America Movil's Income Misses as Prepaid Disconnections Rise
Net income in the second quarter was 22.3 billion pesos ($1.2 billion), below analysts' estimates of 29.3 billion pesos. Revenue was 233.8 billion pesos, higher than analysts had expected, while a gauge of profitability known as Ebitda, which excludes items such as taxes and depreciations, beat estimates to reach 92.4 billion pesos.
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State of play in Trump's tariffs, threats and delays
Dozens of economies including India, Canada and Mexico face threats of higher tariffs Friday if they fail to strike deals with Washington. Here is a summary of duties President Donald Trump has introduced in his second term as he pressures allies and competitors alike to reshape US trade relationships. - Global tariffs - US "reciprocal" tariffs -- imposed under legally contentious emergency powers -- are due to jump from 10 percent to various steeper levels for a list of dozens of economies come August 1, including South Korea, India and Taiwan. The hikes were to take effect July 9 but Trump postponed them days before imposition, marking a second delay since their shock unveiling in April. A 10 percent "baseline" levy on most partners, which Trump imposed in April, remains in place. He has also issued letters dictating tariff rates above 10 percent for individual countries, including Brazil, which has a trade deficit with the United States and was not on the initial list of higher "reciprocal" rates. Several economies -- the European Union, Britain, Vietnam, Japan, Indonesia and the Philippines -- have struck initial tariff deals with Washington, while China managed to temporarily lower tit-for-tat duties. Certain products like pharmaceuticals, semiconductors and lumber are excluded from Trump's "reciprocal" tariffs, but may face separate action under different authorities. This has been the case for steel, aluminum, and soon copper. Gold and silver, alongside energy commodities, are also exempted. Excluded too are Mexico and Canada, hit with a different set of tariffs, and countries like Russia and North Korea as they already face sanctions. - Canada, Mexico - Canadian and Mexican products were hit by 25 percent US tariffs shortly after Trump returned to office, with a lower rate for Canadian energy. Trump targeted both neighbors over illegal immigration and fentanyl trafficking, also invoking emergency powers. But trade negotiations have been bumpy. This month, Trump said Canadian goods will face a higher 35 percent duty from August 1, and Mexican goods will see a 30 percent level. Products entering the United States under the USMCA North American free trade pact, covering large swaths of goods, are expected to remain exempt -- with Canadian energy resources and potash, used as fertilizer, to still face lower rates. - China focus - Trump has also taken special aim at China. The world's two biggest economies engaged in an escalating tariffs war this year before their temporary pullback. The countries imposed triple-digit duties on each other at one point, a level described as a trade embargo. After high level talks, Washington lowered its levies on Chinese goods to 30 percent and Beijing slashed its own to 10 percent. This pause is set to expire August 12, and officials will meet for further talks on Monday and Tuesday in the Swedish capital Stockholm. The US level is higher as it includes a 20 percent tariff over China's alleged role in the global fentanyl trade. Beyond expansive tariffs on Chinese products, Trump ordered the closure of a duty-free exemption for low-value parcels from the country. This adds to the cost of importing items like clothing and small electronics. - Autos, metals - Trump has targeted individual business sectors too, under more conventional national security grounds, imposing a 25 percent levy on steel and aluminum imports which he later doubled to 50 percent. The president has unveiled plans for a 50 percent tariff on copper imports starting August 1 as well and rolled out a 25 percent tariff on imported autos, although those entering under the USMCA can qualify for a lower rate. Trump's auto tariffs impact vehicle parts too, but new rules ensure automakers paying vehicle tariffs will not also be charged for certain other duties. He has ongoing investigations into imports of lumber, semiconductors, pharmaceuticals and critical minerals that could trigger further duties. - Legal challenges - Several legal challenges have been filed against the tariffs Trump invoked citing emergencies. The US Court of International Trade ruled in May that the president had overstepped his authority, but a federal appeals court has allowed the duties to remain while it considers the case. If these tariffs are ultimately ruled illegal, companies could possibly seek reimbursements. bys/des/mlm Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
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Old Second Bancorp Inc (OSBC) Q2 2025 Earnings Call Highlights: Strong Net Income Amidst ...
Net Income: $21.8 million or $0.48 per diluted share. Return on Assets: 1.53%. Return on Average Tangible Common Equity: 15.29%. Tax Equivalent Efficiency Ratio: 54.54%. Tangible Equity Ratio: Increased by 49 basis points to 10.83% from last quarter. Common Equity Tier 1: 13.77%, up from 13.47% last quarter. Net Interest Margin: Decreased 3 basis points to 4.85% from last quarter. Total Cost of Deposits: 84 basis points for the second quarter. Loan-to-Deposit Ratio: 83.3% as of June 30. Total Loans Increase: $58.4 million from last quarter. Allowance for Credit Losses on Loans: Increased to $43 million or 1.08% of total loans. Noninterest Income: Wealth management fees increased by $324,000 or 11.7%; service charges on deposits increased by $280,000 or 11.2%. Noninterest Expense: $1.1 million less than the prior linked quarter. Average Deposits Increase: $51 million or 1.1% quarter-over-quarter. Share Repurchase: Approximately 327,000 shares repurchased in a privately negotiated transaction. Warning! GuruFocus has detected 5 Warning Sign with OSBC. Release Date: July 24, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Old Second Bancorp Inc (NASDAQ:OSBC) reported a strong net income of $21.8 million or $0.48 per diluted share for the second quarter. The company's return on average tangible common equity was 15.29%, indicating strong profitability. The tangible equity ratio increased by 49 basis points from the previous quarter, showing improved capital strength. Net interest income increased by $1.3 million or 2.1% compared to the prior quarter, reflecting strong margin performance. The acquisition of Evergreen Bank is expected to enhance profitability, with the bank performing ahead of initial expectations. Negative Points The second quarter earnings were impacted by a $531,000 MSR mark-to-market loss and an $810,000 charge in merger-related expenses. Net interest margin decreased by 3 basis points compared to the previous quarter. The loan-to-deposit ratio increased to 83.3%, indicating a higher reliance on deposits for loan funding. Noninterest expense increased by $5.5 million year-over-year, driven by higher salaries, employee benefits, and occupancy costs. The integration of Evergreen Bank is expected to result in a 'messy' next quarter with acquisition-related expenses. Q & A Highlights Q: What is the expected timing for the Evergreen Bank conversion, and what is the anticipated expense run rate? A: Bradley Adams, CFO and COO, stated that the conversion is expected to occur in the early to mid-fourth quarter. By the time they report the fourth quarter, the operating expenses should be closer to the final run rate, with the first quarter of the next year being relatively clean. Q: Can you provide more details about the owner-occupied CRE that was classified? A: James Eccher, CEO, explained that it stems from a large healthcare transaction in Oregon. They do not foresee a loss as they are in a strong collateral position with a 70% covered loan-to-value. The facility had restrictions from the state of Oregon, but these have been lifted, and cash flow is expected to improve. Q: How are commercial clients feeling about growth and loan closures given the current economic climate? A: James Eccher noted that commercial clients are handling tariff uncertainty well, though CapEx appetite has been muted. There is growth in leasing and commercial real estate, with a strong second-half pipeline expected, especially with the Evergreen Bank's powersports area. Q: What is the outlook for charge-offs, especially with the Evergreen acquisition? A: James Eccher mentioned that while powersports lending can have higher loss rates (1% to 1.5%), the portfolio's average coupon is around 9%, which balances the risk. Bradley Adams added that a 30 basis point charge-off rate going forward is reasonable. Q: How will the margin respond to a potential 25 basis point Fed rate cut? A: Bradley Adams expressed skepticism about a rate cut this year, noting that the margin is less sensitive to rate changes due to balance sheet movements. He estimated a 4 basis point impact per 25 basis point cut, but emphasized that internal adjustments are more influential. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
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ITMAX System Berhad's (KLSE:ITMAX) Stock Is Going Strong: Is the Market Following Fundamentals?
ITMAX System Berhad's (KLSE:ITMAX) stock is up by a considerable 8.1% over the past month. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. Specifically, we decided to study ITMAX System Berhad's ROE in this article. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Put another way, it reveals the company's success at turning shareholder investments into profits. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. How Do You Calculate Return On Equity? The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for ITMAX System Berhad is: 20% = RM83m ÷ RM418m (Based on the trailing twelve months to March 2025). The 'return' is the yearly profit. One way to conceptualize this is that for each MYR1 of shareholders' capital it has, the company made MYR0.20 in profit. View our latest analysis for ITMAX System Berhad Why Is ROE Important For Earnings Growth? So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. ITMAX System Berhad's Earnings Growth And 20% ROE To start with, ITMAX System Berhad's ROE looks acceptable. Especially when compared to the industry average of 8.9% the company's ROE looks pretty impressive. This certainly adds some context to ITMAX System Berhad's exceptional 34% net income growth seen over the past five years. However, there could also be other causes behind this growth. Such as - high earnings retention or an efficient management in place. As a next step, we compared ITMAX System Berhad's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 14%. Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. Is ITMAX System Berhad fairly valued compared to other companies? These 3 valuation measures might help you decide. Is ITMAX System Berhad Making Efficient Use Of Its Profits? ITMAX System Berhad has a really low three-year median payout ratio of 13%, meaning that it has the remaining 87% left over to reinvest into its business. So it seems like the management is reinvesting profits heavily to grow its business and this reflects in its earnings growth number. Along with seeing a growth in earnings, ITMAX System Berhad only recently started paying dividends. Its quite possible that the company was looking to impress its shareholders. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to rise to 20% over the next three years. Despite the higher expected payout ratio, the company's ROE is not expected to change by much. Summary In total, we are pretty happy with ITMAX System Berhad's performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
