Comcast loses 3.7% in the stock market despite strong quarterly performance results

on Jan 25, 2020
Updated: Mar 11, 2020
  • Comcast beats analysts' estimates for earnings and revenue in the fourth quarter.
  • Share prices drop by 3.7% despite the strong quarterly performance results.
  • Comcast to increase dividend to 92 cents per share in 2020.
  • Comcast to partner with Sky News and NBC News to launch a joint news channel.

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American telecommunications conglomerate, Comcast, announced fourth-quarter performance results on Thursday. As per the earnings report, the company beat analysts’ estimates for earnings and revenue in Q4.

Comcast also reported 442,000 new internet customers (high-speed) in the fourth quarter versus the experts’ estimate of 378,000. As per the company, the figure for new customers came out to be the highest in Q4 in the past five years.

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Comcast To Increase Dividend To 92 Cents Per Share In 2020

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Following the upbeat performance, CEO Brian Roberts highlighted that for 2020, Comcast’s dividend will be increased by 10% on an annualized basis. The dividend will now be at 92 cents per share in 2020.

Despite the upbeat results, share prices were seen trading 3.7% down in the afternoon session. Comcast has performed almost flat on average in January 2020. Having started the year at $45.37, the stock is currently exchanging hands at $44.59. In 2019, however, Comcast performed fairly well in the financial market with around 30% annual growth. Share prices were seen at $35 in January 2019 while the telecom conglomerate ended the year at around $45 in December.

According to Refinitiv, analysts were expecting $28.169 billion in revenue for Comcast in the fourth quarter. Experts had also anticipated 76 cents of earnings per share for the company in Q4. Thursday’s report, however, recorded both the revenue and earnings to have broken the estimates with the former printing $28.398 billion while the latter posting at 79 cents per share in the fourth quarter.

Quarterly Revenue From Comcast’s Prominent Divisions

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Comcast’s cable communications unit generated $14.395 billion in revenue while the cable network’s quarterly revenue was noted at $2.93 billion. The company also highlighted its broadcast television revenue at $3.16 billion while revenue from filmed entertainment and theme parks came out the least in the fourth quarter at $1.56 billion each.

In the fourth quarter, Comcast’s video customers saw a net drop of 149,000 versus the estimated 139,000. The Q4 figure was also reported to be significantly worse as compared to the same quarter last year when it remained capped at only 29,000.

Comcast’s announcement on Thursday also highlighted its plans of partnering with Sky News and NBC News to launch an all-new joint news channel by the name of NBC Sky World News. According to financial times, the news channel will be distributed not only by over the top services like Peacock by also by the cable providers.


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