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Comcast (CMCSA) Tops Q1 Earnings and Revenue, Shares Up
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Comcast Corp. (CMCSA - Free Report) is the largest cable MSO (multi service operator) in the U.S. and a leading media and entertainment company. Comcast provides basic video, digital video, high-speed broadband (Internet) and telephony services to individuals and business enterprises. In addition the company provides filmed entertainment, cable networks, broadcast TV services and operates theme parks.
Comcast's decision to venture into the U.S. wireless space bodes well with its diversified business model. The company recently acquired 73 licenses of 600 MHz low-band wireless spectrum in the recently concluded Incentive Auction. Comcast’s Cable business is doing well and the NBC Universal segment is also witnessing significant improvement. The company also expanded its theme park business through the purchase of the remaining 49% stake in Osaka-based Universal Studios Japan (USJ).
However, intensifying competitive threats, consolidation-related woes, lawsuits and their related fines and a highly leveraged balance sheet remain headwinds to the upcoming results of Comcast. Another major concern for Comcast is its spiraling programming expenses. Operating costs and expenses totaled $14,265 million, surging 10% year over year in the last reported fourth quarter of 2016. We look forward to seeing how far the company succeeds in reducing its expenses in the upcoming quarter.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Comcast Beats Q1 2017 earnings estimate. Our consensus earnings estimate called for an EPS of 44 cents and the company reported EPS of 53 cents. Investors should note that these figures take out stock option expenses.
Revenue: Comcast reported total revenue of $21,463 million surpassing our estimate by $350 million.
Key States to Note: In the reported quarter, Comcast gained 42,000 video customers. At the end of the first quarter, the company had 22.549 million video subscribers, up 0.7% year over year. Quarterly high-speed broadband customer addition was 429,000. At the end of the reported quarter, the company had 25.131 million high-speed Internet subscribers, up 5.7% year over year. However, Comcast lost 5,000 voice customers. At first quarter end, the company had 11.681 million voice subscribers, up 0.9% year over year.
Stock Price: At the time of writing, the stock price of Comcast was up nearly 3.89% in the pre-market trade on Nasdaq. Clearly the initial reaction to the release is positive. The company witnessed a significant gain in video customer and massive increase in high-speed Internet customer year over year. We believe these strong results are the primary reasons for this initial positive sentiment.
Check back later for our full write up on this Comcast earnings report later!
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Comcast (CMCSA) Tops Q1 Earnings and Revenue, Shares Up
Comcast Corp. (CMCSA - Free Report) is the largest cable MSO (multi service operator) in the U.S. and a leading media and entertainment company. Comcast provides basic video, digital video, high-speed broadband (Internet) and telephony services to individuals and business enterprises. In addition the company provides filmed entertainment, cable networks, broadcast TV services and operates theme parks.
Comcast's decision to venture into the U.S. wireless space bodes well with its diversified business model. The company recently acquired 73 licenses of 600 MHz low-band wireless spectrum in the recently concluded Incentive Auction. Comcast’s Cable business is doing well and the NBC Universal segment is also witnessing significant improvement. The company also expanded its theme park business through the purchase of the remaining 49% stake in Osaka-based Universal Studios Japan (USJ).
However, intensifying competitive threats, consolidation-related woes, lawsuits and their related fines and a highly leveraged balance sheet remain headwinds to the upcoming results of Comcast. Another major concern for Comcast is its spiraling programming expenses. Operating costs and expenses totaled $14,265 million, surging 10% year over year in the last reported fourth quarter of 2016. We look forward to seeing how far the company succeeds in reducing its expenses in the upcoming quarter.
Zacks Rank: Comcast currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The company has generated a positive average earnings surprise of 1.25% in the previous four quarters.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Comcast Beats Q1 2017 earnings estimate. Our consensus earnings estimate called for an EPS of 44 cents and the company reported EPS of 53 cents. Investors should note that these figures take out stock option expenses.
Revenue: Comcast reported total revenue of $21,463 million surpassing our estimate by $350 million.
Key States to Note: In the reported quarter, Comcast gained 42,000 video customers. At the end of the first quarter, the company had 22.549 million video subscribers, up 0.7% year over year. Quarterly high-speed broadband customer addition was 429,000. At the end of the reported quarter, the company had 25.131 million high-speed Internet subscribers, up 5.7% year over year. However, Comcast lost 5,000 voice customers. At first quarter end, the company had 11.681 million voice subscribers, up 0.9% year over year.
Stock Price: At the time of writing, the stock price of Comcast was up nearly 3.89% in the pre-market trade on Nasdaq. Clearly the initial reaction to the release is positive. The company witnessed a significant gain in video customer and massive increase in high-speed Internet customer year over year. We believe these strong results are the primary reasons for this initial positive sentiment.
Comcast Corporation Price and EPS Surprise
Comcast Corporation Price and EPS Surprise | Comcast Corporation Quote
Check back later for our full write up on this Comcast earnings report later!
Looking for Ideas with Even Greater Upside?
Most of Zacks’ investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>