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Comcast (CMCSA) Set to Report Q3 Earnings: What's in Store?
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Comcast Corp (CMCSA - Free Report) is set to report third-quarter 2018 results on Oct 25.
In the trailing four quarters, the company delivered an average positive earnings surprise of 5.51%, beating estimates in each. In the last reported quarter (second-quarter 2018), the company’s adjusted earnings outpaced the Zacks Consensus Estimate by four cents.
Moreover, Comcast’s top line has beaten the consensus mark in two of the trailing four quarters. In second-quarter 2018, revenues came in at $21.74 billion, lagging the Zacks Consensus Estimate of $21.86 billion but increased 2.1% from the year-ago quarter.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $21.75 billion, which reflects year-over-year growth of almost 3.7%. Moreover, the consensus mark for earnings has been steady at 61 cents over the last seven days.
Let’s see how things are shaping up prior to this announcement.
High-Speed Internet Subscriber Growth: Key Catalyst
Comcast is expected to benefit from an increasing number of high-speed internet subscribers. The company has completed rollout of its high-speed gigabit internet service to nearly all 58 million homes and businesses it serves.
Comcast’s strategy to market broadband-only packages to customers is likely to drive top-line growth. Notably, median monthly data usage is increasing rapidly, which exceeded 150 gigabytes for the first time in the company’s history in the last reported quarter.
Moreover, the company has completed the nationwide rollout of its wireless services under the Xfinity Mobile brand, which is expected to expand subscriber base. Strong adoption of Xfinity branded solutions is a key catalyst. At the end of the second quarter, 68.7% of Comcast’s residential customers received at least two Xfinity products.
Cord-Cutting & Stiff Competition to Hurt Video Growth
Comcast continues to lose video subscribers due to cord-cutting and stiff competition from virtual MVPDs. In the second quarter, the company witnessed net loss of 140K video customers.
However, growing subscriber base for the X1 platform along with new features like the voice remote, Fandango voice activated movie ticketing service and integration of YouTube, Pandora and Netflix are positives. These features are likely to improve customer engagement, consequently benefiting the top line.
Moreover, strong political advertising sales are likely to drive advertising revenues. Further, we expect Theme Park revenue growth to remain steady in the to-be-reported quarter.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Comcast has a Zacks Rank #3 and an Earnings ESP of -0.46%, which indicates an unlikely positive surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider as our model shows that these have the right combination of elements to post earnings beat in their upcoming releases:
Charter Communications (CHTR - Free Report) has a Zacks Rank #2 and an Earnings ESP of +0.18%.
DISH Network has a Zacks Rank #2 and an Earnings ESP of +11.61%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Comcast (CMCSA) Set to Report Q3 Earnings: What's in Store?
Comcast Corp (CMCSA - Free Report) is set to report third-quarter 2018 results on Oct 25.
In the trailing four quarters, the company delivered an average positive earnings surprise of 5.51%, beating estimates in each. In the last reported quarter (second-quarter 2018), the company’s adjusted earnings outpaced the Zacks Consensus Estimate by four cents.
Moreover, Comcast’s top line has beaten the consensus mark in two of the trailing four quarters. In second-quarter 2018, revenues came in at $21.74 billion, lagging the Zacks Consensus Estimate of $21.86 billion but increased 2.1% from the year-ago quarter.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $21.75 billion, which reflects year-over-year growth of almost 3.7%. Moreover, the consensus mark for earnings has been steady at 61 cents over the last seven days.
Let’s see how things are shaping up prior to this announcement.
High-Speed Internet Subscriber Growth: Key Catalyst
Comcast is expected to benefit from an increasing number of high-speed internet subscribers. The company has completed rollout of its high-speed gigabit internet service to nearly all 58 million homes and businesses it serves.
Comcast Corporation Price and EPS Surprise
Comcast Corporation Price and EPS Surprise | Comcast Corporation Quote
Comcast’s strategy to market broadband-only packages to customers is likely to drive top-line growth. Notably, median monthly data usage is increasing rapidly, which exceeded 150 gigabytes for the first time in the company’s history in the last reported quarter.
Moreover, the company has completed the nationwide rollout of its wireless services under the Xfinity Mobile brand, which is expected to expand subscriber base. Strong adoption of Xfinity branded solutions is a key catalyst. At the end of the second quarter, 68.7% of Comcast’s residential customers received at least two Xfinity products.
Cord-Cutting & Stiff Competition to Hurt Video Growth
Comcast continues to lose video subscribers due to cord-cutting and stiff competition from virtual MVPDs. In the second quarter, the company witnessed net loss of 140K video customers.
However, growing subscriber base for the X1 platform along with new features like the voice remote, Fandango voice activated movie ticketing service and integration of YouTube, Pandora and Netflix are positives. These features are likely to improve customer engagement, consequently benefiting the top line.
Moreover, strong political advertising sales are likely to drive advertising revenues. Further, we expect Theme Park revenue growth to remain steady in the to-be-reported quarter.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Comcast has a Zacks Rank #3 and an Earnings ESP of -0.46%, which indicates an unlikely positive surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider as our model shows that these have the right combination of elements to post earnings beat in their upcoming releases:
Shaw Communications has an Earnings ESP of +1.85% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Charter Communications (CHTR - Free Report) has a Zacks Rank #2 and an Earnings ESP of +0.18%.
DISH Network has a Zacks Rank #2 and an Earnings ESP of +11.61%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>