Comcast Fails to Please Investors
Comcast Corp. (CMCSA - Snapshot Report) reported a quarterly profit this morning before the bell that topped the consensus forecast and raised its annual dividend. However, the largest U.S. cable operators shares fell more than 7% as it saw a significant slowdown in subscriber growth and opted not to complete its stock buyback program this year.
In the latest fourth quarter, Comcasts net profit slumped 32% to $412 million, or 14 cents a share, including a $600 million writedown of its stake in Clearwire Corp. (CLWR - Snapshot Report). Before exceptional items, the company earned 27 cents a share, while analysts were looking for 23 cents.
As cutbacks in equipment spending boosted its cash flow, Comcast raised its annual dividend by 8% to 27 cents per share. Free cash flow grew 56% to $3.66 billion in 2008.
The Philadelphia, Pennsylvania-based company lost 233,000 basic video customers during the quarter due to the recession and mounting competition from phone companies. Comcast also said it may not spend all of the $4.1 billion remaining under a 2008-2009 buyback plan and would focus on debt reduction.
Shares of Comcast, which have declined 24% so far this year, fell as low as $11.95 earlier in the session before paring some losses to trade down 4% to $12.34 at noon on the NASDAQ.
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| Market Summary | Nov 26, 2009 12:10 pm ET |


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