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Comcast shares gain the most in 1 1/2 months on Thursday, second-quarter earnings exceed estimates as high-speed internet client base expands

Comcast Corporations (CMCSA) second-quarter earnings, reported on Thursday, topped Wall Street estimates as the number of high-speed internet clients it managed to attract rose.

Comcast shares closed higher for a second consecutive trading session on NASDAQ on Thursday. It has also been the sharpest daily surge since June 14th. The stock went up 3.98% ($1.33) to $34.75, after touching an intraday high at $35.09, or a price level not seen since July 19th ($35.29).

Shares of Comcast Corp have retreated 13.23% so far in 2018 compared with a 6.13% gain for the underlying index, S&P 500 (SPX).

In 2017, Comcast’s stock surged 16.02%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

Total revenue went up 2.1% year-on-year to $21.7 billion during the quarter ended on June 30th, while falling short of the median analyst estimate ($21.86 billion).

Revenue from high-speed internet clients grew 9.3% year-on-year to $4.26 billion during the past quarter. The US cable provider added 260 000 internet subscribers, which outstripped a median forecast by MoffettNathanson and Macquarie analysts pointing to subscriber growth of 200 000.

During the quarter ended on June 30th, as many as 204 000 customers subscribed for Comcasts Xfinity Mobile service, which was launched in 2017.

On the other hand, the company lost 140 000 video customers during the second quarter, since TV users have been shifting to a number of less expensive streaming solutions.

Meanwhile, net income attributable to shareholders went up to $3.2 billion ($0.69 per share) during the second quarter, from $2.5 billion ($0.52 per share) in the year-ago period.

Earnings per share, excluding special items, rose to $0.65 during the second quarter from $0.52 per share in the year-ago period. In comparison, the median analyst estimate had pointed to adjusted earnings of $0.60 per share.

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Comcast Corporation’s stock price, have a median target of $42.00, with a high estimate of $55.00 and a low estimate of $34.00. The median estimate represents a 20.86% upside compared to the closing price of $34.75 on July 26th.

The same media also reported that 15 out of 23 surveyed investment analysts had rated Comcast Corporation’s stock as “Buy”, while 5 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Comcast stock are presented as follows:

R1 – $34.87
R2 – $34.99
R3 (Range Resistance – Sell) – $35.11
R4 (Long Breakout) – $35.48
R5 (Breakout Target 1) – $35.90
R6 (Breakout Target 2) – $36.11

S1 – $34.63
S2 – $34.51
S3 (Range Support – Buy) – $34.39
S4 (Short Breakout) – $34.02
S5 (Breakout Target 1) – $33.60
S6 (Breakout Target 2) – $33.39

By using the traditional method of calculation, the weekly levels of importance for Comcast Corporation (CMCSA) are presented as follows:

Central Pivot Point – $34.52
R1 – $35.07
R2 – $35.83
R3 – $36.38
R4 – $36.92

S1 – $33.76
S2 – $33.21
S3 – $32.45
S4 – $31.68

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