Comcast Earnings: Here’s Why Investors are Buying Shares Now

Comcast Corporation (NASDAQ:CMCSA) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 7%.

Comcast Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 21.74% to $0.56 in the quarter versus EPS of $0.47 in the year-earlier quarter.

Revenue: Rose 5.95% to $15.94 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Comcast Corporation reported adjusted EPS income of $0.56 per share. By that measure, the company beat the mean analyst estimate of $0.53. It missed the average revenue estimate of $16 billion.

Quoting Management: Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, “I am really pleased to report strong results for the 4th quarter and the full year of 2012 and delighted that we are able to accelerate the acquisition of General Electric’s 49% common equity interest in NBCUniversal while also having the financial strength to return capital to shareholders. To underscore our confidence, we are increasing our dividend by 20% and plan to repurchase $2 billion of our stock this year. Our businesses have real momentum and we continue to benefit from our focus on operational excellence and to leverage all of our content and technology platforms to expand the entertainment choices we offer consumers. Cable’s fourth quarter and full year results demonstrate consistent improvement in customer metrics and growth in every product, led by High-Speed Internet. NBCUniversal’s results principally highlight the improving performance of our broadcast businesses. Our ongoing investments in programming, technology and new products are driving innovation and supporting this strong performance. As we begin 2013, our scale in distribution and content, combined with our focus on execution and innovation, provides many opportunities to continue to build value for our shareholders.”

Key Stats (on next page)…

Revenue decreased 3.67% from $16.54 billion in the previous quarter. EPS increased 21.74% from $0.46 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.51 to a profit $0.50. For the current year, the average estimate has moved down from a profit of $1.96 to a profit of $1.94 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)