Valued at $153.6 billion by market cap, Pennsylvania-based Comcast Corporation (CMCSA) is a global powerhouse in media and technology. It offers broadband, wireless, and video services through its Xfinity, Comcast Business, and Sky brands. The company is slated to announce its fiscal Q2 earnings results on Tuesday, July 23.
Ahead of this event, analysts are expecting CMCSA to report a profit of $1.12 per share, down marginally from $1.13 per share in the year-ago quarter. However, the company holds a solid track record of surpassing Wall Street's bottom-line estimates in each of the last four quarters. The company's increased pricing strategy for its broadband services helped it outpace the consensus EPS estimate by 6.1% in the most recent quarter.
For fiscal 2024, analysts expect Comcast to report EPS of $4.21, up 5.8% from $3.98 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow by 6.2% annually to $4.47.
Shares of Comcast have plunged almost 8.1% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 23% gains over the same period. Additionally, it has also lagged behind the S&P 500 Communication Sector SPDR’s (XLC) 31.1% returns over the same time frame.
Shares of Comcast recently faced a setback after the company lifted the curtains on its Q1 earnings results on April 25. Despite sailing past Wall Street projections on both top and bottom lines, the dwindling growth in cable broadband customer additions weighed down on the company’s prospects, triggering a nearly 5.8% plunge on the same day. During the quarter, Comcast lost approximately 487,000 cable TV customers as more consumers ditched traditional cable for streaming services.
Nevertheless, analysts' consensus rating on CMCSA stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 30 analysts covering the stock, 16 recommend a "Strong Buy," one suggests a “Moderate Buy,” 12 advise a “Hold,” and the remaining one gives a "Strong Sell" rating. This configuration is slightly less bullish than a month ago, with no “Strong Sell” ratings on the stock.
The average analyst price target for CMCSA is $48.05, suggesting a modest potential upside of nearly 25.9% from the current levels.
More Stock Market News from Barchart
- What You Need to Know Ahead of CSX's Earnings Release
- Will Super Micro Computer Be the Next AI Stock to Split?
- Snag This 'Strong Buy' Energy Stock for More Upside
- Up 60% YTD, How High Can This Standout Growth Stock Rise?
On the date of publication, Anushka Mukherjee did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
/Apple%20products%20on%20desk%20by%20Ake%20Ngiamsanguan%20via%20iStock.jpg)
/Salesforce%20Inc%20HQ%20building-by%20JHVEPhoto%20via%20Shutterstock.jpg)
/A%20Palantir%20sign%20displayed%20on%20an%20office%20building%20by%20Poetra_RH%20via%20Shutterstock.jpg)