Third-quarter EPS reflect a gain of $0.11 on the sale of Comcast’s stake in Clearwire Corp., which was fully offset “by other investment losses and pension termination costs.”
Comcast did not offer any guidance information, but the consensus estimates call for fourth-quarter EPS of $0.67 on revenue of $16.67 billion. The current full-year estimate calls for EPS of $2.45 and revenue of $64.48 billion. For the first nine months of the year, Comcast’s EPS total is $1.84, putting the full-year estimate within easy reach. Look for that estimate to rise soon.
Revenue in the company’s cable communications division rose 6.2% year-over-year, led by gains of 26.4% in business services and 7.9% in high-speed Internet. Higher rates, customers choosing higher levels of service and customer growth were the drivers of the increase.
Comcast lost 129,000 cable video customers in the quarter and picked up 297,000 high-speed Internet subscribers and 169,000 voice customers. Combined the company claims 52.4 million subscribers at the end of the third quarter, up from 50.8 million a year ago. Total cable subscribers are down 355,000 in the past 12 months, while high-speed Internet subscriber numbers have grown by 1.26 million and voice customers have grown by 709,000.
The company’s CEO noted:
Our businesses generated strong revenue and cash flow growth and record free cash flow for the third quarter. Cable’s results highlight the underlying strength of our residential and business services. We are driving innovation, expanding our service offerings, and bringing new and rich content to more platforms than ever before.
Total revenue from NBCUniversal was up 3.9% year-over-year, excluding revenues related to the 2012 Olympics and Super Bowl. Broadcast TV revenues were off 41.1%, but factoring out $1.2 billion in Olympics revenue, broadcast revenues rose 2.6%, driven by higher retransmission fees and a 2.6% increase in advertising. Cable network revenues grew by 4% in the quarter.
Comcast shares were up about 2.6% in premarket trading Wednesday to $48.93, above the stock’s 52-week range of $34.95 to $48.35. The consensus target price for the shares was around $52.60 before this report.
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