Markets

Comcast (CMCSA) Tops Q4 Earnings and Revenues, Shares Up

Comcast Corp. CMCSA 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 is also participating in the ongoing 600 MHz wireless spectrum auction in the U.S. Comcast's Cable business is doing well and the NBC Universal segment is also witnessing significant improvement. Recently, NBC Universal purchased DreamWorks Animation for $3.8 billion and has also earned $250 million in profits from its Rio Olympics coverage of 2016.

However, intensifying competitive threat, consolidation-related woes, mounting programming costs and a highly leveraged balance sheet are potent headwinds. Quarterly operating costs and expenses totaled $14,484 million in the third quarter of 2016, surged 16% year over year which implies a rise in the rate of programming expenses in 2016. Moreover, loss of NBC Universal's programming distribution agreements, or the renewal of these agreements on less favorable terms, could affect its businesses.

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 1.58% in the previous four quarters.

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

Earnings: Comcast Beats Q4 2016 earnings estimate. Our consensus earnings estimate called for an adjusted EPS of 87 cents and the company reported adjusted EPS of 89 cents. Investors should note that these figures take out stock option expenses.

Revenue: Comcast reported total revenue of $21,025 million surpassing our estimate by $412 million.

Key States to Note: In the reported quarter, Comcast gained 80,000 video customers. At 2016 end, the company had 22.508 million video subscribers, up 0.7% year over year. Quarterly high-speed broadband customer addition was 385,000. At 2016 end, the company had 24.701 million high-speed Internet subscribers, up 5.9% year over year. The company also added 44,000 voice customers. At 2016 end, the company had 11.687 million voice subscribers, up 1.8% year over year.

Stock Price: At the time of writing, the stock price of Comcast was up nearly 2.55% 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!

Zacks' Best Private Investment Ideas

While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.

Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Comcast Corporation (CMCSA): Free Stock Analysis Report

To read this article on Zacks.com click here.

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.


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

In This Story

CMCSA

Other Topics

Earnings Investing Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More