Comcast: Q1 Earnings Spike 30%, Shares Fall

by Christopher Freeburn | May 2, 2012 10:19 am

Super Bowl ad revenue at NBC Universal and a big increase in cable broadband subscribers helped drive sharply higher profits[1] at Comcast (NASDAQ:CMCSA[2]).

First-quarter earnings spiked 30% to $1.224 billion, compared to $943 million during the same time last year, Comcast announced. The company reported EPS of 45 cents, up from 34 cents last year. Analysts had expected[3] EPS of 42 cents, according to the Associated Press.

Despite the good news, Comcast shares fell more than 2% in early Wednesday trading.

Revenue also exceeded forecasts, coming in at $14.9 billion for the quarter, up 9.6% from 2011. Analysts had predicted $14.4 billion.

Strong growth at its NBC Universal division fueled Comcast’s results. NBC’s TV business saw revenue soar by 37%, largely due to Super Bowl advertising, but also because of improved general TV ad sales. Revenue from its movie business jumped 22% during the quarter.

The company’s cable TV service lost 37,000 subscribers, but still saw revenues grow 5.7% during the first quarter, while its Internet broadband service added 439,000 subscribers.

TV network and cable competitor Time Warner (NYSE:TWX[4]) also beat Wall Street expectation with higher revenues and improved adjusted earnings[5] for the first quarter.

Source URL: http://investorplace.com/2012/05/comcast-q1-earnings-spike-30-shares-fall/
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