Core Viewpoint - The article discusses the author's commitment to holding Business Development Companies (BDCs) despite the potential for an upcoming recession, indicating a belief in the resilience and long-term value of these investments [1]. Group 1: Investment Strategy - The author identifies as a buy-and-hold investor, focusing on quality over quantity in investment choices, particularly in dividend-paying stocks, BDCs, and REITs [2]. - The goal is to supplement retirement income through dividends within the next 5-7 years, targeting lower and middle-class workers to help them build quality investment portfolios [2]. Group 2: Analyst Disclosure - The author has a beneficial long position in specific BDC shares, namely ARCC and BXSL, indicating a personal investment stake in these companies [3]. - The article is presented as a personal opinion without compensation from the companies mentioned, emphasizing independence in analysis [3].

Market Overview - Wall Street has experienced significant volatility over the past two months due to sticky inflation, weak economic data, and the imposition of reciprocal tariffs by the Trump administration, raising concerns about a potential near-term recession in the U.S. economy. All three major stock indexes are currently in negative territory year to date [1]. Investment Opportunities - Three U.S. corporate giants with a market capitalization of nearly $100 billion or more and a favorable Zacks Rank have provided positive returns in the past month. These companies are Amphenol Corp. (APH), AppLovin Corp. (APP), and Philip Morris International Inc. (PM), all holding a Zacks Rank 1 (Strong Buy) [2]. Amphenol Corp. (APH) - Amphenol provides connectivity solutions utilizing AI and machine learning technologies, offering high-density, high-speed connectors and cables optimized for signal integrity and thermal performance [4]. - The company benefits from a diversified business model, with strong demand across Commercial Air, Industrial, and Mobile devices, alongside defense technologies driving top-line growth [5]. - Amphenol's expected revenue and earnings growth rates for the current year are 30% and 38.6%, respectively, with the Zacks Consensus Estimate for current-year earnings improving by 12.9% in the last 30 days [6]. AppLovin Corp. (APP) - AppLovin operates a software-based platform for mobile app developers, enhancing marketing and monetization capabilities both domestically and internationally [7]. - The introduction of AI-powered AXON 2.0 technology and strategic expansion in gaming studios have significantly boosted revenue growth, while the Ai-enabled Audience+ marketing platform enhances reach into direct-to-consumer and e-commerce sectors [8]. - AppLovin's expected revenue and earnings growth rates for the current year are 24.3% and 70.6%, respectively, with the Zacks Consensus Estimate for current-year earnings improving by 13.7% in the last seven days [10]. Philip Morris International Inc. (PM) - Philip Morris has shown strong pricing power and an expanding smoke-free product portfolio, making significant progress in its smoke-free transition with products like IQOS and ZYN [11]. - The company anticipates robust growth in 2025, driven by increasing demand across all product categories, with an expected volume growth of 2% and smoke-free products projected to expand by 12-14% [12]. - Philip Morris's expected revenue and earnings growth rates for the current year are 8.1% and 13.7%, respectively, with the Zacks Consensus Estimate for current-year earnings improving by 4.2% over the last 30 days [13].

Core Insights - Walmart reported fiscal Q4 2025 earnings of $0.66 per share on revenue of $180.55 billion, slightly exceeding Wall Street's revenue expectations but falling short of the whisper earnings forecast of $0.68 per share [2][4] - Earnings increased by 10% compared to the same quarter last year, while sales rose by 4%, indicating resilience despite tariff concerns and recession fears [2][11] - Analysts had anticipated earnings of $0.65 per share on revenue of $179.42 billion, making the revenue growth a positive sign for the company [4] Forward Estimates - Walmart projects Q1 2025 earnings between $0.57 and $0.58 per share, with revenue expected between $166.35 billion and $167.97 billion [5] - For fiscal 2026, the company anticipates earnings of $2.50 to $2.60 per share on revenue ranging from $701.4 billion to $708.2 billion, reflecting confidence in its performance amid economic challenges [5] Company Profile - Walmart operates as a tech-enabled omnichannel retailer, focusing on helping customers save money and live better through various shopping channels [6] - The company has three segments: Walmart U.S., Walmart International, and Sam's Club, and offers a wide range of products including groceries, health and wellness items, and consumer electronics [6][7][8][9] - Walmart was founded in 1945 and is headquartered in Bentonville, Arkansas, having changed its name from Wal-Mart Stores, Inc. in February 2018 [10]

Summary of Conference Call for Insight Enterprises Company Overview - **Company**: Insight Enterprises - **CFO**: James Mercado Macro Environment - **Recession Concerns**: Initial recession predictions for the second half of the year ranged from 25% to 50%, but recent news has moderated these concerns [4][5] - **Customer Sentiment**: Customers are navigating uncertainty, with spending patterns aligning with expectations, particularly in hardware [6][10] Financial Performance - **Q1 Performance**: Gross profit was slightly below expectations, but SG&A expenses met forecasts [5][6] - **Q2 Outlook**: Customer spending patterns in Q2 are consistent with expectations, with a cautious but positive outlook for the quarter [6][7] Customer Spending Trends - **Commercial Segment**: Experienced four consecutive quarters of growth, recovering faster than corporate and enterprise segments [33][34] - **Enterprise Segment**: Spending remains constrained, with delays in large deals being more widespread than initially thought [38][39] Tariff Impact - **Tariff Navigation**: Insight has strong partner relationships to help customers manage tariff impacts, with historical data suggesting a 10% tariff does not significantly affect demand [12][14] - **Inventory Positioning**: Some inventory positioning was done in anticipation of tariffs, particularly in the commercial space [18][19] Competitive Landscape - **Differentiation**: Insight's full solutions portfolio, strong cloud offerings, and technical capabilities differentiate it from competitors [27][28] - **Market Position**: Insight is focused on building relationships with new partners, especially in the AI space, to drive future growth [30] Infrastructure and Hardware Trends - **Infrastructure Spending**: Sluggish infrastructure spending attributed to a longer digestion period than expected, but increased customer dialogue suggests potential recovery [56][57] - **Networking Lag**: Networking is lagging behind storage and compute, but expected to improve in the second half of the year [58] AI and Technology Trends - **AI Spending**: Enterprises are beginning to shift budgets towards AI, but significant spending is not yet materializing [64][65] - **PC Refresh Cycle**: The impending end of Windows 10 is driving a refresh cycle, with commercial customers in the middle innings of this cycle [45][46] Financial Guidance - **Gross Profit Expectations**: Q1 gross profit was down 8%, but guidance for the rest of the year suggests a return to low single-digit growth [67][69] - **Cloud Growth**: Cloud services are expected to grow in the double digits, despite headwinds from partner program changes [75] SADA Update - **SADA Performance**: The SADA team is pivoting effectively to focus on services, which is seen as a key differentiator for future growth [78][79] Conclusion - **Outlook**: Insight Enterprises is cautiously optimistic about the second half of the year, with a focus on managing macro uncertainties, enhancing customer relationships, and leveraging its diverse portfolio to navigate competitive pressures [7][8][9]

Financial Data and Key Metrics Changes - The company's Q1 2025 GAAP net investment income and core NII was $6,800,000 or $0.02 per share, down from $8,000,000 or $0.03 per share in Q4 2024, and below the quarterly distribution of $0.03 per share [6][18] - NAV per share at the end of Q1 was $12.11, representing a 1.6% decrease from the prior quarter, impacted by net realized losses and markdowns totaling $2,600,000 [6][18] - The weighted average effective yield on income-producing debt investments decreased to 12.1% at the end of Q1 from 12.5% in Q4 2024 [9][18] Business Line Data and Key Metrics Changes - Gross capital deployments in Q1 totaled $45,500,000, with net deployments of $26,100,000 after repayments and sales of $19,400,000 [6][9] - The portfolio mix at the end of Q1 consisted of approximately 90.3% first lien, senior secured debt, with a mix of two-thirds sponsor and one-third non-sponsor deals [7][9] - Nonaccrual investments totaled 8.8% of the debt portfolio, up from 7.2% in the prior quarter [13][18] Market Data and Key Metrics Changes - The STRS JV portfolio had an aggregate fair value of $310,200,000 with an average effective yield of 10.8%, down from 11.1% in Q4 [8][20] - The lending market has seen a 25 to 50 basis point increase in pricing due to increased volatility, but most of that premium has dissipated recently [15][18] - The M&A market has slowed significantly, with many deals being put on hold due to uncertainty in the economic environment [41][42] Company Strategy and Development Direction - The company continues to focus on the non-sponsor market, where there are better risk-return profiles and less competition [16][18] - The company added a new coverage region in Nashville, Tennessee, to enhance non-sponsor and off-the-run sponsor origination capabilities [16][18] - The company is actively monitoring the debt capital markets for opportunities to optimize or refinance its capital structure [21][18] Management's Comments on Operating Environment and Future Outlook - Management noted that challenges in the portfolio are more company-specific rather than related to the overall economy, with no signs of a recession yet [10][18] - The company expects a decent amount of refinancing activity in the second half of the year as prepayment penalties on higher-rate deals expire [46][18] - Management is cautious about the environment for deal closures in Q3, anticipating a quiet period due to the current market conditions [42][18] Other Important Information - The company declared a first-quarter distribution of $0.03 per share, consistent with the prior quarter, and will continue to evaluate its quarterly distribution based on core earnings power [22][18] - Cash resources at the end of Q1 were approximately $19,600,000, including $8,200,000 in restricted cash [21][18] Q&A Session Summary Question: Update on Telestream and its return to accrual status - Management indicated progress on restructuring Telestream, hoping to complete it by May, which would allow a portion of the existing debt to return to cash-paying status [26][27] Question: Dividend update and spillover income - Spillover income was approximately $28,400,000, with a current dividend run rate equating to about $8,950,000 in distributions, indicating a shortfall for Q1 [33][35] Question: Market conditions and bid-ask spreads - Management noted that good companies without significant tariff or recession risk are trading at high multiples, while those with risks are seeing buyers being conservative [40][41]

Summary of Jabil (JBL) FY Conference Call - May 13, 2025 Company Overview - **Company**: Jabil (JBL) - **Industry**: Electronics Manufacturing Services (EMS) Key Points and Arguments Macro Economic Concerns - There is a sense of relief among customers regarding recession fears, with the administration's efforts seen as effective in preventing a significant downturn [3][5][6] - Jabil's diversified portfolio across various end markets, including healthcare and digital commerce, positions the company well to manage through economic fluctuations [4][5] Supply Chain and Tariff Management - Jabil has regionalized its supply chain, producing in-country for local consumption, which mitigates risks associated with tariff volatility [7][8] - The company is not currently seeing significant shifts in business due to tariffs, as customers are cautious about the costs and risks of relocating operations [8] Capacity and Geographic Flexibility - Approximately 35% to 40% of Jabil's capacity is located in the Americas, with current utilization around 75-80%, indicating room for growth [16][18] - The company has recently opened a facility in St. Petersburg, Florida, and has the capability to expand in the U.S. and Mexico as needed [16][18] Margin Improvement Strategies - Jabil aims to increase its margin from 5.4% to 6% or 6.5% in the near future, driven by portfolio diversification, vertical integration, and operational efficiencies [22][23][24] - The company is focusing on higher-margin businesses and has made tuck-in acquisitions to enhance its service offerings [24][25] Growth in Cloud and Data Center Infrastructure - Jabil has increased its revenue guidance for the second half of the fiscal year by $1 billion, driven by strong demand from hyperscale customers and capital equipment business [28] - The company is confident in continued spending from cloud customers, viewing it as an "arms race" among hyperscalers [28][29] Automotive Sector Challenges - The automotive segment faces headwinds from tariffs and reduced demand for electric vehicles (EVs), but Jabil is diversifying its customer base and product offerings to mitigate risks [44][45] - The company has added new OEM customers in China, which is expected to provide growth opportunities in the EV space [46][48] Healthcare Market Opportunities - Jabil is significantly larger than its nearest competitor in the healthcare market and is focused on expanding its share of wallet through organic growth and acquisitions [56][57] - The company recently acquired Pharmaceutical International Incorporated, enhancing its capabilities in pharmaceutical delivery systems [58] Semiconductor Capital Equipment - Jabil's semiconductor capital equipment business is performing well, with strong growth driven by key customers like NVIDIA [62] - The company anticipates a cyclical recovery in the semiconductor industry within the next twelve months [63] Networking and Communications - The networking segment is experiencing slower growth due to exiting low-margin businesses, but there are positive trends in Ethernet and liquid cooling technologies [65][66] Digital Commerce Growth - Jabil is seeing growth in digital commerce, particularly in automation and robotics for retail environments, with expectations for continued expansion in this area [67][68] Future Outlook - Jabil's path to achieving higher margins is not solely dependent on revenue growth but also on optimizing product mix and operational efficiencies [69][70] - The company is well-positioned for future growth across various sectors, including healthcare, cloud infrastructure, and automotive, despite current economic challenges [49][50][56]

Jamf (JAMF) FY Conference Summary Company Overview - **Company**: Jamf (JAMF) - **Date of Conference**: May 13, 2025 - **Key Speakers**: John Stroessl (CEO), David Rudow (CFO) Industry Insights - **Macro Environment**: There is caution among customers regarding potential recession and elongated sales cycles, impacting procurement and hiring decisions [2][3][4] - **Customer Sentiment**: Customers are exhibiting caution but there is pent-up demand due to previous hesitations in spending [4][10] - **Sales Performance**: Q1 was described as normal with no significant follow-through from a strong Q4, but April results were stable [5][6][7] Financial Performance - **Sales Cycles**: Elongated sales cycles are noted, particularly in the tech sector, with some deals slipping but no significant impact in North America [7][10] - **Geographic Performance**: APAC remains strong, while the Americas showed weaker performance [14][17] - **Vertical Strengths**: Strength observed in healthcare and financial services, with cautious optimism in tech [16][17] Product and Market Strategy - **Product Portfolio**: Jamf offers tailored solutions for K-12 education and enterprise, focusing on device management and security [25][26] - **Android Expansion**: The company is expanding capabilities to support Android devices at customer request, while maintaining a focus on Apple products [29][30] - **Competitive Landscape**: Microsoft is a significant competitor, but Jamf maintains a strong partnership with them, integrating their solutions [36][37] Pricing and Revenue Strategy - **Pricing Strategy**: Jamf does not aim to be the lowest cost provider, focusing instead on the value of their solutions. Annual price increases are now part of their strategy [38][39] - **International Billing**: Introduction of local currency billing to improve competitiveness and win rates in international markets [74][75] Growth and Investment Outlook - **International Growth**: The company is experiencing faster growth outside the U.S., particularly in APAC and EMEA regions [60][68] - **Acquisition Impact**: The acquisition of Identity Automation is expected to contribute $15 million in revenue over three quarters, with a seasonal revenue cadence [84][86] - **Rule of 40 Objective**: The company aims to achieve the Rule of 40 by the end of 2026, prioritizing growth over margin expansion [90][92] Key Risks and Considerations - **Economic Uncertainty**: Potential recession and its impact on customer spending and hiring remain a concern [2][4] - **Sales Dynamics**: Variability in sales performance across different regions and sectors, with some markets showing slower adoption of certain products [71][73] Conclusion - Jamf is navigating a cautious macroeconomic environment while maintaining a focus on growth, product differentiation, and international expansion. The company is strategically positioned to leverage its strong partnerships and customer relationships to drive future growth.

Amid worries over the trade war and signs of a weakening economy, the stock hit an all-time low recently, though GXO had some good news to share with investors when it reported first-quarter earnings last Wednesday. In a difficult macro environment, the company posted better-than-expected results. Organic revenue increased 3%, and overall revenue rose 21% to $2.98 billion, which edged out estimates at $2.93 billion. The reported revenue figure includes its acquisition of Wincanton, a British logistics compa ...

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific companies covered. Core Insights - The report highlights the global distribution of enterprise software spending, indicating that the US accounts for approximately 56% of sales, with Western Europe at 23% in CY24, showing minimal change from CY20 [15] - The exposure of software and cloud companies to China is relatively low, with the report suggesting that tariffs or actions on software will not have a significant impact [14][12] - The report expresses concerns about deglobalization, noting that regions like the EU may attempt to promote local software industries through regulations and tariffs [14][12] Summary by Sections Global Exposure of Enterprise Software - Enterprise software spending has remained stable globally from CY20 to CY24, with most companies generating more revenue outside North America [2] - The US market is the largest revenue driver for most companies, except for SAP, which has similar revenue exposure in Western Europe and North America [14][12] Microsoft and Oracle Exposure - Microsoft has a 22% exposure to Western Europe and 11% to Asia/Pacific, with China accounting for only 1.8% of Azure revenue [22][28] - Oracle's global exposure mirrors that of enterprise software, with 21% in Western Europe and 10% in Asia/Pacific [33][35] SAP and Adobe Global Presence - SAP has equal revenue exposure to the US and Western Europe, with 37% in North America and 37% in Western Europe [40][41] - Adobe has become more global over the past four years, with a revenue mix of 56% in North America and 23% in Western Europe by CY24 [42][45] Salesforce and Workday International Growth - Salesforce has increased its international revenue percentage from CY20 to CY24, now at 64% in North America and 20% in Western Europe [46][48] - Workday remains predominantly North American, generating 77% of its revenue in North America in CY24, although it is working to expand its international presence [51][54]

Group 1: Market Overview - J.P. Morgan estimates a 60% chance of a recession in 2025 due to trade wars and tariffs, putting the current bull market at risk [1] - The recent market downturn was influenced by trade wars and uncertainty, leading to corrections in major indexes despite an initial post-election rise [2] Group 2: AbbVie Company Analysis - AbbVie has transformed from relying heavily on Humira, which accounted for 58% of sales in 2019 and peaked at $21 billion in 2022, to a more diversified portfolio [6][9] - The acquisition of Allergan for $63 billion in 2020 significantly reduced reliance on Humira and expanded AbbVie's product offerings [7][9] - AbbVie generated approximately $15 billion in revenue from Allergan products in 2024, showcasing the success of the acquisition [9] - In 2024, AbbVie acquired ImmunoGen and Cerevel Therapeutics for $10 billion and $9 billion, respectively, with the ImmunoGen deal showing promise through its ovarian cancer drug Elahere [10] - Sales from AbbVie's internally developed drugs Skyrizi and Rinvoq reached $17.7 billion in 2024, marking a 51% increase over 2023 [11] Group 3: Financial Performance - AbbVie's first-quarter 2025 earnings showed an 8% revenue growth to $13.3 billion, driven by Skyrizi, Rinvoq, and neuroscience gains [13] - The company raised its sales guidance for 2025 by $700 million to $60 billion, reflecting a 7% increase over 2024 [13] Group 4: Investment Considerations - AbbVie is viewed as a safe investment with a solid dividend yield of 3.5%, having increased its dividend annually since 2013 [14] - Analysts are predominantly bullish on AbbVie, with 17 buy or strong buy ratings and no sell ratings, indicating confidence in the stock's stability [15]