Nexstar Media Group (NXST) reported better than expected 4Q20 results despite elevated expectations. More importantly, guidance for free cash flow in the 2021/2022 cycle came in way above estimates. The 21/22 outlook validates the strategy that NXST has followed since we first became familiar with the company back in 2013. NXST management has steadily built […]
Disney (DIS) reported its first quarter under its new reporting structure which is designed to isolate the company’s three main businesses and especially highlights the Direct-To-Consumer (DTC) streaming businesses that are the future of the company’s media businesses. Results in the company’s 1Q21 were better than guidance and analyst expectations but are not a short-term […]
Activision Blizzard (ATVI) reported 4Q20 results roughly in line with Wall Street estimates that were above the company’s own guidance. More importantly, management provided initial 2021 guidance that was above analyst estimates and appears to be based on conservative assumptions. ATVI shares have been fantastic performers for Northlake over the years and had a particularly […]
Sony (SNE) provided a great boost to our investment thesis with the company’s 3Q20 earnings results. Earnings easily beat Wall Street estimates with strength in almost all segments. Gaming and Image Sensors led the way. Gaming got a boost from the rollout of the PS5 console, popular new games, and continuing subscription growth. Image Sensors […]
Alphabet (GOOG/GOOGL) reported excellent 4Q20 results across the board in all segments and on all financial metrics. Revenue, EPS, Operating income and profit margins each easily and materially beat Wall Street estimates. These factors alone are worth a nice boost in GOOG/GOOGL shares. However, the company also took another meaningful step to improve financial disclosure […]
Facebook (FB) reported a strong beat on 4Q20 sales and earnings, topping expectations for the third consecutive quarter. Guidance for 2021 was unchanged from the initial outlook provided last quarter. FB continues to caution investors about a potential headwind in 2021 from changes to Apple’s data privacy policy and warned that 2H21 faces difficult comparisons […]
Comcast remains a tale of COVID winners and COVID losers. The cable/Xfinity business is performing great, driven by broadband. Cord cutting has minimal impact given margin dynamics and the fact that you cannot really cut the TV cord without maintaining the broadband cord. The NBCUniversal and traditional media side is still feeling pressure from COVID. […]
Apple reported an extremely good December quarter to open the company’s 2021 fiscal year. Strength was across the board in all products, services, and geographies. The results materially exceeded high expectations. Northlake sees two key long-term takeaways from the results. First, the iPhone remains healthy and is poised for several years of growth as 5G […]
IBM reported disappointing 4Q20 earnings although there were positives that support Northlake’s investment thesis. EPS exceeded expectations, but the upside was due to below-the-line or non-operating items. The culprit in the quarter was revenue weakness. We are not surprised by a revenue shortfall given IBM has a lot of exposure to on-premises enterprise spending in […]
We recently added Sony (SNE) to Northlake client accounts. In many cases, we partially paid for the investment in SNE by selling shares of ViacomCBS (VIAC). SNE is well-known for its consumer electronics products, but this is just a small part of the company. The key growth drivers are video games, music, TV and film […]
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