Comcast shares close lower on Wednesday, company expects substantial impact from coronavirus pandemic on results

Comcast Corp (CMCSA) said on Tuesday that it expected a substantial impact from the coronavirus pandemic on its near-to-medium term results.

Comcast shares closed lower for the fifth time in the past ten trading sessions on NASDAQ on Wednesday. The stock went down 3.09% ($1.07) to $33.57, after touching an intraday low at $31.89, or a price level not seen since March 23rd ($31.70).

Shares of Comcast Corp have retreated 25.35% so far in 2020 compared with a 23.38% loss for the benchmark index, S&P 500 (SPX).

In 2019, Comcast’s stock went up 32.07%, thus, it outperformed the S&P 500, which registered a 28.88% gain.

Due to COVID-19, “we have closed all of our theme parks; we have delayed theatrical distribution of films both domestically and internationally; and the creation and availability of our film and television programming in the United States and globally has been disrupted, including from the cancellation or postponement of sports events, including possibly the Olympics, and suspension of entertainment content production,” Comcast Corp said in a statement.

“As they affect Sky, these impacts materially exacerbate what was an already deteriorating economic environment and advertising market in the UK and Europe in 2019. Our Comcast Cable business, while our network performs well to meet the challenge of business and schooling from home, will not be unaffected either as economic stress impacts our residential and business services customer base,” the company said.

Analyst stock price forecast and recommendation

According to CNN Money, the 31 analysts, offering 12-month forecasts regarding Comcast Corporation’s stock price, have a median target of $50.00, with a high estimate of $54.00 and a low estimate of $38.00. The median estimate represents a 48.94% upside compared to the closing price of $33.57 on March 25th.

The same media also reported that at least 25 out of 34 surveyed investment analysts had rated Comcast Corporation’s stock as “Buy”, while 7 – as “Hold”.