Core Insights - Nasdaq, Inc. (NDAQ) reported an adjusted +11% YoY increase in Q3 net revenue and a +19% YoY net earnings per share gain, indicating strong financial performance [1] - The stock price of NDAQ is currently at $91.70, reflecting a rise of over 3% after a recent low of $86.73, but remains below its mid-$90s highs from August [1][3] - Analysts suggest that if the current earnings and cash flow trends continue, NDAQ stock could be undervalued and worth up to $100 per share [1][3] Revenue and Cash Flow Analysis - Nasdaq's revenue is primarily derived from SaaS services for capital markets, with a significant portion being recurring revenue [4] - The annualized recurring revenue (ARR) is reported at over $3 billion, which is a 10% increase from the previous year, representing 59% of the projected $5.19 billion net revenue for 2025 [4] - The gross revenue for the trailing 12 months is approximately $8.168 billion, with recurring revenue accounting for about 36.7% [4] Operating Cash Flow Insights - Nasdaq's operating cash flow (OCF) has exceeded $2 billion over the trailing 12 months, which is 38.5% of the net revenue forecasts for this year [5] - Projections indicate that if OCF reaches 39% of the anticipated $5.57 billion revenue for 2026, it could result in approximately $2.1723 billion in operating cash flow [5] - The current OCF yield for NDAQ stock, based on a market capitalization of $52.52 billion, is calculated at 3.8% [6]

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Market Overview - U.S. stocks experienced a decline on Thursday due to credit-quality issues announced by two regional banks, Zions Bancorporation and Western Alliance [2] - The S&P 500 index fell by 0.6%, the Nasdaq Composite decreased by 0.5%, and the Dow Jones Industrial Average dropped by 0.7% [2] Credit Quality Concerns - The problems at regional banks have raised concerns about the deterioration of commercial credit quality [3] - Automotive Credit Corp paused loan originations, and Tricolor Holdings filed for bankruptcy, which will result in losses for larger banks like JPMorgan and Fifth Third Bancorp [3] - First Brands, an automotive parts supplier, also went bankrupt in September, affecting Jefferies Financial Group due to its exposure through Point Bonita [3] Futures Market - Stock futures for major indices, including the S&P 500, Nasdaq 100, and Dow Jones, are down ahead of the market open on Friday, with S&P 500 futures falling by 0.4%, Nasdaq 100 futures down by 0.6%, and Dow Jones futures dipping by 0.1% [4]

Operating Cash Flow (OCF) Definition - Operating Cash Flow (OCF) is the cash generated from a company's regular business activities [1] - OCF represents revenue from the production and sale of goods and services [1]

Valuation Metrics - Price-to-Cash Flow (P/CF) Ratio evaluates a stock's price against its operating cash flow per share [1] - P/CF is considered better than Price-to-Earnings (P/E) ratio [1] Investment Analysis - The report provides examples and calculations for understanding the P/CF ratio [1]

Core Insights - Eastman Chemical Company (EMN) reported first-quarter 2025 earnings of $1.57 per share, a 12.9% increase from $1.39 in the same quarter last year, with adjusted earnings of $1.91 per share, up 18.6% from $1.61, surpassing the Zacks Consensus Estimate of $1.89 [1][2] Financial Performance - Revenues for the first quarter were $2,290 million, missing the Zacks Consensus Estimate of $2,308.6 million, and reflecting a 1% decrease from $2,310 million in the prior-year quarter [2] - Cash used in operating activities totaled $167 million, and dividends paid to stockholders were $96 million [7] Segment Performance - **Advanced Materials**: Revenues fell 3.9% year over year to $719 million, missing the estimate of $763.7 million due to reduced selling prices and unfavorable sales volume mix [3] - **Additives & Functional Products**: Revenues increased 4.1% year over year to $733 million, exceeding the estimate of $703.3 million, driven by higher selling prices and improved sales volume mix [4] - **Chemical Intermediates**: Net sales rose 4.2% year over year to $545 million, beating the estimate of $533.5 million, attributed to increased selling prices and a stronger sales volume mix [5] - **Fibers**: Net sales declined 12.9% year over year to $288 million, missing the estimate of $325 million, primarily due to a less favorable sales volume mix and reduced selling prices [6] Guidance and Outlook - The company raised its cost reduction goal to approximately $75 million and lowered capital expenditures to about $550 million, indicating a strong position to manage challenges from increasing tariffs [8] - EMN anticipates generating around $1.2 billion in operating cash flow for full-year 2025, with adjusted EPS guidance for the second quarter projected between $1.70 and $1.90 [9][11] Market Performance - EMN's shares have decreased by 15.9% over the past year, compared to a 25.7% decline in its industry [12]

Core Viewpoint - Rivian Automotive has achieved its first positive gross margin in Q4 2024, marking a significant milestone in its journey towards becoming a sustainable business, although challenges remain ahead [2][10]. Financial Performance - Rivian reported a quarterly gross profit of $170 million with a gross margin rate of 9.8%, a significant improvement from a negative 46% a year ago [2][3]. - Q4 revenue increased by 32% to $1.73 billion, with automotive revenue rising 26% to $1.52 billion and software and services revenue doubling to $214 million [4]. - Adjusted EBITDA loss improved from $1 billion in the prior year to a loss of $277 million [5]. Production and Delivery - The company delivered 14,183 vehicles in Q4, a 2% increase from the previous year, but manufactured only 12,727 vehicles due to supply constraints [4]. - Rivian plans to deliver between 46,000 and 51,000 vehicles in 2025, with a temporary shutdown of its current plant to prepare for the launch of the R2 SUV [8]. Cost Management - Rivian reduced manufacturing costs by $31,000 per vehicle year over year, primarily through lower material costs and improved manufacturing processes [3]. - The company aims to achieve a modest full-year gross profit in 2025, despite projected negative adjusted EBITDA of $1.7 billion to $1.9 billion [8]. Strategic Partnerships and Future Plans - Rivian secured a loan of up to $6.6 billion from the Department of Energy to support its new manufacturing facility in Georgia and formed a joint venture with Volkswagen, which will invest up to $5.8 billion [6][11]. - The R2 SUV, expected to launch in the first half of 2026, will have a base price around $45,000, aimed at increasing market appeal compared to the R1S SUV [7][10].