Comcast to Report Q1 Earnings: What's in Store for the Stock?

Core Viewpoint - Comcast is expected to report a decline in earnings and revenues for the first quarter of 2025, with earnings estimated at 98 cents per share, a 5.77% decrease year-over-year, and revenues projected at $29.68 billion, reflecting a 1.25% decline from the previous year [1]. Financial Performance - The Zacks Consensus Estimate for Comcast's first-quarter earnings indicates a downward revision of 3 cents over the past 30 days [1]. - Comcast has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 7.47% [2]. Factors Impacting Performance - The company incurred over $100 million in pre-launch and marketing expenses for Epic Universe, which are expected to pressure the bottom line as these costs did not contribute to revenues in the quarter [4]. - Comcast's mobile strategy was ramped up, integrating Xfinity Mobile with higher-tier broadband plans and offering aggressive promotions, which likely increased operating expenses in the short term [5]. - Comcast Business is anticipated to have contributed positively, driven by improved service adoption among small and medium-sized businesses and the acquisition of Nitel, enhancing managed services capabilities [6]. - The company upgraded speeds for over 20 million Xfinity Internet customers at no extra cost, which is expected to support revenue growth in broadband and convergence [7]. - Despite losing 139,000 broadband subscribers in Q4 2024, Comcast entered Q1 2025 with higher ARPU, focusing on retaining high-value customers and leveraging mobile bundles [8]. Earnings Outlook - According to the Zacks model, Comcast currently has an Earnings ESP of -1.56% and a Zacks Rank of 3, indicating a lower likelihood of an earnings beat compared to previous quarters [9].