The WAM Global (ASX: WGB) investment team has been closely monitoring U.S. earnings season which commenced on 1 April. So far, 441 companies within the S&P 500 have reported results, with several key announcements still to come over the next two weeks, including Nvidia (NASDAQ: NVDA) on 29 May.
As fund managers, we consider a range of factors when evaluating company results, including how the result compares to market expectations, and whether the company has reduced, maintained, or upgraded its guidance for the remainder of the year. This reporting season, the companies we monitor have delivered strong results that have generally exceeded expectations at a pace consistent with historical norms, however management teams have not generally increased guidance at the same rate due to the uncertainty in the current economic environment.
Against this backdrop, we are pleased with how our investee companies have reported, with results from Safran (EPA: SAF), TransUnion (NYSE: TRU), RB Global (NYSE: RBA) and SAP (ETR: SAP), amongst others, reflective of how management teams are prudently navigating the heightened volatility we are seeing.
Read the full article for more analysis on U.S. earnings season plus on the ground feedback from conferences in New York and Boston this week.
Portfolio Manager Nick Healy wrote an opinion piece for Livewire Markets detailing how investors should navigate Trump’s second term, which you can read here.
Access WAM Global’s latest NTA update here which was released this week, where we provide additional insights from the team, and read our recent discussion paper: ‘Critiquing the Proposed Taxation on Unrealised Gains in Superannuation’.
Stock Spotlight on IDEXX Laboratories (NASDAQ: IDXX) – By Nick Healy
IDEXX Laboratories is a global leader in diagnostic equipment and consumables for vets, with market share exceeding 50% in both in-clinic and reference laboratory diagnostics. IDEXX benefits from increasing consumables across its extensive installed base and, with a strong track record of product innovation, IDEXX will continue to grow its installed base and consumables demand at strong rates into the future. We see additional structural tailwinds driving the business from an increase in pet ownership as a result of the COVID pandemic, which, as these pets age, will drive additional demand for vet services and in turn IDEXX’s products and services. More recently we were pleased with IDEXX’s first quarter results in early May, where the company reported earnings above expectations, increased guidance, and were upbeat on the prospects for the business going forward. We expect strong continued earnings growth to act as a catalyst for our holding of IDEXX.
