Comcast (CMCSA) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Comcast CMCSA reported second-quarter 2023 adjusted earnings of $1.13 per share, beating the Zacks Consensus Estimate by 15.31% and increasing 11.9% year over year.
Consolidated revenues increased 1.7% year over year to $30.51 billion and beat the Zacks Consensus Estimate by 1.14%.
Comcast lost 19K domestic broadband customers in the reported quarter. Moreover, it lost 543K video customers. However, it added 316K wireless customers.
The company’s shares were up 3.31% in the pre-market. CMCSA shares have returned 22.7%, outperforming the Zacks Consumer Discretionary sector’s 14.1% growth.
Quarter Details
Connectivity & Platforms revenues (66.7% of revenues) remained at $20.36 billion in the reported quarter.
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Residential Connectivity & Platforms revenues declined 0.4% year over year at constant currency (cc) to $18.07 billion. Business Services Connectivity revenues increased 4% year over year at cc to $2.29 billion.
Content & Experiences revenues increased 4% year over year to $10.87 billion. Media revenues remained unchanged year over year at $6.2 billion. Studios declined 1% year over year to $3.09 billion. Theme Parks surged 22.5% year over year to $2.21 billion.
Peacock's paid subscribers in the United States doubled year over year to 24 Million. Peacock's revenues increased 85% to $820 Million.
Operating Details
Costs and expenses in the second quarter of 2023 increased 0.7% year over year to $23.8 billion.
Programming & production costs decreased 0.4% from the year-ago quarter to $8.85 billion. Marketing and promotional expenses decreased 4.4% year over year to $2.1 billion.
Adjusted EBITDA increased 4.2% from the year-ago quarter to $10.24 billion.
Residential Connectivity & Platforms adjusted EBITDA increased 4.4% year over year to $8.35 billion. Business Services Connectivity adjusted EBITDA increased 4.7% year over year to $1.32 billion.
Content & Experiences adjusted EBITDA was $2.19 billion, up 7.5% year over year. Theme Parks adjusted EBITDA increased 31.8% year over year. Studios reported an adjusted EBITDA of $255 million against the year-ago quarter’s loss of $3 million.
However, Media adjusted EBITDA declined 18.2% year over year to $1.24 billion.
Cash Flow & Liquidity
As of Jun 30, 2023, cash and cash equivalents were $7.15 billion, up from $5.54 billion as of Mar 31, 2023.
Moreover, as of Jun 30, 2023, consolidated total debt was $97.5 billion compared with $95.53 billion as of Mar 31, 2023.
In the second quarter of 2023, Comcast generated $7.2 billion in cash from operations, unchanged sequentially. Free cash flow was $3.4 billion in the reported quarter, down from $3.8 billion in the previous quarter.
It returned $3.2 billion to shareholders through a combination of dividend payments ($1.2 billion) and share repurchases ($2 billion).
Zacks Rank & Stocks to Consider
Currently, Comcast carries a Zacks Rank #3 (Hold).
Cumulus Media CMLS, DraftKings DKNG and Dolby Laboratories DLB are some better-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cumulus Media shares have declined 20.3% year to date. CMLS is set to report its second-quarter 2023 results on Jul 28.
DraftKings shares have gained 22% year to date. DKNG is set to report its second-quarter 2023 results on Aug 3.
Dolby Laboratories shares have declined 10.2% year to date. DLB is set to report its third-quarter fiscal 2023 results on Aug 3.
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