2 Stocks Attracting Buyers After Earnings

Comcast Corporation (NASDAQ:CMCSA) reported net income above Wall Street’s expectations for the fourth quarter. Net income for the company rose to $1.29 billion (47 cents per share) vs. $1.02 billion (36 cents per share) in the same quarter a year earlier. This marks a rise of 26.4% from the year earlier quarter. Revenue rose 54.7% to $15.04 billion from the year earlier quarter. Comcast Corporation beat the mean analyst estimate of 42 cents per share. Analysts were expecting revenue of $14.87 billion.

Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, “Last year was a very important year for our company. Cable continued to drive innovation, increase new product introductions and transform the customer experience, and we successfully integrated NBCUniversal. We also reported strong financial and operating results in both the fourth quarter and for the full year. Specifically, cable had another terrific quarter of improving customer metrics, demonstrating that our new XFINITY brand and our intensified focus on service and innovation are making a real difference. Our results at NBCUniversal underscore the strong performance of the cable networks and theme parks, and we continue to make progress enhancing the franchise values of its businesses. As we begin 2012, the strength of our businesses and free cash flow generation will allow us to continue to build value and consistently return capital to shareholders. To underscore our optimism, we are increasing our dividend by 44% and have instituted a new $6.5 billion share repurchase plan, with $3 billion to be repurchased this year.”

Competitors to Watch: Time Warner Cable Inc. (NYSE:TWC), Cablevision Systems Corp. (NYSE:CVC), Time Warner Inc. (NYSE:TWX), The Walt Disney Company (NYSE:DIS), CBS Corporation (NYSE:CBS), Mediacom Communications Corp. (NASDAQ:MCCC), News Corporation (NASDAQ:NWSA), Liberty Global Inc. (NASDAQ:LBTYA), Charter Communications, Inc. (NASDAQ:CHTR), Netflix (NASDAQ:NFLX), TiVo (NASDAQ:TIVO), DirectTV (NASDAQ:DTV), Dish Network (NASDAQ:DISH) and Entravision Communication (NYSE:EVC).

Abercrombie & Fitch (NYSE:ANF) reported its results for the fourth quarter. Net income for the apparel store fell to $19.6 million (22 cents per share) vs. $92.6 million ($1.03 per share) a year earlier. This is a decline of 78.8% from the year earlier quarter. Revenue rose 15.6% to $1.33 billion from the year earlier quarter. Abercrombie & Fitch reported adjusted net income of $1.12 per share. By that measure, the company fell in line with the mean estimate of $1.12 per share. Analysts were expecting revenue of $1.33 billion.

Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch Co., said: “Our results for the fourth quarter were below our expectations in an extremely challenging environment. However, we are confident that we are on track with our long term strategy of leveraging the international appeal of our iconic brands to build a highly profitable, sustainable, global business. The overall economics of our business in Europe, in our U.S. tourist stores and in our DTC business remain very strong.”

Competitors to Watch: Urban Outfitters, Inc. (NASDAQ:URBN), American Eagle Outfitters (NYSE:AEO), The Buckle, Inc. (NYSE:BKE), Aeropostale, Inc. (NYSE:ARO), The Gap Inc. (NYSE:GPS), Pacific Sunwear of California, Inc. (NASDAQ:PSUN), dELiA*s, Inc. (NASDAQ:DLIA), Zumiez Inc. (NASDAQ:ZUMZ), The Wet Seal, Inc. (NASDAQ:WTSLA), and The Walking Co. Hldgs., Inc. (WALK).


To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com