This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Slowdown Cracks Comcast

Comcast's (CMCSA - Get Report) gleaming image shatters as competition drags the cable giant into a price scuffle.

The Philadelphia cable shop cut its cash flow target for the year as phone companies and satellite players show they can pick off Comcast customers more easily than expected.

Suddenly the sales growth in new services like broadband and phone has slowed. The number of new services sold or revenue generating units fell to 1.4 million, down from 1.5 million last quarter.

Instead of seeing pressure from one large rival, the competition was more "product specific," says one industry investor. In video, Comcast took a beating from the satellite broadcasters EchoStar (DISH - Get Report) and DirecTV (DTV - Get Report). And telcos like AT&T (T - Get Report) and Verizon (VZ - Get Report) pushed hard on phone and fast Internet services, says the money manager who owns no Comcast.

"The concern as an investor is that the impact from competition will only grow," says the money manager.

Attempting to keep sentiments positive on the stock, Comcast said it would boost its share buyback plan by $7 billion, though there was no specific timeframe announced.

For the third quarter, Comcast made $560 million, or 18 cents a share, down from the year-ago $1.22 billion, or 38 cents a share. Revenue rose 21% from a year ago to $7.78 billion.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs