Activision Blizzard (ATVI) reported better-than-expected top and bottom line 3Q17 results. The strong quarter flowed through to increases in 2017 sales and earnings guidance. Important game launches including Destiny 2 and Call of Duty:WWII appear to have gone well so far. Other key franchises such as Hearthstone, World of Warcraft, and Candy Crush continue to […]
During November, Liberty Media reported third quarter earnings and hosted its annual analyst meeting. A portion of the Northlake client base owns stock in companies controlled by Liberty Media including Formula One Group (FWONA/FOWNK) and Liberty Sirius (LSXMA/LSXMK). Liberty regularly creates tracking stocks or spins off companies they control. We have gradually sold off many […]
Third quarter results at MGM Resorts International (MGM) were above expectations, largely due to a boost from two massively popular boxing events during the prior three months. MGM also benefited from slightly above average luck on gaming profits. The strong results were offset by disappointing guidance for the fourth quarter after MGM experienced elevated reservation […]
Facebook (FB) reported very strong 3Q17 results with both sales and earnings substantially better than expected, largely driven by lower than expected expenses for the second straight quarter. The company has now spent less than their initial annual expense guidance for the past two years, demonstrating operational discipline even while investing for growth. FB noted […]
TV stocks have had a good rally in the past week for the first time since May. Among Northlake positions, this includes Disney (DIS), CBS Corporation (CBS), and Nexstar Media Group (NXST). Each has rallied between 5-10% off of at or near 2017 lows. The challenges facing TV have metastasized this year. The issues are […]
We have been wrong on Liberty Global (LBTYK) for more than two years. The shares peaked at over $50 in 2015 and now sit at $30. The $50 price was fed by takeover speculation but even so the shares have vastly underperformed a bull market. The shares have still returned over 50% from our original […]
Apple (AAPL) reported good September quarter earnings driven by better than expected revenue everywhere but iPhones. Profit margins were a little light driven by the mix shift away from iPhones. A lower tax rate assisted the revenue upside to produce EPS about 10% ahead of consensus estimates. The critically important guidance for the holiday quarter […]
Alphabet (GOOG/GOOGL) reported better than expected 3Q17 results. Sales were up 24% compared to 3Q16, accelerating from 21% year-over-year growth last quarter. Earnings per share were almost 15% above expectations, partially boosted by a favorable tax rate. Mobile search advertising, YouTube, and cloud computing each contributed to the strong results. GOOG grew advertising revenue by […]
Comcast (CMCSA) reported in line results for 3Q17 although admittedly expectations on subscriber metrics had been reduced after the company adjusted its guidance. Financial results matched initial expectations and were never adjusted lower despite the lower subscriber counts. Comcast shares fell 15% from all-time highs since the company announced in September that they would lose […]
Sherwin Williams (SHW) has been added to Northlake’s individual stock portfolio. SHW is the type of high quality, long-term growth company we prioritize. The company is in the process of integrating the acquisition of Valspar. We have been awaiting more clarity on progress of the integration and an updated multiyear outlook to confirm our bullish […]
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