Comcast (NASDAQ:CMCSA – Get Free Report) released its quarterly earnings results on Thursday. The cable giant reported $1.07 EPS for the quarter, beating the consensus estimate of $0.99 by $0.08, FiscalAI reports. Comcast had a net margin of 9.20% and a return on equity of 14.64%. The business had revenue of $29.30 billion for the quarter, compared to the consensus estimate of $29.22 billion. During the same period in the prior year, the company posted $1.12 earnings per share. Comcast’s revenue was down 6.1% compared to the same quarter last year.
Here are the key takeaways from Comcast’s conference call:
- Comcast remains on track to separate NBCUniversal and Sky by mid-2027, with management citing strong strategic positions, investment-grade balance sheets, and independent growth opportunities for both companies.
- Connectivity & Platforms faced continued competitive pressure, with broadband subscribers declining by 144,000, revenue down 2.6%, and EBITDA down 4.4%. Comcast expects a transformation-related charge of more than $1 billion in the fourth quarter, although management anticipates modest improvement in underlying trends.
- Wireless continued to expand, adding 368,000 lines to reach 10.6 million, up 18% year over year. About 70% of free lines are converting to paid relationships, while premium plans represented roughly 40% of postpaid phone connections.
- Peacock delivered its second consecutive profitable quarter, with EBITDA of $261 million, revenue growth of 34%, and 48 million subscribers. The planned YouTube bundle is expected to broaden Peacock’s reach, particularly among younger audiences, while limiting cannibalization of its direct-to-consumer business.
- Theme parks revenue declined 4% and EBITDA fell 17%, primarily due to softer demand in Orlando and Japan, as well as capacity and ride-throughput challenges at Epic Universe. Management expects Orlando pressure to persist into the first half of 2027, with growth expected to resume in the second half.
Comcast Trading Down 0.7%
CMCSA stock traded down $0.15 during mid-day trading on Friday, reaching $22.69. The company’s stock had a trading volume of 31,333,087 shares, compared to its average volume of 31,472,736. The company has a market cap of $80.52 billion, a price-to-earnings ratio of 7.18, a price-to-earnings-growth ratio of 1.64 and a beta of 0.68. The business’s 50 day moving average price is $23.80 and its 200 day moving average price is $24.63. The company has a current ratio of 0.82, a quick ratio of 0.80 and a debt-to-equity ratio of 0.91. Comcast has a 12 month low of $20.48 and a 12 month high of $32.85.
Comcast Announces Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 27th. Stockholders of record on Wednesday, January 6th will be given a $0.33 dividend. The ex-dividend date of this dividend is Wednesday, January 6th. This represents a $1.32 annualized dividend and a dividend yield of 5.8%. Comcast’s dividend payout ratio (DPR) is 42.72%.
Key Stories Impacting Comcast
Here are the key news stories impacting Comcast this week:
- Positive Sentiment: Comcast reported third-quarter adjusted earnings of $1.07 per share, above the roughly $0.99 analyst consensus, while revenue of $29.3 billion was broadly in line with expectations. Wireless growth, improved Peacock profitability and strong film performance helped offset weakness elsewhere. Comcast beats earnings expectations as media revenue offsets weakness in connectivity
- Positive Sentiment: Management said approximately 70% of wireless trial lines converted to paid accounts, indicating that the wireless business may be gaining traction as Comcast seeks to diversify beyond broadband. Peacock also reached profitability, supporting momentum ahead of the planned NBCUniversal spinoff. Comcast: 3 Key Takeaways for Long-Term Investors
- Neutral Sentiment: Comcast declared a quarterly dividend of $0.33 per share, or $1.32 annually, offering an approximately 5.8% yield based on the reported share price. The payout may appeal to income-oriented investors, although the yield also reflects broader concerns about the stock’s growth outlook. Comcast Declares Quarterly Dividend
- Neutral Sentiment: The proposed separation of NBCUniversal from Comcast’s broadband, pay-TV and wireless operations could unlock value by allowing each business to pursue a more focused strategy. However, execution and the final structure of the transaction remain important uncertainties. Comcast Co-CEO Brian Roberts Touts Staffers’ Energy and Excitement About Pending NBCUniversal Split
- Negative Sentiment: Domestic broadband and video subscriber losses continued, with satellite and other competitors intensifying pressure on Comcast’s core connectivity business. Revenue fell about 6% year over year, and adjusted earnings declined from the prior-year quarter despite the EPS beat. Comcast broadband losses deepen as competition pressures core business
- Negative Sentiment: Comcast expects a fourth-quarter restructuring charge exceeding $1 billion, including layoffs, as it overhauls its connectivity operations. Analysts including TD Cowen, Goldman Sachs and Citi lowered price targets, underscoring investor concern that broadband weakness may persist. Comcast Flags $1 Billion Q4 Charge for Layoffs and Restructuring
Analysts Set New Price Targets
CMCSA has been the subject of several research analyst reports. Weiss Ratings downgraded shares of Comcast from a “sell (d+)” rating to a “sell (d)” rating in a research report on Friday. Sanford C. Bernstein reissued a “market perform” rating and set a $23.00 price target on shares of Comcast in a report on Tuesday, October 13th. Barclays set a $24.00 price objective on Comcast and gave the stock an “equal weight” rating in a research report on Tuesday, September 29th. BNP Paribas Exane decreased their target price on Comcast from $25.00 to $22.00 and set an “underperform” rating on the stock in a research report on Tuesday, July 14th. Finally, UBS Group reissued a “neutral” rating and set a $27.00 target price (down from $32.00) on shares of Comcast in a research note on Tuesday, September 15th. Eleven research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and six have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $30.58.
Check Out Our Latest Research Report on CMCSA
Comcast Company Profile
Comcast Corporation is a global media and communications company headquartered in Philadelphia, Pennsylvania. Founded in 1963 as American Cable Systems, the company grew through the expansion of cable television and broadband services and adopted the Comcast name in 1969.
Through its Connectivity & Platforms businesses, Comcast provides residential and business customers with broadband internet, video, voice, mobile and related services. Its Xfinity brand offers internet, television, streaming and wireless products in the United States, while Comcast Business serves commercial and enterprise customers with connectivity, communications and technology solutions.
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