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Comcast (CMCSA) to Report Q3 Earnings: What’s in the Cards?

Comcast (CMCSA) to Report Q3 Earnings: What’s in the Cards?


Comcast CMCSA is set to report its third-quarter 2023 results on Oct 26, 2023.

The Zacks Consensus Estimate for third-quarter 2023 revenues is pegged at $29.64 billion, indicating a decline of 0.69% from the year-ago quarter’s reported figure.

The consensus mark for earnings has remained steady at 94 cents per share in the past 30 days, suggesting a fall of 2.08% from the figure reported in the year-ago quarter.

Comcast’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.83%.

Let’s see how things have shaped up for the upcoming announcement.

Comcast Corporation Price and EPS Surprise

 

Comcast Corporation price-eps-surprise | Comcast Corporation Quote

Factors at Play

Comcast’s top line in the to-be-reported quarter is expected to reflect a slowing broadband subscriber base due to hybrid-working trends and increased competition from fixed wireless and fiber-based wireline networks.

In the second quarter, Comcast lost 19K domestic broadband customers. Moreover, it lost 543K video customers.

The company’s wireless business added 316K lines in the second quarter of 2023. The momentum is expected to have continued in the to-be-reported quarter.

Comcast’s business services segment is expected to have benefited from an expanding clientele, thanks to an advanced and adaptable network infrastructure.

CMCSA leverages its Xfinity 10G Network to expand its subscriber base and reach. The network delivers three times faster broadband speeds, ultimate capacity, unprecedented coverage, reliable connection and ultra-low latency.

In July, Comcast completed the first phase of its network expansion to bring fiber-rich Internet to nearly 200 homes and businesses in Eagle Creek and Estacada, OR.

The company’s expanded offerings in different connectivity verticals, expanded partnerships and substantial global reach are expected to have aided declining broadband sales in the to-be-reported quarter.

The Theme Park business is likely to have benefited from strong occupancy rates in parks in Osaka, Beijing, Orlando and Super Nintendo World in Hollywood.

Moreover, Comcast is expected to have benefited from robust movie offerings on Peacock. NBCUniversal has a strong content portfolio, driven by popular TV shows like Saturday Night Live. It also has an impeccable lineup of sports content, including Sunday Night Football, Premier League and Big 10, as well as streaming originals like Poker Face.

At the end of the second quarter, Peacock’s paid subscribers in the United States doubled year over year to 24 million. Peacock’s revenues increased 85% year over year to $820 million, a trend which is expected to have continued in the third quarter.

On Sep 15, Comcast launched the mituTV streaming app on X1 and Flex, adding more than 120 hours of original Latino content and beloved series from innovative creators like Inland Entertainment Network, Digital Bodega and the Immigration Archive Project on the platforms.

Moreover, CMCSA’s expanding ad business is likely to have aided top-line growth. In July, a partnership was unveiled between Comcast’s FreeWheel division and Roku ROKU, signaling the launch of innovative technological offerings designed to streamline, optimize and elevate the experience of TV streaming. This collaboration involves Roku integrating its demand application programming interface with FreeWheel’s TV platform for streamlined ad operations, improved inventory quality and increased publisher revenues.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Comcast has an Earnings ESP of +0.29 % and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are some other stocks you can consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:

Palantir Technologies PLTR has an Earnings ESP of +4.35% and a Zacks Rank #2 at present. The company is scheduled to report third-quarter 2023 results on Nov 2. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing on one occasion, with the average surprise being 2.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Palantir’s third-quarter earnings is pegged at 6 cents per share, indicating a year-over-year improvement of 500%. It is estimated to report revenues of $555 million, which suggests an increase of approximately 16.1% from the year-ago quarter.

Intel INTC is slated to report third-quarter 2023 results on Oct 26. The company has an Earnings ESP of +12.98% and a Zacks Rank #2 at present. Intel’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 130.9%.

The Zacks Consensus Estimate for third-quarter earnings is pegged at 21 cents per share, suggesting a decrease of 64.4% from the year-ago quarter’s earnings of 59 cents. Intel’s quarterly revenues are estimated to decline 12.1% year over year to $13.48 billion.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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Intel Corporation (INTC) : Free Stock Analysis Report

Comcast Corporation (CMCSA) : Free Stock Analysis Report

Roku, Inc. (ROKU) : Free Stock Analysis Report

Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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