MGM Resorts (MGM) reported 4Q17 results in line with to slightly better than expectations. Due to a variety of factors including poorly communicated guidance in 2016, a delayed opening for the company’s new casino in Macau, the tragic shooting at Mandalay Bay on October 1st, a shift in metrics away from industry standard revpar, and […]
Liberty Global (LBTYK) reported a mixed quarter to end 2017. Rebased revenue grew 3%, a nice acceleration, albeit to a still low level of growth. Rebased operating cash flow grew just shy of 5%, basically meeting guidance for “around 5%.” Northlake has been waiting a couple of years for LBTYK to show growth acceleration on […]
CBS reported better than expected 4Q17 results but in what has been a consistent pattern for several years, the shares did not respond favorably. There has been a long list of issues for CBS shares mostly focused on the changing consumption of television as viewers migrate to services like Netflix and Hulu and younger viewers […]
Activision Blizzard (ATVI) once again beat expectations upon announcing 4Q17 and 2017 results. However, guidance for 1Q18 and 2018 were mixed, with full year guidance generally in line with expectations while 1Q18 guidance appeared a bit light. ATVI has demonstrated a consistent pattern of issuing conservative guidance and then outperforming each quarter. Northlake believes ATVI […]
Sherwin Williams (SHW) reported solid 4Q17 results slightly above consensus sales and earnings estimates. Heading into 2018, SHW expects earnings per share between $18.80 and $19.30 excluding Valspar acquisition-related expenses of $3.45. Importantly, SHW noted that most of the remaining costs to achieve the estimated $385-$415 million of annual acquisition synergies will be booked in […]
Disney (DIS) reported mixed results with the headline EPS number getting a big boost from a tax rate well below estimates. Parks and Resorts was the positive standout with 13% revenue growth accompanied by operating leverage that boosted operating income growth to 21%. The rest of the company’s divisions all reported flat to lower year […]
Apple (AAPL) reported strong growth but mixed results relative to expectations for its 1Q18 ending December 31st. iPhone unit sales fell short of still high expectations but higher than expected average selling prices allowed revenue growth to match or exceed Wall Street estimates. Specifically, iPhone unit sales fell a little short of the 80 million […]
Google (GOOG/GOOGL) shares fell after reporting 4Q17 earnings. Revenue growth remained remarkably strong, rising 24% year over year, but Traffic Acquisition Costs (TAC) and other operating expenses rose even faster leading to margin compression and EPS below expectations. The debate for Google investors has long been focused on (1) the sustainability of revenue growth, and […]
Despite some worries related to recent changes to Facebook’s (FB) News Feed, the company reported another outstanding quarter with revenues rising 47% and operating leverage again evident even as the company continues to caution about increased spending. More importantly, the company’s words and tone when discussing the impact of changes that could limit time spent […]
Comcast (CMCSA) reported an inline quarter with upside in the closely watched video and broadband subscriber metrics. Consolidated revenues grew 4% and adjusted EBITDA was flat after taking into account $171mm in employee bonuses related to tax reform. The cable business grew revenues 3% and adjusted EBITDA 4% as margins expanded. NBC Universal had 4% […]
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