MGM Resorts (MGM) reported decent results for 2Q18 albeit against expectations that were lowered just 90 days ago. When management lowered guidance dramatically for the rest of 2018, investors were very disappointed, sending the shares down 10% over a two day period. The only real good news here is that by almost any measure the […]
CBS is performing well compared to other TV centric media companies. Smart management decisions have the company building a successful presence in in OTT video with Showtime and CBS All Access. A strong lineup of sports and marquee entertainment event programming like the Grammy’s is keeping advertising to low single digit declines even as prime […]
Activision Blizzard (ATVI) beat estimates for 2Q18 sales and earnings, but provided mixed guidance commentary for the back half of the year. Guidance for the third quarter was well below expectations, partially due to increased marketing expenses ahead of a busy and highly competitive holiday season launch slate. Full year guidance was increased but remains […]
Apple (AAPL) reported solid 3Q18 results and issued slightly better than expected guidance for the September quarter. The stock should be in good shape heading into this fall’s new iPhone launch. Northlake intends to hold AAPL shares in client accounts but some small sales could occur due to position size management. A move up to […]
Sherwin Williams (SHW) reported strong 2Q18 results and increased guidance for the year, reversing the reduced guidance from last quarter. Initial EPS guidance for 2018 of $19.05 was previously reduced to $18.65 reflecting new investments in an expanded partnership with Lowe’s, but SHW now expects to earn $19.20 reflecting a strong start to paint season. […]
Facebook (FB) shares are down 18% this morning following slightly weaker than expected 2Q18 earnings and more significantly a dramatic and totally unexpected slashing of its revenue growth and profitability outlook over the next several years. Northlake sees FB shares trading in a range of $160-$200 looking ahead to the rest of the year with […]
If I told you Comcast had more almost 3% more subscribers today than a year ago, I bet you would think I was crazy. Well, that is the truth. Yes, the company is losing video subscribers to cord cutting in favor of Netflix, Hulu or skinny streaming cable-like channel bundles. But broadband is still growing […]
Alphabet (GOOG/GOOGL) reported good second quarter earnings and the stock is reacting well, up 4.6% to start the day. GOOG earnings are often hard to understand given the company’s complex corporate structure and strategy. For 2Q18, the results were relatively straightforward if you ignore the cost of the latest fine paid to the European Union. […]
Nexstar Media Group reported inline but mixed results for 1Q18. Importantly, the company reiterated its 2018 guidance for $13.10 in average annual free cash flow per share in 2018 and 2019. The political cycle leads investors in local TV broadcasters to look at valuation on a two year basis. Normally, Northlake tries to avoid a […]
Liberty Global (LBTYK) remains a very frustrating investment for Northlake. 1Q18 results were typical. The company claimed growth in line with estimates with earnings and EBITDA up nearly 5%. However, the results were boosted by a one-time catch up payment in Germany. Excluding the payments, growth was around 3.5%. This type of messaging has occurred […]
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