Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Vivek Kumar

Comcast Corporation, one of the largest cable television operators in the United States, reported better-than-expected revenue in the third quarter as an increase in broadband subscribers helped the cable giant to recover from the COVID-19 woes, sending its shares up about 1.5% on Thursday.

The cable television operator said its revenue for the third quarter of 2020 decreased 4.8% to $25.5 billion and net income attributable to Comcast plunged 37.2% to $2.0 billion. Adjusted net income slumped 18.2% to $3.0 billion. That was better than the market expectations of $24.74 billion.

Know where the Market is headed? Take advantage now with 

75% of retail CFD investors lose money

Comcast said its earnings per share (EPS) plunged 37.1% to $0.44 in the third quarter, from the same period a year ago. Adjusted EPS fell by 17.7% to $0.65. For the nine months ended September 30, 2020, EPS was $1.55, a 27.9% decrease compared to the prior year. Adjusted EPS down 12.4% to $2.04, the company said in the statement.

At the time of writing, Comcast shares traded 1.5% higher at $42.64; however, the stock is down about 6% so far this year.

Executive Comments

“This third quarter, we delivered the best broadband results in our company’s history. Driven by our industry-leading platform and strategic focus on broadband, aggregation and streaming, we added a record 633,000 high-speed internet customers and 556,000 total net new customer relationships,” said Brian L. Roberts, chairman and chief executive officer.

“Our integrated strategy is also driving results in streaming with nearly 22 million sign-ups for Peacock to date, and we are exceeding our expectations on all engagement metrics in only a few months. And Sky continues to add customer relationships at higher prices while reducing churn to all-time lows in our core UK business.”


Comcast Stock Price Forecast

Fourteen equity analysts forecast the average price in 12 months at $52.33 with a high forecast of $60.00 and a low forecast of $40.00. The average price target represents a 24.65% increase from the last price of $41.98. From those 14 analysts, 10 rated “Buy”, four rated “Hold” and none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $57 with a high of $72 under a bull-case scenario and $37 under the worst-case scenario. The firm currently has an “overweight” rating on the cable television operator’s stock. Comcast had its price objective upped by Barclays to $48 from $46. The brokerage currently has an overweight rating on the cable giant’s stock.

Several other analysts have also recently commented on the stock. BidaskClub downgraded to a “buy” rating from a “strong-buy”. ValuEngine upgraded to a “hold” rating from a “sell” in Sept. Citigroup increased their price objective to $49 from $48 and gave the company a buy rating in Aug. Sanford C. Bernstein upgraded shares of Comcast to an “outperform rating” from a “market perform” and upped their price target for the stock to $52 from $48 in July.

Analyst Comments

“In Cable, we believe continued runway in broadband will offset video declines, with the mix shift driving rising margins and falling capital intensity,” said Benjamin Swinburne, equity analyst at Morgan Stanley.

“At NBCU/Sky, we believe temporary headwinds from macro and COVID-19 have pressured CMCSA multiples, resulting in an attractive risk/reward,” Swinburne added.

Upside and Downside Risks

Upside: 1) Cable competition is overestimated, driving more broadband volume growth versus expects. 2) Faster than expected macro recovery – highlighted by Morgan Stanley.

Downside: 1) Macro uncertainty and COVID-19-related headwinds pressure cyclical legs of the business, primarily at NBCU. 2) Greater regulatory oversight negatively impacts broadband pricing growth.

Check out FX Empire’s earnings calendar

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.