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://dev.northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://dev.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://dev.northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://dev.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://dev.northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://dev.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 […]
For the third quarter in a row, Sherwin Williams (SHW) adjusted 2018 EPS guidance. In 1Q18, SHW dropped the estimate from $19.05 to $18.65 due to new investments in an expanded partnership with Lowe’s. Then in 2Q18, SHW turned around and increased EPS to $19.20 after a strong start to the year. Now in 3Q18, […]
https://dev.northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Tim Fodorhttps://dev.northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifTim Fodor2018-12-03 12:50:372018-12-03 12:50:37Sherwin Williams Reduces Top End of Guidance
Activision Blizzard (ATVI) reported 3Q18 revenues matching estimates with EPS ahead of expectations. However, implied 4Q18 guidance was weaker than expected, sending the shares sharply lower. While the guidance was likely conservative given the highly competitive holiday season this year, 3Q18 results were not good enough to support the stock in a punishing environment for […]
MGM Resorts (MGM) reported better than expected 3Q18 results driven by the company’s Las Vegas properties. The beat was at least partially due to a significant reset of expectations following a new approach to guidance by management after overpromising in 2017 and 2018 and a pessimistic outlook from analysts after a sudden slowdown in Las […]
Facebook (FB) reported mixed 3Q18 results relative to expectations. Revenues fell slightly short of estimates but operating and income and EPS beat consensus as the ramp in expenses to combat the many privacy issues the company is facing was slower than expected. Management provided initial expense guidance for 2019 of up 40-50% indicating the 3Q18 […]
CBS continued its pattern of reporting modest growth against the tide of change in the TV business. 3Q18 revenues grew 3% with EPS advancing 11%. Operating income grew only 1% as the company continues to benefits at the EPS from large share buybacks and the reduction in corporate tax rates. CBS shares have stalled the […]
https://dev.northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://dev.northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2018-11-14 20:59:302018-11-14 20:59:30New Leadership Offers Its Vision for CBS
Powered by the intense election fight, political ad sales drove Nexstar Media Group (NXST) to better than expected 3Q18 earnings. Management raised guidance for the year based on the political ad spending. Importantly, management also noted that after accounting for the displacement of core non-political advertising, traditional ad spending has modestly strengthened and is approaching […]
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 […]
Sherwin Williams Reduces Top End of Guidance
For the third quarter in a row, Sherwin Williams (SHW) adjusted 2018 EPS guidance. In 1Q18, SHW dropped the estimate from $19.05 to $18.65 due to new investments in an expanded partnership with Lowe’s. Then in 2Q18, SHW turned around and increased EPS to $19.20 after a strong start to the year. Now in 3Q18, […]
Activision Blizzard: Conservative 3Q18 Guidance Concerns Investors
Activision Blizzard (ATVI) reported 3Q18 revenues matching estimates with EPS ahead of expectations. However, implied 4Q18 guidance was weaker than expected, sending the shares sharply lower. While the guidance was likely conservative given the highly competitive holiday season this year, 3Q18 results were not good enough to support the stock in a punishing environment for […]
MGM Resorts Setup Improves into 2019
MGM Resorts (MGM) reported better than expected 3Q18 results driven by the company’s Las Vegas properties. The beat was at least partially due to a significant reset of expectations following a new approach to guidance by management after overpromising in 2017 and 2018 and a pessimistic outlook from analysts after a sudden slowdown in Las […]
Cheap Valuation Meets Uncertain Future at Facebook
Facebook (FB) reported mixed 3Q18 results relative to expectations. Revenues fell slightly short of estimates but operating and income and EPS beat consensus as the ramp in expenses to combat the many privacy issues the company is facing was slower than expected. Management provided initial expense guidance for 2019 of up 40-50% indicating the 3Q18 […]
New Leadership Offers Its Vision for CBS
CBS continued its pattern of reporting modest growth against the tide of change in the TV business. 3Q18 revenues grew 3% with EPS advancing 11%. Operating income grew only 1% as the company continues to benefits at the EPS from large share buybacks and the reduction in corporate tax rates. CBS shares have stalled the […]
Election Cycle Powers Nexstar to Beat and Raise
Powered by the intense election fight, political ad sales drove Nexstar Media Group (NXST) to better than expected 3Q18 earnings. Management raised guidance for the year based on the political ad spending. Importantly, management also noted that after accounting for the displacement of core non-political advertising, traditional ad spending has modestly strengthened and is approaching […]