Comcast Shares Down 10% in the Last Two Days Despite Q1 Beat
Comcast Corporation (NASDAQ:CMCSA) shares lost more than 10% lower since Wednesday's close, despite the company’s reported Q1 beat, with EPS of $0.86 coming in above the consensus estimate of $0.81. Revenue was $31 billion, compared to the consensus of $30.54 billion.
Analysts at Oppenheimer shared their views on the company’s quarterly results, stating that secular pressure is beginning to impact the core business.
Broadband net adds were a normalized 180,000, down from 538,000 in Q1/20. Video/voice customer net losses of 512,000/283,000, respectively, were substantially worse than Oppenheimer’s estimates of 460,000/150,000 and last year's 248,000/24,000 declines. Price increases, which the analysts see as a negative strategy long term, did drive Cable revenue growth of 4.7% year-over-year to $16.54 billion, beating Oppenheimer’s estimate of $16.34 billion.
Advertising and Wireless remained robust entering 2022. The company added 318,000 wireless lines, the second consecutive record quarterly result, fueling Wireless revenue growth of 32% year-over-year.
| Symbol | Price | %chg |
|---|---|---|
| TLKM.JK | 3180 | -0.31 |
| ISAT.JK | 11500 | 4.35 |
| DNET.JK | 4910 | -0.2 |
| MTEL.JK | 665 | -0.75 |
Comcast Corporation Reports Q2 Beat, But Weak Subscriber Growth, Shares Down 13%
Comcast Corporation (NASDAQ:CMCSA) shares dropped more than 13% since the company’s reported Q2 results last week. While EPS of $1.01 and revenue of $30.02 billion came in better than the Street estimates of $0.92 and $29.89 billion, respectively, subscriber growth was weak with a shocking flat broadband-subscriber number.
Subscriber losses across the board were effectively offset by unsustainable growth in video and broadband ARPU of 7.5% year-over-year and 3.7% year-over-year, respectively.
According to the analyst at Oppenheimer, the company is stuck in a negative feedback loop of raising prices to combat subscriber churn while underinvesting in its networks. The analysts believe that the strategy of raising prices and free cash flow while losing subscribers is long-term value-destructive but short-term attractive.
