Amid a tough quarter for media earnings, CBS was a bright spot. We have long liked CBS for two reasons and both were on display in 1Q17. First, management continues to execute quite well as evidenced by better than peer trends in national and local advertising and subscription fees. Second, and related to effective management, […]
Sinclair Broadcasting (SBGI) reported 1Q17 earnings in line with analyst estimates. Guidance for the second quarter appears a little light although management reiterated all guidance for 2017 and 2018 suggesting it is mostly timing issues. The stock is responding poorly to the earnings report and was falling heading into the report. The timing of Northlake’s […]
Apple reported a mostly inline March quarter and issued guidance for June quarter that was within its usual range. Revenues for the March quarter fell slightly short of estimates driven by iPhone unit shipments of 50.8 million compared to consensus of 52.3 million. That equates to about $1 billion in lost revenue relative to expectations. […]
Each of Northlake’s models has a new signal for May. The Market Cap model is now recommending mid caps after four consecutive months at small cap. The Style model now favors growth after two months at a neutral reading. As a result of the new signals, client positions in the Russell 2000 (IWM) have been […]
Google (GOOG/GOOGL) reported another solid quarter with 24% foreign exchange neutral revenue growth. Revenue growth was driven by advertising, up 20% in constant currency terms. Mobile is the driver with paid clicks rising 53%. Mobile ads remain cheaper than desktop, so the shift to mobile leads to lower ad pricing (-19%) but the net growth […]
Comcast reported another good quarter and the shares are moving up to another all-time high. CMCSA shares are befitting from two factors. First, the company continues to execute almost perfectly on all financial and operational metrics. Second, the threat of onerous cable regulation has fallen sharply under the Trump Administration. Putting the long history of […]
Sinclair Broadcasting (SBGI) has been added to Northlake’s individual stock portfolio. We expect transformational acquisitions to increase the company’s free cash flow by 25-50% over the next two years. Free cash flow per share could average $6-7 on a pro forma basis for the 2017/2018 TV station cycle. We believe this will drive the shares […]
Despite a lot of underlying movement in the indicators, there are no changes to the recommendations from Northlake’s Market Cap and Style models. The Market Cap model remains on a small cap signal and the Style model still reads neutral on growth vs. value. With no changes to the signals, client positons in the Russell […]
Northlake’s Style model shifted to a neutral signal after three months at value. The change primarily reflects a pause in the Trump reflation trade during February that impacted the trend and technical indicators in the Style model that are designed to help model timeliness. Given the new signal, half of client positions in the Russell […]
CBS reported mixed results for 4Q16 in a quarter where that was widely expected due to difficult comparisons. The company showed three fewer Thursday night NFL games and lost 9 hours of primetime to election coverage. This led to revenues and operating income declining by -2%; ignoring the discontinued radio operations that are being sold. […]
