TIAA CREF Real Estate Securities had a strong quarter, outperforming its benchmark by over 30 bps. The team has been able to outperform significantly this year, due in part to its ability to underweight regional malls within the retail sector. They are now beginning to pair back the underweight given the attractive valuations within the sector but will focus on A-tier malls with longer term growth potential.
Author: Pete Malone
Schlumberger ($SLB.US) Q3: Results in line with expectations
Q3 results were in line with expectations as SLB reported EPS of $.42/share. This was driven mostly by the strength of the North America land market and growth in key international markets like Russia, the North Sea, and Asia. SLB continues to invest through Schlumberger Production Management (SPM) and yesterday announced a definitive agreement to purchase the Palliser Block in Canada from Cenovous Energy. Technological advancement continues to be a driving force for growth as SLB looks to partner up with Google and Microsoft to capitalize on the latest advances in digital technology. Energy price recovery has been slow and the timing and pace remain an unknown. On the call, management talked down guidance for North American growth in Q4.
Continue reading “Schlumberger ($SLB.US) Q3: Results in line with expectations”
HLMEX – Q3 2017 Commentary
Harding Loevner EM returned over 7% during the third quarter, slightly lagging its index on a total return basis. This underperformance is to be expected during such a large market rally as the portfolio has a relatively low beta. The team maintains its strong risk-adjusted performance posting higher sharpe ratios than the benchmark over 3, 5, and 10 year periods.
Johnson & Johnson ($JNJ.US) 3Q17 earnings recap: beat and raise top and bottom lines
JNJ reported strong Q3 2017 results with a beat and raise on top and bottom lines. Sales came in nearly $360M above estimates and cash EPS of $1.90 was 13% ahead of street estimates. Solid performance was driven mostly by better than expected results in pharmaceuticals. Excluding the impact of acquisitions and divestitures and forex, worldwide sales were up 3.8%. Price Target remains unchanged.
Crown Castle International ($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”
Federal Reserve Balance Sheet Unwind Explained
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.
Monthly Market Monitor – September 2017
Good Afternoon,
MONTHLY MARKET MONITOR OCTOBER 2017
Attached is the updated Monthly Market Monitor put together by Eaton Vance. Below are two slides that I found useful.
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”
JP Morgan Guide to the Markets
Attached is the Q4 Guide to the Markets from JP Morgan. Below I have pulled out two useful charts that point to the benefits of investing in and maintaining a diversified portfolio. Continue reading “JP Morgan Guide to the Markets”
Global Macro – earnings rally
An interesting slide deals with the continuing global equity rally. While there is merited concern about equity valuations, it is important to note that much of the run-up has been backed by earnings growth dating back to the end of 2015. We are now in the most synchronous global economic recovery since the financial crisis. Continue reading “Global Macro – earnings rally”