Comcast (CMCSA) has become a difficult company and stock to analyze. The latest quarterly earnings report indicates 2018 is off to a decent start but not without significant challenges that reinforce the long-term concerns about video subscriber losses and broadband competition. Complicating matters further is the company’s offer to buy Sky, the dominant satellite TV […]
Alphabet (GOOG/GOOGL) reported mixed results relative to consensus expectations for 1Q18. The results also contained a lot of noise due to accounting requirements. The key takeaways for Northlake are that the company is still growing quite rapidly given its size, while the cost of sustaining the growth is rising. We emphasize the long-term opportunity over […]
Northlake’s Market Cap model moved from mid cap to large cap for April. This is the first large cap reading since September 2017. The Market Cap model often moves in stair step fashion from small to mid large and large to mid to small. For December 2017, the signal was small cap, so the new […]
Northlake’s Style model flipped back to growth for March, so client holdings in the Russell 1000 Value (IWD) are being sold and proceeds reinvested into the Russell 1000 Growth (IWF). There is no change to the Market Cap model’s mid cap signal. Positions in the S&P 400 Mid Cap (MDY) will be held another month. […]
Nexstar Media Group (NXST) reported good 4Q17 earnings with strength in political and digital advertising offsetting slightly worse than expected growth in retransmission fees. Guidance for 2018 and 2019 was limited to average annual free cash flow. At $600 million per year, it was below street expectations. The culprit appears to be timing of renewals […]
MGM Resorts (MGM) reported 4Q17 results in line with to slightly better than expectations. Due to a variety of factors including poorly communicated guidance in 2016, a delayed opening for the company’s new casino in Macau, the tragic shooting at Mandalay Bay on October 1st, a shift in metrics away from industry standard revpar, and […]
Liberty Global (LBTYK) reported a mixed quarter to end 2017. Rebased revenue grew 3%, a nice acceleration, albeit to a still low level of growth. Rebased operating cash flow grew just shy of 5%, basically meeting guidance for “around 5%.” Northlake has been waiting a couple of years for LBTYK to show growth acceleration on […]
CBS reported better than expected 4Q17 results but in what has been a consistent pattern for several years, the shares did not respond favorably. There has been a long list of issues for CBS shares mostly focused on the changing consumption of television as viewers migrate to services like Netflix and Hulu and younger viewers […]
Disney (DIS) reported mixed results with the headline EPS number getting a big boost from a tax rate well below estimates. Parks and Resorts was the positive standout with 13% revenue growth accompanied by operating leverage that boosted operating income growth to 21%. The rest of the company’s divisions all reported flat to lower year […]
What began as a normal correction related to a quicker than expected increase in market interest rates (the 10 year Treasury rose from 2.5% to 2.8%) accelerated on Monday afternoon due to trading related to volatility strategies. These strategies helped the market on the upside over the past year but are largely unrelated to economic […]
