Comcast (ticker: CMCSA) surpassed earnings expectations in the third quarter with adjusted earnings per share of $1.08, outperforming estimates of 95 cents. The company also exceeded revenue expectations, reporting $30.12 billion compared to the anticipated $29.68 billion.
Diverse Business Ventures
Comcast is a powerhouse in various industries, including television networks such as NBC and CNBC, Universal Studios theme parks, the Peacock streaming video service, and the Xfinity Mobile service.
Record-Breaking Theme Park Performance
Comcast’s theme park division experienced notable success in the last quarter. The company achieved record adjusted earnings before interest, taxes, depreciation, and amortization of $983 million for this segment. The impressive growth was driven by increased revenue from Universal Studios Hollywood, fueled by the ongoing popularity of Super Nintendo World and the lifted Covid-19 restrictions in international locations.
Market Reaction
Despite positive financial results, Comcast’s stock fell by 1.8% during premarket trading at 8:42 a.m. The S&P 500 futures dipped by 0.4%, and Dow Jones Industrial Average futures saw a decline of 0.2%.
Focus on Internet Business
Investor concerns may stem from a decline in Comcast’s domestic broadband customer base, which dropped by 18,000 in the third quarter compared to the previous year. Analysts had expected a gain of 3,600 customers. Comcast faces competition from T-Mobile (TMUS) and Verizon (VZ), both of which offer contract-free monthly deals on wireless internet.
Analysis of Revenue Figures
While Comcast’s domestic broadband revenue amounted to $6.37 billion, slightly lower than the anticipated $6.38 billion, it still demonstrated growth of nearly 4% compared to the previous year. Similarly, revenue from its domestic wireless division, which operates through Xfinity, amounted to $917 million, falling short of the predicted $941 million. Comcast gained 294,000 customers in this division, which is the lowest figure this year and fewer than the 332,000 analysts had expected.