GIE Holding Highlights
AT&T (NYSE: T) added over 2 million new wireless subscribers in the second quarter, helping to boost its top line by 1.4%, to $33 billion. This helped its wireless business see a 2.1% increase to $18.3 billion. Wireline revenues declined 2.9% to $14.2 billion, but adjusted for recent asset sales they fell only 1%.
Margins held strong despite ongoing price wars. Earnings came in at $3 billion, or $0.69 EPS, beating analysts’ estimates of $0.63.
AT&T completed its $48.5 billion acquisition of DirecTV on July 25. The merger is expected to add about $0.15 to $0.16 to AT&T’s EPS and about $2.5 billion in crossover benefits. The telecom giant has already begun rolling out its TV and wireless phone package.
Yielding 5.4%, AT&T is a Buy up to $38.
An improving economy helped EPR Properties (NYSE: EPR) post a second-quarter revenue increase of 10%, to $101.3 million. Net income came in at $42.8 million, or $0.75 per diluted share, compared with $34.8 million, or $0.65 per diluted share, in 2014.
Adjusted funds from operations (FFO) rose 11% to $62.3 million, or $1.08 per diluted share, up from $52 million, or $0.97 per diluted share, last year. This equated to a strong FFO payout ratio of 84% of its declared dividends, $0.908 for the quarter.
During the quarter, EPR spent $198.3 million in capital investments, bringing its total to $334.7 million for the first half of 2015. It expects to spend a total of about $500 million to $550 million in 2015.
Management confirmed its guidance for 2015 FFO adjusted diluted share of $4.34 to $4.44, the midpoint of which is 6.3% higher than in 2014. EPR remains a Buy up to $68.
Southern Co.’s (NYSE: SO) second-quarter revenues slipped 2.9% to $4.34 billion as a 13% drop in wholesale fuel sales was offset by a 4.4% increase in its other businesses. Warmer weather and other factors drove an earnings increase of 2%, to $643 million, or $0.69 per share.
Adjusted for charges related to its Kemper project, EPS came in at $0.71 per share, beating consensus estimates by 2 cents. Pick up #2 Best Buy Southern Co. under $55.
With four additional vessels in its fleet in the second quarter, Seaspan (NYSE: SSW) reported revenues jumped 14.5%, to $199.2 million. Distributable cash jumped by 55.4% to $105.7 million, generating a strong coverage ratio of 2.09x, which leaves plenty of room to hike its already generous distribution.
The four new ships added during the quarter bring the total newbuild ships in the past 12 months to 10. The company expects more growth in the immediate future, as another 29 vessels are expected to be delivered by the end of 2017.
With a sturdy dividend that yields 8.2%, Seaspan is a Buy below $27.
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