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Comcast's Growth Initiatives Bode Well, Competition a Woe
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On Jun 14, 2016, we issued an updated research report on Comcast Corporation (CMCSA - Free Report) . The company reported impressive results in the first quarter of 2016, wherein both the top and the bottom line beat the respective Zacks Consensus Estimate. Importantly, the company witnessed impressive subscriber gain for video, high-speed data and voice during the quarter.
Comcast started deploying fiber-based 2 gigabits per second (2 Gbps) residential broadband Internet services across certain regions. Known as Gigabit Pro, this new service runs on the fiber-to-the-home (FTTH) technology. Moreover, the company is planning to launch its DOCSIS 3.1 compliant Gigabit Internet service later this year. We believe Comcast’s DOCSIS 3.1 and Gigabit Pro rollout will successfully drive growth at the company.
The company remains focused on enhancing its offerings through strategic initiatives such as the nationwide rollout of X1 services, various home security services and the introduction of new content for multi-platform on-demand services. Notably, Comcast is particularly making great progress in rolling out X1 to new and existing customers. Thus, the company plans to continue deploying X1 aggressively throughout 2016, as this has significantly restricted customer churn. Also, Business Services has been witnessing strong momentum and continues to represent an attractive growth opportunity for the company. Having tasting considerable success in this segment, Comcast is now expanding its Business Services division to cater to large enterprises.
On the flip side, the U.S. pay-TV industry is currently witnessing massive consolidation. Last July, AT&T Inc. (T - Free Report) attained the leading position in the U.S. pay-TV market with the acquisition of DIRECTV. Moreover, Charter Communications Inc.’s (CHTR - Free Report) takeover of Time Warner Cable may generate significant financial fluctuations for Comcast.
To make matters worse, increasing competition from Over-the-Top video streaming providers such as Netflix Inc. (NFLX - Free Report) as well as escalating programming expenses for content creation may hurt the company’s business, results of operations and financial condition, going forward.
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Comcast's Growth Initiatives Bode Well, Competition a Woe
On Jun 14, 2016, we issued an updated research report on Comcast Corporation (CMCSA - Free Report) . The company reported impressive results in the first quarter of 2016, wherein both the top and the bottom line beat the respective Zacks Consensus Estimate. Importantly, the company witnessed impressive subscriber gain for video, high-speed data and voice during the quarter.
Comcast started deploying fiber-based 2 gigabits per second (2 Gbps) residential broadband Internet services across certain regions. Known as Gigabit Pro, this new service runs on the fiber-to-the-home (FTTH) technology. Moreover, the company is planning to launch its DOCSIS 3.1 compliant Gigabit Internet service later this year. We believe Comcast’s DOCSIS 3.1 and Gigabit Pro rollout will successfully drive growth at the company.
The company remains focused on enhancing its offerings through strategic initiatives such as the nationwide rollout of X1 services, various home security services and the introduction of new content for multi-platform on-demand services. Notably, Comcast is particularly making great progress in rolling out X1 to new and existing customers. Thus, the company plans to continue deploying X1 aggressively throughout 2016, as this has significantly restricted customer churn. Also, Business Services has been witnessing strong momentum and continues to represent an attractive growth opportunity for the company. Having tasting considerable success in this segment, Comcast is now expanding its Business Services division to cater to large enterprises.
On the flip side, the U.S. pay-TV industry is currently witnessing massive consolidation. Last July, AT&T Inc. (T - Free Report) attained the leading position in the U.S. pay-TV market with the acquisition of DIRECTV. Moreover, Charter Communications Inc.’s (CHTR - Free Report) takeover of Time Warner Cable may generate significant financial fluctuations for Comcast.
To make matters worse, increasing competition from Over-the-Top video streaming providers such as Netflix Inc. (NFLX - Free Report) as well as escalating programming expenses for content creation may hurt the company’s business, results of operations and financial condition, going forward.
COMCAST CORP A Price
COMCAST CORP A Price | COMCAST CORP A Quote
Comcast currently has a Zacks Rank #3 (Hold).
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