Back to top

Image: Bigstock

Why Is Comcast (CMCSA) Up 3.3% Since the Last Earnings Report?

Read MoreHide Full Article

It has been about a month since the last earnings report for Comcast Corporation (CMCSA - Free Report) . Shares have added about 3.3% in that time frame, outperforming the market.

Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Comcast Q1 Earnings and Revenues Surpass Estimates

GAAP net income in the first quarter of 2017 came in at $2,566 million or $0.53 per share compared with $2,134 million or $0.43 in the prior-year quarter. Quarterly earnings per share of $0.53 outpaced the Zacks Consensus Estimate of $0.44.

Quarterly total revenue was $20,463 million, up 8.9% year over year and ahead of the Zacks Consensus Estimate of $20,113 million.

Operating costs and expenses totaled $13,431 million, climbing 8.1% year over year. Operating income came in at $4,530 million, up 10.8% year over year. Operating margin rose to 22.1% compared with 21.8% in the year-ago quarter. During the first quarter, Comcast repurchased 20.4 million common shares for $750 million and paid dividends of $657 million.

In the first quarter of 2017, Comcast generated $5,656 million of cash from operations compared with $5,399 million in the year-ago quarter. Free cash flow, in the reported quarter, was $3,079 million compared with $2,805 million in the prior-year quarter.

Cash and cash equivalents, at the end of the first quarter of 2017, were $4,022 million up from $3,301 million at the end of 2016. Total debt at first quarter end was $61,785 million compared with $61,046 million at the end of 2016. The debt-to-capitalization ratio at the end of the reported quarter was 0.50 flat with the 2016-end figure.

Cable Communications Segment

Quarterly total revenue of $12,912 million reflected a 5.8% rise year over year. Adjusted EBITDA was $5,198 million, advancing 6.3% year over year. Within this segment, Video revenues were $5,774 million, up 4.3% from the prior-year quarter. High-Speed Internet revenues totaled $3,606 million, up 10.1% year over year. Voice revenues were $863 million, declining 3.6% year over year. Advertising revenues totaled $512 million, down 6.3% from the year-ago quarter. Business Services revenues were $1,490 million, rising 13.6% year over year. Other revenues were $667 million, up 4.4% from the prior-year quarter.

As of Mar 31, 2017, Comcast had 25.131 million (up 5.7% year over year) high-speed Internet customers; 11.681 million (up 0.9% year over year) voice customers; and 22.549 million (up 0.7% year over year) video customers. The company added a net of 429,000 high-speed Internet customers, 42,000 video customers but lost 5,000 voice customers in the reported quarter. The company gained 18,000 triple-play subscribers, 141,000 double-play subscribers and 104,000 single-play subscribers, in the reported quarter.

NBC Universal Segment

Quarterly total revenue of $7,868 million displayed a 14.7% year-over-year increase. Adjusted EBITDA was $2,017 million, exhibiting a rise of a 24.4% year over year. Within this segment, Cable Networks revenues were $2,641 million, up 7.6% year over year. Broadcast TV revenues came in at $2,208 million, rising 5.9% year over year. Filmed Entertainment revenues were $1,981 million, up 43.2% from the year-ago quarter. Theme Parks revenues were $1,118 million, up 9% year over year.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimate flatlined during the past month. There have been two revisions higher for the current quarter compared to two lower.

Comcast Corporation Price and Consensus

 

Comcast Corporation Price and Consensus | Comcast Corporation Quote

VGM Scores

At this time, Comcast's stock has a nice score of 'B', on both growth and momentum front. Charting an exact path, the stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.

Based on our scores, the stock is equally suitable for value and growth and momentum investors.

Outlook

The stock has a Zacks Rank #2 (Buy). We are expecting an above average return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Comcast Corporation (CMCSA) - free report >>

Published in