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Comcast (CMCSA) to Report Q2 Earnings: What's in the Cards?

Comcast CMCSA is set to report second-quarter 2020 results on Jul 30.

The Zacks Consensus Estimate for second-quarter 2020 revenues is pegged at $23.75 billion, indicating an 11.6% dip from the year-ago quarter’s reported figure.

Moreover, the consensus mark for earnings has moved north by 5.8% to 55 cents over the past 30 days, suggesting a decline of 29.5% from the figure reported in the year-ago quarter.

Notably, Comcast beat on earnings in the trailing four quarters by 4.4%, on average.
 

Comcast Corporation Price and EPS Surprise

Comcast Corporation Price and EPS Surprise

Comcast Corporation price-eps-surprise | Comcast Corporation Quote

 

Let’s see how things are shaping up prior to this announcement.

 

Internet & Mobile Subscriber Base Growth a Tailwind

Comcast’s top line in the to-be-reported quarter is expected to have benefited from an increased number of high-speed Internet subscribers amid the coronavirus outbreak. Increased media consumption and work-from-home wave are expected to have augured well for this cable giant.

Additionally, improving customer experience owing to expanding Wi-Fi coverage and innovative xFi control features like the enhanced WiFi parental control (Xfinity xFi) is expected to have aided subscriber growth.

The Zacks Consensus Estimate for Cable Communication – High Speed Internet revenues is pegged at $5.04 billion, indicating 8.1% growth from the figure reported in the year-ago quarter.

Notably, Comcast’s wireless business added 216K lines, bringing total connections to 2.3 million lines at the end of the first quarter. The momentum is expected to have continued in second quarter.

Additionally, exclusive device offerings like Samsung Galaxy A51 for Xfinity subscribers are noteworthy.

During the quarter, Comcast announced that it has deployed over one million Xfinity Flex devices.

The Zacks Consensus Estimate for Cable Communication revenues is pegged at $14.57 billion, implying 0.8% growth from the figure reported in the year-ago quarter.

NBCUniversal & Theme Park Revenues to Take a Hit

Comcast’s NBCUniversal and Theme Park revenues are expected to have been negatively impacted by the coronavirus pandemic.

The Zacks Consensus Estimate for NBCUniversal revenues stands at $5.77 billion, implying a 29.7% decline from the figure reported in the year-ago quarter. This division is expected to have been hurt by lack of film releases and lost sports advertising revenues due to coronavirus-induced lockdowns and social-distancing measures, globally.

Further, the consensus mark of $60 million for Theme Parks’ revenues is significantly lower from $1.46 billion reported in the year-ago quarter. The company reopened its Florida theme park on Jun 5.

Sky’s Robust Content to Aid Growth

Meanwhile, Sky’s top-line growth is expected to have been hurt from lack of sports content in the to-be-reported quarter.

The Zacks Consensus Estimate for Sky revenues is pegged at $3.86 billion, implying a 20% decline from the figure reported in the year-ago quarter.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Comcast has an Earnings ESP of +1.71% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

GoPro GPRO has an Earnings ESP of +43.66% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.

Take Two Interactive Software TTWO has an Earnings ESP of +12.97% and is #2 Ranked.

Etsy ETSY has an Earnings ESP of +1.15% and a Zacks Rank #2.

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

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