Why Comcast Stock Boomed Today

Comcast Corporation (NASDAQ: CMCSA) banal jumped 8.8% done noon ET aft soundly beating expert targets for Q1 income and earnings.

Heading into the report, analysts expected Comcast to gain lone $0.72 per stock connected income of $30.4 billion. In fact, Comcast earned $0.79 per stock connected $31.5 cardinal successful sales, beating connected some apical and bottommost lines.

Year implicit year, Comcast grew gross 5% contempt continued losses of broadband subscribers -- but contempt the banal being up today, that's really astir wherever the bully quality ends.

On earnings, Comcast "beat" analysts' expected non-GAAP fig (although adjacent this fig was down 27.5% twelvemonth implicit year). Meanwhile, net calculated nether mostly accepted accounting principles (GAAP) slid significantly: GAAP profits came successful astatine $0.60 per stock for the quarter, down 33% twelvemonth implicit year. And escaped currency travel was lone $3.9 billion, down 28%.

Most of the maturation Comcast did bask came not from the cablegram oregon broadband segments, but from selling wireless connections, Peacock subscriptions, and taxable parkland tickets. Domestic broadband customers fell by 65,000, but the wireless lawsuit number grew by 435,000. Peacock subscribers grew 12% -- and terms hikes astatine that part boosted gross 71%.

Theme parkland gross surged 24%.

Long communicative short, the concern inactive looks successful diminution to maine -- though determination are agleam spots. The champion quality for investors is that Comcast banal looks so inexpensive today, trading for conscionable 5.5 times trailing net and paying a 4.5% dividend yield, that it mightiness beryllium worthy owning contempt the declining profits and escaped currency flow.

Factor successful an 11 guardant P/E, net maturation of astir 50% forecast implicit the adjacent 5 years aft bottoming successful 2026, and I person to admit: The valuation intrigues.

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