Comcast Q4 Revenue and Earnings Top Estimates

Comcast (CMCSA) delivered better-than-expected fourth-quarter and full-year results. The results topped consensus estimates characterized by its highest reported full-year revenue, adjusted EBITDA, adjusted EPS, and free cash flow. CMCSA shares fell 0.93% to close at $48.01 on January 27.

Comcast is a media and technology company that offers high-speed internet, video, voice, and wireless services. It also produces and distributes entertainment, news, and other content. Comcast’s dividends have increased over the last 8 years leading to a dividend yield of 2.01%.

Financial Results

The media and technology company delivered a 9.5% year-over-year increase in Q4 revenue of $30.3 billion, exceeding consensus estimates of $29.73 billion. For the full year, revenue increased 12.4% year-over-year to $116.4 billion. Adjusted net income was up 35.1% year-over-year in the fourth quarter to $3.5 billion and up 24.8% for the full year to $15 billion.

Comcast delivered adjusted EPS of $0.77 in the fourth quarter, up 37.5% year-over-year and better than consensus estimates of $0.73 a share. For the 12 months ended December 31, 2021, adjusted EPS was up 23.8% to $3.23 a share.

Following a reduction in indebtedness attributed to the acquisition of Sky, Comcast resumed share repurchases in May. For the full year, the company repurchased 73.2 million common shares for $4 billion and returned $4.5 billion to shareholders through dividends. 

The board of directors has since approved an increase of the repurchase program to $10 billion. Comcast has also increased its dividend by $0.08, or 8% year-over-year, to $1.08 a share on an annualized basis. 

Stock Rating

Yesterday, Pivotal Research analyst Jeffrey Wlodarczak reiterated a Buy rating on Comcast stock with a $62 price target, implying 29.14% upside potential to current levels.

Consensus among analysts is a Moderate Buy based on 10 Buys, 3 Holds, and 1 Sell. The average Comcast price target of $58.64 implies 22.14% upside potential to current levels.

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