IBM (IBM): IBM reported mostly solid 2Q22 results, but the stock fell victim to its strong performance from earlier this year. Ahead of the report, the shares were nearly unchanged against a 20-30% decline for major stock market averages. This strong performance raised expectations for IBM, and a good report with a few small flaws […]
Facebook (FB): FB shares soared off recent lows after the company reported 1Q22 results and issued updated guidance. The stock had fallen about 50% since last summer and was trading at pre-pandemic levels heading into the report. This is a good example of how expectations play a huge role in short-term stock price action. FB’s […]
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 […]
When Apple (AAPL) reported its June quarter results, management hinted at supply chain issues beginning to impact the company’s ability to meet demand. During the quarter, at a conference presentation, the company updated its guidance to note that about $3 billion in sales would be lost in the September quarter. When the company reported September […]
Once again Apple (AAPL) reported an outstanding quarter, easily beating consensus estimates that were modestly above the guidance provided three months ago. When we last wrote about Apple, we noted how consistent the company’s financial performance was and how we could almost just repost the prior quarter’s blog. Well, how about this: “In 2Q21 3Q21, […]
While reviewing Apple’s (AAPL) 2Q21 earnings report, I mentioned to Tim that I could almost just repost the blog reviewing 1Q21 earnings. Just change the date and tweak it here and there. Tim astutely pointed out that consistency is a sign of a great company; it is also especially valuable in an era when tweets […]
We are moving from neutral on growth vs. value to all-in on value effective today. We are sticking with mid cap. As a result, for clients using Northlake’s thematic models, we have sold all client positions in the Russell 1000 Growth (IWF) and reinvested the proceeds into the Russell 1000 Value (IWD). There will be […]
Apple reported an extremely good December quarter to open the company’s 2021 fiscal year. Strength was across the board in all products, services, and geographies. The results materially exceeded high expectations. Northlake sees two key long-term takeaways from the results. First, the iPhone remains healthy and is poised for several years of growth as 5G […]
There are no changes to Northlake’s favored themes for December. We remain neutral on growth versus value and continue to favor mid caps. As a result, current client positions following the models in the Russell 1000 Growth (IWF), the Russell 1000 Value (IWD), and the S&P 400 Mid Cap (MDY) will be held for at […]
Apple reported strong 4Q20 earnings with headline numbers for revenue and EPS ahead of Wall Street estimates. The stock responded by trading down -6%, however, due to the composition of revenue and a refusal to provide detailed top line guidance for the December quarter. Revenue was up 1% vs a year ago and about 2% […]
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