago quarter, while product sales were $287 million, up from $228 million in the year-ago quarter. This is the 14th consecutive quarter of consolidated revenue growth for the company.

Gaming revenues were $537 million, up 15% year over year, driven by sales growth of gaming machines and healthy demand trends in gaming operations and gaming systems.

Revenues from SciPlay increased to $206 million from $196 million in the year-ago quarter. The year-over-year increase was mainly fueled by the core social casino business.

The average revenue per daily active user increased to $1.04 in the quarter, up 8% year over year. Greater engagement and monetization for players enhanced the top line for this segment. iGaming revenues increased to $74 million from $70 million, up 6% from the year-ago quarter, driven by continued momentum in North America and Europe, as well as strong content launches.

Other Details

Non-GAAP consolidated AEBITDA was $319 million compared with $286 million in the year-ago quarter, driven by revenue growth and sustained margin strength across all businesses. AEBITDA margin remained flat at 39%.

Cash Flow & Liquidity

For the first nine months of 2024, the company generated $430 million of cash from operating activities compared with $423 million in the year-ago period. As of Sept. 30, 2024, it had $347 million in cash and cash equivalents with $3.85 billion of long-term debt.

LNW’s Zacks Rank

Light and Wonder currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

AST SpaceMobile, Inc. ASTS is scheduled to release third-quarter earnings on Nov. 14. The Zacks Consensus Estimate for earnings is pegged at a loss of 18 cents per share, indicating growth of 21.74% from the year-ago reported figure.

The company delivered an average earnings surprise of 26.32% in the last reported quarter.

Keysight Technologies, Inc. KEYS is scheduled to release third-quarter earnings on Nov. 19. The Zacks Consensus Estimate for earnings is pegged at $1.57 per share, indicating a decline of 21.1% from the year-ago reported figure.

Workday, Inc. WDAY is scheduled to release third-quarter fiscal 2025 earnings on Nov. 26. The Zacks Consensus Estimate for earnings is pegged at $1.72 per share, indicating growth of 12.4% from the year-ago reported figure.

Zacks Investment Research