Comcast Beats Zacks Estimates - Analyst Blog
02 May 2012 - 6:45PM
Zacks
Comcast Corp.
(CMCSA) reported excellent financial results for the first quarter
of 2012, easily outpacing the Zacks Consensus Estimates. While the
company’s Cable businesses continue to beat market expectations,
NBC Universal has started providing synergies. Importantly, the
company’s struggling basic video operation continues its positive
momentum.
GAAP net income for the first
quarter of 2012 was $1,224 million or 45 cents per share compared
with a net income of $943 million or 34 cents per share in the
prior-year quarter. However, quarterly EPS of 45 cents surpassed
the Zacks Consensus Estimate of 43 cents. The first-quarter 2012
total revenue came in at $14,878 million, up 9.6 % year over year,
well above the Zacks Consensus Estimate of $14,405 million. Both
Cable Communications and NBC Universal segments generated solid
revenue growth.
Quarterly operating costs and
expenses were $10,190 million, up 26.4% year over year. However,
quarterly operating income was $2,758 million, up 24% year over
year. Operating margin, in the first quarter of 2012, was 18.5%
compared with 18.3% in the prior-year quarter. During the reported
quarter, Comcast repurchased 25.9 million of its common share for
$750million and paid dividends totaling $304 million.
During the first quarter of 2012,
Comcast generated $4,688 million of cash from operations compared
with $4,066 million in the year-ago quarter. Consolidated free cash
flow in the reported quarter was $3,039 million compared with
$2,221 million in the prior-year quarter. Cash and cash equivalents
at the end of the first quarter of 2012 were $2,207 million
compared with $1,620 million at the end of 2011. Total debt at the
end of the previous quarter was approximately $37,785 million
compared with $39,309 million at the end of 2011. At the end of the
reported quarter, debt-to-capitalization ratio was 0.42 compared
with 0.44 at the end of 2011.
Cable Communications
Segment
Quarterly pro forma revenue was
$9,599 million, up 5.7% year over year. Pro forma operating cash
flow was $3,955 million, up 5.5% year over year. Within this
segment, Video revenue was $4,969 million, up 1.6% year over year.
High-Speed Internet revenue was $2,323 million, up 10.3% year over
year. Voice revenue was $878 million, up 2% year over year.
Advertising revenue was $476 million, up 4.8% year over year.
Business Services revenue was $541 million, up 37% year over year.
Other revenue was $412 million, up 8.9% year over year.
As of March 31, 2012, Comcast had
18.582 million (up 6.8% year over year) High-Speed Internet
customers; 9.506 million (up 7.2% year over year) Voice customers;
and 22.294 million (down 2% year over year) Video customers.
NBC Universal
Segment
Quarterly pro forma revenue was
$5,472 million, up 18% year over year. The segment’s pro forma
operating cash flow was $813 million, up 34.3% year over year.
Within this segment, Cable Networks revenue was $2,138 million, up
5.8% year over year. Broadcast TV revenue was $1,851 million, up
36.9% year over year. Filmed Entertainment revenue was $1,192
million, up 22.3% year over year. Theme Parks revenue was $412
million, up 5.7% year over year.
Our Take
Comcast becamethe largest
integrated content development and distribution company in the
U.S.after completing the acquisition of the majority stake of NBC
Universal from General Electric Co. (GE). We also
remain quite optimistic regarding the company’s diversification,
network upgrade and innovative product offering strategies.Comcast
continues to post strong growth in revenue and free cash flow. We
maintain our long-term Neutral recommendation on Comcast.
Currently, it holds a Zacks#3 Rank (Hold) on the stock.
COMCAST CORP A (CMCSA): Free Stock Analysis Report
GENL ELECTRIC (GE): Free Stock Analysis Report
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