Comcast (CMCSA) came out with quarterly earnings of $0.84 per share, beating the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.96 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +11.66%. A quarter ago, it was expected that this cable provider would post earnings of $1.1 per share when it actually produced earnings of $1.12, delivering a surprise of +1.82%.Over the last four quarters, the company ...

分组1 - Brett Ashcroft Green is a CERTIFIED FINANCIAL PLANNER™ with expertise in private credit and commercial real estate mezzanine financing [1] - He has worked with high-net-worth and ultra-high-net-worth individuals globally, indicating a strong focus on affluent clientele [1] - His professional experience includes collaboration with leading commercial real estate developers such as The Witkoff Group, Kushner Companies, The Durst Organization, and Fortress Investment Group [1]

Group 1 - The new corporate entity for cable channels such as CNBC, MS Now, and USA Network has experienced a decline of over 25% following its separation from Comcast [1]

Group 1: Company Overview - Versant Media Group has begun trading on the Nasdaq under the ticker symbol VSNT, completing its spinoff from Comcast Corporation [1] - Versant includes a bundle of cable television networks and digital businesses, such as MS NOW, CNBC, USA Network, Golf Channel, Oxygen, E!, and SYFY, along with online platforms like Fandango and Rotten Tomatoes [1][2] Group 2: Market Performance - On its first trading day, Versant shares opened at $46.65 but fell more than 12% shortly after the market opened, trading under $41 as of the latest update [3] - The shares were initially offered at $55 per share as "when-issued" stocks on December 15 [3] Group 3: Industry Context - The spinoff occurs during a period of declining cable television subscriptions, which are at a multiyear low, with traditional cable subscriptions peaking in 2012 at over 101 million American households, and last year seeing penetration levels of less than half that [4] - Despite the decline, there was a notable increase in subscribers during the third quarter of 2025, with pay TV operators adding over 300,000 subscribers, marking the first net gain in eight years [5] Group 4: Future Outlook - Mark Lazarus, CEO of Versant, expressed optimism about the company's future, highlighting its scale, strategy, and leadership as key factors for growth [5] - Versant's stock performance will be closely monitored by media investors, particularly in light of Warner Bros. Discovery's recent acquisition by Netflix and the potential spinoff of its cable networks [6]

Group 1 - The early ratings for Versant indicate a significant decline in share value, with a drop of nearly 15% for the new owner of major cable television networks such as CNBC, USA Network, and MS NOW (formerly MSNBC) [1]

Core Viewpoint - Versant's stock experienced a significant decline of over 14% on its first day of trading, reflecting investor skepticism towards traditional cable television businesses amid the ongoing shift to streaming [1][11]. Company Overview - Versant was spun off from Comcast and began trading on the Nasdaq under the ticker symbol "VSNT" [1][12]. - The spinoff was part of Comcast's strategy to respond to changing market dynamics, allowing it to focus more on streaming and other media assets [3][14]. Financial Performance - Versant now manages a substantial portion of NBCUniversal's cable network portfolio, which includes channels like CNBC, USA Network, and digital brands such as Fandango and Rotten Tomatoes, generating approximately $7 billion in annual revenue [6][13]. Market Reaction - The initial market reaction to Versant's debut was negative, with shares dropping from an opening price of about $45.17 to around $41.80 shortly after trading began [1][11]. - In contrast, Comcast's shares rose by about 1% to 1.3%, indicating investor approval of the separation [1][11]. Executive Outlook - Despite the initial stock decline, Versant's executives expressed optimism about the company's future, emphasizing its financial strength and readiness as a standalone entity [8][9][14]. - CEO Mark Lazarus highlighted the significance of becoming an independent media company, while CFO Anand Kini noted the strong balance sheet and cash flow that position Versant for long-term value creation [8][9][14].

Company Performance - Comcast (CMCSA) closed at $29.78, with a +1.36% increase from the previous day, outperforming the S&P 500 which gained 0.32% [1] - Over the past month, Comcast shares have increased by 10.12%, while the Consumer Discretionary sector and S&P 500 gained 3.01% and 4.7% respectively [1] Upcoming Earnings - Comcast is set to release its earnings on January 29, 2026, with an expected EPS of $0.75, reflecting a 21.88% decrease from the same quarter last year [2] - Revenue is forecasted to be $32.24 billion, indicating a 1.03% growth compared to the corresponding quarter of the prior year [2] Full-Year Estimates - The Zacks Consensus Estimates for Comcast's full-year earnings are $4.18 per share and revenue of $123.64 billion, representing year-over-year changes of -3.46% and -0.07% respectively [3] - Recent analyst estimate revisions suggest evolving short-term business trends, with positive revisions indicating a favorable business outlook [3] Valuation Metrics - Comcast's Forward P/E ratio is currently 7.03, which is higher than the industry average of 6.31 [6] - The PEG ratio for Comcast stands at 2.02, compared to the Cable Television industry's average PEG ratio of 0.73 [6] Industry Ranking - The Cable Television industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 183, placing it in the bottom 26% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Group 1 - Prominent New York investor, Standard General, has been approached regarding the acquisition of all or part of Warner Bros Discovery's cable television business [1] - The potential acquisition includes significant assets such as CNN [1]

Company Performance - Comcast closed at $30.32, marking a +1.98% increase from the previous day, outperforming the S&P 500's loss of 1.16% [1] - The stock has gained 8.66% over the past month, while the Consumer Discretionary sector and S&P 500 gained 1.09% and 1.03%, respectively [1] Upcoming Financial Results - Comcast is expected to report an EPS of $0.75, which is a decrease of 21.88% from the same quarter last year [2] - The consensus estimate for revenue is projected at $32.24 billion, reflecting a 1.03% increase from the equivalent quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are predicted to be $4.18 per share, with revenue at $123.64 billion, indicating changes of -3.46% and -0.07% from the previous year [3] - Recent adjustments to analyst estimates for Comcast are important as they reflect changing business trends, with positive revisions indicating a favorable business outlook [3] Zacks Rank and Valuation - Comcast currently holds a Zacks Rank of 3 (Hold), with a recent 0.1% decline in the Zacks Consensus EPS estimate [5] - The company is trading at a Forward P/E ratio of 7.11, which is a premium compared to the industry average Forward P/E of 6.43 [5] Industry Context - The Cable Television industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 201, placing it in the bottom 19% of over 250 industries [7] - The Zacks Industry Rank evaluates the strength of industry groups, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Insights - The U.S. cable television industry is facing significant challenges, particularly with the impending launch of YouTube TV Plans, which will offer genre-specific packages, including sports, potentially undermining traditional cable services [2][3][10] Industry Overview - The cable television business has been declining for over a decade, with major providers like Xfinity, Spectrum, and Altice losing 16.6 million paying customers since early 2018, equating to nearly 40% of their total customer base [4] - The rise of streaming services, which are generally cheaper, has contributed to this decline, with YouTube TV attracting around 10 million customers since its limited launch in 2017 [7] YouTube TV's Strategy - YouTube TV's new offerings will allow consumers to pay for only what they want to watch, potentially increasing its customer base despite lower prices compared to traditional cable [8][10] - YouTube TV is uniquely positioned to negotiate with content providers for à la carte programming, unlike traditional cable companies that have relied on bundled packages [14][18] Competitive Landscape - Major content providers, including Disney, are adapting to the changing landscape, as evidenced by their willingness to negotiate terms with YouTube TV, which reflects the broader struggles of the cable industry [15][16] - YouTube TV's ability to monetize through various channels, including ads on YouTube, gives it a competitive edge over traditional cable companies that lack such diversified revenue streams [19] Implications for Investors - The shift towards YouTube TV's model poses a significant threat to traditional cable providers, particularly for companies like Charter and Altice, which may struggle to maintain profitability [21][22] - The situation presents a favorable outlook for Alphabet, suggesting potential investment opportunities in the company while advising caution regarding investments in the cable television sector [22]