© Stocksak. Comcast (CMCSA), Gains After Strong Earnings; Buyback; Analyst Says Broadband is Still a Problem
By Senad Karaahmetovic
Comcast (NASDAQ 🙂 posted better than expected Q3 earnings to send its shares more than 5% higher in Thursday trading.
The company reported a Q3 revenue of $29.85 trillion of $0.96, which is higher than the consensus $0.90 for sales of $29.75 trillion. Comcast reported 14,000.
“Despite the challenges that may lie ahead, we are in an enviable strategic and financial position, and our future remains bright,” commented Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation.
CMCSA also declared a quarterly payout of $0.27 as well as a huge buyback plan worth $3.5 billion. This is much more than what the Street was expecting.
Analysts at Wells Fargo praised CMCSA’s strong results and buybacks.
“This was a solid operating quarter for CMCSA against significantly lowered expectations at Cable. Cable expectations arguably reset in early September as the shares slid to their current levels in the low-$30s, and given the strength in the balance sheet, we’re not surprised to see a bounce off the bottom,” the analysts wrote in a note.
JPMorgan analysts said that “better-than-expected BB trends offer hope,” although the macro backdrop remains difficult.
“With ramping FWA availability and subs for the next year at least, and continued soft housing trends, we do not think the broadband pain is over for cable, and think it is a reasonable question whether broadband subs can grow in any quarter over the next year,” the analysts added.