Comcast (NASDAQ: $CMCSA) is a leading provider of cable services in the US. It also offers distribution, advertising, and content licensing services. Comcast is the second-biggest broadcasting and cable company worldwide by revenue. The company is also the largest home internet provider in the US.
On Thursday, January 25, 2024, during early morning trading, Comcast released its fourth quarter results to a positive reception.
Comcast’s Fourth Quarter Results
According to the Comcast fourth-quarter report, the company had revenue of $31.3 billion, a 2.3% increase from Q422. Its adjusted EPS for Q423 was $0.84, representing a 2.4% increase compared to the $0.82 adjusted EPS reported in Q422.
The Q4 diluted EPS was $0.81, a 15.7% increase from the diluted EPS reported in Q422. Its adjusted net income for Q423 was $3.41 billion, a 3.1% decline from the $3.52 billion net income in Q422. Free cash flow for the quarter was $1.7 billion.
The full-year revenue was $121.6 billion, a 0.1% increase from the $121.4 billion reported in Q422. Comcast recorded an adjusted EPS of $3.98 in FY23, a 9.3% increase compared to the $3.64 reported in FY22. Its diluted EPS for the FY was $3.71, compared to the $1.21 reported in FY22.
For 2023, Comcast had an adjusted net income of $16.49 billion, a 2.1% increase compared to the $16.15 billion net income in FY22. The full-year free cash flow was $13.0 billion, a per-share growth of 10% Y/Y.
Main Revenue Drivers
There were six main drivers of growth in the quarter, which accounted for 55% of the revenue in 2023. They were Residential Broadband, Wireless, Business Services, Theme Parks, Streaming, and Studios. These six had a combined 8% Y/Y increase in revenue.
Its largest overall contributor to revenue in Q4 was the Connectivity & Platforms segment, which recorded $20.4 billion in revenue, a 0.5% increase Y/Y. The Content & Experiences segment recorded $11.5 billion in revenue, a 5.7% increase Y/Y.
Comcast’s Peacock streaming platform recorded a strong performance, growing revenue 57% Y/Y; surpassing the $1 billion mark for the first time. Additionally, subscriber number grew 50% Y/Y to hit 31 million.
Comcast concluded the year with a consolidated net debt of $87.6 billion, a slight increase from $86.7 billion in FY22.
The company’s capital expenditures fell by 6.9% to $3.3 billion, with capital expenditures in Connectivity & Platforms dropping by 19.4% to $2.1 billion. However, capital expenditures on Content & Experiences saw a 28.5% increase due to the investment in the Orlando-based Epic Universe theme park set to open in 2025.
Comcast Raises Dividend
For FY23, Comcast reported a total return of capital of $15.8 billion, a 12.9% increase from FY22. Comcast allocated $4.8 billion to dividends, while $11 billion went to stock buybacks. For 2024, the board approved $15 billion in share repurchases without an expiration date.
The $4.8 billion dividend marks the 16th consecutive year that Comcast has increased payouts. Stockholders will see a $0.08 increase in dividend to $1.24 per share, a 6.9% increase Y/Y. For Q4, the board declared a dividend of $0.31 per share. The dividend distribution is scheduled for April 3, 2024.
Comcast Stock Performance
Following the release of the robust Q4 figures, Comcast stock was up 4.11%, at $45.60 per share as of 02:09 PM, on Thursday, in New York. In the past 12 months, CMCSA has seen a 13.65% increase in value.
Why Comcast Stock Is Rising
Comcast stock’s rally on January 25, 2024, is due to the better-than-expected revenue numbers in Q423. It marks a second consecutive quarterly earnings beat. Analysts had predicted $30.51 billion in revenue for Q4, with Comcast managing $31.25 billion. Its $15 billion share buyback program has also fueled interest in the stock.
Its reported loss of 34,000 broadband customers, where the company has come under increasing pressure from wireless providers, was also less than the analysts’ projected 61,000 decline.
Comcast (CMCSA) Stock Forecast
Stock analysts have an overall moderate buy rating for CMCSA stock. They have set a broad range for the stock, with a high of $58 and a low of $43. Their median target for the stock is $50, a 9.55% upside based on the most recent price.
Should You Buy CMCSA Stock?
Comcast is a major player in the US internet, cable, and streaming industry. Additionally, it also operates theme parks around the world, providing it with a broad revenue base. Consequently, it can better absorb losses from certain underperforming units. Additionally, Comcast is a great dividend stock, which has increased dividends consecutively in the past 16 years.
While it cannot be classified as a growth stock, Comcast is an efficiently run media empire that looks out for its stockholders’ interests. As a result, the moderate buy rating by analysts is an accurate representation of its medium-term forecast.
Click Here for Updates on Comcast – It’s 100% FREE to Sign Up for our Email Newsletter!
Disclaimer: This website provides information about cryptocurrency and stock market investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for educational and informational purposes only. The owner of this website is not a registered investment advisor and does not offer investment advice. You, the reader / viewer, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.
