Comcast Earnings Preview: Revenue Growth Likely To Continue

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Comcast (NASDAQ:CMCSA) is scheduled to report its Q4’17 earnings on January 24th. In the first three quarters of 2017, Comcast’s consolidated revenues grew by 5% and its operating profit grew by around 10%. For the fourth quarter, we expect that revenues for the company will grow to around $20.6 billion led by revenue growth from the X1 platform, and the EPS to grow to $0.55.  We have created an interactive dashboard that illustrates our expectation for Comcast’s various divisions. You can modify the revenue and  margin expectations for the company to see how its earnings would be affected in Q4.

Subscriber Pressure To Continue

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For Q4, we expect Comcast to report a minor loss in cable TV subscribers due to competition and cord cutting measures. While cord cutting is likely to weigh on its  revenues, the double and triple play bundling should continue to largely offset these declines. Nevertheless, we expect that subscriber losses will have a fairly limited impact on company’s top line in Q4. As the company has rolled out new initiatives such as Xfinity Mobile, a wireless service through 16 million WiFi hot-spots, we expect that its high-speed internet revenues will continue to report growth.

NBCUniversal’s cable network and broadcasting revenues are likely to improve as the increases in contractual rates will continue to buoy revenues for Q4. Theme park revenues grew in the first three quarters of 2017 due to increases in guest spending and higher guest attendance. We expect these trends continued in Q4 and should boost revenues during the quarter.

At present, we have a $41 price estimate for Comcast, which is about in line with the current market price.

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