Category: Equity Earnings

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”

Travelers (TRV) reported Q3 EPS of $.91, well above consensus of $0.42. Earning expectations had dropped due to expected losses from hurricanes. Travelers’ hurricane losses were only 2% of book value which is lowest of all the major insurers, showing excellent risk management. Traveler’s combined ratio was 103.2%, excluding catastrophic losses the ratio was 92.9%. Travelers is a high quality, disciplined underwriter of insurance that is focused on returning capital to shareholders. Continue reading “Travellers Q3 2017 earnings”

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”

Bank of America (BAC) Q3 EPS of $.48 was above market expectations ($.46) due to solid expense control, modest loan growth and increase in net interest margin. BAC continues to be levered to rising rates, improve the balance sheet and return capital to shareholders. Continue reading “BAC Q3 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”

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”

McCormick (MKC) delivered Q3 adjusted EPS of $1.12, an 8.7% increase from last year, and above consensus expectation of $1.03. Better yet, MKC raised guidance range from $4.05-$4.13 to $4.20-$4.24. The bottom of the new range is above all street estimates. The acquisition of Reckitt Benckiser’s (Frank’s hot sauce) has been more accretive than expected. MKC is up 5% on the positive news. Continue reading “McCormick Strong Results Q3 2017”