Thursday, January 30, 2025

Comcast Surpasses Wall Street's 4Q Expectations


Despite reporting a higher-than-expected loss of broadband subscribers and stagnation in paid subscribers for its streaming service, Peacock, Comcast exceeded Wall Street's fourth-quarter forecasts on Thursday. 

The focus on cable companies' broadband sector has been intense, as these services continue to generate significant revenue and profit, yet are experiencing a downturn in customer growth due to fierce competition from wireless providers, among other challenges.

According to CNBC, streaming services have also been a key area of interest. While profitability has become the new benchmark for success, the industry has seen a spike in subscriber numbers thanks to the introduction of more affordable, ad-supported options.

During the fourth quarter, Comcast disclosed a loss of 139,000 residential broadband customers, exceeding the 100,000 loss anticipated by Comcast Cable CEO Dave Watson at a December investor conference. On the investor call, Comcast President Mike Cavanagh described the broadband subscriber loss as "disappointing and worse than what we indicated in early December."

For Peacock, Comcast reported 36 million subscribers for the quarter, an increase from the previous year but unchanged from the last quarter. Wall Street analysts, according to StreetAccount, had forecasted 37.56 million paid subscribers.

Following the announcement, Comcast's stock fell over 8% in premarket tradin

Here's a summary of Comcast's performance for the quarter compared to LSEG's analyst estimates:

  • Earnings per Share: 96 cents adjusted vs. 86 cents expected
  • Revenue: $31.92 billion vs. $31.64 billion expected

No comments:

Post a Comment