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Analysts Estimate $18.7 Billion in Revenues for Comcast in 4Q15

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Improvement of NPS score

Comcast (CMCSA) is expected to announce its 4Q15 and 2015 earnings results on February 3, 2016. According to consensus Wall Street analysts’ estimates, Comcast is expected to have EPS (earnings per share) of $0.82 and revenues of $18.7 billion in 4Q15. Now let’s take a look at Comcast’s strategic priorities for 2016.

At a UBS (UBS) Global Media and Communications Conference held in December 2015, Comcast’s chief financial officer Michael J. Cavanagh stated that the company’s Cable Communications business is increasingly focusing on improving its NPS (net promoter score).

Previously, Comcast’s NPS was negative. According to Net Promoter Network, net promoter scores are reached “using the answer to a single question, using a 0-10 scale: How likely is it that you would recommend [brand] to a friend or colleague?”

Comcast has taken many initiatives to improve its NPS, including trying to ensure that its technicians arrive on time at the customer’s home, introducing an app for tracking the company’s technicians, and improving its billing system.

As the chart above indicates, Comcast’s Cable Communications business was an important component of the company’s total revenues in 3Q15, with a 63% revenue share. The Cable Communications business saw revenues of $11.7 billion in 3Q15.

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Strategic priorities for Cable Communications business

Comcast expects to end 2015 with double-digit growth in revenues from its High-Speed Internet business. Cable Communications had revenues of $3.1 billion for its residential High-Speed Internet business in 3Q15, which represents a growth of 10.2% year-over-year (or YoY).

In 2016, Comcast also expects to further improve the video subscriber losses for the company’s Residential Video business and add to more video subscribers on a YoY basis. Comcast also intends to grow its Business Services segment further in 2016.

Strategic priorities for Comcast’s NBCUniversal businesses

At the UBS (UBS) Conference, Comcast stated that in 2016, it expects retransmission fees and affiliate fees to drive its revenues for its Broadcast Television segment.

Comcast will open The Wizarding World of Harry Potter at Universal Studios Hollywood on April 7, 2016. Comcast expects that this new attraction at Universal Studios Hollywood will result in an increase of around 2–3 million visitors to the park.

Comcast expects a weak 4Q15 for its Filmed Entertainment segment, as it has only a few theatrical releases scheduled for 4Q15, but it still expects to benefit as its 3Q15 films move to home entertainment.

Comcast makes up approximately 2.8% of the PowerShares QQQ ETF (QQQ). For an investor interested in getting exposure to the television and radio sector, QQQ has around 4.7% exposure to the sector. QQQ also has 5.4% of its total holdings in Alphabet (GOOG) and 8.8% of its total holdings in Microsoft (MSFT).

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