Comcast Corporation (NASDAQ:CMCSA), the largest cable company in the United States is expected to report higher first quarter earnings results according to analysts at Wunderlich Securities. The analysts also believe that the company has more upside potential if it continues to outperform its peers in the industry.
Wunderlich Securities analyst Matthew Harrigan estimated that Comcast Corporation (NASDAQ:CMCSA)’s top line will increase by 3 percent to $15.328 billion. Its OCF is expected to climb by 5.1 percent to $4.929 billion. He projected that the company will deliver $0.52 earnings per share and it will $2.568 billion cash in cash tax payment.
In terms of cable performance, Harrigan estimated that Comcast Corporation (NASDAQ:CMCSA)’s sales increased by 6 percent to $10.171 billion with a 5.3 percent increase in OCF to $4.166 billion and 41 percent margin. According to him, PSU is projected to be higher by 471K with video less than 88K. HSD and voice will increase by 419K and 139K, respectively.
He projected that the company’s cable capital expenditures will be approximately $1.378 billion or 13.5 percent of sales. According to him, Comcast Corporation (NASDAQ:CMCSA)’s ARPU per video customer will increase by 7.3 percent to $154.45.
With NBC Universal, Harrigan projected that the company’s sales will decline by 1.9 percent to $5.366 billion and a 4.7 percent increase in OCF to $851 million. According to him, Comcast Corporation (NASDAQ:CMCSA)’s cable nets top line will be up by 5.6 percent to $2.258 billion with $839 million OCF.
He estimated that the company TV top line, without Winter Games, will achieve $1.634 billion sales and its OCF will decline by 11.7 percent to $11 million. Film sales are expected to drop by 2 percent to $1.168 billion with OCF around $14 million. He estimated that the company’s cable net ad sales will grow by 4 percent to $847 million. Its affiliate fees will climb by 7 percent to $1.223 billion.
The research firm cited that it is enthusiastic about the 2013 Cinemacon Universal Pictures showing particularly with its upcoming films this summer including R.I.P.D. with Richard Reynolds and Jeff Bridges, Despicable Me 2, and Fast & Furious 6.
Wunderlich Securities recommended a buy rating for shares of Comcast Corporation (NASDAQ:CMCSA) with a $47 price target. The stock is trading around $41.35 per share, down by 0.34 percent on Tuesday around 12.41 in the afternoon in New York.
