As a triple net lease real estate investment trust that owns casino real estate properties, VICI Properties (VICI) operates a highly predictable, low volatility business. VICI is a landlord that is paid rent by casino operators like Caesars Entertainment and MGM Resorts. 4Q21 was no exception to VICI’s consistent financial performance with all reported key […]
Home Depot (HD) reported better than expected 4Q21 results driven continued upside in sales. However, investors chose to focus on conservative guidance and modest pressure on gross margins, accelerating the recent pullback in the shares. HD management has been very cautious about forward-looking commentary since the pandemic began despite consistently seeing sales growth well above […]
We are calling an audible on our 2021 purchase of AT&T (T). We have sold the shares and reinvested the proceeds into T Mobile USA (TMUS). We still see value in T shares. However, we see more upside in TMUS. Furthermore, we see the TMUS story playing out over a multiyear period vs. AT&T being […]
Nexstar Media Group (NXST) has been of the best stocks in Northlake’s portfolio, up over 3 times from initial purchases in 2017. The company’s latest earnings report for 4Q21 showed exactly why. The company exceeded consensus earnings estimates for revenue, EBITDA, and free cash flow. Management also rolled forward free cash flow guidance to a […]
Since we last published on Activision Blizzard (ATVI), the company agreed to be purchased by Microsoft for $95 per share in cash. The deal is expected to receive heavy scrutiny by regulators and Microsoft has suggested a deal close in mid-2023. The $95 buyout price is above our target of $90, which we had lowered […]
Meta (FB) reported a mixed 4Q21 but the big news was materially lower 2022 guidance accompanied by very cautious commentary about the company’s competitive position and challenges. In our 3Q21 update we discussed the company resetting its outlook. It turns out that was just a small first step as the new 2022 guidance and overall […]
Sony (SONY) reported another string of good quarterly results for 3Q21. As was the case after each of the last two quarters, the company raised guidance for its FY21 ending March 22. Strength was seen across most of the company’s diverse businesses with the biggest upside at Pictures (movie and TV production). We still think […]
Alphabet (GOOG/GOOGL) reported another outstanding quarter led by search advertising along with solid contributions from YouTube and Cloud. Profit margins were better than expected. All this good news was juiced by the announcement of a 20-for-1 stock split that will become effective in July. We see little economic value in stock splits and history suggests […]
Comcast (CMCSA) reported a mostly in-line quarter that is somewhat reassuring after a tough stretch for the stock and its cable peers. Potentially improving sentiment for the shares, the company reported new broadband subscribers in-line with estimates that management had lowered multiple times over the prior four months. Furthermore, there were no further cautionary comments […]
Apple (AAPL) reported excellent 1Q22 results to wrap its CY21. Revenues, profit margins, and EPS all exceeded estimates. Guidance for the March 2022 quarter was also better than expected. Importantly, these results were achieved without much improvement in the supply chain issues that the company is facing. Revenue was held back by the $6 billion […]
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