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What's in the Offing for Comcast (CMCSA) in Q1 Earnings?
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Comcast Corp (CMCSA - Free Report) is set to report first-quarter 2018 results on Apr 25.
In the trailing four quarters, the company delivered an average positive earnings surprise of 9.79%, beating estimates in each. In the last reported quarter, the company’s adjusted earnings outpaced the Zacks Consensus Estimate by a couple of cents.
Moreover, Comcast’s top-line has beaten the consensus mark in three of the trailing four quarters. In the last-quarter, revenues came in at $21.92 billion, beating the Zacks Consensus Estimate of $21.80 billion and increased 4.2% from the year-ago quarter.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Comcast has completed the nationwide rollout of its wireless services under the Xfinity Mobile brand. Based on a Mobile Virtual Network Operator agreement with Verizon, Xfinity Mobile uses Verizon's 4G LTE wireless network.
Comcast continues to add new features like the voice remote (more than 20 million currently deployed) and has integrated YouTube, Pandora and iHeartRadio. These features are likely to improve customer engagement, consequently benefiting top-line growth.
Moreover, the company continues to roll out xFi pod extenders to increased Wi-Fi coverage in the home and its xFi app, which offers an unrivaled level of control. Increasing demand for high-speed internet presents significant growth opportunity for Comcast. The company’s broadband penetration currently stands at 45%.
Business Services have been witnessing strong momentum and continue to present attractive growth prospects. Comcast has started deploying fiber-based 2 Gbps residential broadband Internet services in certain regions. Known as Gigabit Pro, this new service runs on FTTH technology.
Comcast Business has also announced the launch of DOCSIS 3.1-based internet service to business customers.
Moreover, Comcast’s strategy of consistent investment in new attractions at the company’s theme parks is expected to drive growth for NBCUniversal in the to-be-reported quarter.
However, we remain concerned about the company’s operation in a saturated and competitive multi-channel U.S. video market. Comcast lost 33,000 video customers and 13,000 voice customers in the fourth-quarter 2017, due to cord-cutting and stiff competition.
Additionally, we view the company's high-debt levels and consolidation-related woes as potential hazards.
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 -0.42%, 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 few stocks you may consider as our proven model shows that these have the right combination of elements to post an earnings beat this quarter.
Paycom Software (PAYC - Free Report) has an Earnings ESP of +0.33% and a Zacks Rank #1.
Xilinx has an Earnings ESP of +5.26% and a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
What's in the Offing for Comcast (CMCSA) in Q1 Earnings?
Comcast Corp (CMCSA - Free Report) is set to report first-quarter 2018 results on Apr 25.
In the trailing four quarters, the company delivered an average positive earnings surprise of 9.79%, beating estimates in each. In the last reported quarter, the company’s adjusted earnings outpaced the Zacks Consensus Estimate by a couple of cents.
Moreover, Comcast’s top-line has beaten the consensus mark in three of the trailing four quarters. In the last-quarter, revenues came in at $21.92 billion, beating the Zacks Consensus Estimate of $21.80 billion and increased 4.2% from the year-ago quarter.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Comcast has completed the nationwide rollout of its wireless services under the Xfinity Mobile brand. Based on a Mobile Virtual Network Operator agreement with Verizon, Xfinity Mobile uses Verizon's 4G LTE wireless network.
Comcast Corporation Price and EPS Surprise
Comcast Corporation Price and EPS Surprise | Comcast Corporation Quote
Comcast continues to add new features like the voice remote (more than 20 million currently deployed) and has integrated YouTube, Pandora and iHeartRadio. These features are likely to improve customer engagement, consequently benefiting top-line growth.
Moreover, the company continues to roll out xFi pod extenders to increased Wi-Fi coverage in the home and its xFi app, which offers an unrivaled level of control. Increasing demand for high-speed internet presents significant growth opportunity for Comcast. The company’s broadband penetration currently stands at 45%.
Business Services have been witnessing strong momentum and continue to present attractive growth prospects. Comcast has started deploying fiber-based 2 Gbps residential broadband Internet services in certain regions. Known as Gigabit Pro, this new service runs on FTTH technology.
Comcast Business has also announced the launch of DOCSIS 3.1-based internet service to business customers.
Moreover, Comcast’s strategy of consistent investment in new attractions at the company’s theme parks is expected to drive growth for NBCUniversal in the to-be-reported quarter.
However, we remain concerned about the company’s operation in a saturated and competitive multi-channel U.S. video market. Comcast lost 33,000 video customers and 13,000 voice customers in the fourth-quarter 2017, due to cord-cutting and stiff competition.
Additionally, we view the company's high-debt levels and consolidation-related woes as potential hazards.
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 -0.42%, 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 few stocks you may consider as our proven model shows that these have the right combination of elements to post an earnings beat this quarter.
Western Digital (WDC - Free Report) has an Earnings ESP of +2.30% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Paycom Software (PAYC - Free Report) has an Earnings ESP of +0.33% and a Zacks Rank #1.
Xilinx has an Earnings ESP of +5.26% and a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>