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Comcast Delivers Upbeat Results in Q2

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Comcast (CMCSA) delivered a blowout second quarter, driven by solid revenue and record Q2 Cable Communications Total Customer Relationships.  

The telecommunication conglomerate delivered $28.5 billion in revenue, representing a 20.4% year-over-year increase, which surpassed the Street’s estimates of $27.09 billion. Revenue growth was mostly driven by a 10.9% increase in Cable Communications revenue, which amounted to $16 billion.

Comcast’s adjusted net income totaled $3.9 billion, representing a 24.3% year-over-year increase. Adjusted EBITDA totaled $8.9 billion while adjusted earnings surged 21.7% to $0.84, better than consensus estimates of $0.65 per share.

During the quarter, total customer relationships increased by 294,000 to 33.8 million, driven by the addition of nearly 277,000 residential customer relationships. Total broadband customer net additions were 354,000 in Q2.

Comcast CEO Brian L. Roberts said, “I have great confidence in our strategy and our ability to execute, which is reflected in our decision to restart our share repurchase program during the quarter, earlier than previously planned.” (See CMCSA stock charts on TipRanks)

On June 25, Redburn Partners analyst Stephen Malcolm initiated coverage of the stock with a Buy rating and a price target of $70 (20.5% upside potential).

Malcolm said, “Comcast should have been a big COVID winner, but lagged its US peers, Charter and Altice US, weighed down by its sprawling US media operations (NBCU) and disastrously timed Sky acquisition. As lockdowns end, Comcast’s financials should recover strongly.”

Consensus among analysts is a Strong Buy based on 16 Buys, 2 Holds, and 1 Sell. The average Comcast price target of $65.72 implies 13.1% upside potential from current levels. Shares have gained 33.1% over the past year.

Comcast scores an 8 of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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The post Comcast Delivers Upbeat Results in Q2 appeared first on TipRanks Financial Blog.

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