Comcast (CMCSA - Free Report) reported third-quarter 2023 adjusted earnings of $1.08 per share, beating the Zacks Consensus Estimate by 14.89% and increasing 12.5% year over year.
Consolidated revenues increased 0.9% year over year to $30.11 billion and beat the Zacks Consensus Estimate by 1.59%.
Comcast lost 18K domestic broadband customers in the reported quarter. Moreover, it lost 490K video customers. However, it added 294K wireless customers.
Shares of CMCSA have returned 22.2%, outperforming the Zacks Consumer Discretionary sector’s 1.9% growth.
Quarter Details
Connectivity & Platforms revenues (67.3% of revenues) increased 1.1% year over year to $20.27 billion in the reported quarter.
Residential Connectivity & Platforms revenues increased 0.7% year over year to $17.95 billion. Business Services Connectivity revenues increased 4.7% year over year to $2.32 billion.
Content & Experiences revenues increased 0.8% year over year to $10.55 billion. Media revenues increased 0.4% year over year at $6.02 billion. Studios declined 23.6% year over year to $2.51 billion. Theme Parks surged 17.2% year over year to $2.41 billion.
Peacock paid subscribers in the United States increased 80% year over year to 28 million, including net additions of four million in the reported quarter. Peacock revenues increased 64% to $830 Million.
Operating Details
Costs and expenses in the third quarter of 2023 decreased 26.8% year over year to $23.64 billion.
Programming & production costs decreased 3.3% from the year-ago quarter to $8.65 billion. Marketing and promotional expenses decreased 9.7% year over year to $1.86 billion.
Adjusted EBITDA increased 5.1% from the year-ago quarter to $9.96 billion.
Residential Connectivity & Platforms adjusted EBITDA increased 2.9% year over year to $6.88 billion. Business Services Connectivity adjusted EBITDA increased 3.6% year over year to $1.33 billion.
Content & Experiences adjusted EBITDA was $1.97 billion, up 10.2% year over year. Theme Parks adjusted EBITDA came in at $983 million, which increased 20% year over year. Media adjusted EBITDA increased 6.5% year over year to $723 million.
However, Studios reported an adjusted EBITDA of $429 million, down 22.2% year over year.
Cash Flow & Liquidity
As of Sep 30, 2023, cash and cash equivalents were $6.43 billion, down from $7.15 billion as of Jun 30, 2023.
Moreover, as of Sep 30, 2023, consolidated total debt was $97.32 billion compared with $97.5 billion as of Jun 30, 2023.
In the third quarter of 2023, Comcast generated $8.15 billion in cash from operations, up from $7.2 billion reported in the previous quarter. Free cash flow was $4.03 billion in the reported quarter, up from $3.4 billion in the previous quarter.
It returned $4.7 billion to shareholders through a combination of dividend payments ($1.2 billion) and share repurchases ($3.5 billion).
Zacks Rank & Stocks to Consider
Currently, Comcast carries a Zacks Rank #3 (Hold).
JAKKS Pacific (JAKK - Free Report) , Cable One (CABO - Free Report) and AMC Networks (AMCX - Free Report) are some better-ranked stocks that investors can consider in the broader sector. JAKK, CABO and AMCX carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of JAKKS Pacific have declined 3.1% year to date. JAKK is set to report its third-quarter 2023 results on Nov 1.
Shares of Cable One have gained 17.8% year to date. CABO is slated to report its third-quarter 2023 results on Nov 2.
Shares of AMC Networks have declined 26.4% year to date. AMCX is set to report its fourth-quarter fiscal 2023 results on Nov 3.
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Comcast (CMCSA - Free Report) reported third-quarter 2023 adjusted earnings of $1.08 per share, beating the Zacks Consensus Estimate by 14.89% and increasing 12.5% year over year.
Consolidated revenues increased 0.9% year over year to $30.11 billion and beat the Zacks Consensus Estimate by 1.59%.
Comcast lost 18K domestic broadband customers in the reported quarter. Moreover, it lost 490K video customers. However, it added 294K wireless customers.
Shares of CMCSA have returned 22.2%, outperforming the Zacks Consumer Discretionary sector’s 1.9% growth.
Quarter Details
Connectivity & Platforms revenues (67.3% of revenues) increased 1.1% year over year to $20.27 billion in the reported quarter.
Residential Connectivity & Platforms revenues increased 0.7% year over year to $17.95 billion. Business Services Connectivity revenues increased 4.7% year over year to $2.32 billion.
Content & Experiences revenues increased 0.8% year over year to $10.55 billion. Media revenues increased 0.4% year over year at $6.02 billion. Studios declined 23.6% year over year to $2.51 billion. Theme Parks surged 17.2% year over year to $2.41 billion.
Peacock paid subscribers in the United States increased 80% year over year to 28 million, including net additions of four million in the reported quarter. Peacock revenues increased 64% to $830 Million.
Operating Details
Costs and expenses in the third quarter of 2023 decreased 26.8% year over year to $23.64 billion.
Programming & production costs decreased 3.3% from the year-ago quarter to $8.65 billion. Marketing and promotional expenses decreased 9.7% year over year to $1.86 billion.
Adjusted EBITDA increased 5.1% from the year-ago quarter to $9.96 billion.
Residential Connectivity & Platforms adjusted EBITDA increased 2.9% year over year to $6.88 billion. Business Services Connectivity adjusted EBITDA increased 3.6% year over year to $1.33 billion.
Content & Experiences adjusted EBITDA was $1.97 billion, up 10.2% year over year. Theme Parks adjusted EBITDA came in at $983 million, which increased 20% year over year. Media adjusted EBITDA increased 6.5% year over year to $723 million.
However, Studios reported an adjusted EBITDA of $429 million, down 22.2% year over year.
Cash Flow & Liquidity
As of Sep 30, 2023, cash and cash equivalents were $6.43 billion, down from $7.15 billion as of Jun 30, 2023.
Moreover, as of Sep 30, 2023, consolidated total debt was $97.32 billion compared with $97.5 billion as of Jun 30, 2023.
In the third quarter of 2023, Comcast generated $8.15 billion in cash from operations, up from $7.2 billion reported in the previous quarter. Free cash flow was $4.03 billion in the reported quarter, up from $3.4 billion in the previous quarter.
It returned $4.7 billion to shareholders through a combination of dividend payments ($1.2 billion) and share repurchases ($3.5 billion).
Zacks Rank & Stocks to Consider
Currently, Comcast carries a Zacks Rank #3 (Hold).
JAKKS Pacific (JAKK - Free Report) , Cable One (CABO - Free Report) and AMC Networks (AMCX - Free Report) are some better-ranked stocks that investors can consider in the broader sector. JAKK, CABO and AMCX carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of JAKKS Pacific have declined 3.1% year to date. JAKK is set to report its third-quarter 2023 results on Nov 1.
Shares of Cable One have gained 17.8% year to date. CABO is slated to report its third-quarter 2023 results on Nov 2.
Shares of AMC Networks have declined 26.4% year to date. AMCX is set to report its fourth-quarter fiscal 2023 results on Nov 3.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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