American Tower Corp. – BUY – First look 2Q14: Strong leasing demand drives beat and raise

American Tower Corp. – BUY – PO US$95.00 (current price US$92.35)

First look 2Q14: Strong leasing demand drives beat and raise

2Q beat across the board stripping out one-offs 

AMT reported 2Q rental and management revenue of $1,006m, above our $981m. The company called out a positive impact of $8m in the quarter from accelerated revenue recognition from a major US tenant that was previously expected to occur ratably throughout the year. Domestic rental and management revenue of $659.7m (vs. our $647.7m) and international rental and management revenue of $346.0m (vs. our $333.1m) came in above our estimates. Adj. EBITDA was $682m, well above our $637m and consensus of $645m, even excluding a 1x $7m expensebenefit in the quarter. AMT reported AFFO of $473.9m ($1.19/sh), again well above our $422.2m ($1.06/sh), even backing out a $5m cash tax benefit and the aforementioned $7m opex benefit.  

Raised outlook leaves consensus below the midpoint 

AMT raised its full-year outlook to reflect: 1) flow-through of the 2Q beat and aforementioned revenue acceleration with a specific US tenant, 2) modestly less-onerous FX assumptions, and 3) the impact from acquisitions closed in the quarter. We will look to the call for more clarity on the magnitude of the moving pieces within guidance. The company’s improved outlook reflects ’14 rental and management revenue guidance of $3.945-4.015b, compared to $3.895-3.975b previously and our current $3.960m. AMT raised its core organic growth rate assumption to 10.6% from 10% as of 1Q. Updated adj. EBITDA guidance of $2.615-2.655b compares to $2.555-2.605b previously, our current $2.601b and the Street at $2.612b. AMT expects domestic rental and management revenue of $2.625b vs. $2.605b previously and our $2.606b, and international rental and management revenue of $1.355b vs. $1.330b previously and our current $1.354b. Updated ’14 AFFO guidance of $1.755-1.795b is up from $1.725-1.765b previously and compares to our current $1.756b.  

More to follow on today’s conf. call at 8:30am ET 

 

AMT StreetAccount Metrics Recap – American Tower Corp Q2 Earnings

AMT StreetAccount Metrics Recap – American Tower Corp Q2 Earnings ($92.35)

  • Key operating metrics:
    • Rental and Management
      • Revenue $1.01B vs SA $981.1M
        • Domestic $660M vs SA $646.4M
        • International $346M vs SA $333.3M
      • Gross margin $746M vs SA $726.0M
        • Domestic $533M
        • International 4212M
    • Network Development
      • Revenue $26M vs SA $20.4M
      • Gross margin $17M vs SA $11.8M
    • Ending towers totaled 68,822 vs SA 68,618 and 67,710 in Q1
    • Capex $252M
*****Related comments from the archive:

 

30-Jul-14 07:05 ET AMT American Tower reports Q2 adjusted EBITDA $682M vs FactSet $645.5M ($92.35)

  • Reports Q2:
    • AFFO $1.19
    • Revenue $1.03B vs FactSet $999.0M
  • FY Guidance (Dec 2014):
    • Adjusted EBITDA $2.615-2.655B vs prior guidance $2.555-2.605B and FactSet $2.61B
    • AFFO $1.755-1.795B vs prior guidance $1.725-1.765B
    • Total rental and management revenue $3.954-4.015B vs prior guidance $3.895-3.975B

 

Upstart trading venue IEX may prompt U.S. market rule change – Reuters Exclusive

Source – A Reuters Exclusive: Upstart trading venue IEX may prompt U.S. market rule change

By John McCrank
NEW YORK | Wed Jul 30, 2014

NEW YORK (Reuters) – U.S regulators may relax rules that require the fastest possible execution of securities trades, potentially helping upstart trading venue IEX Group’s plans to become a full-fledged stock exchange.

IEX, described in author Michael Lewis’ book “Flash Boys: A Wall Street Revolt” earlier this year as a place for investors to place buy and sell orders without worrying that they are being “front-run” by other traders whose order transmission speeds are faster than theirs. Continue reading

TOP Ships Inc. Announces Withdrawal of F-1 Registration Statement

TOP Ships Inc. Announces Withdrawal of F-1 Registration Statement

 ATHENS, Greece, July 29, 2014 (GLOBE NEWSWIRE) — TOP Ships Inc. (Nasdaq:TOPS) (“Top Ships” or the “Company”), an international owner and operator of modern, fuel efficient “ECO” MR tanker vessels focusing on the transportation of petroleum products, announced today that it has determined to voluntarily withdraw its Registration Statement on Form F-1 that was filed with the Securities and Exchange Commission on July 14th, 2014.

Evangelos Pistiolis, CEO of TOP Ships, stated:

“The last month, and especially after the filing of our registration statement, our stock price has receded by about 20%. Despite the fact that we have identified some excellent investment opportunities, we decided not to proceed with an offering at this point in time. We are trading at a large discount to our Net Asset Value, perhaps the largest discount in the sector, and we intend to communicate this to investors. We are optimistic that the current disconnect between our Net Asset Value and stock price will narrow. Our overall strategy continues to be focused on growth.”

Source Street Account – Company Press Release

 

AMT to report 2Q tomorrow BMO – BofA Merrill Lynch Global Research

BofA Merrill Lynch Global Research – Source

AMT to Report 2Q tomorrow before market opens

American Tower Corp. – BUY – PO US$95.00 (current price US$92.22)
Heads up: AMT to report 2Q tomorrow BMO; Call @ 8:30am
  • AMT is scheduled to report 2Q earnings tomorrow before the market open and host a conference call at 8:30am ET
  • Dial-in information: 866-740-9153 (US); 706-645-9644 (Intl), PW: 72309359

Conference Call Info 

WednesdayJuly 30th, at 8:30 a.m. (ET). Dial-in: 866-740-9153 (US); 706-645-9644 (Intl), PW: 72309359; Replay: 855-859-2056; PW: 72309359. 

Key issues we are watching into the quarter 

  • 2014 guidance. We expect AMT to reiterate previously disclosed financial guidance for 2014 covering revenue, EBITDA, capex and AFFO with upside potential from new acquisitions not currently contemplated in guidance and modestly less onerous foreign currency exchange rate assumptions. Our current ’14 rental and management revenue estimate of $3.960b compares to guidance of $3.895-3.975b; our ’14 adjusted EBITDA of $2.601b compares to guidance of $2.555-2.605b and consensus of $2.603b; and our 2014 AFFO estimate of $1.756b compares to guidance of $1.725-1.765b.
  • Carrier activity. We anticipate AMT providing an update on wireless network spending activity by carrier and speak to how key underlying fundamental drivers are tracking relative to expectations. Specifically we will look for color around the pace at which AT&T, Verizon, and T-Mobile are deploying 4G infrastructure and updated commentary on Sprint’s progress with its Network Vision initiative. We will also look for any updated views on developments regarding DISH’s strategy for deploying 40 MHz of AWS-4 spectrum, execution of a public safety network, and upcoming spectrum auctions.
  • Capital allocation priorities. Post the recently announced acquisition of 4,640 towers in Brazil for $978m, AMT’s pro forma leverage sits at approx. 5.4-5.5x, above its target range of 3-5x. The company still plans to bring leverage down organically to 5.1-5.3x by the end of 2014 and within its target range by early 2015. We will look for the company to provide an update on the plan for balancing deleveraging back within its target range with dividends, incremental M&A, and buybacks in 2014, particularly in light of headlines that America Movil is looking topart with its towers in Mexico.

 

 

 

AMT StreetAccount Consensus Metrics Preview – American Tower Corp Q2 Earnings

  • Scheduled to report Q2 earnings on 30-Jul before the open:
    • FactSet:
      • Q2
        • Revenue $999.0M
        • EPS $1.09
      • Q3
        • Revenue $1.01B
        • EPS $1.10
    • StreetAccount (12-14 estimates for revenues, 4-7 for segments/towers):
      • Q2
        • Rental & Management
          • Revenue $981.1M
            • Domestic $646.4M
            • International $333.3M
          • Gross profit $625.1M
        • Network Development
          • Revenue $20.4M
          • Gross profit $11.8M
        • Ending towers 68,618
    • Q3
      • Rental & Management
        • Revenue $998.0M
          • Domestic $661.2M
          • International $338.7M
        • Gross profit $738.2M
      • Network Development
        • Revenue $18.0M
        • Gross profit $10.6M
      • Ending towers 69,320
    • Current FY (Dec 2014) guidance:
      • EBITDA $2.555-2.605B
      • AFFO $1.725-1.765B

 

Phillips 66 Positioned To Take The Lead In The U.S. Oil And Gas Boom

Source – Seeking Alpha . Phillips 66 Positioned To Take The Lead In The U.S. Oil And Gas Boom

Written by Eren Hothi Long PSX

The U.S. oil and gas industry has enjoyed spectacular growth in the last decade and, in doing so, has largely outstripped the growth of the peripheral infrastructure required to facilitate its long-term sustainability. With production unable to continue growing exponentially, there has been a refocusing of attention away from extraction towards the transportation, storage and conversion of oil, gas and its derivatives. Phillips 66 (NYSE:PSX) has recognized this and moved to invest heavily in the kind of infrastructure projects which will see them benefit hugely from the next stage in the U.S. oil and gas boom.

Hailed as an energy revolution generating enough oil and gas to last 100 years, the increased exploration of shale oil and gas throughout the 2000s provided the U.S. economy with the timely shot in the arm it so badly needed when the rest of the world’s economies were plunging back into recession. However, by…

Continue Reading At Original Source . Seeking Alpha . Written By Eren Hothi

SEC Drops Probe Into Facebook for Pre-IPO Disclosures

Original Source – WSJ
SEC Drops Probe Into Facebook for Pre-IPO Disclosures

Facebook on Thursday said the Securities and Exchange Commission dropped its probe into the company over disclosures about advertising revenue ahead of its May 2012 initial public offering.

The SEC had been investigating whether any violations had occurred when some clients of Facebook’s investment bankers were notified just days ahead of the IPO that the company’s ad revenue was lower than expected.

Facebook said in its quarterly earnings filing that it was told in May that the SEC “had terminated its inquiry and that no enforcement action had been recommended.”

Continue Reading Original Source – WSJ

Natural Gas – Compelling Entry Into Fall As Prices Have Pulled Back Significantly

Natural Gas – Compelling Entry Into Fall

Given the increase in inventories of natural gas so far this summer combined with the relatively cool temperatures, natural gas prices have sold off significantly. This presents a compelling entry opportunity between now and the Fall when temperatures will start dropping into the Winter season.

Natural Gas Prices

 

See the attached slides for some supporting data.

Natural Gas Presentation 7252014

Natural Gas – It Is Far Oversold. Expect A Rebound Soon. What’s A Good Play?

Source – Seeking Alpha . Natural Gas Is Far Oversold, Expect A Rebound

Written by David White  Long/short equity, value, REITs, macro

After the sharp rise in US natural gas prices during the colder than normal winter of 2013-2014, the prices have been falling sharply since early June 2014. They hit a high spike of over $6/mmbtu in mid-February 2014. Even as late as June they were $4.75/mmbtu. However, they have since fallen dramatically to approximately $3.75/mmbtu. Some might worry that they will continue to fall; but if you look at the chart below, you can see that natural gas prices (the August 2014 August future) are currently resting on major support (see below).

 

22392-14061828991079311-David-White

 

There is an old adage about not trying to catch a falling knife, when you buy a stock or commodity. However, the technical support in the natural gas price chart above argues that investors may want to bet on a rebound upward at this point. The summer has not been as warm as many had been expecting. Hence the lower natural gas prices. however, the current prediction is for anEl Nino year this coming winter (2014-2015). We will have to wait to see how severe that turns out…

Continue to Original Source – Seeking Alpha, David White writer