Comcast Corp. CMCSA, a major entertainment and media company, propelled U.S. markets Wednesday morning on strong fourth-quarter revenue growth.
For the quarter ending Dec. 31, 2018, the Philadelphia-based company reported revenues of $27.85 billion, up 26.1% from fourth-quarter 2017 and approximately 10.63% from the consensus estimate of $27.55 billion.
Company reports strong revenues in Cable and NBCUniversal
CEO Brian Roberts said key achievements in Cable and NBCUniversal drove strong growth across the company, including the addition of 1 million new cable customers for the 13th year in a row and double-digit growth in its TV businesses. Such achievements contributed to a three-year revenue growth rate of 10.40% and a three-year EBITDA growth rate of 10.80%, both outperforming over two-thirds of global competitors like Charter Communications Inc. CHTR and DISH Network Corp. DISH, according to GuruFocus.
Roberts said on the earnings call the company’s “connectivity-centric model” contributed to strong Cable segments results, which include strong growth in key segments like high-speed internet, advertising and business services. Comcast ended 2018 with 30.3 million customer relationships, up approximately 258,000 from the third quarter and approximately 1 million from 2017, driven by net high-speed internet additions of 351,000.
The CEO also said NBCUniversal's earnings before interest, taxes, depreciation and amortization grew 12% during the quarter and 15% for the year, fueled by strong broadcast revenues from big events like the 2018 Super Bowl, the Winter Olympics and the FIFA World Cup. Overall robust demand for the company’s top sports, news and entertainment content also boosted revenues. Key entertainment achievements included Dr. Seuss’ “The Grinch,” “Halloween,” and the hit game show “Deal or No Deal.”
Stock rises as much as 7% in morning trading, company increases dividend
Comcast traded near an intraday high of $37.37, up 6.86% from the previous close of $34.97, on strong revenue and earnings performance during the quarter and the 10% dividend hike. The company’s three positive investing signs, according to GuruFocus, include consistent revenue growth, expanding profit margins and a dividend yield close to a 10-year high. GuruFocus ranks the company’s profitability 8 out of 10 on these factors; additionally, the company’s business predictability ranks a strong 3.5 stars out of five.
Gurus riding Comcast’s strong momentum include First Eagle Investment (Trades, Portfolio), Steven Romick (Trades, Portfolio) and Pioneer Investments (Trades, Portfolio).
Disclosure: No positions.
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