Apple (AAPL) reported weak but better than expected 2Q19 results and 3Q19 guidance. Revenues fell -5% for the second consecutive quarter. Operating profit fell -15% after declining -10% last quarter. EPS exceeded expectations but still declined -10% boosted by additional share repurchases. Net income fell -16%. Guess what? Amid all these negative numbers AAPL shares […]
On the surface, MGM Resorts (MGM) reported 1Q19 results in line with Wall Street expectations. However, the composition of the results is troubling investors. Regional casinos in the US did well. Macau showed hoped for improvement assisted by high hold at the tables. Las Vegas fell short on EBITDA. Given that the narrative on MGM […]
Alphabet (GOOG/GOOGL) reported disappointing 1Q19 earnings driven by across the board weakness in revenue trends relative to expectations. We have noted in past earnings recaps that Alphabet was holding consistently to 20% plus revenue growth despite the company’s massive size and market share. 1Q19 saw revenue growth in the upper teens, well below expectations for […]
After a tough stretch beginning with last August’s shocking guidance reduction, Facebook (FB) appears mostly out of the woods as far as the bear case goes. User growth at the core Facebook app has held up well in the U.S. and Europe despite the near constant controversies related to privacy. More importantly, advertisers appear to […]
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 […]
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