Facebook (FB) reported 3Q19 sales slightly ahead of expectations with stronger earnings driven by disciplined expense growth. Guidance commentary was mostly positive with a warning of a pronounced revenue deceleration in 4Q19 due to difficult comparisons to the prior year being offset by an encouraging outlook for 2020. Northlake sees FB heading toward a positive […]
Nexstar Media Group (NXST) has been one of Northlake’s best performing stocks this year. The shares are up 38%, including a gain of about 10% since the company reported third quarter earnings last week. NXST has attracted investors due to its highly accretive acquisition of Tribune, which makes NXST the largest owner of local TV […]
CBS reported 3Q19 earnings in line with reduced Wall Street expectations in its last quarter as standalone company. The merger of Viacom and CBS to create ViacomCBS should close in the first half of December. CBS shares represent the newco as Viacom shareholders will exchange their shares for CBS shares. CBS shares have declined sharply […]
Following a disappointing result in the June quarter with unexpected weakness in Disney’s core business segments, September quarter earnings were improved with stabilization or improvement in theme parks and acquired 21st Century Fox film and TV operations. This led to a relief rally of 3% in DIS shares which had pulled back from $140 to […]
Apple (AAPL) reported a beat and raise quarter affirming that the iPhone 11 cycle is proceeding better than expected. The report also contained good news with above consensus growth in Wearables and Services. Apple shares had discounted this good news, rising from a low of $170 in June to over $240 ahead of the report. […]
Since the tragic shooting at Mandalay Bay in October 2017, MGM Resorts (MGM) has posted inconsistent results at its Las Vegas properties. There has been a lingering impact in Las Vegas generally and at MGM’s southern Strip properties in particular. The results have also bounced around due to the Las Vegas convention and entertainment calendar […]
Alphabet’s (GOOG/GOOGL) headline 3Q19 earnings release was mixed but after adjusting for one-time items, the report was a good one albeit lacking the upside relative to consensus estimates the company reported last quarter. Most importantly for Northlake, Alphabet showed strong advertising growth above 20% reinforcing the rebound in 2Q19 after the unexpected deceleration in growth […]
In what has become routine, Comcast (CMCSA) reported solid results with strength in the cable business offset by weaker trends at NBC Universal. Northlake sees more value creation on the distribution side looking ahead to 2020 and 2021 as the company increasingly becomes a broadband supplier rather than a video distributor. We all read a […]
Northlake has been monitoring IBM for some time in anticipation of an inflection point in the company’s revenue growth and margin profile. We purchased the shares last quarter thinking that the 3Q19 and 2H19 would provide the inflection and lead to a higher P-E multiple for the shares. At our entry point and currently IBM […]
Activision Blizzard (ATVI) reported 2Q19 results that were overall slightly better than expected. Guidance for 3Q19 was underwhelming from the typically conservative management team, but 2019 guidance and expectations were largely unchanged. The current quarter faces a difficult comparison to last year, when ATVI benefitted from a strong contribution from the Destiny franchise that is […]
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