Comcast's Third Quarter Earnings Report

By Investopedia Staff | October 26, 2012 AAA

Comcast (Nasdaq:CMCSA) announced its results for the third quarter on October 26, 2012. Comcast provides cable and communications services to residential and commercial customers.

Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: Surprising Earnings Results

The Numbers: Comcast's EPS fell in line with analyst expectations of 46 cents per share while revenue of $16.54 billion beat estimates of $14.43 billion. Revenue climbed 15.3% from the same period last year. Comcast's revenue has grown during each of the past four quarters on a year-over-year basis. Comcast's profit rose 131.3% from last year's figures to $2.1 billion during the third quarter. Last quarter marked the third in a row of rising net income.

Management Quote: Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation, said, "The third quarter continues our momentum. Cable's results show real strength in every part of the business, producing sustainable and profitable growth while we expand our product offerings, deliver more innovation and continue to transform the customer experience."

A Look Back: Net income has increased 44.8% year-over-year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed more than twofold from the year-earlier quarter.

Looking Ahead: Analysts have a more positive outlook about the company's results for next quarter. The average estimate for fourth quarter is 54 cents per share, an increase from 52 cents 60 days ago. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. For the fiscal year, the average estimate has moved up from $1.90 a share to $1.94 over the last ninety days.

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