Comcast (NASDAQ:CMCSA) Posts Earnings Results, Beats Estimates By $0.08 EPS

Comcast (NASDAQ:CMCSA) posted its quarterly earnings results on Thursday. The cable giant reported $1.07 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.99 by $0.08, FiscalAI reports. Comcast had a return on equity of 14.77% and a net margin of 8.97%. The business had revenue of $29.30 billion for the quarter, compared to analyst estimates of $29.22 billion. During the same period last year, the company earned $1.12 EPS. The firm’s revenue was down 6.1% on a year-over-year basis.

Here are the key takeaways from Comcast’s conference call:

• Comcast remains on track to separate NBCUniversal and Sky by mid-2027, with management citing strong strategic positions, investment-grade balance sheets, and independent growth opportunities for both companies.
• Connectivity & Platforms faced continued competitive pressure, with broadband subscribers declining by 144,000, revenue down 2.6%, and EBITDA down 4.4%. Comcast expects a transformation-related charge of more than $1 billion in the fourth quarter, although management anticipates modest improvement in underlying trends.
• Wireless continued to expand, adding 368,000 lines to reach 10.6 million, up 18% year over year. About 70% of free lines are converting to paid relationships, while premium plans represented roughly 40% of postpaid phone connections.
• Peacock delivered its second consecutive profitable quarter, with EBITDA of $261 million, revenue growth of 34%, and 48 million subscribers. The planned YouTube bundle is expected to broaden Peacock’s reach, particularly among younger audiences, while limiting cannibalization of its direct-to-consumer business.
• Theme parks revenue declined 4% and EBITDA fell 17%, primarily due to softer demand in Orlando and Japan, as well as capacity and ride-throughput challenges at Epic Universe. Management expects Orlando pressure to persist into the first half of 2027, with growth expected to resume in the second half.

Comcast Price Performance

CMCSA opened at $22.84 on Friday. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 0.94. Comcast has a 12 month low of $20.48 and a 12 month high of $32.85. The company has a fifty day simple moving average of $23.87 and a 200 day simple moving average of $24.65. The stock has a market cap of $81.05 billion, a P/E ratio of 7.39, a P/E/G ratio of 1.58 and a beta of 0.68.

Comcast Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 27th. Investors of record on Wednesday, January 6th will be given a $0.33 dividend. The ex-dividend date is Wednesday, January 6th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 5.8%. Comcast’s dividend payout ratio is currently 42.72%.

Analyst Ratings Changes

A number of equities research analysts recently commented on the company. Citigroup dropped their price objective on Comcast from $30.00 to $27.50 and set a “buy” rating for the company in a report on Thursday, September 24th. Zacks Research cut Comcast from a “hold” rating to a “strong sell” rating in a report on Friday, October 16th. Royal Bank Of Canada set a $26.00 target price on Comcast and gave the stock a “sector perform” rating in a report on Friday, July 24th. Seaport Research Partners upgraded Comcast from a “neutral” rating to a “buy” rating in a research report on Thursday, July 2nd. Finally, Weiss Ratings cut Comcast from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, July 28th. Eleven analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and six have given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $30.69.

Key Stories Impacting Comcast

Here are the key news stories impacting Comcast this week:

• Positive Sentiment: Q3 earnings exceeded expectations. Adjusted earnings per share came in at $1.07 versus the approximately $0.99 consensus, while revenue of $29.3 billion was broadly in line with estimates. Comcast beats earnings expectations as media revenue offsets weakness in connectivity
• Positive Sentiment: Media and wireless operations provided offsets. Peacock reached profitability, Universal benefited from strong film performance led by The Odyssey, and Comcast said roughly 70% of its free wireless trial lines converted to paid accounts. Comcast’s Q3 Earnings Beat Estimates, Revenues Decline Y/Y
• Positive Sentiment: Comcast maintained its cash-return appeal. The company declared a quarterly dividend of $0.33 per share, or $1.32 annualized, representing a yield of roughly 5.8% based on the provided share price. Comcast Declares Quarterly Dividend
• Neutral Sentiment: The planned NBCUniversal separation remains a potential catalyst. Management described employee enthusiasm for the spinoff, but investors still need clarity on the structure, timing, and financial benefits.
• Neutral Sentiment: Bernstein reiterated a Hold rating, suggesting the earnings beat has not yet changed the broader investment case. Bernstein Remains a Hold on Comcast
• Negative Sentiment: Broadband subscriber losses remain the main concern. Competition from low-priced fiber and other alternatives continued to weigh on Comcast’s connectivity segment, with domestic broadband and video customers declining. Comcast broadband losses deepen as competition pressures core business
• Negative Sentiment: Profitability and near-term costs are worsening. Revenue fell 6.1% year over year, adjusted EPS declined from $1.12, and Comcast expects a restructuring charge exceeding $1 billion in the fourth quarter, including layoffs. Comcast Flags $1 Billion Q4 Charge for Layoffs and Restructuring

About Comcast

Comcast Corporation is a global media and communications company headquartered in Philadelphia, Pennsylvania. Founded in 1963 as American Cable Systems, the company grew through the expansion of cable television and broadband services and adopted the Comcast name in 1969.

Through its Connectivity & Platforms businesses, Comcast provides residential and business customers with broadband internet, video, voice, mobile and related services. Its Xfinity brand offers internet, television, streaming and wireless products in the United States, while Comcast Business serves commercial and enterprise customers with connectivity, communications and technology solutions.