If any company had to achieve positive earnings result, it would be with comcast Corporation (Nasdaq:CMCSA). Long-standing questions over the dramatically changing media environment and raises an eyebrow solutions, CMCSA stock to have a bad 2018. Before the first quarter earnings report, the stock fell almost 17% for the year.
Source: image of Mike Mozart, used under Creative Commons license
Compounding the situation is that investors seemingly lost patience with the media giant. Just 24 hours before its release, Comcast shares shed 1.5%. A small consolation for the company was that his opponents, too, have recently experienced volatility. For example, Netflix, Inc. (Nasdaq:NYSE: nflx) fell almost 9% from the April 17 session. Again, U.S. nflx to 56.5% for the year.
It was like riding on CMCSA in 2018. The company has several positive aspects to the lever, extending beyond its enormous resources through aggressive acquisitions. But when the next generation of competitors in the media how the experience of Netflix and softness, as well Comcast.
One of my biggest problems for CMCSA stock is that the basic organization had become General electric company (Ticker NYSE:GE) shortly before the drastic deterioration. In other words, comcast has become too big and cumbersome for its own good. Even worse, the user wants to become even more cumbersome. It is highly questionable bidding for the sky PLC (OTCMKTS:SKYAY) suggests.
Moreover, I believe, recently Comcast stock has suffered because of its increasing irrelevancy. Take a close look at popular YouTube channels. Every day the stars, as a rule, have more followers than the accounts of traditional media on YouTube.
Funny to me that some Amateur broadcasters enjoy greater involvement and views of social media than with comcast-owned NBC Sports will experience at its official platform.
Is that CMCSA needs to be addressed. Unfortunately, the recent earnings report has left more questions than answers.
CMCSA earnings both surpassed and succumbed to the expectations
For the 1st quarter, Comcast earnings per share reached 62 cents. This is significantly above the consensus forecast, which pegged earnings per share of 59 cents. It is worth noting that consensus fell right in the middle of rating spectrum, which ranges from 57 cents to 61 cents. Against quarter last year, revenues increased a robust 17%.
On the profit front, Comcast called just under 22.8 billion$. This is slightly above the consensus forecast of wall Street 22.74 billion. Analysts had expected profits to land somewhere between 21.6 billion-$$23.2 billion.
Traditional media platforms have brought a lot of positive earnings and sales results. Due to the broadcast of the super bowl and winter Olympics, CMCSA scored big. CEO Brian Roberts stated the following:
The Olympic games were an incredible event that showcased our capabilities and cooperation throughout the company. Awesome idea NBCUniversal is the most comprehensive in the history of the winter games with more than 2,400 hours of coverage broadcast, cable networks, and digital.
I don’t agree with Roberts. In my opinion, the winter games caused great excitement. Unfortunately, this does not translate to enthusiasm in CMCSA shares. At one point of the market, shares fell 2%.
Why the disconnect? First of all, he disconnect. Although CMCSA has brought in 379,000 new high speed Internet users, which is an increase of 8.3% compared to the previous quarter, almost 12% lower compared to the same quarter last year. Clients find alternatives to other competitors or other platforms.
Further, my analogy of the GOE is not just a lighthearted joke. Recently, Comcast has issued a request 31 billion at the sky. In addition, the company announced earlier this month that it is moving in healthcare.
And streamlining operations, Comcast prefers to lose weight by eating more. I’m not sure how this will work, and I’m not the only inquiring.
The longer-term picture risky for the Comcast stock
Moving forward, my most pressing problem for Comcast stock technical sustainability. It is not only that the shares are severely underperforming on a year-to-date basis or.
When the company reached its peak in the markets back in January, CMCSA stock is clearly trading within a bullish channel. With the recent sharp fall, the entire channel was broken. Moreover, it seems that the bearish trend has developed.
But, on a long term scale, I’m worried about how comcast intends to once again make themselves relevant. Last year in late October, I discussed the development constraints in relation to subscription services media. Each generation is steadily to cut the cord. When the next wave of young adults enters the labour force, CMCSA risks associated with obsolescence. I wrote:
The gene-Z, the oldest of whom are in their first year in College, have virtually no memories of traditional media. They grew up during the advent of the digital age. When this demo first enters the work force, they do not consider out of date, subscription broadcasting. This is the bad news for the next stock.
We have seen enough of the 1st quarter earnings report to justify a risky purchase? I’m afraid not. Despite a number of positive aspects, it’s the same old CMCSA stock trying to appear relevant.
At the time of this writing, Josh Enomoto to take a position in any of the above securities.