CBS reported slightly disappointing 4Q18 earnings although the shortfalls were small, just a few percent, and most were explained by the always tricky timing of content sales. The bigger news from the quarter was management pivoting from a financial engineering driven corporate strategy toward an “invest to grow” strategy. Given the changes in TV consumption […]
Disney (DIS) reported solid 1Q19 earnings with Theme Parks doing very well, Studio Entertainment struggling as expected against a tough comparison, and Media Networks showing improvement against strong secular headwinds related to cord cutting and on demand viewing. EPS surprised to the upside although management cautioned that much of the upside was timing related such […]
Alphabet (GOOG/GOOGL) reported a mixed quarter relative to very high Wall Street expectations but a good quarter looking to long-term value creation. Revenue and EPS came in ahead of expectations although the EPS beat was a one-time item. Operating Income disappointed as expenses were well above expectations, an ongoing issue for Alphabet over the past […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2019-02-05 16:10:582019-02-05 16:10:58We Are OK as Alphabet Invests to Create Value
Facebook (FB) reported a better than expected quarter across its financial and engagement metrics providing investors with a large dose of relief. The shares extended the recent rally off the December lows and now sit 13% above the pre-earnings close, 35% above the Christmas Eve low, but remain 23% above the July all-time high. It […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2019-02-04 20:16:032019-02-04 20:16:03Facebook Almost In the Clear
There are no changes to the signals from Northlake’s Market Cap and Style models. Large Cap and Growth remain the favored themes. This is the 6th straight month for large cap and the 2nd straight month for growth. Client positions in the S&P 500 (SPY) and Russell 1000 (IWB) and the Russell 1000 Growth (IWF) […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2019-02-01 18:05:342019-02-01 18:05:34Sticking with Large Cap and Growth
Apple shares are responding well to a mixed earnings report and guidance update. The earnings for the December quarter were largely in line with the dramatically lower guidance the company issued earlier this month. News headlines discuss the revenue guidance for the March quarter as below consensus. However, it is clear that investors feared even […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2019-01-30 20:21:342019-01-30 20:21:34De-Risked For Now Apple Worth Holding
Northlake has been patient with Comcast over the past year as we disliked both the ultimately futile pursuit of 21st Century Fox assets and the ultimately successful purchase of Sky. We have stuck with Comcast due to management’s consistent execution in its operating businesses and our view that cord cutting concerns are overdone. Comcast’s 4Q18 […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2019-01-23 19:19:232019-01-23 19:19:23Comcast Reality Outweighs Risks For Now
Northlake has sold client positions in Sherwin Williams (SHW) following the company’s disappointing update on 4Q18 earnings. SHW preannounced a large miss versus consensus expectations driven by weakness in its North American stores, Chinese markets, and wholesale business at Lowe’s. Demand in the U.S. was unexpectedly weak in October and November and management was at […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2019-01-16 19:19:332019-01-16 19:19:33Sherwin Williams Sold
Effective 1/1/19, Northlake’s Style model moved back to Growth after four months at neutral. The Market Cap model remains on a large cap signal for the fifth consecutive month. Client positions in the Russell 1000 Value (IWD) or S&P 500 500 Value (SPYV) have been sold with proceeds reinvested into the Russell 1000 Growth (IWF) […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2019-01-02 18:36:002019-01-02 18:36:00Shifting to Growth from Neutral to Begin 2019
Alphabet (GOOG/GOOGL) outperformed 3Q18 earnings estimates despite slightly missing on revenues for the first time since 1Q16. The sales shortfall was largely driven by foreign exchange losses in Brazil and Argentina due to the stronger US dollar. Revenues still grew 21%, or 22% after adjusting for the currency impact. Operating expenses were up 26%, pacing […]
CBS Pivots Toward Investing For Growth
CBS reported slightly disappointing 4Q18 earnings although the shortfalls were small, just a few percent, and most were explained by the always tricky timing of content sales. The bigger news from the quarter was management pivoting from a financial engineering driven corporate strategy toward an “invest to grow” strategy. Given the changes in TV consumption […]
Disney in Transition
Disney (DIS) reported solid 1Q19 earnings with Theme Parks doing very well, Studio Entertainment struggling as expected against a tough comparison, and Media Networks showing improvement against strong secular headwinds related to cord cutting and on demand viewing. EPS surprised to the upside although management cautioned that much of the upside was timing related such […]
We Are OK as Alphabet Invests to Create Value
Alphabet (GOOG/GOOGL) reported a mixed quarter relative to very high Wall Street expectations but a good quarter looking to long-term value creation. Revenue and EPS came in ahead of expectations although the EPS beat was a one-time item. Operating Income disappointed as expenses were well above expectations, an ongoing issue for Alphabet over the past […]
Facebook Almost In the Clear
Facebook (FB) reported a better than expected quarter across its financial and engagement metrics providing investors with a large dose of relief. The shares extended the recent rally off the December lows and now sit 13% above the pre-earnings close, 35% above the Christmas Eve low, but remain 23% above the July all-time high. It […]
Sticking with Large Cap and Growth
There are no changes to the signals from Northlake’s Market Cap and Style models. Large Cap and Growth remain the favored themes. This is the 6th straight month for large cap and the 2nd straight month for growth. Client positions in the S&P 500 (SPY) and Russell 1000 (IWB) and the Russell 1000 Growth (IWF) […]
De-Risked For Now Apple Worth Holding
Apple shares are responding well to a mixed earnings report and guidance update. The earnings for the December quarter were largely in line with the dramatically lower guidance the company issued earlier this month. News headlines discuss the revenue guidance for the March quarter as below consensus. However, it is clear that investors feared even […]
Comcast Reality Outweighs Risks For Now
Northlake has been patient with Comcast over the past year as we disliked both the ultimately futile pursuit of 21st Century Fox assets and the ultimately successful purchase of Sky. We have stuck with Comcast due to management’s consistent execution in its operating businesses and our view that cord cutting concerns are overdone. Comcast’s 4Q18 […]
Sherwin Williams Sold
Northlake has sold client positions in Sherwin Williams (SHW) following the company’s disappointing update on 4Q18 earnings. SHW preannounced a large miss versus consensus expectations driven by weakness in its North American stores, Chinese markets, and wholesale business at Lowe’s. Demand in the U.S. was unexpectedly weak in October and November and management was at […]
Shifting to Growth from Neutral to Begin 2019
Effective 1/1/19, Northlake’s Style model moved back to Growth after four months at neutral. The Market Cap model remains on a large cap signal for the fifth consecutive month. Client positions in the Russell 1000 Value (IWD) or S&P 500 500 Value (SPYV) have been sold with proceeds reinvested into the Russell 1000 Growth (IWF) […]
Alphabet: Solid 3Q18 Results
Alphabet (GOOG/GOOGL) outperformed 3Q18 earnings estimates despite slightly missing on revenues for the first time since 1Q16. The sales shortfall was largely driven by foreign exchange losses in Brazil and Argentina due to the stronger US dollar. Revenues still grew 21%, or 22% after adjusting for the currency impact. Operating expenses were up 26%, pacing […]