Yahoo Finance Results: Comcast Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts
Shareholders might have noticed that Comcast Corporation (NASDAQ:CMCSA) filed its quarterly result this time last week. The early response was not positive, with shares down 4.2% to US$38.57 in the past week. Comcast reported US$30b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.97 beat expectations, being 6.8% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Comcast
Taking into account the latest results, Comcast's 26 analysts currently expect revenues in 2024 to be US$124.3b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$3.89, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$124.2b and earnings per share (EPS) of US$3.93 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$48.67, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Comcast at US$56.00 per share, while the most bearish prices it at US$42.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Comcast's revenue growth is expected to slow, with the forecast 2.6% annualised growth rate until the end of 2024 being well below the historical 4.1% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.2% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Comcast.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Comcast's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Comcast going out to 2026, and you can see them free on our platform here.
Even so, be aware that Comcast is showing 2 warning signs in our investment analysis , you should know about...
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
