We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Comcast (CMCSA) to Report Q1 Earnings: What's in the Cards?
Read MoreHide Full Article
Comcast (CMCSA - Free Report) is set to report first-quarter 2020 results on Apr 30.
The Zacks Consensus Estimate for first-quarter 2020 revenues is pegged at $26.84 billion, indicating a 0.1% dip from the year-ago quarter’s reported figure.
Moreover, the consensus mark for earnings has moved a penny south to 69 cents over the past 30 days, suggesting a decline of 9.2% from the figure reported in the year-ago quarter.
Notably, Comcast beat on earnings in all the trailing four quarters, the average being 7.5%.
Let’s see how things are shaping up prior to this announcement.
Internet & Mobile Subscriber Base Growth a Tailwind
Comcast’s top line in the to-be-reported quarter is expected to have benefited from an increased number of high-speed Internet subscribers amid the coronavirus outbreak. Increased media consumption and work-from-home wave are expected to have augured well for this cable giant.
Notably, Internet speeds for the Internet Essentials service for all new and the existing customers were increased from mid-March onward. Moreover, upon signing to the service, the company also offered 60 days of complimentary Internet Essentials service to low-income families living within its service area.
Additionally, improving customer experience owing to expanding Wi-Fi coverage and innovative xFi control features like the enhanced WiFi parental control (Xfinity xFi) is expected to have aided subscriber growth.
The Zacks Consensus Estimate for Cable Communication – High Speed Internet revenues is pegged at $4.99 billion, indicating 9.1% growth from the figure reported in the year-ago quarter.
Further, the company’s Xfinity Mobile is now used by more than 1.5 million customers. Strong demand for By the Gig Plan and an increased uptake of the Bring Your Own Device program are expected to have expanded the user base.
Additionally, exclusive device offerings like Samsung Galaxy S20+ 5G and Galaxy S20 Ultra 5G for Xfinity subscribers are noteworthy.
These factors are likely to have resulted in revenue growth and lower wireless EBITDA losses in the quarter under review.
The Zacks Consensus Estimate for Cable Communication revenues is pegged at $14.87 billion, implying 4.1% growth from the figure reported in the year-ago quarter.
NBCUniversal & Theme Park Revenues to Take a Hit
Moreover, Comcast’s NBCUniversal and Theme Park revenues are expected to have been negatively impacted by the coronavirus pandemic.
The Zacks Consensus Estimate for NBCUniversal revenues stands at $8.03 billion, implying a 3.4% decline from the figure reported in the year-ago quarter. This division is expected to have been hurt by delayed film releases and lost sports advertising revenues due to coronavirus-induced lockdowns and social-distancing measures, globally.
Further, the consensus mark of $1.16 billion for Theme Parks’ revenues is indicative of a 9.2% decline from the figure reported in the year-ago quarter. The company closed its theme parks in Florida and California on Mar 14 due to the coronavirus pandemic.
Sky’s Robust Content to Aid Growth
Meanwhile, Sky’s robust portfolio is likely to have improved subscriber engagement, particularly in Europe as more and more people were compelled to stay home due to the coronavirus outbreak.
The Zacks Consensus Estimate for Sky revenues is pegged at $4.77 billion, implying a 5.4% decline from the figure reported in the previous quarter.
However, the company continues to lose video subscribers due to cord-cutting and stiff competition from virtual MVPDs. This is expected to reflect on the company’s top line in the first quarter as well.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Comcast has an Earnings ESP of -6.33% and a Zacks Rank #3. 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 worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Shopify (SHOP - Free Report) has an Earnings ESP of +5.85% and is #2 Ranked.
Etsy (ETSY - Free Report) has an Earnings ESP of +8.17% and a Zacks Rank #2.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Comcast (CMCSA) to Report Q1 Earnings: What's in the Cards?
Comcast (CMCSA - Free Report) is set to report first-quarter 2020 results on Apr 30.
The Zacks Consensus Estimate for first-quarter 2020 revenues is pegged at $26.84 billion, indicating a 0.1% dip from the year-ago quarter’s reported figure.
Moreover, the consensus mark for earnings has moved a penny south to 69 cents over the past 30 days, suggesting a decline of 9.2% from the figure reported in the year-ago quarter.
Notably, Comcast beat on earnings in all the trailing four quarters, the average being 7.5%.
Comcast Corporation Price and EPS Surprise
Comcast Corporation price-eps-surprise | Comcast Corporation Quote
Let’s see how things are shaping up prior to this announcement.
Internet & Mobile Subscriber Base Growth a Tailwind
Comcast’s top line in the to-be-reported quarter is expected to have benefited from an increased number of high-speed Internet subscribers amid the coronavirus outbreak. Increased media consumption and work-from-home wave are expected to have augured well for this cable giant.
Notably, Internet speeds for the Internet Essentials service for all new and the existing customers were increased from mid-March onward. Moreover, upon signing to the service, the company also offered 60 days of complimentary Internet Essentials service to low-income families living within its service area.
Additionally, improving customer experience owing to expanding Wi-Fi coverage and innovative xFi control features like the enhanced WiFi parental control (Xfinity xFi) is expected to have aided subscriber growth.
The Zacks Consensus Estimate for Cable Communication – High Speed Internet revenues is pegged at $4.99 billion, indicating 9.1% growth from the figure reported in the year-ago quarter.
Further, the company’s Xfinity Mobile is now used by more than 1.5 million customers. Strong demand for By the Gig Plan and an increased uptake of the Bring Your Own Device program are expected to have expanded the user base.
Additionally, exclusive device offerings like Samsung Galaxy S20+ 5G and Galaxy S20 Ultra 5G for Xfinity subscribers are noteworthy.
These factors are likely to have resulted in revenue growth and lower wireless EBITDA losses in the quarter under review.
The Zacks Consensus Estimate for Cable Communication revenues is pegged at $14.87 billion, implying 4.1% growth from the figure reported in the year-ago quarter.
NBCUniversal & Theme Park Revenues to Take a Hit
Moreover, Comcast’s NBCUniversal and Theme Park revenues are expected to have been negatively impacted by the coronavirus pandemic.
The Zacks Consensus Estimate for NBCUniversal revenues stands at $8.03 billion, implying a 3.4% decline from the figure reported in the year-ago quarter. This division is expected to have been hurt by delayed film releases and lost sports advertising revenues due to coronavirus-induced lockdowns and social-distancing measures, globally.
Further, the consensus mark of $1.16 billion for Theme Parks’ revenues is indicative of a 9.2% decline from the figure reported in the year-ago quarter. The company closed its theme parks in Florida and California on Mar 14 due to the coronavirus pandemic.
Sky’s Robust Content to Aid Growth
Meanwhile, Sky’s robust portfolio is likely to have improved subscriber engagement, particularly in Europe as more and more people were compelled to stay home due to the coronavirus outbreak.
The Zacks Consensus Estimate for Sky revenues is pegged at $4.77 billion, implying a 5.4% decline from the figure reported in the previous quarter.
However, the company continues to lose video subscribers due to cord-cutting and stiff competition from virtual MVPDs. This is expected to reflect on the company’s top line in the first quarter as well.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Comcast has an Earnings ESP of -6.33% and a Zacks Rank #3. 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 worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Pixelworks (PXLW - Free Report) has an Earnings ESP of +5.26% and is Zacks #1 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify (SHOP - Free Report) has an Earnings ESP of +5.85% and is #2 Ranked.
Etsy (ETSY - Free Report) has an Earnings ESP of +8.17% and a Zacks Rank #2.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>