Liberty Global (LBTYK) reported a mixed quarter to end 2017. Rebased revenue grew 3%, a nice acceleration, albeit to a still low level of growth. Rebased operating cash flow grew just shy of 5%, basically meeting guidance for “around 5%.” Northlake has been waiting a couple of years for LBTYK to show growth acceleration on […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2018-02-16 20:51:382026-03-17 16:51:50Expectations Closer to Reality at Liberty Global
CBS reported better than expected 4Q17 results but in what has been a consistent pattern for several years, the shares did not respond favorably. There has been a long list of issues for CBS shares mostly focused on the changing consumption of television as viewers migrate to services like Netflix and Hulu and younger viewers […]
Activision Blizzard (ATVI) once again beat expectations upon announcing 4Q17 and 2017 results. However, guidance for 1Q18 and 2018 were mixed, with full year guidance generally in line with expectations while 1Q18 guidance appeared a bit light. ATVI has demonstrated a consistent pattern of issuing conservative guidance and then outperforming each quarter. Northlake believes ATVI […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Tim Fodorhttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifTim Fodor2018-02-15 20:46:132026-03-17 16:51:50Activision Blizzard Resets the Bar Lower for 2018
Sherwin Williams (SHW) reported solid 4Q17 results slightly above consensus sales and earnings estimates. Heading into 2018, SHW expects earnings per share between $18.80 and $19.30 excluding Valspar acquisition-related expenses of $3.45. Importantly, SHW noted that most of the remaining costs to achieve the estimated $385-$415 million of annual acquisition synergies will be booked in […]
Disney (DIS) reported mixed results with the headline EPS number getting a big boost from a tax rate well below estimates. Parks and Resorts was the positive standout with 13% revenue growth accompanied by operating leverage that boosted operating income growth to 21%. The rest of the company’s divisions all reported flat to lower year […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2018-02-08 20:26:222026-03-17 16:51:50Parks and Resorts Strong at Disney
What began as a normal correction related to a quicker than expected increase in market interest rates (the 10 year Treasury rose from 2.5% to 2.8%) accelerated on Monday afternoon due to trading related to volatility strategies. These strategies helped the market on the upside over the past year but are largely unrelated to economic […]
Apple (AAPL) reported strong growth but mixed results relative to expectations for its 1Q18 ending December 31st. iPhone unit sales fell short of still high expectations but higher than expected average selling prices allowed revenue growth to match or exceed Wall Street estimates. Specifically, iPhone unit sales fell a little short of the 80 million […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2018-02-05 14:50:282026-03-17 16:51:50No Apple Super Cycle But Super Financial Strength
Google (GOOG/GOOGL) shares fell after reporting 4Q17 earnings. Revenue growth remained remarkably strong, rising 24% year over year, but Traffic Acquisition Costs (TAC) and other operating expenses rose even faster leading to margin compression and EPS below expectations. The debate for Google investors has long been focused on (1) the sustainability of revenue growth, and […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2018-02-05 14:38:582026-03-17 16:51:50Google Margins Concerns Emerge Again But We Are Not Very Worried
Despite some worries related to recent changes to Facebook’s (FB) News Feed, the company reported another outstanding quarter with revenues rising 47% and operating leverage again evident even as the company continues to caution about increased spending. More importantly, the company’s words and tone when discussing the impact of changes that could limit time spent […]
Northlake’s Style model moved to a neutral reading for February, showing no favoritism for growth vs. value. This change leads to the sale of one half of client positions in the Russell 1000 Growth (IWF) with proceeds reinvested into the Russell 1000 Value (IWD). IWF and IWD are now equal position sizes in client accounts. […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2018-02-01 16:54:592026-03-17 16:51:50Moving to Neutral on Growth vs. Value
Expectations Closer to Reality at Liberty Global
Liberty Global (LBTYK) reported a mixed quarter to end 2017. Rebased revenue grew 3%, a nice acceleration, albeit to a still low level of growth. Rebased operating cash flow grew just shy of 5%, basically meeting guidance for “around 5%.” Northlake has been waiting a couple of years for LBTYK to show growth acceleration on […]
CBS Successfully Navigating Challenging Environment
CBS reported better than expected 4Q17 results but in what has been a consistent pattern for several years, the shares did not respond favorably. There has been a long list of issues for CBS shares mostly focused on the changing consumption of television as viewers migrate to services like Netflix and Hulu and younger viewers […]
Activision Blizzard Resets the Bar Lower for 2018
Activision Blizzard (ATVI) once again beat expectations upon announcing 4Q17 and 2017 results. However, guidance for 1Q18 and 2018 were mixed, with full year guidance generally in line with expectations while 1Q18 guidance appeared a bit light. ATVI has demonstrated a consistent pattern of issuing conservative guidance and then outperforming each quarter. Northlake believes ATVI […]
Sherwin Williams Successfully Integrating Valspar Acquisition
Sherwin Williams (SHW) reported solid 4Q17 results slightly above consensus sales and earnings estimates. Heading into 2018, SHW expects earnings per share between $18.80 and $19.30 excluding Valspar acquisition-related expenses of $3.45. Importantly, SHW noted that most of the remaining costs to achieve the estimated $385-$415 million of annual acquisition synergies will be booked in […]
Parks and Resorts Strong at Disney
Disney (DIS) reported mixed results with the headline EPS number getting a big boost from a tax rate well below estimates. Parks and Resorts was the positive standout with 13% revenue growth accompanied by operating leverage that boosted operating income growth to 21%. The rest of the company’s divisions all reported flat to lower year […]
Market and Strategy Update
What began as a normal correction related to a quicker than expected increase in market interest rates (the 10 year Treasury rose from 2.5% to 2.8%) accelerated on Monday afternoon due to trading related to volatility strategies. These strategies helped the market on the upside over the past year but are largely unrelated to economic […]
No Apple Super Cycle But Super Financial Strength
Apple (AAPL) reported strong growth but mixed results relative to expectations for its 1Q18 ending December 31st. iPhone unit sales fell short of still high expectations but higher than expected average selling prices allowed revenue growth to match or exceed Wall Street estimates. Specifically, iPhone unit sales fell a little short of the 80 million […]
Google Margins Concerns Emerge Again But We Are Not Very Worried
Google (GOOG/GOOGL) shares fell after reporting 4Q17 earnings. Revenue growth remained remarkably strong, rising 24% year over year, but Traffic Acquisition Costs (TAC) and other operating expenses rose even faster leading to margin compression and EPS below expectations. The debate for Google investors has long been focused on (1) the sustainability of revenue growth, and […]
Cleaning Up News Feed Not Slowing Facebook
Despite some worries related to recent changes to Facebook’s (FB) News Feed, the company reported another outstanding quarter with revenues rising 47% and operating leverage again evident even as the company continues to caution about increased spending. More importantly, the company’s words and tone when discussing the impact of changes that could limit time spent […]
Moving to Neutral on Growth vs. Value
Northlake’s Style model moved to a neutral reading for February, showing no favoritism for growth vs. value. This change leads to the sale of one half of client positions in the Russell 1000 Growth (IWF) with proceeds reinvested into the Russell 1000 Value (IWD). IWF and IWD are now equal position sizes in client accounts. […]