Comcast Earnings Boosted by Olympics

Media

Published: April 22, 2014 7:45 am

Comcast Corp. (NASDAQ: CMCSA) reported first-quarter results before markets opened Tuesday. The cable operator posted adjusted earnings per share (EPS) of $0.68 on revenues of $17.40 billion. In the same period a year ago, Comcast reported EPS of $0.51 on $15.31 billion in revenue. First-quarter results also compare to the consensus estimates for EPS of $0.64 on revenues of $17.03 billion.

Revenue in the Comcast’s cable communications division rose 5.3% year-over-year, led by gains of 23.9% in business services and 9.0% in high-speed Internet. Video customers increased by 24,000, the second consecutive quarter of customer growth.

NBCUniversal revenue increased 28.8%, and excluding the Olympics, the unit was ranked number one season-to-date among adults 18 to 49. The Sochi Olympics generated more than $1.1 billion in revenue.

The company’s CEO said:

At NBCUniversal, we had another superb quarter with double-digit revenue and operating cash flow growth driven by the tremendously successful Sochi Olympics and the best season-to-date broadcast ratings in a decade. Overall, the company is performing well and the more planning we do for our proposed merger with Time Warner Cable, the more excited we are by the opportunities for the combined company.

Comcast did not offer any guidance in its earnings release, but the consensus estimates call for second-quarter 2014 EPS of $0.72 on revenue of $17.02 billion. The current full-year 2014 estimate calls for EPS of $2.86 on revenue of $68.81 billion.

ALSO READ: The 10 Most Hated Companies in America

Across the industry, the number of subscribers to pay-TV services dropped in 2013, but that trend is set to reverse itself between 2014 and 2019.

In order for Comcast’s proposed merger with Time Warner Cable Inc. (NYSE: TWC) to succeed, both parties will have to divest of assets. Both are talking with Charter Communications Inc. (NASDAQ: CHTR) for that reason.

Shares were up about 1.7% in premarket trading Tuesday, at $50.72 in a 52-week range of $38.75 to $55.28. Thomson Reuters had a consensus analyst price target of $60.10 before the results were announced.

ALSO READ: Ten Retailers With the Worst Customer Service

It’s Your Money, Your Future—Own It (sponsor)

Retirement can be daunting, but it doesn’t need to be.

Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!

Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.