CMCS.A - Embedded Expectations Analysis - 2020 08 03
Comcast Corporation (CMCS.A:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 21.6x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may be concerned about subscriber losses, coronavirus headwinds, and their sports businessSpecifically, management may lack confidence in their ability to sustain their high-speed data service, sustain their customer relationship net additions, and improve their wireless and theme park business performance. Furthermore, they may be exaggerating the potential for a rebound in their sports business, and they may lack confidence in their ability to secure sports renegotiations and contract wins. Moreover, management may have concerns about the detrimental impact of the sports shutdown on their Sky segment and the continued accelerated subscriber losses. Finally, management may have concerns about new safety precautions and their ability to keep customers and employees safe, and management may be overstating the potential of Flex
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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