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 […]
Facebook (FB) reported a strong quarter, pacing ahead of expectations both for financial results and user engagement. Sales grew 51% from last year despite the widely expected decrease in ad load growth. Disciplined cost control limited expense growth to only 40%, below expectations. Facebook, Messenger, Instagram, and Whatsapp each continued to accelerate user growth above […]
As expected, MGM Resorts (MGM) bounced back with a strong quarter in 1Q17 after reporting disappointing 4Q16 results. As described in our 4Q16 update, the miss was largely driven by the shift in timing of Jewish holidays compounded by management’s miscommunication of the anticipated impact to their convention business. MGM’s management took responsibility for the […]
MGM Resorts (MGM) reported disappointing fourth quarter results. The miss was partially self-inflicted; previous guidance from MGM warned about a difficult year-over-year fourth quarter comparison but neglected to mention the potential impact from a shift in the timing of Jewish holidays. A related timing shift by one large convention group impacted fourth quarter EBITDA by […]
Activision Blizzard (ATVI) reported strong sales and profits with FY17 guidance modestly below Street expectations. It appears the conservative guidance was better than most investors expected, as ATVI rallied almost 19% to a new record high of $47.64. ATVI remains on track to benefit from several secular tailwinds, including the growth of higher-margin full-game digital […]
