When Activison Blizzard (ATVI) last reported, we noted that the stock looked fully valued but the company’s excellent track record, recent business strategy enhancements, and potential for positive surprises left us willing to wait out a period of lesser stock performance. 1Q21 was a big step in the right direction with ATVI easily beating Wall […]
Nexstar Media Group (NXST) reported strong 1Q21 earnings highlighted by a faster than expected improvement in core advertising, continued upside in profit margins, and a big beat on EBITDA. Management reaffirmed its key guidance metric based on the average of 2021 and 2022 free cash flow. The cyclical nature of political spending requires use of […]
Comcast reported another good quarter with growth in the dominant cable business sustaining in the high single digits with margins continuing to expand. Encouragingly, the much smaller but still material media businesses at NBC Universal and Sky are showing clear signs of emerging from the severe impacts of the pandemic. It seems like most every […]
Facebook (FB) reported another blowout quarter with growth accelerating. Strength was across the board in all geographies. Earnings estimates for 2021 thru 2023 are moving up substantially. If this sounds like what we wrote for Alphabet and Apple that is a fact. You can add Amazon to the mix with a similar report. It is […]
While reviewing Apple’s (AAPL) 2Q21 earnings report, I mentioned to Tim that I could almost just repost the blog reviewing 1Q21 earnings. Just change the date and tweak it here and there. Tim astutely pointed out that consistency is a sign of a great company; it is also especially valuable in an era when tweets […]
When Sony reported 3Q20 results three months ago, the company sharply raised guidance for the fiscal year that ended in March. 4Q20 results met or slightly exceeded the new higher guidance. In conjunction with the latest report, Sony established a new three-year financial and strategic plan including guidance for the current quarter and fiscal year. […]
Alphabet (GOOG/GOOGL) reported another outstanding quarter with growth in revenues, operating income, and EPS easily beating elevated Wall Street estimates. This is the third straight quarter where GOOG has beaten Wall Street estimates. Importantly, overall revenue growth accelerated to 32% on a constant-currency basis from the impressive 23% growth rate in 4Q20. The string of […]
IBM reported a positive surprise in revenue and earnings per share for its 1Q21, an unusual occurrence over the last several years. Revenue of $17.7 billion was about $300 million ahead of consensus and guidance, the first beat on this metric since 2018. Gross margins, another trouble spot of late, also came in ahead of […]
We are moving from neutral on growth vs. value to all-in on value effective today. We are sticking with mid cap. As a result, for clients using Northlake’s thematic models, we have sold all client positions in the Russell 1000 Growth (IWF) and reinvested the proceeds into the Russell 1000 Value (IWD). There will be […]
Home Depot reported better than expected EPS, sales, and comp store sales, but had a small margin shortfall. The stock has reacted poorly to the results, but we remain bullish on the outlook. HD shares are unchanged since last summer even as quarterly earnings have consistently grown at 20%. This has led to a material […]
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