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 […]
We have held off for a few days writing up the 2Q19 earnings report from CBS. It appears the company will finally announce its merger with Viacom and we wanted to wait and cover both events in one post. The merger has been in the works in one form or another for several years. Deal […]
Nexstar Media Group (NXST) reported 2Q results very slightly below consensus estimates. All guidance was reiterated. The company guides based on average 2018 and 2019 results given the highly cyclical nature of revenues due to political and Olympic advertising only occurring in even years. Management is careful about guidance and admitted on the call that […]
In last quarter’s review of Disney (DIS), we noted that “Over the next six months, Disney investors have little to worry about.” We also discussed how we enjoyed the earnings call because it was mostly about operating fundamentals of the company’s core business with less focus on the upcoming Disney+ launch. At the time, we […]
When Northlake began in 2004, our strategy was to combine investments in broad market indices, thematic market indices, and individual stocks with adjustments for individual clients based upon their unique goals objectives and tolerance for risk. This strategy remains in place today with a slight modification to the approach for individual stocks. Back at the […]
Apple (AAPL) reported in line 3Q19 results and released guidance for 3Q19 that is ahead of expectations. It is worth noting that revenues grew just 1% vs the year ago quarter and operating income fell -8.5%. Guidance calls for similar growth rates next quarter. The stock is trading up about 4% to its highest level […]
Alphabet (GOOG/GOOGL) reported strong 2Q19 results, with constant-currency revenue growth of 22% coming on the heels of a disappointing 1Q19 report. The reacceleration of revenue growth back above the crucial 20% bogey will help put to rest concerns that a secular slowdown at GOOGL has begun. Along with strong sales, GOOGL also reported better-than-expected profit […]
MGM Resorts (MGM) reported its best quarter since 2017 when releasing 2Q19 results. For the first time since the 10/1/17 shooting at Mandalay Bay, earnings estimates are likely to move up. Equally important, the conference call went very well. Management was focused, detailed, and confident in its outlook. In fact, the final analyst question concluded […]
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