Comcast (CMCSA - Free Report) is the largest cable MSO (multi service operator) in the U.S. and a leading media and entertainment company. The company provides basic video, digital video, high-speed broadband (Internet) and telephony services to individuals and business enterprises. In addition the company provides filmed entertainment, cable networks, broadcast TV services, and operates theme parks.
Comcast's decision to venture into the U.S. wireless space bodes well with its diversified business model. It has completed the nationwide rollout of its wireless services under the Xfinity Mobile brand, along with plans to include YouTube in its X1 video platform. Further, Comcast has started the nationwide rollout of the DOCSIS 3.1 technology, with its latest xFi Advanced Gateway.
Meanwhile, Comcast is venturing into residential solar programs with a 40-month deal with Sunrun. The company is working towards 5G network deployment. Comcast continues to expand its theme park business. With this, Comcast aims to check customer churn and provide viewers with more streaming options.
On the other hand, we are concerned about Comcast’s operation in a saturated and competitive multi-channel U.S. video market. Like other cable operators, the company continues to lose video subscribers due to cord-cutting. We also view the high debt level, consolidation-related woes, mounting programming costs as potential hazards.
Zacks Rank: Currently, Comcast has a Zacks Rank #3 (Hold) but that could change following its first-quarter 2018 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We have highlighted some of the key details from the just-released announcement below:
Earnings: Comcast’s adjusted earnings came in at 62 cents per share, which beat the Zacks Consensus Estimate by three cents.
Revenues: Revenues of $22.79 billion beat the Zacks Consensus Estimate of $22.72 billion and grew 10.7% on a year-over-year basis.
Key Stats: Total high-speed Internet customer net additions were 379K, while total security and automation customer net additions were 46K. However, total video customer net losses were 96K. Also, total voice customer net losses were 54K.
Stock Price: Shares were down 1.05% in the pre-market trading session.
Check back later for our full write up on this Comcast earnings report later!
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