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 […]
Home Depot (HD) reported strong 1Q20 earnings especially when compared to most other companies, including other retailers that were hurt badly by the economic shutdown. HD stores were deemed essential and remained open, a huge advantage, but the big story in the quarter was digital sales up 79%, reaching 15% of sales. Comparable store sales […]
Activision Blizzard (ATVI) beat expectations for 1Q20 earnings and raised guidance for the remainder of 2020 from $2.35 to $2.60. Last quarter, Northlake noted that ATVI 2020 EPS could climb into the $2.50-$2.70 range as benefits from the well-timed restructuring efforts begin to pay off. Consensus estimates for 2020 have now climbed to $2.74, with […]
Facebook (FB) reported 1Q20 sales slightly better than recently reduced expectations, and earnings in line with lowered estimates. Sales and earnings estimates fell roughly 6% and 11% respectively throughout March as analysts grappled with quantifying the challenges FB faced from the COVID crisis. Advertisers pulled back sharply in the final three weeks of March, but […]
Activision Blizzard (ATVI) slightly beat expectations for 4Q19 results, with typically conservative guidance for 2020 falling a bit below consensus estimates. Interestingly, Jefferies analyst Alex Giaimo noted that ATVI has beaten initial EPS guidance by 15% on average over the last 4 years. Alongside the results, ATVI also increased the dividend paid to shareholders by […]
Facebook (FB) delivered 4Q19 sales and earnings above consensus estimates, and reiterated guidance for 2020. The stock traded lower, reflecting an appetite for a larger upside surprise. Since last quarter, FB climbed midway into Northlake’s $200-$250 target range based on reaching 20x-25x $10+ EPS this year or next. After the earnings selloff, FB is back […]
Activision Blizzard (ATVI) reported sales and earnings that were better than expected with typically conservative guidance for 4Q19. The restructuring effort underway at ATVI appears to be gaining traction as the company invests toward setting up a strong 2020. Such investments include increasing marketing spend behind successful franchises to expand the player base, developing content […]
Facebook (FB) reported 3Q19 sales slightly ahead of expectations with stronger earnings driven by disciplined expense growth. Guidance commentary was mostly positive with a warning of a pronounced revenue deceleration in 4Q19 due to difficult comparisons to the prior year being offset by an encouraging outlook for 2020. Northlake sees FB heading toward a positive […]
Activision Blizzard (ATVI) reported 2Q19 results that were overall slightly better than expected. Guidance for 3Q19 was underwhelming from the typically conservative management team, but 2019 guidance and expectations were largely unchanged. The current quarter faces a difficult comparison to last year, when ATVI benefitted from a strong contribution from the Destiny franchise that is […]