By Senad Karaahmetovic
Comcast (NASDAQ:CMCSA) posted better-than-expected Q3 earnings to send its shares over 5% higher in Thursday trading.
The company reported a Q3 EPS of $0.96 on revenue of $29.85 billion, which is better than the consensus of $0.90 on sales of $29.75 billion. Comcast reported above-the-consensus broadband net adds of 14,000.
“Despite the challenges that may lie ahead, we are in an enviable strategic and financial position, and our future remains bright,” commented Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation.
CMCSA also declared a quarterly dividend of $0.27 and a huge buyback plan of $3.5 billion, much higher than what the Street was expecting.
Wells Fargo analysts praised CMCSA for delivering strong results and buybacks.
“This was a solid operating quarter for CMCSA against significantly lowered expectations at Cable. Cable expectations arguably reset in early September as the shares slid to their current levels in the low-$30s, and given the strength in the balance sheet, we're not surprised to see a bounce off the bottom,” the analysts wrote in a note.
JPMorgan analysts said that “better-than-expected BB trends offer hope,” although the macro backdrop remains difficult.
“With ramping FWA availability and subs for the next year at least, and continued soft housing trends, we do not think the broadband pain is over for cable, and think it is a reasonable question whether broadband subs can grow in any quarter over the next year,” the analysts added.