CMCS.A - Embedded Expectations Analysis - 2019 12 04
Comcast Corporation (CMCS.A:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) Earnings, with a 21.5x Uniform P/E. At these levels, the market has somewhat bearish expectations for the firm, and management may be concerned about net customer additions, their programming expense, and OTT competition.Specifically, management may be concerned about the positioning of the spectrum team, and they may lack confidence in their ability to sustain recent net customer additions. Furthermore, they may be concerned about the sustainability of flat programming expenses, and they may lack confidence in their ability to shift their business toward connectivity. In addition, they may lack confidence in their ability to strengthen their leading competitive position and sustain improvements to their capital intensity efficiency. Finally, they may be exaggerating expectations for growth in the broadband market, and they may be concerned about rising OTT competition.
Comcast is a media and technology company. The company's segments are: Cable Communications, which provides internet, video, voice, and security and automation services in the United States individually and as bundled services at a discounted rate over its cable distribution system to residential and business customers; NBCUniversal, which includes a portfolio of national cable networks that provide a variety of entertainment, news and information, and sports content, regional sports and news networks, international cable networks, and cable television studio production operations; and Sky, which owns a portfolio of pay television channels that provide entertainment, news, sports and movies.
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