Comcast (CMCSA) delivered better-than-expected Q3 2021 results. Revenue and earnings came in above consensus estimates, affirming strong operating and financial results. CMCSA shares fell 1.03% to close at $51.90 on October 28.
Comcast is a media and technology company operating through three primary businesses; Comcast Cable, NBCUniversal, and Sky.
Revenue in the quarter landed at $30.3 billion, up 18.7% year-over-year, exceeding consensus estimates of $29.87 billion. Revenue for Cable Communications was up 7.4% year-over-year to $16.12 billion, driven by growth in broadband, video, wireless, businesses services, and others. Media revenue was up 47.5% year-over-year to $6.77 billion as Studios revenue increased 26.8% year-over-year to $2.41 billion.
Net Income Attributable to Comcast jumped 99.8% to $4.04 billion, and adjusted EBITDA increased 18.1% to $9.0 billion. Consequently, adjusted EPS increased 33.8% to $0.87, exceeding consensus estimates of $0.75. (See Top Smart Score Stocks on TipRanks)
During the quarter, Comcast returned $2.7 billion to shareholders, with $1.5 billion in share repurchases and $1.2 billion in dividend payments. At the end of the quarter, the company had $8 billion remaining under its share repurchase program.
Yesterday, Goldman Sachs analyst Brett Feldman reiterated a Buy rating on the stock with a $63 price target, implying 21.39% upside potential to current levels. The analyst expects a positive reaction to Comcast’s solid Q3 results following its underperformance in the recent past.
“We also believe the strength of CMCSA’s cable fundamentals is a positive read across for CHTR, which reports pre-market tomorrow (10/29),” Feldman said in a research note.
Consensus among analysts is a Moderate Buy based on 11 Buys, 2 Holds, and 1 Sell. The average Comcast price target of $66.38 implies 27.90% upside potential to current levels.
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