Core Insights - The Baldwin Insurance Group reported a revenue of $378.81 million for the quarter ended June 2025, reflecting an 11.5% increase year-over-year and a surprise of +1.23% over the Zacks Consensus Estimate of $374.2 million [1] - The earnings per share (EPS) for the quarter was $0.42, up from $0.34 in the same quarter last year, with an EPS surprise of +2.44% compared to the consensus estimate of $0.41 [1] Financial Performance Metrics - Organic revenue growth was reported at 11%, exceeding the average estimate of 9.8% based on four analysts [4] - Revenue from Insurance Advisory Solutions was $183.27 million, surpassing the estimated $176.75 million, representing a year-over-year increase of +9% [4] - Revenue from Underwriting, Capacity & Technology Solutions was $147.51 million, exceeding the estimated $145.7 million, with a year-over-year change of +20.4% [4] - Revenue from Mainstreet Insurance Solutions was $66.56 million, below the estimated $71.56 million, indicating a year-over-year decrease of -0.8% [4] - Revenue from Corporate and Other was reported at -$18.53 million, better than the estimated -$22.4 million, showing a year-over-year improvement of +3.9% [4] - Revenue from Commissions and fees was $376.25 million, exceeding the estimated $372.44 million, with a year-over-year increase of +11.6% [4] - Investment income was reported at $2.56 million, slightly below the estimated $2.71 million, reflecting a year-over-year decrease of -6.4% [4] Stock Performance - Shares of The Baldwin Insurance Group have returned -9.6% over the past month, contrasting with the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

Financial Data and Key Metrics Changes - Edison International reported second quarter core earnings per share (EPS) of $0.97, down from $1.23 a year ago, with the year-over-year comparison being less meaningful due to the lack of a final decision in its 2025 general rate case [6][20][21] - The company remains confident in achieving its 2025 EPS guidance and delivering a 5% to 7% core EPS compound annual growth rate (CAGR) through 2028 [7][30] Business Line Data and Key Metrics Changes - SCE's core EPS variance was primarily driven by higher operating and maintenance (O&M) expenses and the net impact of regulatory decisions [20] - The proposed decision (PD) in SCE's 2025 general rate case would authorize base revenue of $9.8 billion for 2025, with incremental increases in subsequent years [12][23] Market Data and Key Metrics Changes - The PD supports significant capital investments in wildfire mitigation, grid modernization, and infrastructure replacement while considering affordability for customers [12][13] - SCE anticipates investing $6.2 billion in its wildfire mitigation plan from 2026 to 2028, which includes various safety and reliability measures [15] Company Strategy and Development Direction - The company is focused on enhancing its wildfire recovery compensation program and engaging with the community to support recovery efforts [9][19] - Edison International is optimistic about legislative support for California's regulatory framework, particularly regarding wildfire management and affordability [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the legislative process enhancing California's wildfire framework and emphasized the importance of a comprehensive approach to wildfire risk [9][10][19] - The company highlighted its commitment to operational excellence and cost management, which has resulted in the lowest system average rate among California's major industrial utilities [17] Other Important Information - The ongoing investigations into the Eaton fire are being conducted by SCE and the LA County Fire Department, with no new disclosures on ignition or estimated costs at this time [8][18] - The company is actively participating in various regulatory proceedings to de-risk its financial outlook and ensure alignment with customer needs [27][30] Q&A Session Summary Question: Regarding the proposed $18 billion fix, what is the company's stance on shareholder contributions? - Management indicated that while discussions are ongoing, they do not foresee a need for upfront contributions from shareholders, emphasizing the importance of a balanced legislative package [36][39] Question: How will the company communicate updates on the Eaton fire investigation? - Management stated that they would provide information during quarterly earnings calls but may disclose material information off-cycle if necessary [41][44] Question: Can you provide details on the proposed decision versus the range case forecast? - Management confirmed that the PD aligns with their range case forecast but noted that there are opportunities for additional capital beyond what has been flagged [48][49] Question: What are the company's thoughts on affordability legislation and securitization? - Management expressed concerns that securitization could lead to higher costs for customers in the long run and emphasized the need for alternative solutions to support affordability [57][61] Question: How does the company view the current regulatory environment and its impact on investor support? - Management acknowledged the challenges but expressed confidence in California's commitment to addressing utility needs and the clean energy transition [71][74] Question: What is the status of the Eaton investigation and potential equity issuance for wildfire fund contributions? - Management clarified that there are two separate investigations ongoing and emphasized that there is currently no need for upfront cash contributions to the wildfire fund [80][84]

Financial Performance - Edison International's Q2 2025 GAAP EPS was $0.89, while Core EPS was $0.97[5] - The company reaffirmed its 2025 Core EPS guidance of $5.94–6.34[5,6], which includes 44¢ from the TKM settlement (30¢ true-up + 14¢ interest reduction)[23] - Edison International reiterated a 5–7% Core EPS Compound Annual Growth Rate (CAGR) from 2025 to 2028, projecting EPS of $6.74–7.14 in 2028[5,6] - Year-to-date 2025 Core EPS was $2.34, a decrease compared to $2.37 in YTD 2024[31] Regulatory Updates and Capital Investments - A proposed decision for the 2025 General Rate Case (GRC) was issued on July 28, supporting significant capital investments while considering affordability[7] - The GRC proposed decision includes over 1,800 miles of grid hardening, shifting approximately 400 miles to covered conductor from targeted undergrounding[8] - The company anticipates investing $6.2 billion to reduce wildfire risks associated with utility equipment[14] - Edison International projects approximately 6–8% rate base growth from 2023 to 2028, driven by wildfire mitigation and grid work, resulting in a rate base of $49.4 billion in 2025, $53.0 billion in 2026, $56.8 billion in 2027 and $60.6 billion in 2028[20] Wildfire Mitigation and Cost Recovery - SCE plans to launch a Wildfire Recovery Compensation Program, with Eaton Fire investigations ongoing[5] - The company is requesting recovery of $5.4 billion of costs related to the Woolsey fire and $84 million in restoration costs[33,35] - Edison International has completed approximately $1.6 billion in securitizations of AB 1054 capital expenditures[42]

Core Insights - Kite Realty Group (KRG) reported revenue of $213.4 million for the quarter ended June 2025, marking a year-over-year increase of 0.5% and a surprise of +0.12% over the Zacks Consensus Estimate of $213.14 million [1] - The company achieved an EPS of $0.51, a significant improvement from -$0.22 a year ago, aligning with the consensus EPS estimate [1] - The stock has returned +1.8% over the past month, underperforming the Zacks S&P 500 composite's +3.4% change, and currently holds a Zacks Rank 4 (Sell) [3] Revenue Breakdown - Rental income was reported at $211.18 million, slightly below the average estimate of $212.5 million, reflecting a year-over-year increase of +2.6% [4] - Tenant recoveries amounted to $41.7 million, which was lower than the two-analyst average estimate of $45.13 million [4] - Minimum rent revenue was reported at $150.71 million, compared to the average estimate of $165.92 million [4] - Net Earnings Per Share (Diluted) was $0.50, exceeding the average estimate of $0.07 [4]

Market Overview - Trading in the S&P 500 index has seen reduced volatility, leading to fewer opportunities for profitable trades, but there is increased activity in other stocks [1] - Unusual trading volumes indicate potential accumulation or speculation in certain stocks, suggesting opportunities for volatility outside of major indexes [2] Company Insights Rocket Companies Inc. (RKT) - Rocket Companies has been identified as a stock with significant trading activity, with daily volumes reaching 64.3 million shares on July 22, compared to an average of 20 million shares [7] - The stock trades at a price-to-cash (P/C) ratio of 71x, significantly higher than the finance sector's average of 21.6x, indicating a premium valuation [5] - The current low mortgage cycle presents an opportunity for Rocket to deploy its cash aggressively when mortgage rates decline, potentially increasing demand [6] Wendy's Co. (WEN) - Wendy's stock has seen a decline in short interest by 45.3%, reflecting a shift in investor sentiment amid rising consumer concerns about inflation [8] - The stock trades at 49% of its 52-week high, presenting an attractive risk-to-reward ratio for buyers [9] - Trading volume for Wendy's reached 19.3 million shares on July 22, significantly above its average of six million shares, with analysts projecting a price target of $15.3, indicating a potential rally of 50.5% [10][11] PulteGroup Inc. (PHM) - PulteGroup's earnings per share (EPS) growth is crucial for its stock performance, with analysts projecting an EPS of $3.17 for Q4 2025, following a recent report of $3.03 EPS that beat expectations by 4% [13][14] - Trading volume for PulteGroup increased to five million shares on July 21, indicating heightened investor interest [15] - UBS analyst John Lovallo has set a price target of $150 for PulteGroup, suggesting a potential rally of 28% from current trading levels [15]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share (EPS) of $0.30 on a GAAP basis and $0.29 on a non-GAAP basis for Q2 2025, compared to $0.36 in Q2 2024 [25][4][7] - The non-GAAP EPS results for Q2 2025 reflect a 19% decrease year-over-year, primarily due to the timing of capital recovery mechanisms [25][26] - The company reaffirmed its 2025 non-GAAP EPS guidance range of $1.74 to $1.76, indicating an 8% growth at the midpoint from the 2024 non-GAAP EPS of $1.62 [9][42] Business Line Data and Key Metrics Changes - The Houston Electric Service territory is experiencing strong load growth, with a forecasted peak load increase of 10 gigawatts by 2031, representing nearly a 50% increase in peak demand [10][11] - Year-over-year sales trends show an 8% increase in weather-normalized commercial and industrial sales for the first half of 2025 compared to the same period in 2024 [11] Market Data and Key Metrics Changes - The load interconnection queue has grown by 6 gigawatts, or more than 12%, since the first quarter call, driven by diverse economic activities including data centers and advanced manufacturing [10][11] - The company anticipates a significant increase in capital expenditures, with a total capital investment plan now at $53 billion through 2030, reflecting a $5.5 billion increase this year [21][35] Company Strategy and Development Direction - The company plans to focus more on Texas jurisdictions, with the proposed sale of its Ohio gas business aimed at reallocating nearly $1 billion of capital expenditures to support Texas operations [13][14] - The company is committed to enhancing its electric transmission system to accommodate forecasted load growth and has identified approximately 200 projects to execute over the next ten years [18][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects, citing strong economic drivers in the Houston Electric Service territory and a favorable regulatory environment [10][12] - The company expects to improve its operating cash flow, which will help fund capital investments without the need for additional common equity [41][42] Other Important Information - The company has made significant progress in regulatory filings, including a proposed settlement in its Ohio gas rate case and a distribution system resiliency investment plan totaling $3.2 billion over the next three years [30][29] - The company is exploring efficient financing options to support its growth, including the proposed sale of its Ohio gas LDC and forward sales of common equity [37][39] Q&A Session Summary Question: Timeline and expectations for the Barrow cost recovery proceeding - Management is on track with mediated sessions and hearings scheduled for next Thursday, aiming for a potential settlement framework [51][52] Question: Details on the six gigawatts load growth - Approximately two-thirds of the increase relates to data center activity, with demand expected for interconnections in late 2026 to 2028 [53][54] Question: Duration of the drag from mobile generation assets - The drag is expected to last until late 2026 or early 2027, after which these assets will become a tailwind for the company [56] Question: Capital investment plan and equity funding - The company anticipates an upward bias in capital expenditures without the need for additional common equity, with a focus on long-term growth [62][66] Question: Update on the gas LDC sale process - The company aims to announce progress on the sale by the end of the year, with a closing expected about a year later [92][93] Question: Opportunities in data centers in Indiana - The company continues to have productive discussions regarding new data center demand in Indiana, leveraging its excess capacity [94][95]

Core Viewpoint - Essential Properties (EPRT) reported quarterly funds from operations (FFO) of $0.46 per share, which missed the Zacks Consensus Estimate of $0.47 per share, representing an FFO surprise of -2.13% [1] Financial Performance - The company posted revenues of $137.06 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 2.92%, compared to $109.27 million in the same quarter last year [2] - Over the last four quarters, the company has not surpassed consensus FFO estimates, but it has topped consensus revenue estimates three times [2] Stock Performance - Essential Properties shares have declined approximately 1.3% since the beginning of the year, while the S&P 500 has gained 7.3% [3] - The current consensus FFO estimate for the upcoming quarter is $0.48 on revenues of $138.26 million, and for the current fiscal year, it is $1.91 on revenues of $543.84 million [7] Industry Outlook - The REIT and Equity Trust - Retail industry is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8]

Core Insights - OR Royalties Inc. reported a 1.8% year-over-year decline in attributable gold equivalent ounces (GEOs) for Q2 2025, with revenues from royalties and streams reaching a record $60.4 million [1][6] - The cash margin for the quarter was $57.8 million, representing a record cash margin of 95.8% [2][6] - As of June 30, 2025, OR's cash position was $49.6 million, with $614.3 million available for drawdown on its revolving credit facility [3][6] Financial Performance - In Q1 2025, OR reported adjusted earnings per share (EPS) of 16 cents, exceeding the Zacks Consensus Estimate of 13 cents, and showing a 33% year-over-year improvement [4] - Revenues for Q1 2025 were $55 million, reflecting a 22% increase year-over-year [4] - The Zacks Consensus Estimate for Q2 2025 earnings is set at 19 cents, compared to 13 cents reported in Q2 2024 [4] Stock Performance - Over the past year, OR Royalties' shares have increased by 72.8%, significantly outperforming the industry average growth of 4.1% [5]

Financial Performance & Outlook - American Water's Q4 2017 adjusted EPS was $0.69, compared to $0.57 in Q4 2016[15] - Full year 2017 adjusted EPS was $3.03, up from $2.84 in 2016[15] - The company affirms a long-term EPS compound annual growth rate (CAGR) of 7-10%[11, 26] - 2018 GAAP EPS guidance range is $3.22-$3.32[11, 41, 42] Impact of Tax Reform - Tax reform is expected to be accretive to earnings on a long-term basis[27, 34, 46] - The company anticipates a reduction in the federal tax rate from 35% to 21%[33] - Tax reform is expected to be earnings neutral due to rate base increase from lower deferred taxes[33] Capital Investment & Efficiency - The company is targeting $8.0 - $8.6 billion in five-year capital investment[11, 28, 36, 46] - The company is focused on improving O&M efficiency through technology, supply chain, and cost management[11, 28, 46] - The company is aiming for a 32% Regulated O&M Efficiency Ratio target by 2022[56, 57] Regulated Business & Acquisitions - Pennsylvania rate case settlement approved for additional annualized revenues of $62 million[53] - The company has closed 16 acquisitions in 2017, serving 39,514 customers[55, 109] - The company has pending acquisitions that will serve approximately 23,000 customers[55, 111]

Model Assumptions & Inputs - The DCF model defaults to a discount rate of the current 10-year Treasury rate plus 6%, currently at 11% [1] - Earnings per share (EPS) is used as a default input to estimate future earnings in the reverse DCF model [2] - Free cash flow and adjusted dividend models are available as options [2] Reverse DCF Model Analysis - The reverse DCF model determines the growth rate needed to justify the current stock price [3] - For Brown, the model suggests a future growth rate of 1948% per year for the next 10 years to justify the current stock price [3] - Brown's average EPS growth over the last 10 years was 2220% [3] - The expected growth is smaller than the past growth, suggesting it is potentially achievable, but relies on assumptions [4] Key Considerations - The business needs to be predictable and consistent in the future [5] - Future growth should be similar to past growth [5] - Changes to the discount rate can significantly impact the valuation [5] - Future interest rates and the length of the growth stage are unknown assumptions [5] - Both DCF and reverse DCF models rely on numerous assumptions [1][5]