Activision Blizzard (ATVI) once again beat expectations upon announcing 4Q17 and 2017 results. However, guidance for 1Q18 and 2018 were mixed, with full year guidance generally in line with expectations while 1Q18 guidance appeared a bit light. ATVI has demonstrated a consistent pattern of issuing conservative guidance and then outperforming each quarter. Northlake believes ATVI […]
Sherwin Williams (SHW) reported solid 4Q17 results slightly above consensus sales and earnings estimates. Heading into 2018, SHW expects earnings per share between $18.80 and $19.30 excluding Valspar acquisition-related expenses of $3.45. Importantly, SHW noted that most of the remaining costs to achieve the estimated $385-$415 million of annual acquisition synergies will be booked in […]
Activision Blizzard (ATVI) reported better-than-expected top and bottom line 3Q17 results. The strong quarter flowed through to increases in 2017 sales and earnings guidance. Important game launches including Destiny 2 and Call of Duty:WWII appear to have gone well so far. Other key franchises such as Hearthstone, World of Warcraft, and Candy Crush continue to […]
Third quarter results at MGM Resorts International (MGM) were above expectations, largely due to a boost from two massively popular boxing events during the prior three months. MGM also benefited from slightly above average luck on gaming profits. The strong results were offset by disappointing guidance for the fourth quarter after MGM experienced elevated reservation […]
Facebook (FB) reported very strong 3Q17 results with both sales and earnings substantially better than expected, largely driven by lower than expected expenses for the second straight quarter. The company has now spent less than their initial annual expense guidance for the past two years, demonstrating operational discipline even while investing for growth. FB noted […]
Alphabet (GOOG/GOOGL) reported better than expected 3Q17 results. Sales were up 24% compared to 3Q16, accelerating from 21% year-over-year growth last quarter. Earnings per share were almost 15% above expectations, partially boosted by a favorable tax rate. Mobile search advertising, YouTube, and cloud computing each contributed to the strong results. GOOG grew advertising revenue by […]
Activision Blizzard (ATVI) reported strong second quarter results with sales and profits substantially higher than expected. While guidance for the third quarter and full year were raised from previous levels, it appears investors expected a larger increase. ATVI has typically provided conservative guidance in the past, and this appears to be the case again this […]
MGM Resorts (MGM) reported strong 2Q17 results with better than expected profitability. Management executed well against long term plans to continuously improve profit margins, overcoming a self-imposed headwind from lower hotel room revenue and a slightly unlucky quarter at the casino tables. The investment thesis remains on track with several catalysts expected to drive shares […]
Facebook (FB) reported better than expected sales with profits significantly ahead of expectations. The strong results reflect expense discipline even as FB continues to invest for future growth. Looking ahead to the rest of this year, FB narrowed full year expense growth guidance from 40-50% to 40-45%. EPS easily beat Wall Street estimates even after […]
Activision Blizzard (ATVI) reported a strong quarter, beating consensus sales and profit expectations. Full year guidance was increased from prior levels but remained below consensus. In past quarters, ATVI has tended to offer conservative guidance leading to upside surprises when they report actual results. Investors focused on strength in the Blizzard and KING segments, while […]
