Disney (DIS) shares remain at a very challenging juncture at the company’s spends heavily on its primary strategic priority, shifting its media networks business to a direct to consumer model. A key part of this strategy is the acquisition of most of 21st Century Fox’s entertainment assets. In DIS’s latest earnings report, the company indicated […]
Activision Blizzard (ATVI) reported 1Q18 results above expectations, but provided underwhelming guidance for 2Q18. The full year outlook for 2018 was increased slightly, but still remains below street expectations. ATVI is typically quite conservative with guidance, and combined with the back-half weighted content slate compared to 2017, we expect results to surpass guidance for the […]
CBS has been the most frustrating stock in the Northlake portfolio. The company has consistently met or exceeded earnings estimates, steadily increased its dividend and share buyback, pruned its portfolio wisely to reduce advertising exposure and cyclicality, and is the clear leader among broadcast and TV network companies with its OTT strategy. However, none of […]
There is no super cycle at Apple but business fundamentals at Apple still look solid. Apple reported earnings in line with Wall Street estimates but ahead of fears. Guidance for the next quarter was ahead of recently lowered investor expectations. The key takeaways from Apple’s quarter are: iPhone units volumes are not collapsing, growing 3% […]
Facebook (FB) has recently been the focus of media scrutiny surrounding the company’s role in Russian interference in the US presidential election, the Cambridge Analytica data leak, and the Eurozone’s upcoming General Data Protection Regulations (GDPR). Despite the concerns caused by these issues, FB reported impressive 1Q18 sales and earnings results. The outlook for 2018 […]
MGM Resorts (MGM) reported pretty good 1Q18 earnings but lowered its outlook for the rest of the year based primarily on company specific factors. The business environment in Las Vegas and Macau remains favorable and should stay that way short of a global growth slowdown or recession. MGM’s problems are partially due to poor communication […]
Comcast (CMCSA) has become a difficult company and stock to analyze. The latest quarterly earnings report indicates 2018 is off to a decent start but not without significant challenges that reinforce the long-term concerns about video subscriber losses and broadband competition. Complicating matters further is the company’s offer to buy Sky, the dominant satellite TV […]
Sherwin Williams (SHW) beat 1Q18 sales and profit expectations, but unexpectedly reduced 2018 consolidated earnings guidance from $19.05 to $18.65 reflecting new investments in an expanded partnership with Lowe’s. SHW expects to recoup the entire $0.40 2018 EPS impact in 2019, noting that the incremental investment would be accretive to sales and profits next year. […]
Alphabet (GOOG/GOOGL) reported mixed results relative to consensus expectations for 1Q18. The results also contained a lot of noise due to accounting requirements. The key takeaways for Northlake are that the company is still growing quite rapidly given its size, while the cost of sustaining the growth is rising. We emphasize the long-term opportunity over […]
Nexstar Media Group (NXST) reported good 4Q17 earnings with strength in political and digital advertising offsetting slightly worse than expected growth in retransmission fees. Guidance for 2018 and 2019 was limited to average annual free cash flow. At $600 million per year, it was below street expectations. The culprit appears to be timing of renewals […]
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