Comcast (CMCSA) Q3 Earnings Beat Estimates, Revenues Rise Y/Y
Comcast CMCSA reported third-quarter 2023 adjusted earnings of $1.08 per share, beating the Zacks Consensus Estimate by 14.89% and increasing 12.5% year over year.
Consolidated revenues increased 0.9% year over year to $30.11 billion and beat the Zacks Consensus Estimate by 1.59%.
Comcast lost 18K domestic broadband customers in the reported quarter. Moreover, it lost 490K video customers. However, it added 294K wireless customers.
Shares of CMCSA have returned 22.2%, outperforming the Zacks Consumer Discretionary sector’s 1.9% growth.
Comcast Corporation Price, Consensus and EPS Surprise
Comcast Corporation price-consensus-eps-surprise-chart | Comcast Corporation Quote
Quarter Details
Connectivity & Platforms revenues (67.3% of revenues) increased 1.1% year over year to $20.27 billion in the reported quarter.
Residential Connectivity & Platforms revenues increased 0.7% year over year to $17.95 billion. Business Services Connectivity revenues increased 4.7% year over year to $2.32 billion.
Content & Experiences revenues increased 0.8% year over year to $10.55 billion. Media revenues increased 0.4% year over year at $6.02 billion. Studios declined 23.6% year over year to $2.51 billion. Theme Parks surged 17.2% year over year to $2.41 billion.
Peacock paid subscribers in the United States increased 80% year over year to 28 million, including net additions of four million in the reported quarter. Peacock revenues increased 64% to $830 Million.
Operating Details
Costs and expenses in the third quarter of 2023 decreased 26.8% year over year to $23.64 billion.
Programming & production costs decreased 3.3% from the year-ago quarter to $8.65 billion. Marketing and promotional expenses decreased 9.7% year over year to $1.86 billion.
Adjusted EBITDA increased 5.1% from the year-ago quarter to $9.96 billion.
Residential Connectivity & Platforms adjusted EBITDA increased 2.9% year over year to $6.88 billion. Business Services Connectivity adjusted EBITDA increased 3.6% year over year to $1.33 billion.
Content & Experiences adjusted EBITDA was $1.97 billion, up 10.2% year over year. Theme Parks adjusted EBITDA came in at $983 million, which increased 20% year over year. Media adjusted EBITDA increased 6.5% year over year to $723 million.
However, Studios reported an adjusted EBITDA of $429 million, down 22.2% year over year.
Cash Flow & Liquidity
As of Sep 30, 2023, cash and cash equivalents were $6.43 billion, down from $7.15 billion as of Jun 30, 2023.
Moreover, as of Sep 30, 2023, consolidated total debt was $97.32 billion compared with $97.5 billion as of Jun 30, 2023.
In the third quarter of 2023, Comcast generated $8.15 billion in cash from operations, up from $7.2 billion reported in the previous quarter. Free cash flow was $4.03 billion in the reported quarter, up from $3.4 billion in the previous quarter.
It returned $4.7 billion to shareholders through a combination of dividend payments ($1.2 billion) and share repurchases ($3.5 billion).
Zacks Rank & Stocks to Consider
Currently, Comcast carries a Zacks Rank #3 (Hold).
JAKKS Pacific JAKK, Cable One CABO and AMC Networks AMCX are some better-ranked stocks that investors can consider in the broader sector. JAKK, CABO and AMCX carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of JAKKS Pacific have declined 3.1% year to date. JAKK is set to report its third-quarter 2023 results on Nov 1.
Shares of Cable One have gained 17.8% year to date. CABO is slated to report its third-quarter 2023 results on Nov 2.
Shares of AMC Networks have declined 26.4% year to date. AMCX is set to report its fourth-quarter fiscal 2023 results on Nov 3.
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