Month: October 2017

Crown Castle International ($CCI.US) Q3: CCI meets or exceeds expectations and increases guidance

CCI reported strong results during the quarter reaching the high end of guidance for site rental revenues ($893M) and adjusted EBITDA ($605M). Additionally, AFFO exceeded guidance as CCI benefited from lower than expected capital expenditures due to timing. The acquisition of Lightower is expected to be concluded by year’s end. Due to strong industry trends and the acquisition, CCI improved its 2018 outlook with increases in AFFO/share, dividends/share, and site rental revenue. We remain mindful of the potential risks that may be caused by a Mobile/Sprint merger but understand the significant regulatory hurdles facing industry consolidation. Continue reading “Crown Castle International ($CCI.US) Q3: CCI meets or exceeds expectations and increases guidance”

Wells Fargo Q3 2017 results

Wells Fargo (WFC) core Q3 EPS of $.84 was well below Wall Street expectations of $1.03 mainly due to a -$.20 charge for litigation accrual due to regulator’s investigation into pre-crisis mortgage securities activities.  For the quarter, net interest income was flat.  Despite headline risks, WFC is on firm footing as the balance sheet is strong and loan quality is excellent. Believe that weakness in earnings is temporary and WFC remains a core holding in finance sector.    Continue reading “Wells Fargo Q3 2017 results”

Federal Reserve Balance Sheet Unwind Explained

Fed Unwind Explained 10.17

In recent weeks, the U.S. Federal Reserve has discussed plans to “unwind its balance sheet”, the next step in its attempt to roll back quantitative easing efforts. In this piece, our goal is to provide a better understanding of what this means, explain the goals of the new action, and discuss possible market implications in the short to intermediate term.

Pepsi ($PEP.US): Pepsi Q3 2017 results; increase in EPS guidance

Pepsi delivered EPS in Q3 above consensus estimates, beating the street by $.06. This was due in part to cost cutting programs and favorable tax treatment. Management increased its EPS growth guidance as it reduced its outlook for forex headwinds. PEP fell short on organic sales growth. This was due to negative effects of cooler summer weather and the recent hurricanes on its North American Beverages unit. Management is confident these are temporary issues. Continue reading “Pepsi ($PEP.US): Pepsi Q3 2017 results; increase in EPS guidance”

Predicting the stock market is a bad idea

With the benefit of hindsight, few tasks look easier than pointing out a market peak. Looking at a price chart of the stocks market, it is easy to point to the top and say, “Here is where to sell stocks.” Unfortunately, there are few indicators that help anticipate market tops. While market valuation is useful over 10-year periods, it is a poor indicator over a 1-year period. At Crestwood, we believe that trying to beat the market by attempting to anticipate the stock market’s ups and downs is a fool’s errand due to the sporadic nature of returns, importance of tax-deferred compounding and irrational behavior of investors. Continue reading “Predicting the stock market is a bad idea”