Comcast Corp (NASDAQ:CMCSA) Posted Better-than-Expected Earnings for 2Q

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Comcast Corp’s (NASDAQ:CMCSA) recently posted its quarterly profits, which surpassed all the estimates. The company’s internet business resulted in a huge number of customers adding the company to their subscribed lists.

On July 22, 2014, the shares prices of Comcast Corp (NASDAQ:CMCSA), the biggest cable operator in the United States, increased by 2.6 percent. Furthermore, the company exceeded the expectations by adding around 203,000 clients to its high-speed Internet business during a period of 3 months. Expectations were that the company would be able to draw around 161,000 customers to its internet business during the second quarter of the year 2014.

Coming to the deal that the company made with the Time Warner Cable Inc. (TWC), Michael Angelakis, the CFO of Comcast Corp (NASDAQ:CMCSA), disclosed to the public that a shareholder meeting will be held in fall, where the shareholders will ratify the company’s deal with Time Warner Cable Inc. (TWC). If the company remains successful in sealing this acquisition deal, it will be able to improve its client base in the areas of Los Angeles and New York. The company has placed a bid of $45.2 billion for the acquisition and it is hoping to introduce its TV cum Internet service to new areas.

Not only this, but Comcast Corp (NASDAQ:CMCSA) is also building its own WiFi network. The company is planning on introducing 8 million WiFi spots in around 19 of the largest U.S. cities. It is pertinent to note here that TWC has 34,000 WiFi spots around United States.

As the demand for high speed internet has increased over the years, many companies are planning to expand their businesses in order to accommodate this sector into their business plans. News has it that AT&T Inc., a telecom company, is planning to buy DirecTV, a satellite TV company, for a total of $48.5 billion. Moreover, according to Craig Moffett, an analyst at MoffettNathanson, T-Mobile US Inc will be taken over by SoftBank Corp in order to counterpoint the Comcast deal.

The bid placed by Twenty First Century Fox Inc. is just below the Comcast Corp’s (NASDAQ:CMCSA) deal. So, chances are that the Department of Justice or Federal Communications Commission is going to block one of the deals.

Comcast Corp (NASDAQ:CMCSA) lost around 144,000 of its video subscribers during the recent quarter. The estimates were far less: around 123,000 subscribers. Nonetheless, this gap was filled by the internet business and the company saw an increase of 5.4 percent in the total revenues. The revenues reached $11.03 billion.

Moreover, a subsidiary company of Comcast Corp (NASDAQ:CMCSA), NBC Universal, saw an increase of 0.3 percent in the revenues and reached the figures of $6.02 billion.

According to Brean Capital and Jefferies, analysts at JPMorgan, the company’s cash flow shot up by 20 percent due to the filmed entertainment and broadcast television. Moreover, the company’s net income increased by 15 percent and the earnings reached to 76 cents for each share. The adjusted income brought the earnings to 75 cents for each share, surpassing the Thomson estimates of 72 cents.

Furthermore, the revenues of the company jumped by 3.5 percent and reached the figures of $16.84 billion, again surpassing the estimated of $16.95 billion.

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