What Drives Comcast’s Stock Price?



Rise in Comcast’s stock price

On January 30, 2017, Comcast’s (CMCSA) stock closed at $75.34. The company’s stock has risen 35.2% YTD (year-to-date). Media company Time Warner (TWX) also saw its stock price rise, by 37.2%. 21st Century Fox (FOXA) and The Walt Disney Company (DIS) have seen their stock prices rise 16.3% and 15.8%, respectively, YTD.

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Factors driving stock price

Comcast’s (CMCSA) 4Q16 earnings exceeded consensus Wall Street estimates. The company declared adjusted EPS (earnings per share) of $0.89, up by 9.9% year-over-year, compared with analysts’ estimate of $0.87. The company had total revenue of $80.4 billion for fiscal 2016, up 7.9% year-over-year, and an operating income of $16.8 billion.

Comcast’s Triple Play business is doing exceedingly well. Comcast’s Cable Communications business had revenue of $12.8 billion in fiscal 4Q16, which is 7.1% higher YoY (year-over-year). Its revenue growth was primarily driven by its High-Speed Internet, Video, and Business Services segments. Comcast is optimistic about the growth of its NBCUniversal business, which had revenue of $8.5 billion in fiscal 4Q16, up 13% YoY.

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 Comcast’s NBCUniversal business and the company’s advertising revenue outlook for its Cable Networks segment. First, let’s see how analysts are rating Comcast.


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