Comcast (CMCSA) Expands Xfinity 10G Network in Merced County
Comcast CMCSA recently announced plans to invest $4.5 million in the expansion of high-speed Xfinity 10G network to rural communities of Planada in Merced County, California.
As part of Comcast’s $1-billion commitment through Project UP, it distributed grants and donations to various NGOs and expanded its network to rural homes and businesses in Preston, Berkeley, Merced, Hancock, Mineral, Monongalia and Ohio counties.
The expansion and investments made by Comcast will guide residents and businesses toward rural economic development and increase digital equity.
Apart from Xfinity, Comcast offers a suite of connectivity, communications, networking, cybersecurity, wireless and managed solutions to help small- and mid-sized businesses prepare for the future.
Comcast Corporation Price and Consensus
Comcast Corporation price-consensus-chart | Comcast Corporation Quote
Comcast Leveraging on Xfinity 10G Network to Aid Top Line
In December 2022, Comcast announced its next-generation Xfinity 10G network based on DOCSIS 4.0 technology. The network delivers three times faster broadband speeds, unprecedented coverage, reliable connection and ultra-low latency.
Comcast successfully gained approximately one billion Xfinity customers using their network and more than 10 million internet-only customers taking gigabit speed products and consuming an average of 700 GB of data each month.
In March 2023, Comcast announced its Xfinity 10G network expansion to serve more rural communities in Oregon, Washington and Colorado.
In February 2023, Comcast announced its expansion with the next-generation Xfinity 10G network across several southeast Texas counties.
Comcast Gaining Traction Amid Stiff Competition
Shares of Comcast have risen 9% year to date compared with the Zacks Consumer Discretionary sector’s increase of 10.2% in the same time frame.
The recent underperformance in Comcast’s shares reflects slowing broadband and customer relationships primarily due to stiff competition in communication and streaming business, challenging macroeconomic conditions, and continued low household move levels.
Cable Communications and digital streaming prospects are suffering due to stiff competition from players like Verizon Communications VZ, AT&T T and Netflix NFLX.
Shares of Verizon, AT&T and Netflix have risen 0.1%, 7.5% and 12.8% year-to-date, respectively.
Verizon’s Fios and AT&T’s Fiber continue to capture a larger market share by expanding fiber-based network infrastructure in many of Comcast’s service areas. The availability of low-cost internet service by Verizon and AT&T also impact the demand of Comcast’s broadband service.
DTC streaming and OTT service providers like Netflix offer online streaming and downloading of content which causes viewers to switch over from cable and television networks and gives stiff competition in capturing paid subscribers on Comcast’s Peacock.
This Zacks Rank #3 (Hold) company expects its media and ad revenues to decline reflected by a decrease in television viewership. The decline is primarily due to a competitive environment and shifting of video consumption patterns. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for fiscal first quarter revenues is pegged at $29.41 billion, indicating a decline in growth of 5.16% from the year-ago quarter’s reported figure.
The consensus mark for earnings has remained unchanged at 82 cents per share in the past 30 days.
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