TLDR
- Comcast (CMCSA) stock was down about 1% premarket Thursday after jumping nearly 2% at first.
- Q3 revenue was $29.3 billion and adjusted EPS was $1.07, both above estimates.
- The company lost 144,000 domestic broadband customers, worse than the roughly 131,000 expected.
- Peacock posted $261 million in adjusted EBITDA, its second straight profitable quarter.
- Theme park adjusted EBITDA fell 17.1% to $780 million.
Comcast (CMCSA) stock was down about 1% in premarket trading on Thursday. It had jumped nearly 2% at first after the company posted third-quarter results.
Other reports showed the stock up 0.6% before the open, so the early moves were choppy. The stock is still down about 26% this year, while the broader index is up 13%.
Comcast beat on both the top and bottom lines. Revenue came in at $29.3 billion, ahead of estimates near $29.2 billion.
Adjusted earnings per share were $1.07. Analysts had expected between 98 cents and 99 cents.
Adjusted EBITDA was $9.11 billion, above the $8.88 billion estimate. It still fell 5.8% from a year earlier.
Revenue dropped 6.1% on a reported basis. On a pro forma basis it rose 0.5%, reflecting the Versant separation and the sale of Sky Germany.
Broadband Losses Weigh
Broadband is the business investors watch most, and it was soft again. Comcast lost 144,000 domestic residential broadband customers.
Analysts had forecast losses of about 131,000 to 133,000. That is a bigger miss than the headline beat might suggest.
Video was weaker too. The company lost 274,000 domestic video customers, versus an estimate of 228,000.
Wireless added 368,000 lines. That was below the consensus of about 392,000.
Peacock and Theme Parks
Peacock had a better quarter. It posted $261 million in adjusted EBITDA, well above the $183.9 million estimate.
That marks its second straight profitable quarter. Paid subscribers rose 17% to 48 million, just above the 47.95 million forecast.
Peacock revenue was $1.8 billion, short of the $1.88 billion estimate. So the streamer beat on profit but missed on sales.
Theme parks were a weak spot. Revenue fell 4.4% to $2.60 billion, and adjusted EBITDA dropped 17.1% to $780 million.
Comcast pointed to lower admissions revenue and higher domestic park costs. Free cash flow was $4.21 billion, above the $3.19 billion estimate but down 14.8% from last year.
The co-CEOs said near-term connectivity results reflect investments to navigate an “increasingly dynamic environment.” Short interest in CMCSA stands at 1.96% of the float.
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