Comcast CMCSA is ready to report its first-quarter 2024 outcomes on Apr 25.
Comcast has been affected by a difficult macroeconomic setting. On-line video streaming service suppliers, akin to Netflix NFLX, Disney DIS, YouTube and Apple TV+, have change into a extreme risk to cable TV operators due to stable and diversified content material at a less expensive price. The intensifying competitors and cord-cutting have been a headwind for Comcast.
Netflix, Comcast’s nearest rival, is benefiting from a robust subscriber base. In first-quarter 2024, NFLX benefited from its crackdown on password-sharing and ad-supported tier, along with the latest worth hikes on sure subscription plans. On the finish of the primary quarter, NFLX had 269.6 million paid subscribers throughout greater than 190 nations globally, up 16% 12 months over 12 months.
Disney can be anticipated to report a rise in its subscriber base. The corporate expects Disney+ core subscriber web additions between 5.5 million and 6 million and ongoing constructive momentum in ARPU within the fiscal second quarter.
Furthermore, the industry-wide pattern of declining profitability of residential video companies because of growing programming prices and retransmission charges has made it troublesome for conventional firms like Comcast to outlive.
Comcast Company Worth and EPS Shock
Comcast Corporation price-eps-surprise | Comcast Company Quote
Residential voice companies have witnessed a major decline in revenues because of the growing utilization of wi-fi voice companies. That is anticipated to have damage the corporate’s efficiency within the to-be-reported quarter.
Within the first quarter, CMCSA’s high line is predicted to have been affected by a slowing broadband subscriber base because of hybrid-working tendencies and elevated competitors from fastened wi-fi and fiber-based wireline networks.
Within the fourth quarter, Comcast misplaced 34K home broadband prospects. Furthermore, it misplaced 389K video prospects.
The corporate’s expanded choices in several connectivity verticals, partnerships and substantial international attain are anticipated to have aided declining broadband gross sales within the to-be-reported quarter.
On Mar 7, CMCSA’s Xfinity introduced a collaboration with DraftKings DKNG to assist prospects view dwell odds from DKNG straight on the TV whereas watching main dwell sports activities video games and occasions.
This Zacks Rank #4 (Promote) firm’s enterprise companies phase is predicted to have benefited from an increasing clientele, pushed by a sophisticated and adaptable community infrastructure, notably in DraftKings.
The Theme Park enterprise is prone to have gained from sturdy occupancy charges in parks in Osaka, Beijing, Orlando and Tremendous Nintendo World in Hollywood.
Furthermore, the corporate is predicted to have benefited from sturdy film choices on Peacock. NBCUniversal has a robust content material portfolio, pushed by fashionable TV exhibits like Saturday Night time Dwell. It additionally has an impeccable lineup of sports activities content material, together with Sunday Night time Soccer, Premier League and Large 10, in addition to streaming originals like Poker Face.
On the finish of the fourth quarter, Peacock’s paid subscribers in the USA elevated 50% 12 months over 12 months to 31 million, together with web additions of three million within the reported quarter. Peacock’s revenues elevated 57% 12 months over 12 months to $1 billion.
Earnings Expectations
The Zacks Consensus Estimate for first-quarter 2024 revenues is pegged at $29.81 billion, indicating development of 0.39% from the year-ago quarter’s reported determine.
The consensus mark for earnings has declined 1% to 98 cents per share up to now 30 days, suggesting development of 6.52% from the determine reported within the year-ago quarter.
Comcast’s earnings beat the Zacks Consensus Estimate in every of the trailing 4 quarters, the typical shock being 12.55%.
You possibly can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Keep on high of upcoming earnings bulletins with the Zacks Earnings Calendar.
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