Comcast earnings preview: What to expect

Philadelphia, Pennsylvania-based Comcast Corporation (CMCSA) operates as a media and technology company. Valued at $165.2 billion by market cap, the company offers video streaming, television programming, high-speed Internet, cable television, and communication services. The telecom giant is expected to announce its fiscal third-quarter earnings for 2024 before the market opens on Thursday, Oct. 31.

Ahead of the event, analysts expect CMCSA to report a profit of $1.06 per share on a diluted basis, down 1.9% from $1.08 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.

For the full year, analysts expect CMCSA to report EPS of $4.24, up 6.5% from $3.98 in fiscal 2023. Its EPS is expected to rise 5.4% year over year to $4.47 in fiscal 2025.

CMCSA stock has underperformed the S&P 500’s ($SPX) 33.6% gains over the past 52 weeks, with shares down 4.5% during this period. Similarly, it underperformed the Communication Services Select Sector SPDR ETF Fund’s (XLC) 33.5% gains over the same time frame.

CMCSA has been facing challenges in its traditional cable and broadcasting segments due to the growing trend of cord-cutting in favor of streaming platforms. Despite its efforts to enter the streaming market with services like Peacock, the company is facing tough competition in this rapidly evolving industry. Moreover, the recent data theft incidents affecting a large number of Comcast’s Xfinity customers have added to the company’s struggles.

On Jul. 23, CMCSA shares fell more than 2% after reporting its Q2 results. Its adjusted EPS of $1.21 topped Wall Street expectations of $1.11. The company’s revenue was $29.7 billion, missing Wall Street forecasts of $30.1 billion.

Analysts’ consensus opinion on CMCSA stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 29 analysts covering the stock, 15 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, 12 give a “Hold” rating, and one recommends a “Strong Sell.” CMCSA’s average analyst price target is $46.77, indicating a potential upside of 10.7% from the current levels. Barchart