Comcast is set to release its Q2 2024 earnings, with expectations of reporting earnings of $1.15 per share, slightly above consensus estimates. Revenue is projected to be around $30.10 billion, in line with expectations. The company’s stock has seen a 30% decline from early 2021, currently trading around $35. Despite this, Comcast has underperformed the S&P 500 in recent years, with returns of -4% in 2021, -31% in 2022, and 25% in 2023.
The Trefis High Quality Portfolio, consisting of 30 stocks, has outperformed the S&P 500 each year over the same period. Comcast’s broadband Internet business has experienced a slowdown, losing 65,000 customers in Q1 2024. Competition from fixed wireless broadband providers has increased, but Comcast has been able to raise prices to drive revenue growth. The cable TV business has also suffered, losing 487,000 video subscribers as cord-cutting continues.
Comcast’s wireless services division, operating under the Xfinity brand, has seen a 21% growth in subscribers year-over-year. The content & experiences segment, including theme parks, may experience a mixed quarter with potentially cooling growth. Despite near-term challenges, Comcast trades at under 9x consensus 2024 earnings, with potential for expansion driven by share repurchases and margin improvement.
The company is valued at about $43 per share, roughly 14% higher than the current market price. Investors can explore Trefis Market Beating Portfolios for investment opportunities. Overall, Comcast’s earnings preview suggests a mixed quarter with challenges in the broadband and cable TV businesses offset by growth in wireless services and potential for margin expansion. Further analysis on Comcast’s valuation and revenue streams can provide more insights into the company’s performance and prospects compared to its peers.
