Comcast Earnings Beat, Rev Misses - Analyst Blog

By Zacks Equity Research,

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Comcast Corp. ( CMCSA ) reported mixed financial results for its first-quarter 2013. The company's triple-play voice, video and data bundled offerings are still attracting market traction. Recently, Comcast completed the acquisition of the 49% stake remaining of NBC Universal from General Electric Co. ( GE ).  

First Quarter Results in Detail

GAAP net income for the first quarter of 2013 was $1,437 million or 54 cents per share compared with $1,224 million or 45 cents per share in the prior-year quarter. However, quarterly adjusted earnings per share of 51 cents outpaced the Zacks Consensus Estimate of 49 cents. Total revenue came in at $15,310 million in the reported quarter, up 2.9% year over year but fell below the Zacks Consensus Estimate of $15,363 million.

Quarterly operating costs and expenses were $12,120 million, up 1% year over year. However, quarterly operating income was $3,067 million, representing an annualized growth of 11.2%. Operating margin, in the reported quarter, was 20% compared with 18.5% in the prior-year quarter. During the first quarter, Comcast repurchased 13.3 million of its common shares for a consideration of $500million and paid dividends totaling $429 million.

During the first quarter of 2013, Comcast generated $5,034 million in cash from operations compared with $4,688 million in the year-ago quarter. Consolidated free cash flow in the reported quarter was $3,138 million compared with $3,039 million in the prior-year quarter. Cash and cash equivalents, at the end of the reported quarter, were $4,680 million compared with $12,415 million at the end of 2012.

Total debt at the end of the last quarter was approximately $47,226 million compared with $40,458 million at the end of 2012. At the end of the first quarter of 2013, debt-to-capitalization ratio was 0.50 compared with 0.43 at the end of 2012.

Cable Communications Segment

Quarterly total revenue was $10,217 million, up 6.4% year over year. Operating cash flow was $4,219 million, up 6.7% year over year. Within this segment, Video revenues were $5,113 million, up 3.7% year over year. High-Speed Internet revenues were $2,523 million, up 8.6% year over year. Voice revenues were $900 million, up 2.6% year over year.

Advertising revenues were $488 million, up 2.7% year over year. Business Services revenues were $741 million, up 27.5% year over year. Other revenues were $452 million, up 9.6% year over year.

As of Mar 31, 2013, Comcast had 19.799 million (up 6.6% year over year) High-Speed Internet customers; 10.166 million (up 6.9% year over year) Voice customers; and 21.935 million (down 1.6% year over year) Video customers. In the reported quarter, Comcast lost a net total of 60,000 video customers compared with a net loss of 37,000 customers in the prior-year quarter.

The company added a net 433,000 High-Speed Internet customers compared with 439,000 in the year-ago quarter. Similarly, Comcast added a net total of 211,000 voice customers compared with 164,000 in the prior-year quarter.  In the previous quarter, monthly ARPU from video customers increased 8.1% to $155.05.

NBC Universal Segment

Quarterly total revenue was $5,340 million, down 2.4% year over year. Operating cash flow was $859 million, signifying a 6.2% year-over-year increase. Within this segment, Cable Networks revenues were $2,225 million, up 4.6% year over year. Broadcast TV revenues were $1,517 million, down 18.5% year over year. Filmed Entertainment revenues were $1,216 million, up 2% year over year. Theme Parks revenues were $462 million, up 12.2% year over year.

Other Stocks to Consider

Comcast currently has a Zacks Rank #3 (Hold). Other stocks which are worth considering in this industry include Liberty Interactive Corp. ( LINTA ) and Verizon Communications Inc. ( VZ ). Both these stocks have a Zacks Rank #2 (Buy).

COMCAST CORP A (CMCSA): Free Stock Analysis Report

GENL ELECTRIC (GE): Free Stock Analysis Report

LIBERTY M INT-A (LINTA): Free Stock Analysis Report

VERIZON COMM (VZ): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Earnings , Stocks
Referenced Stocks: CMCSA , GE , LINTA , VZ

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