ETWO Overview

Rising Candy Prices: As Halloween approaches, families are reconsidering the tradition of handing out candy due to significant price increases, with costs rising from $10 to $15 or more for candy bags, leading some to opt for cheaper alternatives or skip buying candy altogether.

Creative Alternatives: Many households are turning to unconventional treats like chips, ramen noodles, and even potatoes, with some parents noting that kids enjoy these novelty items just as much, if not more, than traditional candy.

Elliott Management's New Investments: In the second quarter, Elliott Management, led by Paul Singer, made several new investments including put options against the S&P 500 and semiconductor companies like NVIDIA, while also taking a long position in Hewlett Packard Enterprise.

Changes in Positions: The hedge fund increased its bets against sectors such as mining and gold, while exiting multiple positions, with its top holdings being long positions in Triple Flag Precious Metals, Phillips 66, Suncor Energy, and Southwest Airlines.

U.S. Stock Market Update: U.S. stock futures fell on Friday after a slight increase the previous day, with major indices like Dow Jones and S&P 500 showing declines. President Trump's tariffs on Brazil have raised concerns about retaliatory measures from Brazil's government.

Economic Indicators and Market Reactions: The U.S. labor market remains strong despite rising jobless claims, while analysts suggest that markets are becoming desensitized to tariff news. Key stocks such as Delta Air Lines and Levi Strauss reported better-than-expected earnings, contributing to overall market resilience.

E2open's Financial Performance: E2open Parent Holdings Inc reported year-over-year growth in subscription revenue for the first time since mid-FY24, driven by improved client retention and new product launches, although it faced a net loss of $15.5 million in Q1 2026.

Pending Acquisition: The company's acquisition by WiseTech Global is progressing as planned, expected to close by the end of the year, which aims to enhance capabilities in supply chain and logistics software despite challenges in achieving consistent growth.

Levi Strauss & Co. Performance: The company reported second-quarter revenue of $1.45 billion, exceeding estimates, and raised its full-year guidance, leading to a 6.9% increase in share price after-hours.

Other Companies' Earnings: E2open Parent Holdings and PriceSmart also posted better-than-expected earnings, while WD-40 raised its EPS guidance despite missing sales estimates; Frequency Electronics saw a decline in share price despite reporting increased earnings.

Earnings Performance: E2open Parent Holdings, Inc. reported quarterly earnings of $0.05 per share, exceeding estimates and showing a year-over-year increase. The company also achieved revenues of $152.61 million, surpassing expectations and demonstrating consistent performance over the past four quarters.

Market Outlook: Despite outperforming the market with a 22.2% gain this year, E2open's future stock performance will depend on management's commentary and earnings estimate revisions, currently holding a Zacks Rank #3 (Hold), indicating expected performance in line with the market.