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 […]
Facebook (FB) has had a rough go lately. News stories have occurred almost daily criticizing the company. Politicians and regulators are looking for a way to punish the company and limit its influence. Apple’s changes to enable greater privacy for iOS users is limiting FB’s ability to measure and target its users on behalf of […]
AT&T (T) reported its first quarterly results since Northlake took a long position in client accounts in July. Virtually across the board, the results slightly exceeded estimates leading the company to modestly increase its 2021 guidance for financial results and subscriber counts. Our thesis is built upon a hated company that is showing improved execution […]
After two consecutive quarters of improved results and a positive analyst meeting earlier this month, IBM’s 3Q21 earnings were disappointing. Revenues fell slightly short of estimates, and after adjusting for a favorable tax rate, EPS did as well. Key growth areas like consulting and hybrid cloud performed well, but software, mainframe systems, and soon-to-be spun […]
Surprisingly to Northlake, intermediate and long-term interest rates have fallen slightly over the last several months. We had been anticipating higher rates as the economy emerged from COVID impacts, inflation held at well-above pre-pandemic levels, the timing of the Federal Reserve’s monetary policy tightening grew closer. Instead, for reasons that most on Wall Street still […]
Home Depot (HD) reported solid 2Q21 results with same store sales growing in-line with expectations and earnings ahead of consensus estimates. HD chose not to provide guidance given uncertainty related to the ongoing pandemic. Management had a positive tone on the outlook for 2H21 and the long-term housing environment. HD noted that August has started […]
Disney (DIS) reported FY 3Q21 results that were better than expected for both financial metrics and subscriber additions. Long-term guidance was not updated since DIS is in the process of creating the operating plan for FY22. Given ongoing strength in DTC services – Disney+, ESPN+, and the recently profitable Hulu – and the ramping recovery […]
Sony (SONY) reported better than expected 1Q22 earnings and raised full-year guidance. We had thought that guidance was conservative, both short-term and long-term, so the news was not surprising. It is welcome news in support of the long-term investment thesis that SONY’s individual business are deeply undervalued compared to peers with a management team that […]
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