Comcast Xfinity Forecasts Highest Subscriber Growth

Comcast Stock Climbs Into Buy Zone As CEO Touts Biggest Broadband Quarter Ever By Investors Business Daily

Comcast (CMCSA) expects to add over 500,000 U.S. broadband customers in the September quarter — its most ever in a single reporting period — amid the coronavirus emergency, Chief Executive Brian Roberts said Tuesday. Comcast stock moved into a buy zone on the news and other bullish comments by Roberts.

“Broadband is doing I think much better than I thought, we thought and frankly, perhaps everyone thought,” Roberts said in an online appearance at the annual Goldman Sachs Communacopia Conference. “If you look back to the first quarter of 2008, the single biggest quarter we’ve ever had was 492,000 net adds that quarter. I’m pleased to say we’re going to beat that this (September) quarter. We’re already at over 500,000.”

In the September 2019 quarter, Comcast added 379,000 broadband customers.

Comcast stock climbed 2.6% to close at 46.46 on the stock market today, moving firmly into a buy zone out of a lengthy and deep cup-with-handle base.

Philadelphia-based Comcast stock touched a 45.30 buy point in five of the last 10 trading sessions but had failed to break out before Tuesday.

Comcast Stock: Broadband Growth A Bright Spot

Shares in Comcast are about even for 2020 after rebounding from the broad March market sell-off. Shares in rival Charter Communications (CHTR), which has no exposure to the media business, have gained about 25%. Charter stock, though, is extended.

Comcast stock bulls point to its growth in high-speed internet services and share gains in wireless phone services, although it continues to lose video subscribers.

In the June quarter, Comcast added 323,000 broadband customers, topping expectations, while losing 477,000 video subscribers.

NBCUniversal Businesses ‘All Coming Back’

In addition, NBCUniversal has become a drag on Comcast stock amid theme park closures, lost sports advertising revenue, and delayed theater releases of films.

In the June quarter, NBCUniversal revenue fell 25% to $6.1 billion, the company said. Theme park revenue plunged 94% to $87 million. Movie studio revenue tumbled 18% to $1.2 billion. But Roberts says NBCU’s businesses are rebounding.

“They’re all coming back,” he said.

He said a Comcast stock buyback is possible if EBITDA (earnings before interest, taxes, depreciation and amortization) growth improves.

Comcast said its new Peacock-branded, advertising-supported video streaming service has signed up 15 million subscribers, up from 10 million at the end of June. It has not disclosed how many active monthly users the Peacock streaming service has.

According to IBD Marketsmith, Comcast stock holds a Relative Strength Rating of 63 out of a possible 99.