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 […]
AT&T (T) reported mixed 4Q21 results and issued guidance for 2022 that was below expectations and back-half loaded. This is a setback to our investment thesis after several quarters of improved operational and financial performance. Some of the issues are one-time in nature which should allow 2H22 to reveal steady growth of the new communications-focused […]
After a misstep last quarter, the turnaround at IBM got back on track with 4Q21 results exceeding expectations. The big upside was in revenue which beat street estimates by several percent. Growth showed up in the right places with software, hybrid cloud, and consulting all strong. Stock Reaction: IBM shares were up almost 6% on […]
Home Depot (HD) reported excellent 3Q21 results with sales continuing to grow ahead of consensus expectations and surprisingly good gross and operating margins despite supply chain driven cost pressures. Northlake’s investment thesis on HD has been built around three ideas. First, we believe that the pandemic has created a secular increase in willingness of consumers […]
Disney (DIS) reported slightly disappointing earnings for its 4Q21 with modest shortfalls across most business segments headlined by preannounced weak Disney+ streaming subscriber additions and poor operating margins at theme parks. With a new fiscal year starting in October, management took the opportunity to reset expectations across most of its business lines. Stock Reaction: Since […]
Last quarter we noted that ATVI has been managing the headwinds coming from the employee discrimination lawsuits well. Looking solely at the results of 3Q21, one would conclude the same thing. However, the other shoe dropped when the company delayed the release of two important games from 2022/2023 to 2023/2024. The issues are a loss […]
The title of this blog post is similar to when we last discussed Nexstar Media Group (NXST). This is no coincidence as the company’s 3Q21 earnings report was more of the same good news. NXST has built nationwide scale of local TV stations, a business than has always generated large free cash flow (TV stations […]
When Apple (AAPL) reported its June quarter results, management hinted at supply chain issues beginning to impact the company’s ability to meet demand. During the quarter, at a conference presentation, the company updated its guidance to note that about $3 billion in sales would be lost in the September quarter. When the company reported September […]
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