Fairfax’s Q3 2017 operating earnings of $16.42 were slightly below street expectations of $16.74 due to general softness in insurance underwriting and weak investment results. Despite these issues, results were solid with combined ratio of 91.6% (excluding storm losses), improving year over year from 94.5%. Including storm losses of $791m (after taxes), Fairfax still made a profit of $476.9m. Book value grew 15.4% YoY before investment results, mainly due to the acquisition of Allied completed earlier this year. Continue reading “Fairfax (FRFHF) Q3 2017 Results”
Month: November 2017
CVS Health Q3 2017 Results
CVS reported 3Q17 adjusted EPS of $1.50, above $1.49 consensus. Management raised guidance for 2017 to $5.87-$5.91 from $5.83-$5.93. For Q3 net revenues increased 3.5% driven by 8.1% sales gains in PBM business. Hurricanes disrupted retail operations – sales were down -2.7 and same store sales growth was negative -3.2%, which has put the stock under pressure today -$2.4. Continue reading “CVS Health Q3 2017 Results”
Berkshire Hathaway (BRK/B) q3 2017 Results
On Friday, Berkshire Hathaway (BRK/B) reported Q3 earning $1.40 versus consensus of $1.56. The gap was driven by hurricane losses of $3b or only 1% of book value which is impressive given the severity of losses for the season. Book value grew by 8.9% y/y, with shareholder equity totaling $311.8m and BRK/B holds over $65Bn of cash. BRK/B’s collection of high quality businesses continue to generate significant cash flow. Price target raised to $200. Continue reading “Berkshire Hathaway (BRK/B) q3 2017 Results”
LISIX – Q3 2017 Commentary
LISIX – Q3 2017 Commentary
The Lazard International Strategic Equity Fund outperformed its benchmark, MSCI EAFE Index, in the third quarter and has outpaced the index YTD. The Lazard team has rebounded from a period of underperformance that spanned the second half of 2016 through January of this year. The team remains focused on fundamental stock selection, looking for quality names with long term growth potential.
DBLTX – Q3 2017 Market Commentary
DBLTX – Q3 2017 Commentary
The DoubleLine Total Return Bond Fund outpaced the Agg during the quarter and is ahead by about 40 bps YTD. The fund has benefited from its positioning in RMBS and has been able to garner strong returns while taking on less risk than the benchmark. The team will monitor the effects of the Fed unwind but does not believe it will lead to a large spread widening due to the transparency set by the Fed.
Sherwin-Williams (SHW) Q3 2017 results
Sherwin-Williams (SHW) reported Q3 2017 results of $4.75, excluding one-time charges relating to the acquisition of Valspar. Results were ahead of street estimate of $4.68. SHW had strong same store growth of 5.2% driven by growth in sales and pricing. Lots of moving parts in the quarter given the Valspar merger, reordering of business into new segments and impact of hurricanes (-$.49 ). Overall organic growth was strong up 4.6%. Continue reading “Sherwin-Williams (SHW) Q3 2017 results”
Colgate-Palmolive Q3 2017 results
Colgate-Palmolive (CL) Q3 2017 results were relatively soft with weak sales growth of 3.0% and weaker organic sales growth of 1.5%. Colgate lowered 2017 margin guidance to 20-50bps (increase from last year) from 75-125bps. Even with disappointing results, we believe Colgate is maintaining its leadership position worldwide, and will weather this current lukewarm consumer environment. We maintain our price target and position size. Continue reading “Colgate-Palmolive Q3 2017 results”
TCPNX – Q3 2017 Commentary
TCPNX – Q3 2017 Commentary
Touchstone Total Return Bond Fund continues to be a steady, quality-driven strategy that outpaces the index on a risk adjusted basis over time. During the third quarter, the fund’s performance was in line with the benchmark, and TCPNX has outperformed on the year. The team believes the fund is well positioned and maintains a discipline that properly balances risk and return objectives for the current market environment.
Cognizant Technology Solutions Q3 ($CTSH.US): Revenue in Line; FY 17 Guidance Raised
Cognizant delivered strong results during the third quarter, posting revenue in line with expectations and broad based growth across segments and geography. Three of the four business segments were strong growth contributors. CTSH is focused on enhancing its digital capabilities and working to improve margins moving forward. Operating margin for the quarter was 20% and they are committed to a target of 22% in 2019 by balancing growth and profitability. CTSH has continued its momentum throughout 2017 and expects to close the year with solid revenue and earnings growth. Thesis intact. Price target unchanged.