After a difficult 2018, Comcast (CMCSA) shares have rebounded to challenge all-time highs reached at the beginning of last year. This might be hard to understand given the constant drumbeat of news stories about cord-cutting. Well, guess what? Cable is actually a good business and getting better financially speaking. Lost in the cord-cutting hysteria is […]
Activision Blizzard (ATVI) reported record 4Q18 earnings in line with expectations despite sales coming in weaker than hoped. Guidance for 2019 was poor, with sales now expected to be 13% below previous consensus estimates and earnings of $2.10 coming in 16% below consensus. Along with the disappointing guidance, ATVI announced a layoff of 8% of […]
Nexstar Media Group (NXST) reported strong 4Q18 results and issued positive initial guidance for 2019 and 2020 on a standalone basis. NXST should complete its acquisition of Tribune Media in 3Q18 and reiterated initial guidance that the combined company will earn at least $900 million in average free cash flow in the 2019/2020 cycle. Local […]
CBS reported slightly disappointing 4Q18 earnings although the shortfalls were small, just a few percent, and most were explained by the always tricky timing of content sales. The bigger news from the quarter was management pivoting from a financial engineering driven corporate strategy toward an “invest to grow” strategy. Given the changes in TV consumption […]
Disney (DIS) reported solid 1Q19 earnings with Theme Parks doing very well, Studio Entertainment struggling as expected against a tough comparison, and Media Networks showing improvement against strong secular headwinds related to cord cutting and on demand viewing. EPS surprised to the upside although management cautioned that much of the upside was timing related such […]
Alphabet (GOOG/GOOGL) reported a mixed quarter relative to very high Wall Street expectations but a good quarter looking to long-term value creation. Revenue and EPS came in ahead of expectations although the EPS beat was a one-time item. Operating Income disappointed as expenses were well above expectations, an ongoing issue for Alphabet over the past […]
Facebook (FB) reported a better than expected quarter across its financial and engagement metrics providing investors with a large dose of relief. The shares extended the recent rally off the December lows and now sit 13% above the pre-earnings close, 35% above the Christmas Eve low, but remain 23% above the July all-time high. It […]
Apple shares are responding well to a mixed earnings report and guidance update. The earnings for the December quarter were largely in line with the dramatically lower guidance the company issued earlier this month. News headlines discuss the revenue guidance for the March quarter as below consensus. However, it is clear that investors feared even […]
Northlake has been patient with Comcast over the past year as we disliked both the ultimately futile pursuit of 21st Century Fox assets and the ultimately successful purchase of Sky. We have stuck with Comcast due to management’s consistent execution in its operating businesses and our view that cord cutting concerns are overdone. Comcast’s 4Q18 […]
Northlake has sold client positions in Sherwin Williams (SHW) following the company’s disappointing update on 4Q18 earnings. SHW preannounced a large miss versus consensus expectations driven by weakness in its North American stores, Chinese markets, and wholesale business at Lowe’s. Demand in the U.S. was unexpectedly weak in October and November and management was at […]
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