uploads///Comcast YTD Jan

What Factors Are Affecting Comcast’s Stock Price?



Rise in Comcast’s stock price

On January 10, 2017, Comcast’s (CMCSA) stock price closed at $70.92. The company’s stock has risen 29.7% YTD (year-to-date). 

Media company Charter Communications (CHTR) has also seen its stock price rise 54.2%. The Walt Disney Company (DIS) has risen 9.2%, and 21st Century Fox (FOXA) has risen 14.6% YTD.

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Price drivers

According to a Barron’s report from earlier this month citing Markit Dividend Forecasting, Comcast is expected to increase its 1Q17 dividend to $0.31 per share. This move could be fueling the rise in Comcast’s stock price. According to the report, since 2008, Comcast has maintained a steady dividend payout ratio in the range of 30%–35%.

Comcast’s recent 3Q16 earnings slightly exceeded analysts’ consensus estimates. The company declared EPS (earnings per share) of $0.92, which exceeded analysts’ estimate of $0.91.

Comcast’s Triple Play business is doing exceedingly well. Its Cable Communications business recorded revenue of $12.6 billion in 3Q16, a rise of 6.9% YoY (year-over-year). Its revenue growth was mainly driven by its High-Speed Internet, Video, and Business Services segments.

Comcast is also optimistic about growth in its NBCUniversal businesses.

Series snapshot

In this series, we’ll take a closer look at Comcast’s X1 set-top box and its business strategy regarding Comcast Cable. We’ll also look at how Comcast could manage the increasing competition in the media industry.


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