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Comcast (CMCSA) Tops Q4 Earnings &Revenue Estimates

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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. It has completed the nationwide rollout of its wireless services under the Xfinity Mobile brand, along with plans to include YouTube in its X1 video platform. Further, it has also has started the nationwide rollout of the DOCSIS 3.1 technology, with its latest xFi Advanced Gateway. Meanwhile, Comcast is venturing into residential solar programs with a 40-month deal with Sunrun. Comcast is working towards 5G network deployment. Comcast continues to expand its theme park business. With this, Comcast aims to check customer churn and provide viewers with more streaming options.

On the other hand, we are concerned about Comcast’s operation in a saturated and competitive multi-channel U.S. video market. Like other cable operators, the company continues to lose video subscribers due to cord-cutting. In the third quarter of 2017, Comcast lost 94,000 voice customers and 125,000 video customers. We also view the high debt level, consolidation-related woes, mounting programming costs as potential hazards.

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 9.30% in the previous four quarters.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings:  Comcast Beats Q4 2017 earnings estimate. Our consensus earnings estimate called for an adjusted EPS (earnings per share) of 47 cents and the company reported adjusted EPS of 49 cents. Investors should note that these figures take out stock option expenses.

Revenue:  Comcast reported total revenues of $21,915 million (up 4.2% year-over-year) outperforming our Zacks Consensus estimate of $21,804 million.

Key States to Note: In the fourth-quarter 2017, Comcast had 25.869 million (up 4.7% year over year) high-speed Internet customers, 11.552 million (down 1.2% year over year) voice customers, 22.357 million (down 0.7% year over year) video customers and 1.131 million (up 26.8% year over year) security and automation customers. The company added a net of 350,000 high-speed Internet customers and 52,000 security and automation customers but lost 13,000 voice customers and 33,000 video customers in the reported quarter. Comcast also gained 73,000 double-play subscribers and 140,000 single-play subscribers but lost 3,000 triple and quad product customers.

 

Check back later for our full write up on this Comcast earnings report later! 

 

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