Comcast CMCSA recently announced its plans to expand the high-speed Xfinity 10G network to 25 rural communities of Florida.
As part of the Florida Broadband Opportunity Program, Comcast was successful in bringing Internet service to almost 40K additional customers in Florida. The program awarded grants worth around $50 million to expand broadband Internet service in unserved areas.
This expansion in Florida will encourage job creation, capital investment and the strengthening and diversification of local economies.
Comcast Leveraging Xfinity 10G Network to Aid Prospects
Shares of Comcast have risen 12.9% year to date outperforming the Zacks Consumer Discretionary sector, which increased 8.6% in the same time frame.
Comcast Corporation Price and Consensus
Comcast Corporation price-consensus-chart | Comcast Corporation Quote
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, ultimate capacity, unprecedented coverage, reliable connection and ultra-low latency.
It aims to increase digital equity among rural communities by expanding the Xfinity 10G Network to new areas and offering cost-effective solutions by leveraging its symmetrical multi-gigabit Internet options.
Comcast 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 data each month.
In May 2023, Comcast announced its expansion with the next-generation Xfinity 10G network across Arcadia and surrounding areas in DeSoto County, FL
In March 2023, Comcast announced its Xfinity 10G network expansion to serve more rural communities in Oregon, Washington and Colorado.
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 Facing Stiff Competition
Comcast has been leveraging on its technology and expanding Xfinity 10G Network, reflected in its expanding subscriber base. However, it faces stiff competition in its broadband and wireless connectivity business from players like Verizon Communications VZ, AT&T T and Charter Communications CHTR.
Shares of Verizon, AT&T and Charter have declined 11.9%, 14.9% and 3% year to date, respectively.
In the wireless segment, Comcast added 355K wireless lines in the first quarter of 2023, whereas Verizon, Charter and AT&T added 899K, 686K, and 5.1 million wireless lines, respectively.
It added 5K broadband customers in the first quarter of 2023, whereas Verizon and Charter added 44K and 76K customers, respectively. AT&T lost 23K customers during the same time frame.
This Zacks Rank #3 (Hold) company’s first quarter 2023 revenues declined 4.3% year over year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $30.29 billion, indicating growth of 0.91% from the year-ago quarter’s reported figure.
The consensus mark for earnings has remained unchanged at $1 per share in the past 30 days, indicating a decline of 0.99% from the year-ago quarter’s levels.
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