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Comcast Corporation (CMCSA) Internet and Video Segments to Drive Fourth Quarter Results


Comcast Corporation (NASDAQ:CMCSA) will announce its financial numbers on February 24 before the market opens for the fourth quarter. The company’s video and high-speed internet segments are expected to drive its December quarter results. Street analysts’ have not changed their earnings expectations in the last three-month period and retained their estimations. This suggests confidence in the company and the industry’s trend during the quarter.

Revenue Generation

Based on the third quarter financial results, Comcast Corporation (NASDAQ:CMCSA) generates a little over 65% of its revenue from its cable communications division. The rest of the revenue came from its NBC Universal division. While NBC’s growth was only 1.2%, the cable communications’ uptick for Comcast Corporation was 5.2%.

Within the cable communications segment, the video and high-speed internet segments are the two most important divisions since they contribute over 47% of the company’s total revenue. Significantly, the high-speed internet division has provided a growth of over 9%, driven by net additions of 315,000 in the September quarter. The company was also able to increase its voice customers by 68,000. However, despite revenue growth in video, billable customer additions witnessed a loss of 81,000 compared to a loss of 127,000 in the preceding year period.

Comcast Corporation (NASDAQ:CMCSA) appeared to have lost subscribers in the single product category. In the double and triple product categories the company was able to add 76,000 and 72,000 respectively in the September quarter. Its customer relationships also grew to 26.9 million at the end of the third quarter with the addition of 82,000. Its free cash flow stood at $2.49 billion at the end of the period.

Earnings Expectations

There does not appear to have been any changes in the trend going by the analysts’ retaining their estimations in the last three months. On average, 26 analysts expect the company to deliver earnings of 78 cents a share and $17.70 billion for the December quarter.

Street analysts’ predictions suggest that they estimate Comcast Corporation (NASDAQ:CMCSA) to report an earnings growth of 18.2% and a revenue uptick of 4.6%. In the last four quarters, the company’s earnings exceeded the Street expectations in three quarters by 5.6% to 39.4%. Its earnings missed estimations in the 2013 fourth quarter.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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