Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Comcast Corp. (CMCSA - Analyst Report) reported mixed financial results for the third quarter of 2013. The company’s triple-play voice, video and data bundled offerings are still gaining market traction. However, the company continues to lose video subscribers. Comcast currently has a Zacks Rank #3 (Hold).   

Third-Quarter Results in Detail

GAAP net income for the third quarter of 2013 was $1,732 million or 65 cents per share compared with $2,113 million or 78 cents per share in the prior-year quarter. Quarterly earnings per share of 65 cents significantly outpaced the Zacks Consensus Estimate of 60 cents. Total revenue came in at $16,151 million, down 2.4% year over year and also below the Zacks Consensus Estimate of $16,219 million.

Quarterly operating costs and expenses were $10,821 million, down 6.2% year over year. However, quarterly operating income was $3,414 million, representing annualized growth of 12%. Operating margin was 21.1% compared with 18.4% in the prior-year quarter. During the third quarter, Comcast repurchased 12 million worth of its common shares for $500 million and paid dividends totaling $512 million.

In the third quarter of 2013, Comcast generated $5,330 million of cash from operations compared with $5,008 million in the year-ago quarter. Consolidated free cash flow was $1,968 million as against $1,514 million in the prior-year quarter.

Cash and marketable securities, at the end of the third quarter of 2013, were $5,735 million compared with $12,415 million at the end of 2012. Total debt at the end of the reported quarter, was $46,525 million as against $40,458 million at the end of 2012. The debt-to-capitalization ratio was 0.47 compared with 0.43 at the end of 2012.

Cable Communications Segment

Quarterly total revenue was $10,491 million, up 5.2% year over year. Operating cash flow was $4,246 million, up 6.2% year over year. Within this segment, Video revenues were $5,127 million, up 2.9% from the prior-year quarter. High-Speed Internet revenues were $2,592 million, up 7.9% year over year. Voice revenues were $919 million, up 2.6% year over year. Advertising revenues were $541 million, down 10.8% from the year-ago quarter. Business Services revenues were $836 million, up 26.4% year over year. Other revenues were $476 million, up 11.6% year over year.

Cable TV operators are gradually loosing video subscribers to large telecom operators, such as Verizon Communications Inc. (VZ - Analyst Report) and AT&T Inc. (T - Analyst Report) and online video streaming service providers like Netflix Inc. (NFLX - Analyst Report).

On Sep 30, 2013, Comcast had 20.283 million (up 6.6% year over year) High-Speed Internet customers; 10.496 million (up 7.2% year over year) Voice customers; and 21.647 million (down 1.6% year over year) Video customers.

In the reported quarter, Comcast lost a net 129,000 video customers compared with a net loss of 117,000 video customers in the prior-year quarter. The company added a net of 297,000 High-Speed Internet customers compared with 287,000 in the year-ago quarter. Similarly, Comcast added a net 169,000 voice customers as against 123,000 in the prior-year quarter. 

NBC Universal Segment

Quarterly total revenue was $5,851 million, down 14.2% year over year. Operating cash flow was $1,250 million, signifying a 9.6% year-over-year increase. Within this segment, Cable Networks revenues were $2,239 million, up 4% year over year. Broadcast TV revenues were $1,644 million, down 41.1% year over year. Filmed Entertainment revenues were $1,400 million, up 3.3% year over year. Theme Parks revenues were $661 million, up 7.9% year over year.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%