Comcast’s Shares Up By 2% After Beating Earnings ExpectationsThe shares of Comcast have surged by over 2% as the telecommunication conglomerate reported better-than-expected second-quarter earnings.
The shares of Comcast are up by over 2% today after the company reported its second-quarter earnings, surpassing analysts’ expectations.
Comcast’s Revenue Surpasses Expectation
Telecommunication conglomerate Comcast reported its second-quarter earnings earlier today, with the company outperforming analyst’s expectations. According to its report, the adjusted earnings per share was 84 cents, higher than the 67 cents expected in a Refinitiv survey of analysts.
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Furthermore, Comcast’s revenue in the second quarter of the year was $28.55 billion vs. $27.18 billion in the Refinitiv survey. The biggest win for the company was the huge number of high-speed internet customers it added during that period. According to Comcast, it added 345,000 new high-internet speed customers, surpassing the expected value of 270,000.
The company stated that the net addition for high-speed internet customers in Q2 was its best second-quarter performance on record. Comcast’s cable business remains its biggest revenue generator, raking in $16 billion, up 10.9% from a year ago. Furthermore, NBCUniversal also saw a surge in revenue, booking $8 billion for the second quarter of 2021, up 39.2% from a year ago.
The entertainment segments of NBCUniversal had been affected by the pandemic, making it almost impossible for theaters and theme parks to operate. However, Comcast has recorded positive news in this regard, as the Coronavirus vaccine allows partial resumption of operations.
Meanwhile, studios revenue is also slowly recovering, raking in $2.2 billion during the quarter. This is up from 8.4% that was recorded last year. The partial reopening of theme parks saw this aspect of Comcast’s business generate $1.1 billion.
Although the revenue generated from Sky surged by 14.9%, the company lost 248,000 subscribers after the completion of the soccer season.
Comcast’s Shares Rally After
The shares of Comcast began to rally as soon as the market opened today. At the time of this writing, Comcast’s shares are up by over 2%, and it continues to increase as traders adjust to the news of the earnings.
Year-to-date, CMCSA is up by over 10%, rising from $51 per share to currently trade at $59 per share.