Comcast's Stock Surge: 3.39% Boost Caps Eight-Day Rally Amid Strong Earnings and Media Gains

Comcast (CMCSA) has witnessed a notable stock performance, rising 3.39% on October 31, continuing an impressive eight-day rally with an overall gain of 7.75%. On this day, the stock reached its highest intraday price since February 2024.

The American cable, telecommunications, and entertainment giant recently released its third-quarter earnings report, surpassing Wall Street expectations in both revenue and profit. The company's media arm, NBC, saw a significant revenue boost thanks to the summer Olympics, generating $1.4 billion in advertising revenue. Strong performances were also noted in Comcast’s film and wireless segments, although internet customer numbers were slightly impacted due to the reduction of government subsidies.

Comcast, a leading provider of internet and cable services under the Xfinity brand, continues its reign as a dominant force in the market. Through its ownership of NBCUniversal, the company boasts an expansive media portfolio that includes TV networks, cable channels, film studios, and theme parks. Its Peacock streaming service further extends its competitive edge in the industry.

In the third quarter, Comcast reported a 6.5% increase in overall revenue to $32.1 billion, outperforming analysts' predictions of $31.7 billion. Adjusted earnings per share climbed to $1.12, surpassing last year’s $1.08 and beating the predicted $1.06. Following these strong results, Comcast experienced a noteworthy uptick in pre-market trading.

Despite a slight 2.3% decline in EBITDA to $9.74 billion, the company effectively contained its internet and cable customer losses. The impact was cushioned by strategic promotions on their TV networks and Peacock service, highlighting live Olympic coverage. Meanwhile, the Peacock service added approximately three million new subscribers this quarter, bolstered by exclusive NFL games in Brazil and Olympic content, bringing the total subscriber count to 36 million. Despite a loss of $436 million in its streaming service, the results still fell under expectations.

Driven by hit films such as "Tornado" and "Despicable Me 4," Comcast's studio and TV revenues increased by 12% to $2.83 billion. However, its theme park division saw a downturn in sales amid broader industry slowdown.

Comcast also experienced a decline in broadband users, losing about 87,000 internet customers primarily due to the cessation of the federal Affordable Connectivity Program. Nonetheless, without this impact, broadband subscriptions grew by 9,000. Additionally, the company continued to lose cable TV subscribers as consumers shift to streaming platforms, a transition Comcast is meeting with an increased focus on its Peacock service.

Significantly, the company is contemplating a strategic restructuring that may involve spinning off its cable TV networks into a separate entity. This move would include brands like CNBC and MSNBC, reflecting a broader industry trend of adapting to evolving consumer preferences.