Morgan Stanley believes that sales-driven expansion in scale has yet to translate into sufficient profit; intensifying competition in low-end batteries and the ability to pass on additional taxes will affect future earnings.
Yageo’s third-quarter earnings beat broker expectations, though its gross margin fell slightly short of the higher buy-side threshold. AI drove increases in both MLCC volumes and prices. The company expects further growth in the fourth quarter, with new capacity coming online from the second quarter of 2027.
Morgan Stanley believes the companies’ complementary technologies could allow Marvell to capture more value from each optical link, but Lumentum’s high valuation, DSP customer conflicts and manufacturing cyclicality raise the bar for a potential deal.
Same-property net operating income growth rose from 3.5% in the second quarter to 4.9%, and Kimco raised its full-year FFO guidance to $1.85 per share. Occupancy continued to rise, but rent growth on new leases slowed.
Fourth-quarter revenue guidance fell far short of expectations, primarily because of a PC inventory correction. Morgan Stanley raised its 2027 earnings forecast but cut its price target, arguing that tight server supply and heavy investment may not translate into lasting competitiveness.
Morgan Stanley expects demand for Coherent to remain strong, but initial production efficiency for six-inch substrates is low, making the pace of gross margin improvement a focus of the earnings report. The bank maintained its Equal-weight rating and cut its price target from 375 dollars to 325 dollars.
Third-quarter new orders fell short of the buy-side threshold, and expectations for construction equipment destocking intensified. Morgan Stanley cut its price target from $915 to $675, but believes a substantial backlog and cash flow can still support earnings growth.
Amid weak industry sales, Sany Heavy Industry increased both revenue and profit; Zoomlion’s overseas growth slowed, while Zhejiang Dingli’s revenue growth accelerated but its gross margin fell sharply.
MediaTek raised its 2026 ASIC revenue target to US$2.5 billion and expects to reach US$16 billion in 2027; third-quarter Smart Edge growth offset a decline in the handset business.
As of 28 October, Morgan Stanley’s A-share sentiment indicator had risen 10 percentage points over the week, remaining below the 22% technical rebound signal level. Trading activity recovered, while margin financing balances and earnings estimate revisions weakened.
Oil inventories in the major regions tracked by Morgan Stanley fell by 4.6 million barrels last week, but a build in refined products offset part of the crude draw. US gasoline inventories recovered while distillate stocks remained well below the seasonal average.
Companies representing a quarter of the S&P 500’s market capitalization have reported third-quarter results. Barclays is optimistic about earnings for the full reporting season, but year-on-year EPS growth has slowed from the previous quarter in financials, industrials and consumer staples.
Amazon’s third-quarter AWS revenue grew 39.3% year over year, below some buy-side expectations but above the market consensus. Management expects AWS to grow more than 40% in each of the next two years. Citi has raised its earnings forecasts on that basis while monitoring capacity expansion spending and margins.
JPMorgan tracking shows that European companies that have reported earnings are growing faster than their US counterparts, with energy the main driver. At the same time, the shares of companies beating earnings and revenue expectations fell from the previous quarter in both regions.
AWS accelerated for a sixth consecutive quarter, and management expects revenue growth of more than 40% in both 2027 and 2028; meanwhile, advertising growth slowed and heavy infrastructure spending pressured free cash flow.
ASE’s third-quarter revenue and gross margin both exceeded Morgan Stanley’s and market expectations. The company raised its advanced packaging revenue guidance for 2026 and 2027, but its 2027 guidance for full-turnkey CoWoS-like business remains below the bank’s forecast.
Higher average DRAM and NAND prices pushed third-quarter operating profit above market consensus; Bank of America is optimistic about fourth-quarter shipments and long-term demand, but expects some memory product prices to fall in 2027.
Third-quarter revenue rose 18% quarter on quarter, but net profit fell 22%, mainly due to investment revaluation gains turning into losses. Management expects the high gross margin to persist for a time before returning to normal as price increases slow and costs rise.
Morgan Stanley expects mass production of TPU v8t to drive MediaTek’s fourth-quarter 2026 revenue up 30%–40% quarter on quarter, but weakness in non-AI businesses and changes in the product mix will also weigh on gross margin. Growth potential in 2027–2028 depends on supplies of advanced packaging and substrates.
