Should You Stay Away From Comcast (CMCSA) Ahead of Q1 Earnings?

Core Viewpoint - Comcast is facing significant challenges from the competitive landscape of online video streaming services, leading to a decline in its traditional cable TV business and broadband subscriber base [1][2]. Group 1: Company Performance - Comcast is set to report its first-quarter 2024 results on April 25, with expected revenues of $29.81 billion, reflecting a growth of 0.39% year-over-year [5]. - The consensus estimate for earnings per share has declined by 1% to 98 cents, indicating a growth of 6.52% compared to the previous year [5]. - In the fourth quarter, Comcast lost 34,000 domestic broadband customers and 389,000 video customers, highlighting the impact of competition and changing consumer preferences [3]. Group 2: Competitive Landscape - Online streaming services like Netflix, Disney+, YouTube, and Apple TV+ are posing a severe threat to Comcast, with Netflix reporting a 16% year-over-year increase in paid subscribers, reaching 269.6 million [1]. - Disney is also expected to report an increase in its subscriber base, with Disney+ anticipating net additions of 5.5 million to 6 million subscribers [2]. Group 3: Industry Trends - The industry is experiencing declining profitability in residential video services due to rising programming costs and retransmission fees, making it difficult for traditional companies like Comcast to thrive [2]. - The shift towards wireless voice services has led to a significant decline in revenues from residential voice services, further impacting Comcast's performance [2]. Group 4: Business Segments - Comcast's business services segment is expected to benefit from an expanding clientele, particularly through partnerships like the collaboration with DraftKings [3]. - The Theme Park business is likely to have gained from strong occupancy rates in various locations, including Osaka, Beijing, and Orlando [3]. - Peacock, Comcast's streaming service, saw a 50% year-over-year increase in paid subscribers, reaching 31 million, with revenues rising 57% to $1 billion [4].