Nexstar Media Group (NXST) has been of the best stocks in Northlake’s portfolio, up over 3 times from initial purchases in 2017. The company’s latest earnings report for 4Q21 showed exactly why. The company exceeded consensus earnings estimates for revenue, EBITDA, and free cash flow. Management also rolled forward free cash flow guidance to a […]
Since we last published on Activision Blizzard (ATVI), the company agreed to be purchased by Microsoft for $95 per share in cash. The deal is expected to receive heavy scrutiny by regulators and Microsoft has suggested a deal close in mid-2023. The $95 buyout price is above our target of $90, which we had lowered […]
Meta (FB) reported a mixed 4Q21 but the big news was materially lower 2022 guidance accompanied by very cautious commentary about the company’s competitive position and challenges. In our 3Q21 update we discussed the company resetting its outlook. It turns out that was just a small first step as the new 2022 guidance and overall […]
Sony (SONY) reported another string of good quarterly results for 3Q21. As was the case after each of the last two quarters, the company raised guidance for its FY21 ending March 22. Strength was seen across most of the company’s diverse businesses with the biggest upside at Pictures (movie and TV production). We still think […]
Alphabet (GOOG/GOOGL) reported another outstanding quarter led by search advertising along with solid contributions from YouTube and Cloud. Profit margins were better than expected. All this good news was juiced by the announcement of a 20-for-1 stock split that will become effective in July. We see little economic value in stock splits and history suggests […]
Our 2022 stock market outlook calls for lower than average but positive stock market returns with greater downside risk. For bonds, we anticipate higher interest rates in the 5-to-10-year maturity range we typically use in client accounts. In order to best align client accounts with our outlook and the latest signals from our Market Cap […]
Comcast (CMCSA) reported a mostly in-line quarter that is somewhat reassuring after a tough stretch for the stock and its cable peers. Potentially improving sentiment for the shares, the company reported new broadband subscribers in-line with estimates that management had lowered multiple times over the prior four months. Furthermore, there were no further cautionary comments […]
Apple (AAPL) reported excellent 1Q22 results to wrap its CY21. Revenues, profit margins, and EPS all exceeded estimates. Guidance for the March 2022 quarter was also better than expected. Importantly, these results were achieved without much improvement in the supply chain issues that the company is facing. Revenue was held back by the $6 billion […]
AT&T (T) reported mixed 4Q21 results and issued guidance for 2022 that was below expectations and back-half loaded. This is a setback to our investment thesis after several quarters of improved operational and financial performance. Some of the issues are one-time in nature which should allow 2H22 to reveal steady growth of the new communications-focused […]
After a misstep last quarter, the turnaround at IBM got back on track with 4Q21 results exceeding expectations. The big upside was in revenue which beat street estimates by several percent. Growth showed up in the right places with software, hybrid cloud, and consulting all strong. Stock Reaction: IBM shares were up almost 6% on […]
