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 […]
Comcast (CMCSA) reported another good set of quarterly financial results. Revenues, EBITDA, and free cash flow all at least met Wall Street estimates in 3Q even as the company had preannounced a slowdown in growth of new broadband subscribers. From a financial perspective, the huge increase in broadband subs during the peak of the pandemic […]
Sony (SONY) reported a second consecutive beat and raise quarter. Even after the previous quarterly report, we still thought that guidance was conservative, so we are pleased but not surprised with another step forward confirming our investment thesis. We could almost republish our last quarterly update and just add today’s date. Three months ago, we […]
Alphabet (GOOG/GOOGL) reported better than expected earnings with revenues, expenses, and EPS all coming in ahead of expectations. The revenue upside was especially impressive given the turmoil in internet and mobile advertising caused by Apple’s privacy initiatives. Google did not escape completely unscathed as YouTube ad growth was a few percent less than expected (although […]
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