The 10-second takeaway
For the quarter ended March 31 (Q1), Comcast met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share increased. GAAP earnings per share grew significantly.
Margins expanded across the board.
Comcast notched revenue of $15.31 billion. The 24 analysts polled by S&P Capital IQ expected to see a top line of $15.37 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.51. The 27 earnings estimates compiled by S&P Capital IQ predicted $0.50 per share. Non-GAAP EPS of $0.51 for Q1 were 13% higher than the prior-year quarter's $0.45 per share. GAAP EPS of $0.54 for Q1 were 20% higher than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 69.5%, 190 basis points better than the prior-year quarter. Operating margin was 20.0%, 150 basis points better than the prior-year quarter. Net margin was 9.4%, 120 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $16.01 billion. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $64.14 billion. The average EPS estimate is $2.39.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 900 members out of 1,085 rating the stock outperform, and 185 members rating it underperform. Among 330 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 283 give Comcast a green thumbs-up, and 47 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Comcast is outperform, with an average price target of $45.97.
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