Telecommunications and media company Comcast (NASDAQ:CMCSA) will be announcing earnings results tomorrow before market hours. Here’s what to look for.
Comcast missed analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $29.69 billion, down 2.7% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ earnings estimates. It reported 32.07 million 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 5.3% year on year to $31.73 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.06 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 0.9% on average.
Looking at Comcast’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AT&T posted flat year-on-year revenue, meeting analysts’ expectations, and Verizon reported flat revenue, in line with consensus estimates. AT&T traded up 3.2% following the results while Verizon was down 1.9%.
Read our full analysis of AT&T’s results here and Verizon’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Comcast is up 1.1% during the same time and is heading into earnings with an average analyst price target of $46.46 (compared to the current share price of $42.14).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
