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Comcast (CMCSA) to Report Q1 Earnings: What's in the Cards?

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Comcast CMCSA is set to report first-quarter 2021 results on Apr 29.

The Zacks Consensus Estimate for first-quarter 2021 revenues is pegged at $26.78 billion, indicating 0.6% growth from the year-ago quarter’s reported figure.

Moreover, the consensus mark for earnings stayed at 59 cents per share over the past 30 days, suggesting a decline of 17% from the figure reported in the year-ago quarter.

Notably, Comcast beat on earnings in all the trailing four quarters, the average being 17.5%.

Comcast Corporation Price and EPS Surprise

Comcast Corporation Price and EPS Surprise
Comcast Corporation Price and EPS Surprise

Comcast Corporation price-eps-surprise | Comcast Corporation Quote

Let’s see how things are shaping up prior to this announcement.

Internet Subscriber Base Growth a Tailwind

Comcast’s top line in the to-be-reported quarter is expected to have benefited from an increased number of high-speed Internet subscribers amid the coronavirus outbreak. Increased media consumption and the work-from-home wave are expected to have augured well for this cable giant.

Additionally, improving customer experience owing to expanding Wi-Fi coverage and innovative xFi control features are expected to have aided subscriber growth.

The Zacks Consensus Estimate for Cable Communication – High Speed Internet revenues is pegged at $5.60 billion, indicating 12% growth from the figure reported in the year-ago quarter.

Notably, Comcast’s wireless business added 246K lines in fourth-quarter 2020. The momentum is expected to have continued in the first quarter. Markedly, expansion of the Verizon MVNO agreement, reopening of retail stores, and strong marketing and sales channel are expected to have aided wireless revenues.

Moreover, the Zacks Consensus Estimate for Cable Communication revenues is pegged at $15.63 billion, implying 4.1% growth from the figure reported in the year-ago quarter.

NBCUniversal & Theme Park Revenues to Take a Hit

Comcast’s NBCUniversal and Theme Park revenues are expected to have been negatively impacted by the coronavirus pandemic.

The Zacks Consensus Estimate for NBCUniversal revenues stands at $7.35 billion, implying a 5% decline from the figure reported in the year-ago quarter. This division is expected to have been hurt by the lack of film releases and lost sports advertising revenues due to coronavirus-induced lockdowns and social-distancing measures, globally.

Further, the consensus mark of $539 million for Theme Parks’ revenues is significantly lower from $869 million reported in the year-ago quarter. Apart from seasonality, the quarter’s top line is expected to have been negatively impacted by COVID-19-related capacity restrictions at Universal Orlando Resort and Universal Studios Japan. Moreover, pre-opening costs related to Universal Beijing are likely to have the segment’s profitability.

However, NCUniversal’s streaming service, Peacock, is expected to have gained users, thanks to its solid content portfolio. The launch of WWE Network content on Peacock is a noteworthy development in the to-be-reported quarter.

Nevertheless, Peacock is expected to have reported EBITDA loss in the to-be-reported quarter due to higher expenses related to its launch and spending on content.

Sky’s Revenues to Decline Y/Y in Q1

Meanwhile, Sky’s top-line growth is expected to have suffered from COVID-19-related restrictions in the to-be-reported quarter. Comcast expects Sky’s revenues to decline slightly year over year due to weakness in hospitality and advertising businesses.

The Zacks Consensus Estimate for Sky revenues is pegged at $4.56 billion, implying 0.9% growth from the figure reported in the year-ago quarter.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Comcast has an Earnings ESP of -3.72% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Etsy ETSY has an Earnings ESP of +1.19% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

CDW Corporation CDW has an Earnings ESP of +0.51% and a Zacks Rank #2.

Citrix Systems CTXS has an Earnings ESP of +0.15% and a Zacks Rank #2.

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Comcast Corporation (CMCSA) : Free Stock Analysis Report

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