Northlake has sold client positions in Sherwin Williams (SHW) following the company’s disappointing update on 4Q18 earnings. SHW preannounced a large miss versus consensus expectations driven by weakness in its North American stores, Chinese markets, and wholesale business at Lowe’s. Demand in the U.S. was unexpectedly weak in October and November and management was at […]
Effective 1/1/19, Northlake’s Style model moved back to Growth after four months at neutral. The Market Cap model remains on a large cap signal for the fifth consecutive month. Client positions in the Russell 1000 Value (IWD) or S&P 500 500 Value (SPYV) have been sold with proceeds reinvested into the Russell 1000 Growth (IWF) […]
MGM Resorts (MGM) reported better than expected 3Q18 results driven by the company’s Las Vegas properties. The beat was at least partially due to a significant reset of expectations following a new approach to guidance by management after overpromising in 2017 and 2018 and a pessimistic outlook from analysts after a sudden slowdown in Las […]
Facebook (FB) reported mixed 3Q18 results relative to expectations. Revenues fell slightly short of estimates but operating and income and EPS beat consensus as the ramp in expenses to combat the many privacy issues the company is facing was slower than expected. Management provided initial expense guidance for 2019 of up 40-50% indicating the 3Q18 […]
CBS continued its pattern of reporting modest growth against the tide of change in the TV business. 3Q18 revenues grew 3% with EPS advancing 11%. Operating income grew only 1% as the company continues to benefits at the EPS from large share buybacks and the reduction in corporate tax rates. CBS shares have stalled the […]
Powered by the intense election fight, political ad sales drove Nexstar Media Group (NXST) to better than expected 3Q18 earnings. Management raised guidance for the year based on the political ad spending. Importantly, management also noted that after accounting for the displacement of core non-political advertising, traditional ad spending has modestly strengthened and is approaching […]
Apple (AAPL) reported decent September quarter results with revenues and EPS slightly ahead of estimates. iPhone shipments came in about 1% under street estimates but were offset by better than expected average selling prices. Services, which had been surprising to the upside and driving an improved growth narrative for AAPL, saw revenue come in about […]
Comcast (CMCSA) still has to convince us and a lot of investors of the wisdom of its acquisition of Sky Plc, Europe’s largest satellite TV provider. Fortunately, the company’s domestic cable business and NBC Universal content operations are performing well giving the company some breathing room. Management can point to a strong record on acquisitions […]
Disney (DIS) reported a strong 4Q18 as it wrapped a good fiscal year financially and an eventful one strategically. For the year, revenue grew 8%, the best rate of growth since 2015.Opeting income grew 6% but adjusting for losses at recently acquired BAM TECH and ongoing losses at Hulu, growth would have been several percentage […]
There was very little moved in the indicators underlying Northlake’s Market Cap and Style models for October. As a result, neither model triggered a new signal. The Market Cap model still favors large caps and the Style model is neutral on growth vs. value. Current client positions in the S&P 500 (SPY) will be held […]
