Q3 Preview: Comcast (CMCSA) Should See Boost From Consumer Switch to Broadband
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Price: $26.85 +1.63%
Financial Fact:
Costs and expenses, total: 16.88B
Today's EPS Names:
BTTX, VAXX, ELYS, More
Financial Fact:
Costs and expenses, total: 16.88B
Today's EPS Names:
BTTX, VAXX, ELYS, More
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Comcast Corporation (Nasdaq: CMCSA) is trading lower ahead of the company's third quarter earnings report, expected out after the market closes today. Shares are down 0.10% in afternoon trading.
The company is expected to report an EPS of $0.30 on revs of $9.36 billion. Last quarter, the company posted an EPS of $0.33 on revs of $9.5 billion, both topping consensus views. In Q309, CMCSA had an EPS of $0.33 on revs of $8.16 billion.
Shares have increased through the quarter, gaining 2.5% to $17.98 at the end of September. Shares are trading 18.3% higher since the start of 2010, and 9.9% lower since the end of the quarter.
Data from Bloomberg has 16 analysts with a Buy rating, 12 with a Hold, and none recommending to Sell. The analyst price target average is $23, with a High of $27 and a low of $19.
Analyst Ratings Through the Quarter
In August, BMO cut shares from Outperform to Market Perform, while D.A. Davidson also downgraded shares from Buy to Neutral, with a price target reduced from $44 to $35.
At the end of September, Needham & Company kept their Buy rating on the shares, but lowered their price target from $43 to $38. They cite weaker-than-expected demand in computing and consumer end-markets and inventory reduction actions by the supply chain into year-end.
Summay
Deutsche Bank reiterates their Buy rating on the stock, and carries a price target of $27.00. Cable revs are expected to increase 5.4% from Q309, to $8.854 billion. basic subs should drop around 200,000, which is narrower Y/Y. DB notes that consumer demand for broadband keeps rising, and for investors worried about cable cutting, CMCSA's response would be metered broadband pricing.
Kaufman Bros. sees a slowdown in activity, but a stable pricing environment. Kaufman "forecast RGU net adds of 660,000, down 38% from 1.1 million a year ago with basic sub losses of 150,000 and negative comps in every other category." Market share gains from telecoms will solidify earnings. Kaufman is looking "for HSD net adds of 285,000, down from 362,000 in 3Q09, but still on track for one million net adds in 2010, enough for double-digit top-line growth to that business." Kaufman has a Hold rating on the shares and a $21 price target. Going in to the quarter, Kaufman sees an EPS of $0.30 and $9.3 billion in revs.
Miller Tabak + Co. reduces its video net adds for Comcast in light of numbers out of AT&T and Verizon. They expect 221,000 basic video net losses, lower from their previous estimate of 163,000. Digital video adds are expected to be 286,0000, still down from a previous estimate of 351,000. Tabak sees Q3 revs of $9.5 billion and an EPS of $0.32. CapEx reduced from $1.467 billion to $1.342 billion and FCF fom $1.059 billion to $1.155 billion. Tabak has a Buy rating on the shares with a long-term target of $27.
Comcast Corp. is expected to release their Q310 earnings on Tuesday, October 26, 2010, at approximately 4:00pm EDT. Stay tuned to StreetInsider.com's EPS Central section to see our analysis of the highly-anticipated quarterly results within seconds of their release.
The company is expected to report an EPS of $0.30 on revs of $9.36 billion. Last quarter, the company posted an EPS of $0.33 on revs of $9.5 billion, both topping consensus views. In Q309, CMCSA had an EPS of $0.33 on revs of $8.16 billion.
Shares have increased through the quarter, gaining 2.5% to $17.98 at the end of September. Shares are trading 18.3% higher since the start of 2010, and 9.9% lower since the end of the quarter.
Data from Bloomberg has 16 analysts with a Buy rating, 12 with a Hold, and none recommending to Sell. The analyst price target average is $23, with a High of $27 and a low of $19.
Analyst Ratings Through the Quarter
In August, BMO cut shares from Outperform to Market Perform, while D.A. Davidson also downgraded shares from Buy to Neutral, with a price target reduced from $44 to $35.
At the end of September, Needham & Company kept their Buy rating on the shares, but lowered their price target from $43 to $38. They cite weaker-than-expected demand in computing and consumer end-markets and inventory reduction actions by the supply chain into year-end.
Summay
Deutsche Bank reiterates their Buy rating on the stock, and carries a price target of $27.00. Cable revs are expected to increase 5.4% from Q309, to $8.854 billion. basic subs should drop around 200,000, which is narrower Y/Y. DB notes that consumer demand for broadband keeps rising, and for investors worried about cable cutting, CMCSA's response would be metered broadband pricing.
Kaufman Bros. sees a slowdown in activity, but a stable pricing environment. Kaufman "forecast RGU net adds of 660,000, down 38% from 1.1 million a year ago with basic sub losses of 150,000 and negative comps in every other category." Market share gains from telecoms will solidify earnings. Kaufman is looking "for HSD net adds of 285,000, down from 362,000 in 3Q09, but still on track for one million net adds in 2010, enough for double-digit top-line growth to that business." Kaufman has a Hold rating on the shares and a $21 price target. Going in to the quarter, Kaufman sees an EPS of $0.30 and $9.3 billion in revs.
Miller Tabak + Co. reduces its video net adds for Comcast in light of numbers out of AT&T and Verizon. They expect 221,000 basic video net losses, lower from their previous estimate of 163,000. Digital video adds are expected to be 286,0000, still down from a previous estimate of 351,000. Tabak sees Q3 revs of $9.5 billion and an EPS of $0.32. CapEx reduced from $1.467 billion to $1.342 billion and FCF fom $1.059 billion to $1.155 billion. Tabak has a Buy rating on the shares with a long-term target of $27.
Comcast Corp. is expected to release their Q310 earnings on Tuesday, October 26, 2010, at approximately 4:00pm EDT. Stay tuned to StreetInsider.com's EPS Central section to see our analysis of the highly-anticipated quarterly results within seconds of their release.
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