Comcast CMCSA reported fourth-quarter 2024 adjusted earnings of 96 cents per share, which beat the Zacks Consensus Estimate by 9.1% and increased 14.3% year over year.

Consolidated revenues increased 2.1% year over year to $31.9 billion and beat the Zacks Consensus Estimate by 0.9%.

Comcast shares were down more than 2% in premarket trading. In the past year, shares of CMCSA have lost 19.7% against the Zacks Consumer Discretionary sector’s appreciation of 14.9%.

Find the latest earnings estimates and surprises on Zacks Earnings Calendar.

CMCSA’s Quarter Details

Connectivity & Platforms revenues (64.1% of revenues) inched up 0.2% year over year to $20.46 billion in the reported quarter. 

Under the segment, Residential Connectivity & Platforms revenues decreased 0.2% year over year at $18.01 billion. Business Services Connectivity revenues increased 3.7% year over year to $2.44 billion.

Total Customer Relationships for Connectivity & Platforms decreased 58,000 to 51.6 million, primarily reflecting a decline in domestic customer relationships, partially offset by an increase in international customer relationships.

Total domestic broadband customer net losses were 139K, including the modest negative impact associated with Hurricanes Milton and Helene. Moreover, it lost 311K video customers. Domestic wireless customer lines increased 307K.

Content & Experiences revenues (37.8% of revenues) increased 5% year over year to $12.07 billion. 

Under the segment, Media revenues rose 3.5% year over year to $8.22 billion, primarily due to higher domestic distribution revenues, driven by higher revenues at Peacock.

Peacock’s paid subscribers increased 16.1% year over year to 36 million. Peacock’s revenues in the fourth quarter jumped 28% to $1.3 billion.

NBC Sports delivered its most-watched year since 2016, highlighted by the company’s innovative broadcast of the Paris Olympics and Peacock's first-ever exclusive live-streamed NFL Playoff Game. 

Studios increased 6.7% year over year to $3.26 billion due to higher theatrical revenues driven by strong performances from Wicked and The Wild Robot.

Theme Parks revenues inched up 0.1% year over year to $2.37 billion, which remained flat year over year due to lower revenues at domestic theme parks, driven by lower guest attendance, offset by higher revenues at international theme parks.

CMCSA's Operating Details

Costs and expenses in the fourth quarter of 2024 increased 0.6% year over year to $26.92 billion.

Programming & production costs decreased 2.2% from the year-ago quarter to $10.02 billion. Marketing and promotional expenses increased 5% year over year to $2.14 billion.

Adjusted EBITDA increased 9.9% from the year-ago quarter to $8.8 billion. 

Total Connectivity & Platforms adjusted EBITDA rose 3.5% year over year to $7.84 billion.

Content & Experiences adjusted EBITDA was $1.49 billion, up 60% year over year.

CMCSA's Cash Flow & Liquidity Remain Strong

As of Dec. 31, 2024, cash and cash equivalents were $7.32 billion, which decreased from $8.81 billion as of Sept. 30, 2024.

As of Dec. 31, 2024, consolidated total debt was $99.09 billion compared with $101.64 billion as of Sept. 30, 2024.

In the fourth quarter of 2024, Comcast generated $8.08 billion in cash from operations, which increased from $7 billion reported in the previous quarter. Free cash flow was $3.26 billion in the reported quarter, which decreased from $3.4 billion reported in the previous quarter.

Comcast announced that it increased its dividend by 8 cents, or 6.5% year over year, to $1.32 per share on an annualized basis for 2025. In accordance with the increase, the board of directors declared a quarterly cash dividend of 33 cents per share on the company's stock, payable on April 23, 2025, to shareholders of record as of the close of business on April 2, 2025. The board of directors also approved a new share repurchase program authorization, effective as of Jan. 31, 2025, of $15 billion, which does not have an expiration date.

Zacks Rank & Stocks to Consider

Currently, Comcast carries a Zacks Rank #3 (Hold).

Reynolds Consumer Products REYN, Wyndham Hotels & Resorts WH and Sony SONY are some better-ranked stocks that investors can consider in the broader sector. Each of the three stocks carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Reynolds Consumer Products have gained 0.4% year to date. REYN is set to report fourth-quarter 2024 results on Feb. 5.

Shares of Wyndham Hotels & Resorts have surged 33.9% year to date. WH is slated to report fourth-quarter 2024 results on Feb. 12.

Shares of Sony have appreciated 13.2% year to date. SONY is set to report fourth-quarter 2024 results on Feb. 13.

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