Comcast Reports Mixed Q4 Results with Mobile Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: CNBC
- Broadband Customer Loss: Comcast lost 181,000 domestic broadband customers in Q4, although international subscriber growth partially offset this decline, highlighting the pressure the company faces amid fierce competition, particularly from wireless providers.
- Mobile Business Growth: During the same period, Comcast's mobile segment added 364,000 customers, bringing the total to over 9.3 million, indicating early success in the company's strategic shift to counter ongoing pressures in the broadband market.
- Media Business Performance: Comcast's media unit revenue rose 5.5% to $7.62 billion, driven by the new NBA contract on NBC, although Peacock's streaming service saw losses deepen to $552 million, underscoring the high risks associated with content investments.
- Overall Financial Performance: Despite total revenue increasing by over 1% year-over-year to $32.31 billion in Q4, net income fell 54.6% to $2.17 billion, reflecting the challenges and opportunities the company faces across its diversified business segments.
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Analyst Views on CMCSA
Wall Street analysts forecast CMCSA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CMCSA is 33.45 USD with a low forecast of 23.00 USD and a high forecast of 53.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
7 Buy
12 Hold
3 Sell
Hold
Current: 28.410
Low
23.00
Averages
33.45
High
53.00
Current: 28.410
Low
23.00
Averages
33.45
High
53.00
About CMCSA
Comcast Corporation is a global media and technology company. The Company delivers broadband, wireless, and video through Xfinity, Comcast Business, and Sky; produces, distributes, and streams entertainment, sports, and news through brands, including NBC, Telemundo, Universal, Peacock, and Sky; and brings theme parks and attractions to life through Universal Destinations & Experiences. The Company operates through two primary businesses: Connectivity & Platforms and Content & Experiences. The Connectivity & Platforms business includes two segments: Residential Connectivity & Platforms, and Business Services. Its Connectivity and Content & Experiences business include three segments: Media, Studios and Theme Parks. Sky provides connectivity services to customers across Europe through Sky Broadband, Sky Mobile, and Sky Business. Sky Business extends broadband services and purpose-built products to businesses in Europe.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Comcast Set to Announce Q4 Earnings Amid Subscriber Concerns
- Earnings Decline: Wall Street anticipates Comcast's Q4 EPS to be $0.76, reflecting a 20.8% year-over-year decline, indicating significant pressure on profitability amid fierce market competition.
- Subscriber Loss Risks: BofA Securities projects a net loss of 200K broadband subscribers for Comcast in Q4, with a broader forecast suggesting cable companies could lose 1 million subscribers by 2026, highlighting intensifying competition.
- Strategic Investments and Ratings: Despite challenges, BofA maintains a Buy rating with a $37 price target, believing that the spin-off of linear networks positions NBCUniversal as a rare growth asset with promising future potential.
- Stock Performance Concerns: Comcast's stock has fallen nearly 25% over the past year, contrasting with a 16% rise in the S&P 500, reflecting market caution regarding its future performance.
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Comcast Reports Q4 Losses and Revenue Miss
- Broadband Customer Loss: Comcast lost 181,000 broadband customers in Q4, exceeding Bloomberg's estimate of 168,194 losses, indicating increased pressure in a competitive market.
- Video Customer Decline: The video segment saw a loss of 245,000 customers, which was better than the expected 264,547, yet it still highlights ongoing challenges that could impact future revenue growth.
- Theme Park Revenue Surge: Fueled by the opening of Epic Universe, theme park revenue rose 21.9% to $2.89 billion, underscoring the significance and growth potential of this segment within the overall revenue mix.
- Net Income Drop: Comcast's net income for Q4 was $2.17 billion, or $0.60 per share, down significantly from $4.78 billion and $1.24 per share last year, primarily due to a nearly $2 billion increase in total costs and expenses.
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