Daily Stock Update – July 5, 2023

Welcome back to our daily stock update! In today’s blog post, we will be discussing the latest events and financial results of some of the stocks we own. It’s always exciting to keep up with the happenings in the market, so let’s dive right in and see how these companies have been performing

Fortis Inc. Releases Second Quarter 2023 Financial Results

Fortis Inc., a well-diversified leader in the North American regulated electric and gas utility industry, has released its second quarter 2023 financial results. With revenue of $11 billion in 2022 and total assets of $65 billion as of March 31, 2023, Fortis continues to demonstrate its strong presence in the market.

During a teleconference and webcast held on August 2, 2023, David Hutchens, President and CEO, and Jocelyn Perry, EVP, and CFO, discussed the Corporation’s financial performance in the second quarter. Shareholders, analysts, members of the media, and interested parties were invited to listen to the teleconference via the live webcast on the Corporation’s website. The archived audio webcast of the teleconference is available on the Corporation’s website as well.

As an investor, my thoughts on the news are positive. Fortis has consistently proven itself as a leader in the utility industry, with a strong foothold in both the Canadian and U.S. markets. The steady revenue growth and substantial asset base further instill confidence in the company’s stability and potential for future success.

Considering the positive financial results and Fortis’ strong market position, I highly recommend buying the stock. Fortis’ long-standing reputation, diversified operations, and commitment to serving utility customers across North America and the Caribbean make it a favorable investment choice in the utility sector.

With no negative aspects highlighted in the press release, there is no indication to sell the stock at this time. Investors should continue to monitor Fortis’ performance and stay tuned for any future updates that may impact their investment decision.

For more information, please visit Fortis Inc.’s website.

Friedman Industries, Incorporated Reports Strong Growth in Sales Volume and Profitability

Friedman Industries, Incorporated (NYSE American: FRD), a leading steel processing company, recently announced its impressive results for the quarter and fiscal year ended March 31, 2023. The company experienced a significant increase in sales volume and achieved its most profitable fiscal year to date.

In the 2023 quarter, Friedman Industries recorded net earnings of approximately $6.3 million, reflecting a substantial improvement compared to the net loss of approximately $7.5 million in the same quarter last year. Sales for the quarter reached approximately $124.2 million, representing a remarkable 152% increase in sales volume over the prior year quarter. Additionally, there was a 17% surge in sales volume compared to the preceding third quarter.

The fiscal year highlights were equally impressive. Friedman Industries achieved a net earnings record of approximately $21.3 million, marking it as the most profitable fiscal year in the company’s history. The acquisition of steel processing facilities in East Chicago, Indiana, and Granite City, Illinois, coupled with the completion of a new steel processing facility in Sinton, Texas, contributed to the exceptional performance. Sales for the year soared to approximately $547.5 million, signifying a remarkable 134% increase in sales volume over the prior fiscal year.

These outstanding results have positioned Friedman Industries for continued success in the future. The strategic investments made by the company, including the acquisition of new facilities, have significantly contributed to its growth and profitability. President and CEO, Michael J. Taylor, expressed confidence in the company’s performance for the first quarter of fiscal 2024, with the aim of achieving record earnings for three consecutive years.

Given the positive performance and the company’s strategic investments, I recommend buying the stock of Friedman Industries. The strong growth in sales volume and profitability reflects the company’s ability to capitalize on market opportunities and make effective strategic decisions. With a solid foundation for future growth, Friedman Industries appears poised to deliver continued success in the steel processing industry.

Accolade Exceeds Guidance for Q1 and Raises Fiscal Year 2024 Outlook

Accolade, Inc. (NASDAQ: ACCD) announced today that they have surpassed expectations for their fiscal first quarter and have raised their guidance for fiscal year 2024. The company’s strong financial results highlight the effectiveness of their advocacy-led care delivery strategy in transforming the U.S. healthcare system.

Accolade’s CEO, Rajeev Singh, emphasized the importance of this strategy in achieving better health outcomes and customer satisfaction. He highlighted the growth observed in virtual primary care, which allows individuals to lead healthier lives by facilitating a coordinated patient journey and fostering collaboration across the healthcare ecosystem.

In terms of financial performance, Accolade reported a revenue of $93.2 million for the first quarter, marking a 9% increase compared to the same period last year. The company also reported a significant reduction in net loss, from $342.8 million to $38.4 million, demonstrating their improved financial stability.

Taking a closer look at the non-GAAP financial data, adjusted EBITDA for the quarter was $12.6 million, representing an 18% improvement. Additionally, adjusted gross profit increased by 4% to $40.6 million, with an adjusted gross margin of 43.5%.

Considering these positive results, I highly recommend considering Accolade as an investment opportunity. The company’s advocacy-led care delivery strategy has proven to be effective and their strong financial performance indicates growth and stability.

Accolade’s commitment to transforming healthcare and their ability to deliver strong financial results position them favorably in the market. With their focus on virtual primary care, which is gaining momentum in the industry, Accolade is well-positioned to capitalize on the growing demand for personalized and accessible healthcare.

Overall, Accolade’s Q1 results and raised guidance for fiscal year 2024 provide a positive outlook for investors. I recommend considering investing in Accolade, as the company continues to demonstrate its potential for success in transforming the healthcare landscape.

Nano Dimension Reports Best Quarter in Company’s History with 44% Gross Margins (Adjusted: 47%)

Nano Dimension Ltd. (Nasdaq: NNDM), a leading supplier of Additively Manufactured Electronics (AME) and multi-dimensional polymer, metal & ceramic Additive Manufacturing (AM) 3D printers, has announced their impressive financial results for the first quarter ended March 31st, 2023.

Summary of the Press Release

Nano Dimension reported consolidated record revenues of $14.97 million for Q1/2023, reflecting a remarkable increase of 43% compared to Q1/2022 and 24% compared to Q4/2022. A noteworthy achievement for the company is the significant improvement in gross margins. The gross margin for Q1/2023 reached 44%, while the adjusted gross margin stood at an impressive 47%.

CEO MESSAGE TO SHAREHOLDERS: “We delivered significant revenue growth in the first quarter of 2023, with the third record-setting quarter in a row, defined by exceptional performance and steady quarterly organic growth since July 2022.”

In addition to the exceptional financial performance, Nano Dimension showcased their commitment to enhancing shareholder value by announcing their intention to continue their share buy-back program. This initiative reinforces the company’s confidence in its future prospects and suggests a commitment to increasing shareholder wealth.

My Personal Thoughts

Nano Dimension’s performance in Q1/2023 is truly remarkable. The 50% organic revenue growth since Q3/2022 clearly illustrates the company’s ability to capture market share and meet increasing customer demands. Furthermore, the impressive improvement in gross margins signifies effective cost controls and streamlining of operations.

The incorporation of Deep Learning/AI technology by Nano Dimension’s DeepCube division is another exciting development. This technology has been seamlessly integrated into the newer models of the company’s 3D printers, providing significant value-add to customers and further positioning Nano Dimension as an industry leader.

Recommendation

Considering the exceptional financial performance and positive outlook, I recommend buying Nano Dimension’s stock. The company’s solid growth trajectory, strong gross margins, and ongoing investment in innovation position them for sustained success in the future. It is important to acknowledge that investing in stocks carries risks, but in this case, the company’s performance and future prospects justify a positive outlook.

Note: This blog post is for informational purposes only and should not be considered financial advice. Please conduct thorough research and consult with a professional advisor before making any investment decisions.

Roivant (Nasdaq: ROIV) Reports Positive Results and Advances Pipeline Expansion

Roivant, a leading biopharmaceutical company, recently released its financial results for the fourth quarter and fiscal year ended March 31, 2023, and provided an exciting update on its progress. One of the key highlights is the improved efficacy results demonstrated by RVT-3101 in the TUSCANY-2 Phase 2b study for ulcerative colitis. Moreover, the drug has shown a favorable safety profile across all doses.

In addition, Roivant has initiated a Phase 2 study of RVT-3101 in Crohn’s disease, with topline data expected to be available by the fourth quarter of 2024. This expansion into another indication presents an opportunity for further growth and potential revenue for the company.

Another significant development is the success of VTAMA® (tapinarof), which has achieved considerable net product revenue of $13.7M for the quarter and $28.0M for the fiscal year. With over 170,000 prescriptions written by approximately 11,000 unique prescribers since its launch, the drug has showcased its efficacy and gained market acceptance. The recent increase in coverage to 125 million US commercial lives, or 76% of the total US commercial lives, further indicates its potential for success.

Roivant’s Phase 3 studies ADORING 1 and 2 have also produced positive results, meeting both primary and secondary endpoints. These trials evaluated 813 patients with moderate-to-severe atopic dermatitis, including children as young as 2 years old, and no new safety or tolerability concerns were observed.

Looking ahead, Roivant is initiating a Phase 1 trial for IMVT-1402, a subcutaneously administered, next-generation FcRn inhibitor. This exciting development, with initial data expected in August/September 2023, expands Roivant’s promising pipeline.

Personally, based on these positive developments and the company’s robust financial position of $1.7B in cash and cash equivalents, I recommend considering purchasing Roivant stock. The successful progress in their clinical trials, the expansion of VTAMA® coverage, and the initiation of new trials demonstrate the company’s commitment to innovation and potential for future growth. Investors should keep a close eye on Roivant as it continues to pave its way to success in the biopharmaceutical industry.