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Category: Stock Market and Comcast
Date: 28 October 2019 Stock Price: $45.65 We take a look at the 3rd quarter earnings report of their 2019 fiscal year of Comcast a global media and technology company with brands including Universal Pictures, NBC and Sky.
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About Comcast
Comcast Corporation (Nasdaq: CMCSA) is a global media and technology company with three primary businesses: Comcast Cable, NBCUniversal, and Sky. Comcast Cable is one of the United States’ largest high-speed internet, video, and phone providers to residential customers under the Xfinity brand, and also provides these services to businesses. It also provides wireless and security and automation services to residential customers under the Xfinity brand. NBCUniversal is global and operates news, entertainment and sports cable networks, the NBC and Telemundo broadcast networks, television production operations, television station groups, Universal Pictures, and Universal Parks and Resorts. Sky is one of Europe's leading media and entertainment companies, connecting customers to a broad range of video content through its pay television services. It also provides communications services, including residential high-speed internet, phone, and wireless services. Sky operates the Sky News broadcast network and sports and entertainment networks, produces original content, and has exclusive content rights.
Overview of Comcast's 3rd quarter 2019 earnings report
Data below refers to quarterly data unless specified otherwise:
- Revenues: $26.827 billion (up from $22.135 billion for the same period of the previous year)
- Revenues increased by 21.2% over the last 12 months
- Total expenses: $18.264 billion (up from $14.822 billion for the same period of the previous year)
- Total expenses increased by 23.2% over the last 12 months
- Net income: $3.217 million (up $2.866 billion from for the same period of the previous year)
- Diluted earnings per share: $0.70 (down from $062 for the same period of the previous year)
- Diluted weighted-average shares outstanding: 4.169 billion (unchanged from 4.169 billion for the same period of the previous year)
- Cash and cash equivalents: $3.507 billion
- Cash and cash equivalents per share: $0.84
- Cash and cash equivalents makes up 1.84% of Comcast's market capital
- Cash and cash equivalents makes up 1.39% of Comcast's total assets
- Goodwill: $66.154 billion
- Goodwill per share: $15.86
- Goodwill makes up 26.28% of Comcast's total assets
- Stockholders equity in Comcast: $72.502 billion
- Stockholders equity per share in Comcast : $17.39
- So Comcast is trading at 2.62 times its stockholders equity per share which is outside the expected range of between 2 and 4 most firms tend to trade at
- Cash generated from operations (for 9 months) : $9.462 billion
- Cash generated per share from operations: $2.26
Comcast's management commentary on their 3rd quarter 2019 results
PHILADELPHIA--(BUSINESS WIRE)--Oct. 24, 2019-- Comcast Corporation (NASDAQ: CMCSA) today reported results for the quarter ended September 30, 2019, including Cable Communications, NBCUniversal and Sky.
Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, “We delivered excellent results in the third quarter, surpassing 55 million customer relationships and generating strong pro forma growth in adjusted EBITDA and double-digit growth in adjusted EPS. We continued our long track record of highly-profitable growth, while also investing in our businesses to further strengthen our leading competitive position. Cable had its highest third quarter broadband net additions in 10 years, which drove its best quarterly net additions in total customer relationships on record; NBC ranked #1 in primetime for the sixth consecutive 52-week season; and Sky’s channels had a 10% increase in household viewership. These and our many other accomplishments during the quarter underscore our strategic focus on innovation and providing our customers with superior products, services and experiences. Together, with our leading scale in high-value customer relationships and premium content, we are strategically positioned to thrive in our evolving global industry."
Consolidated 3rd Quarter 2019 Highlights:
Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, “We delivered excellent results in the third quarter, surpassing 55 million customer relationships and generating strong pro forma growth in adjusted EBITDA and double-digit growth in adjusted EPS. We continued our long track record of highly-profitable growth, while also investing in our businesses to further strengthen our leading competitive position. Cable had its highest third quarter broadband net additions in 10 years, which drove its best quarterly net additions in total customer relationships on record; NBC ranked #1 in primetime for the sixth consecutive 52-week season; and Sky’s channels had a 10% increase in household viewership. These and our many other accomplishments during the quarter underscore our strategic focus on innovation and providing our customers with superior products, services and experiences. Together, with our leading scale in high-value customer relationships and premium content, we are strategically positioned to thrive in our evolving global industry."
Consolidated 3rd Quarter 2019 Highlights:
- Consolidated Adjusted EBITDA Increased 17.0%
- Earnings per Share Increased 16.2% to $0.79, on an Adjusted Basis
- Generated Free Cash Flow of $2.1 Billion
- Cable Communications Adjusted EBITDA Increased 6.7% and Adjusted EBITDA per Customer Relationship Increased 3.2%
- Total Customer Relationships Increased 3.4% Year-Over-Year to 31.2 Million, Including Net Additions of 309,000 in the Quarter
- High-Speed Internet Residential Revenue Increased 9.3%; Business Services Revenue Increased 9.3%; Total High-Speed Internet Customers Increased by 379,000
- NBCUniversal Adjusted EBITDA Increased 1.6%, Despite Expected Difficult Studio Comparisons at TV and Film
- Broadcast Television Adjusted EBITDA Increased 5.1%
- NBC Ranked #1 in Primetime Among Adults 18-49 for the 2018-2019 Season for the Sixth Consecutive Year
- Sky Adjusted EBITDA Increased 38.3% on a Pro Forma Basis; Excluding the Impact of Currency, Adjusted EBITDA Increased 46.0% on a Pro Forma Basis
- Total Customer Relationships Increased 2.1% Year-Over-Year to 23.9 Million, With Net Additions of 482,000 in the Last Twelve Months
Comcast (NASDAQ: CMCSA) stock price history
The image below, obtained from Google, shows the stock price history of Comcast over the last 5 years. And it's been a very good time for Comcast stockholders. 5 years ago the stock was trading at around $27.70 a stock and its currently trading at $45.65 a stock. That's a decent return of 64.8% provided to Comcast stockholders over the last 5 years. While the return of Comcast over the last 5 years is nothing to be snuffed at, the opportunity cost of holding Comcast stock instead of say Netflix that returned over 300% over a 5 year period becomes significant.
The stock of Comcast is trading at a lot closer to its 52 week high of $47.27 than it is to its 52 week low of $32.61 which to us is a clear indication that the short term sentiment and momentum of Comcast stock is very positive.
The stock of Comcast is trading at a lot closer to its 52 week high of $47.27 than it is to its 52 week low of $32.61 which to us is a clear indication that the short term sentiment and momentum of Comcast stock is very positive.
Recent coverage of Comcast
The extract below discusses the latest news regarding Altra Motion and their latest dividend declaration as obtained from TheStreet,com
Comcast Corp. (CMCSA - Get Report) posted stronger-than-expected third quarter earnings Thursday as solid high-speed internet additions ahead of the launch of its online streaming business boosted its bottom line. Comcast said adjusted earnings for the three months ending in September came in at 79 cents per share, up 16.2% from the same period last year thanks in part to the media group's addition of U.K. broadcaster Sky plc and 5 cents ahead of the Street consensus forecast. Group revenues, Comcast said, rose 21.2% to $26.83 billion, just ahead of analysts' estimates of a $26.77 billion tally.
"We delivered excellent results in the third quarter, surpassing 55 million customer relationships and generating strong pro forma growth in adjusted EBITDA and double-digit growth in adjusted EPS." said CEO Brian Roberts. "These and our many other accomplishments during the quarter underscore our strategic focus on innovation and providing our customers with superior products, services and experiences."
Read the full article here
Comcast Corp. (CMCSA - Get Report) posted stronger-than-expected third quarter earnings Thursday as solid high-speed internet additions ahead of the launch of its online streaming business boosted its bottom line. Comcast said adjusted earnings for the three months ending in September came in at 79 cents per share, up 16.2% from the same period last year thanks in part to the media group's addition of U.K. broadcaster Sky plc and 5 cents ahead of the Street consensus forecast. Group revenues, Comcast said, rose 21.2% to $26.83 billion, just ahead of analysts' estimates of a $26.77 billion tally.
"We delivered excellent results in the third quarter, surpassing 55 million customer relationships and generating strong pro forma growth in adjusted EBITDA and double-digit growth in adjusted EPS." said CEO Brian Roberts. "These and our many other accomplishments during the quarter underscore our strategic focus on innovation and providing our customers with superior products, services and experiences."
Read the full article here
Comcast (NASDAQ: CMCSA) latest stock valuation
So what is Comcast stock worth based on the release of their latest earnings report? Based on the earnings report provided by Comcast our our valuation models provide a target (full value) price for Comcast stock at $49.30 a stock. We therefore believe that the stock of Comcast is slightly undervalued
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $49.30. Therefore we believe a good entry point into Comcast stock is at $44.40 or below. We expect the stock price of Comcast to kick up slightly from current levels to levels closer to our target (full value) price in coming weeks and months especially considering the strong increases in their online streaming service.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $49.30. Therefore we believe a good entry point into Comcast stock is at $44.40 or below. We expect the stock price of Comcast to kick up slightly from current levels to levels closer to our target (full value) price in coming weeks and months especially considering the strong increases in their online streaming service.
Next earnings release date for Comcast
It is expected that Comcast's 4th quarter and full year results of their 2019 fiscal year will be released in late January 2020.