Comcast (NASDAQ:CMCSA) Releases Earnings Results, Beats Estimates By $0.08 EPS

Key Points

• Comcast beat quarterly estimates, reporting EPS of $1.07 versus the $0.99 consensus and revenue of $29.30 billion versus $29.22 billion. However, revenue declined 6.1% year over year and EPS fell from $1.12 in the prior-year period.
• Connectivity remains under pressure, with broadband subscribers declining by 144,000, while theme parks revenue and EBITDA also fell. Management expects a transformation-related charge exceeding $1 billion in the fourth quarter.
• Wireless added 368,000 lines, and Peacock posted its second consecutive profitable quarter with $261 million in EBITDA. Comcast remains on track to separate NBCUniversal and Sky by mid-2027, a move intended to create independent growth opportunities for the businesses.

Comcast (NASDAQ:CMCSA - Get Free Report) issued its quarterly earnings data on Thursday. The cable giant reported $1.07 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.99 by $0.08, FiscalAI reports. The firm had revenue of $29.30 billion during the quarter, compared to the consensus estimate of $29.22 billion. Comcast had a return on equity of 14.77% and a net margin of 8.97%. The company's quarterly revenue was down 6.1% on a year-over-year basis. During the same period last year, the company earned $1.12 EPS.

Here are the key takeaways from Comcast's conference call:

• Comcast remains on track to separate NBCUniversal and Sky by mid-2027, with management citing strong strategic positions, investment-grade balance sheets, and independent growth opportunities for both companies.
• Connectivity & Platforms faced continued competitive pressure, with broadband subscribers declining by 144,000, revenue down 2.6%, and EBITDA down 4.4%. Comcast expects a transformation-related charge of more than $1 billion in the fourth quarter, although management anticipates modest improvement in underlying trends.
• Wireless continued to expand, adding 368,000 lines to reach 10.6 million, up 18% year over year. About 70% of free lines are converting to paid relationships, while premium plans represented roughly 40% of postpaid phone connections.
• Peacock delivered its second consecutive profitable quarter, with EBITDA of $261 million, revenue growth of 34%, and 48 million subscribers. The planned YouTube bundle is expected to broaden Peacock’s reach, particularly among younger audiences, while limiting cannibalization of its direct-to-consumer business.
• Theme parks revenue declined 4% and EBITDA fell 17%, primarily due to softer demand in Orlando and Japan, as well as capacity and ride-throughput challenges at Epic Universe. Management expects Orlando pressure to persist into the first half of 2027, with growth expected to resume in the second half.

Comcast Trading Up 2.5%

Shares of CMCSA stock opened at $22.63 on Thursday. The company has a debt-to-equity ratio of 0.94, a quick ratio of 0.80 and a current ratio of 0.80. The stock has a market capitalization of $80.30 billion, a P/E ratio of 7.32, a price-to-earnings-growth ratio of 1.60 and a beta of 0.68. The company has a 50 day moving average price of $23.94 and a 200 day moving average price of $24.68. Comcast has a fifty-two week low of $20.48 and a fifty-two week high of $32.85.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the stock. Deutsche Bank Aktiengesellschaft raised shares of Comcast from a "hold" rating to a "buy" rating and lowered their target price for the stock from $34.00 to $32.00 in a research note on Tuesday, June 30th. Morgan Stanley reduced their price target on shares of Comcast from $29.00 to $27.00 and set an "equal weight" rating on the stock in a research note on Friday, September 25th. BNP Paribas Exane reduced their price target on shares of Comcast from $25.00 to $22.00 and set an "underperform" rating on the stock in a research note on Tuesday, July 14th. Barclays set a $24.00 price objective on shares of Comcast and gave the stock an "equal weight" rating in a report on Tuesday, September 29th. Finally, Bank of America reiterated a "buy" rating and issued a $35.00 target price (down from $37.00) on shares of Comcast in a report on Wednesday, September 16th. Eleven research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and six have given a Sell rating to the company's stock. According to MarketBeat.com, Comcast currently has a consensus rating of "Hold" and a consensus price target of $30.81.

Trending Headlines about Comcast

Here are the key news stories impacting Comcast this week:

• Positive Sentiment: Comcast reported third-quarter adjusted earnings of $1.07 per share, ahead of the $0.99 consensus estimate, while revenue of $29.30 billion narrowly exceeded expectations. Media revenue helped offset weakness in connectivity, providing an initial boost to the stock. CNBC earnings report
• Positive Sentiment: NBCUniversal delivered encouraging operating developments, including a profitable Peacock and strong box-office performance from The Odyssey. These results could support Comcast’s planned media-business spinoff and improve the value proposition of the remaining businesses. Deadline NBCUniversal report
• Positive Sentiment: The board declared a quarterly cash dividend of $0.33 per share, payable January 27, 2027. The payout reinforces Comcast’s appeal to income-oriented investors despite its low-growth profile. Comcast dividend announcement
• Neutral Sentiment: Comcast is pursuing a media-business spinoff, which may unlock value, but investors will also focus on execution and the financial prospects of the separated connectivity and media companies. CNBC spinoff report
• Negative Sentiment: The key weakness was another substantial decline in domestic residential broadband subscribers, alongside continuing video-customer losses. Competition from low-priced fiber offerings is intensifying, raising concerns about Comcast’s most important recurring-revenue business. Reuters broadband report
• Negative Sentiment: Revenue declined 6.1% year over year, and quarterly EPS fell from $1.12 in the prior-year period despite the estimate beat. Reports of significant planned job cuts and restructuring add to concerns about operating pressure, while unusually heavy put-option buying signals defensive investor positioning. Reuters job-cuts report

Comcast Company Profile

Comcast Corporation is a global media and communications company headquartered in Philadelphia, Pennsylvania. Founded in 1963 as American Cable Systems, the company grew through the expansion of cable television and broadband services and adopted the Comcast name in 1969.

Through its Connectivity & Platforms businesses, Comcast provides residential and business customers with broadband internet, video, voice, mobile and related services. Its Xfinity brand offers internet, television, streaming and wireless products in the United States, while Comcast Business serves commercial and enterprise customers with connectivity, communications and technology solutions.

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