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Comcast reports its fourth-quarter earnings before the bell on Thursday. Wall Street will be paying close attention to the state of the company’s broadband business, as well as any progress of the spinout of its cable TV networks.
Comcast’s broadband business has been the focus for Wall Street for some time now, as customer growth has been in the midst of an ongoing slump. Last month Comcast Cable CEO Dave Watson told investors the company expected to lose more than 100,000 broadband customers during the fourth quarter, sending Comcast shares tumbling.
Watson warned of the subscriber loss during an investor conference, saying the market remains “competitively intense.” Cable broadband companies like Comcast have faced ramped-up competition from wireless providers like Verizon and T-Mobile.
While Watson said the fourth quarter will be similar to the first half of 2024, he added that the company’s broadband business has remained stable. Domestic broadband revenue has been a continued source of growth as pricing has gone up despite lagging additions.
Here is what Wall Street expects for Comcast’s fourth quarter, according to estimates from analysts surveyed by LSEG:
- Earnings per share: 86 cents
- Revenue: $31.64 billion
When it comes to customer growth, Wall Street will also look for updates on NBCUniversal’s streaming service, Peacock. The streamer enjoyed a customer boost during the third quarter due to the Summer Olympics.
While streaming remains a key area of focus as the traditional cable TV bundle loses customers, Wall Street will also be looking for updates on the spinout of Comcast’s cable TV networks. In November Comcast said it would move forward with the spinoff of networks including CNBC, MSNBC, E! and USA.
Wall Street will also have an eye out for attendance numbers at Universal theme parks, which have cooled in recent quarters following a surge after the Covid lockdowns.
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC. NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics is the U.S. broadcast rights holder to all Summer and Winter Games through 2032.
