Comcast Confronts Bundle of Trouble

Comcast's (CMCSA Quote) shrinking core business and increased spending rang an uncomfortably familiar bell with investors.

The Philly cable giant delivered in-line third-quarter results, but thanks to a surprising jump in spending on set-top boxes and phone network upgrades, the company cut its 2005 cash flow growth projection to 30% from the 40% previously targeted.

Comcast raised its 2005 capital spending budget to $3.5 billion, up from the $3.25 billion previously projected. That spending jump came as a shock to Wall Street, considering the company said in August that it expected to spend less in the second half of the year. ...