Comcast Tops Q1 Earnings & Revenues, Share Price Up

Comcast Corp. (CMCSA) is the largest cable MSO (multi service operator) in the U.S. and a leading media and entertainment company.  Comcast 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.

Over the last 3-4 years, the internal dynamics of the U.S. pay-TV industry have been gradually shifting from cable TV operators to large telecom operators and low-cost over-the-top service providers. Extensive network of fiber-based video services from telecom operators and the strong presence of online video streaming providers are posing significant threat to the existing cable TV business model. Meanwhile, cord-cutting has become a serious concern for major pay-TV operators. Comcast is also facing all these negatives.

Nevertheless, Comcast has significantly enhanced its digital video offerings. Accordingly its customer churn rate and average revenue per user (ARPU) have also improved. Notably, fourth quarter of any year generally remains seasonally strong for the cable TV industry. Moreover, investors may get update whether Comcast is looking to acquire any other company after the FCC blocked its $45.2 deal to takeover Time Warner Cable.

Comcast currently carries a Zacks Rank #3 (Hold). The company has generated a positive average earnings surprise of 3.31% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Comcast Beats Q1 earnings estimate. Our consensus earnings estimate called for an adjusted EPS of 74 cents while the company reported adjusted EPS was 79 cents. Investors should note that these figures take out stock option expenses.

Revenue: Comcast reported total revenue of $17,853 million surpassing our estimate by $508 million.

Key States to Note: In the reported quarter, Comcast lost 8,000 video customers. At quarter end, the company had 22.375 million video subscribers, down 1% year over year. Quarterly high-speed broadband customer addition was 407,000. At quarter end, the company had 22.369 million high-speed Internet subscribers, up 6.2% year over year. The company also added 77,000 voice customers. At quarter end, the company had 11.27 million voice subscribers, up 3.7% year over year.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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