Telecom Giant Faces Lower Stock After A Record High

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With telecom giants Comcast® about to announce their earnings of the 2nd quarter the coming days, the investors are unsure about the stock. After reaching an all-time high the previous day, it seemed to lose its position drastically on the following day. There is a cloud of uncertainty regarding the earnings of Comcast®. The company, which is one of the fastest internet provider in the country has been displaying similar trends in the recent past. The investors would also be looking forward to seeing big numbers on high-speed internet subscribers. This would contribute to offsetting the bleeding video subscribers.

Investors’ Subject Of Interest In Comcast® Earnings

As Comcast® reported the Q1 earnings 3 months back, it surpassed all the profit expectations by a huge margin. The company ended up adding 375,000 high-speed internet customers. On the downside, it lost around 121,000 video customers. Besides, the revenue generated which amounted to $26.6 billion, was much lower than the expected amount.

Even though the news of these events negatively affected the Comcast® stock, it ended up finishing on a high note. As for the Q2, investors are eagerly awaiting the announcements.

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Analysts have predicted an earnings-per-share of 75 cents. This is a 15.4% rise from the 65 cents reported more than a year ago. Further, analysts are taking a close look at the video-customer numbers. The trend of losing video-customers has been continuous throughout the previous quarter. The company can offset the loss by adding more high-speed internet customers. However, its revenue would be badly affected since the loss of video customers is accompanied by a simultaneous loss of pay-TV subscribers.

Comcast® Stock On A Rising Trend

Comcast®’s earnings are going through a year-long streak of beating analyst expectations. In the previous year, the EPS forecast stood at 61 cents per share while the CMCSA amounted to 65 cents. This trend persisted throughout the previous quarter and Comcast® scored a high EPS of 76 cents in comparison to the aim of 66 cents.

This feat guided Comcast® stock in recovery once it had spent the initial stages of 2018 in declining revenue. During this time though, the investors were more worried about cord-cutters looking to terminate their cable subscriptions.

Once the positive streak started during the Q4 of 2018, Comcast® rose constantly from $34.84 to $45.20 showing approximately 30% growth. This led to a new record for the CMCSA stock. On the other hand, AT&T® has attained only a growth of 6% in the same duration.

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