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 […]
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 […]
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