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Comcast (CMCSA) Q1 Earnings Beat Estimates, Revenues Fall Y/Y

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Comcast (CMCSA - Free Report) reported first-quarter 2023 adjusted earnings of 92 cents per share, beating the Zacks Consensus Estimate by 15% and increasing 7% year over year.

Consolidated revenues declined 4.3% year over year to $29.69 billion and beat the Zacks Consensus Estimate by 1.59%.

Comcast added 5K broadband customers compared with 264 in the year-ago quarter. Moreover, it added 355 wireless customers but lost 614 video customers in the reported quarter.

Beginning first-quarter 2023, the company changed its presentation of segment operating results around its two primary businesses, Connectivity & Platforms, and Content & Experiences.

Connectivity & Platforms contains Comcast’s broadband and wireless connectivity businesses operated under the Xfinity and Comcast brands in the United States and the Sky brand in Europe. Connectivity & Platforms has two reportable business segments — Residential Connectivity, and Platforms and Business Services Connectivity.

Comcast Corporation Price, Consensus and EPS Surprise

 

Comcast Corporation Price, Consensus and EPS Surprise

Comcast Corporation price-consensus-eps-surprise-chart | Comcast Corporation Quote

Content & Experiences contains Comcast’s media and entertainment businesses, as well as theme parks in the United States and Asia. Content & Experiences has three reportable business segments — Media, Studios and Theme Parks.

Quarter Details

Connectivity & Platforms' revenues decreased 0.1% year over year at constant currency (cc) to $20.15 billion.

Residential Connectivity & Platforms revenues declined 0.7% year over year at cc to $17.87 billion. Business Services Connectivity revenues increased 5.2% year over year at cc to $2.28 billion.

Content & Experiences revenues decreased 9.5% year over year to $10.26 billion. Media revenues declined 20.7% year over year, while Studios and Theme Parks increased 1.7% and 24.9%, respectively.

Peacock's paid subscribers in the United States increased more than 60% year over year to 22 Million. Peacock's revenues increased 45% to $685 Million.

Costs and expenses in first-quarter 2023 decreased 5.5% year over year to $24.05 billion.

Programming & production costs decreased 14.8% from the year-ago quarter to $9 billion.

Marketing and promotional expenses decreased 4.8% year over year to $1.96 billion.

Adjusted EBITDA increased 2.9% from the year-ago quarter to $9.42 billion.

Cash Flow & Liquidity

As of Mar 31, 2023, cash and cash equivalents were $5.54 billion, up from $4.75 billion as of Dec 31, 2022.

Moreover, as of Mar 31, 2023, consolidated total debt was $95.53 billion compared with $94.81 billion as of Dec 31, 2022.

In the first quarter of 2023, Comcast generated $7.2 billion in cash from operations, up from $5.9 billion reported in the previous quarter. Free cash flow was $3.8 billion in the reported quarter, up from $1.3 billion in the previous quarter.

It returned $3.2 billion to shareholders through a combination of dividend payments ($1.2 billion) and share repurchases ($2 billion).

Zacks Rank & Stocks to Consider

Currently, the company carries a Zacks Rank #3 (Hold).

CMCSA shares have underperformed the Zacks Consumer Discretionary sector year to date. While Comcast has lost 12.4%, the sector has declined 8.3%.

World Wrestling Entertainment , WideOpenWest (WOW - Free Report) and Marriott International (MAR - Free Report) are some better-ranked stocks that investors can consider in the broader sector. While Marriott sports a Zacks Rank #1 (Strong Buy), WWE and WideOpenWest has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

World Wrestling Entertainment shares have gained 56.1% year to date. WWE is set to report its first-quarter 2023 results on May 3.

WideOpenWest shares have gained 22% year to date. WOW is set to report its first-quarter 2023 results on May 4.

Marriott shares have declined 10.2% year to date. MAR is set to report its first-quarter 2023 results on May 2.


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