Maxim Group Comments on Comcast (CMCSA) Ahead of Earnings, Sees 5.5% Video Subscriber Growth
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Price: $26.18 --0%
Rating Summary:
24 Buy, 25 Hold, 3 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
24 Buy, 25 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Maxim Group is reiterating its Buy rating and $34 price target on shares of Comcast Corp (NASDAQ: CMCSA) as it is currently the firms "favorite big-cap media stock."
The firm reports that many investors prefer buying shares of Time Warner Cable (NYSE: TWC) over CMCSA as the dividend is higher and the, buybacks are larger, and that it is a simple play on the cable TV operator segment.
TWC reported that video subscribers fell by 470 thousand in Q2 and the firm notes that it is due to the high cost of the cable TV packages and greater competition from company's such as FiOS and U-verse. Maxim Group highlights that Comcast may be facing the same issues as it competes directly with FiOS and U-verse in 35 percent of their regions.
An analyst at Maxim Group comments, "We believe that CMCSA is managing the content assets well, having re-upped with the Olympics to ensure that NBC still has the business and buying the 50 percent of theme parks that it didn’t own, allowing for a Disney (NYSE: DIS)-like cross marketing strategy."
The company is scheduled to releases its Q2 results tomorrow before the opening bell. The firm is forecasting revenue of $13.3 billion and EBITDA of $4.3 billion for the quarter, lower than the consensus which is looking for $13.8 billion in revenue and EBITDA of $4.6 billion. Maxim Group anticipates that EBITDA margins will fall by 6 percent year-over-year to 33 percent due to lower programming margins.
The firm is predicting CMCSA to add about 1 million new digital video subscribers for a total of 20.29 million and will add 1.13 million HSD subscribers to a total of 17.6 million. They are also forecasting that video subscribers will decline by 680 thousand subscribers.
For more ratings news on Comcast Corp click here and for the rating history of Comcast Corp click here.
Shares of Comcast Corp closed at $23.85 yesterday.
The firm reports that many investors prefer buying shares of Time Warner Cable (NYSE: TWC) over CMCSA as the dividend is higher and the, buybacks are larger, and that it is a simple play on the cable TV operator segment.
TWC reported that video subscribers fell by 470 thousand in Q2 and the firm notes that it is due to the high cost of the cable TV packages and greater competition from company's such as FiOS and U-verse. Maxim Group highlights that Comcast may be facing the same issues as it competes directly with FiOS and U-verse in 35 percent of their regions.
An analyst at Maxim Group comments, "We believe that CMCSA is managing the content assets well, having re-upped with the Olympics to ensure that NBC still has the business and buying the 50 percent of theme parks that it didn’t own, allowing for a Disney (NYSE: DIS)-like cross marketing strategy."
The company is scheduled to releases its Q2 results tomorrow before the opening bell. The firm is forecasting revenue of $13.3 billion and EBITDA of $4.3 billion for the quarter, lower than the consensus which is looking for $13.8 billion in revenue and EBITDA of $4.6 billion. Maxim Group anticipates that EBITDA margins will fall by 6 percent year-over-year to 33 percent due to lower programming margins.
The firm is predicting CMCSA to add about 1 million new digital video subscribers for a total of 20.29 million and will add 1.13 million HSD subscribers to a total of 17.6 million. They are also forecasting that video subscribers will decline by 680 thousand subscribers.
For more ratings news on Comcast Corp click here and for the rating history of Comcast Corp click here.
Shares of Comcast Corp closed at $23.85 yesterday.
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