Telecommunications and media company Comcast (NASDAQ:CMCSA) will be reporting earnings tomorrow before market open. Here’s what you need to know.
Comcast beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $32.07 billion, up 6.5% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates. It reported 31.98 million domestic broadband customers, flat year on year.
Is Comcast a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Comcast’s revenue to grow 1.2% year on year to $31.61 billion, slowing from the 2.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.86 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Comcast has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1% on average.
Looking at Comcast’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. AT&T posted flat year-on-year revenue, beating analysts’ expectations by 0.7%, and Verizon reported revenues up 1.6%, topping estimates by 0.9%. AT&T traded up 7.4% following the results while Verizon was also up 3.9%.
Read our full analysis of AT&T’s results here and Verizon’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 5.1% on average over the last month. Comcast’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $47.70 (compared to the current share price of $37.55).
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