Comcast Stock Plummets as Broadband Subscriber Losses Exceed Expectations
Key Highlights:
Subscriber Loss Details:
Comcast (NASDAQ: CMCSA) shares tumbled on Thursday after the cable and media giant reported a sharper-than-expected decline in broadband subscribers during the fourth quarter. Total domestic broadband subscribers fell by 139,000 to 31.8 million, comprising 131,000 residential and 8,000 business subscribers.
The losses surpassed the earlier warning from Comcast Cable CEO Dave Watson, who had anticipated a decline of approximately 100,000 broadband customers.
Q4 Financial Performance:
Despite the subscriber losses, Comcast delivered strong financial results for the quarter:
Market Reaction:
Despite the robust financial performance, the subscriber losses overshadowed the earnings beat, causing Comcast shares to fall over 11% in Thursday’s trading session. The stock has lost nearly 30% of its value over the past year, reflecting investor concerns over declining broadband subscriptions.
Key Highlights:
- Subscriber Decline: Comcast lost 139,000 broadband customers in Q4, worse than the 100,000 predicted by Comcast Cable CEO Dave Watson.
- Stock Impact: Shares dropped more than 11%, reaching a two-year low.
- Strong Financial Results: Q4 adjusted earnings per share (EPS) of $0.96 and revenue of $31.92 billion both exceeded expectations.
Subscriber Loss Details:
Comcast (NASDAQ: CMCSA) shares tumbled on Thursday after the cable and media giant reported a sharper-than-expected decline in broadband subscribers during the fourth quarter. Total domestic broadband subscribers fell by 139,000 to 31.8 million, comprising 131,000 residential and 8,000 business subscribers.
The losses surpassed the earlier warning from Comcast Cable CEO Dave Watson, who had anticipated a decline of approximately 100,000 broadband customers.
Q4 Financial Performance:
Despite the subscriber losses, Comcast delivered strong financial results for the quarter:
- Revenue: Increased 2% year-over-year to $31.92 billion, beating forecasts.
- Adjusted EPS: $0.96, exceeding analyst expectations.
- Segment Revenue:
- Connectivity & Platforms: Up 5% to $11.5 billion.
- Peacock Streaming Service: Surged 28% to $1.3 billion.
Market Reaction:
Despite the robust financial performance, the subscriber losses overshadowed the earnings beat, causing Comcast shares to fall over 11% in Thursday’s trading session. The stock has lost nearly 30% of its value over the past year, reflecting investor concerns over declining broadband subscriptions.