Disney (DIS) reported first quarter earnings of $1.50, up 10% from a year ago, and ahead of Wall Street estimates of $1.41. Revenues grew just 3% and operating income just 5% as EPS benefited from a lower than expected tax rate and share repurchases. DIS shares have reacted negatively to the report, falling -2% to […]
Amid a tough quarter for media earnings, CBS was a bright spot. We have long liked CBS for two reasons and both were on display in 1Q17. First, management continues to execute quite well as evidenced by better than peer trends in national and local advertising and subscription fees. Second, and related to effective management, […]
Facebook (FB) reported a strong quarter, pacing ahead of expectations both for financial results and user engagement. Sales grew 51% from last year despite the widely expected decrease in ad load growth. Disciplined cost control limited expense growth to only 40%, below expectations. Facebook, Messenger, Instagram, and Whatsapp each continued to accelerate user growth above […]
Sinclair Broadcasting (SBGI) reported 1Q17 earnings in line with analyst estimates. Guidance for the second quarter appears a little light although management reiterated all guidance for 2017 and 2018 suggesting it is mostly timing issues. The stock is responding poorly to the earnings report and was falling heading into the report. The timing of Northlake’s […]
Apple reported a mostly inline March quarter and issued guidance for June quarter that was within its usual range. Revenues for the March quarter fell slightly short of estimates driven by iPhone unit shipments of 50.8 million compared to consensus of 52.3 million. That equates to about $1 billion in lost revenue relative to expectations. […]
Google (GOOG/GOOGL) reported another solid quarter with 24% foreign exchange neutral revenue growth. Revenue growth was driven by advertising, up 20% in constant currency terms. Mobile is the driver with paid clicks rising 53%. Mobile ads remain cheaper than desktop, so the shift to mobile leads to lower ad pricing (-19%) but the net growth […]
As expected, MGM Resorts (MGM) bounced back with a strong quarter in 1Q17 after reporting disappointing 4Q16 results. As described in our 4Q16 update, the miss was largely driven by the shift in timing of Jewish holidays compounded by management’s miscommunication of the anticipated impact to their convention business. MGM’s management took responsibility for the […]
Comcast reported another good quarter and the shares are moving up to another all-time high. CMCSA shares are befitting from two factors. First, the company continues to execute almost perfectly on all financial and operational metrics. Second, the threat of onerous cable regulation has fallen sharply under the Trump Administration. Putting the long history of […]
Sinclair Broadcasting (SBGI) has been added to Northlake’s individual stock portfolio. We expect transformational acquisitions to increase the company’s free cash flow by 25-50% over the next two years. Free cash flow per share could average $6-7 on a pro forma basis for the 2017/2018 TV station cycle. We believe this will drive the shares […]
MGM Resorts (MGM) reported disappointing fourth quarter results. The miss was partially self-inflicted; previous guidance from MGM warned about a difficult year-over-year fourth quarter comparison but neglected to mention the potential impact from a shift in the timing of Jewish holidays. A related timing shift by one large convention group impacted fourth quarter EBITDA by […]
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