Comcast Corps (CMCSA) fourth-quarter revenue and profit, reported on Wednesday, topped Wall Street estimates, since the US cable services provider lost fewer-than-anticipated video subscribers, while its revenue from broadcast television and theme parks rose.
Comcast shares closed higher for the sixth time in the past nine trading sessions on NASDAQ on Wednesday. It has also been the sharpest daily surge since February 3rd 2016. The stock went up 5.49% ($1.92) to $36.89, after touching an intraday high at $37.48, or a price level not seen since December 12th ($37.49).
Shares of Comcast Corp have risen 8.34% so far in 2019 compared with a 5.26% gain for the benchmark index, S&P 500 (SPX).
In 2018, Comcast’s stock retreated 14.98%, thus, it underperformed the S&P 500, which registered a 6.24% loss.
Total revenue went up 26.1% year-on-year to $27.85 billion during the fourth quarter, which outstripped the median analyst estimate of $27.55 billion.
Comcast lost 29 000 video subscribers during the latest quarter compared with 33 000 lost in the year-ago period. However, analysts on average had expected a loss of 62 000 subscribers.
Revenue from Comcasts video business shrank 1.6% year-on-year to $5.58 billion during the fourth quarter, since subscribers in the United States continued to shift from costlier pay-TV services to less expensive streaming services.
Revenue at NBCUniversal grew 7.1% year-on-year to $9.40 billion during the past quarter, while revenue from broadcast television went up 4% to $3.10 billion. At the same time, Comcasts revenue from theme parks surged 3.6% year-on-year to $1.51 billion.
Revenue from Comcasts high-speed internet business grew 10.1% year-on-year to $4.40 billion, with 351 000 net subscribers added. Analysts had expected net subscriber growth of 356 000.
Meanwhile, net income attributable to shareholders was reported to have shrunk 83.3% to $2.51 billion (or $0.55 per share) during the fourth quarter from $15.00 billion (or $3.17 per share) in the year-ago period, when Comcast registered a one-time benefit of $12.7 billion associated with the US tax code reform.
Earnings per share, excluding special items, were reported at $0.64 during the fourth quarter, which exceeded the median analyst estimate of $0.62 per share.
According to CNN Money, the 28 analysts, offering 12-month forecasts regarding Comcast Corporation’s stock price, have a median target of $44.00, with a high estimate of $52.00 and a low estimate of $38.00. The median estimate represents a 19.27% upside compared to the closing price of $36.89 on January 23rd.
The same media also reported that 19 out of 31 surveyed investment analysts had rated Comcast Corporation’s stock as “Buy”, while 7 – as “Hold”.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for Comcast Corporation (CMCSA) are presented as follows:
Central Pivot Point – $35.96
R1 – $36.57
R2 – $36.93
R3 – $37.54
R4 – $38.15
S1 – $35.60
S2 – $34.99
S3 – $34.63
S4 – $34.27
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