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Comcast CMCSA is set to report second-quarter 2021 results on Jul 29.
The Zacks Consensus Estimate for second-quarter 2021 revenues is pegged at $27.1 billion, indicating 14.2% growth from the year-ago quarter’s reported figure.
The consensus mark for earnings has increased 3.1% to 67 cents per share over the past 30 days, suggesting a decline of 2.9% from the figure reported in the year-ago quarter.
Notably, Comcast beat on earnings in all the trailing four quarters, the average being 24%.
Let’s see how things have shaped up prior to this announcement.
Internet Subscriber Base Growth: A Key Catalyst
In the second quarter, Comcast’s top line is expected to have benefited from an increased number of high-speed Internet subscribers fueled by coronavirus-induced spike in media consumption and the work-from-home wave, which is 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 $5.68 billion, indicating 13.7% growth from the figure reported in the year-ago quarter.
Notably, Comcast’s wireless business added 278K lines in first-quarter 2021. The momentum is expected to have continued in the to-be-reported quarter.
On Apr 15, Comcast introduced 5G unlimited data options for its top-rated mobile service, Xfinity Mobile, at $30 per line for four lines.
Apart from 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 $15.69 billion, implying 8.8% growth from the figure reported in the year-ago quarter.
NBCUniversal’s Revenues Likely to Show Slight Improvement
Comcast’s NBCUniversal revenues are expected to have recovered slightly despite being negatively impacted by the coronavirus pandemic.
The Zacks Consensus Estimate for NBCUniversal revenues stands at $7.16 billion, implying 17% growth from the figure reported in the year-ago quarter. Partial resumption in film releases and improving demand for sports advertising revenues post coronavirus-induced lockdowns and social-distancing measures globally are expected to reflect on NBCUniversal revenues in the to-be reported quarter.
However, NBCUniversal’s theme park revenues are expected to have been negatively impacted by the coronavirus-induced capacity restrictions. Universal Orlando Resort and Universal Studios Japan are currently operating with limited capacity, while Universal Studios Hollywood remains closed.
The consensus mark for Theme Parks’ revenues is pegged at $677 million. The company had reported revenues of $87 million in the year-ago quarter.
Nonetheless, 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.
Sky Revenues to Recover
Meanwhile, Sky’s top-line growth is expected to have benefited from the resumption of sports-content coverage in the to-be-reported quarter.
The Zacks Consensus Estimate for Sky revenues is pegged at $4.82 billion, implying 18.3% growth from the figure reported in the year-ago quarter.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Comcast has an Earnings ESP of +1.37% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few more companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Carrier Global Corporation CARR has an Earnings ESP of +1.45% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Apple Inc. AAPL has an Earnings ESP of +3.4% and is Zacks #3 Ranked.
Etsy, Inc. ETSY has an Earnings ESP of +24.26% and a Zacks Rank #3.
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