'We're Having a Wonderful Run,' Comcast (CMCSA) CEO Roberts Tells CNBC

Comcast (CMCSA) CEO Brian Roberts joined CNBC's "Squawk on the Street" to breakdown the company's second quarter earnings report.
By Giovanni Bruno ,

NEW YORK (TheStreet) --Comcast (CMCSA) - Get Report reported earnings on Wednesday morning that beat analyst estimates for the 2016 second quarter. The company posted earnings per share of 83 cents, above expectations of 81 cents and revenue of $19.27 billion, above the projected 18.99 billion.

Comcast CEO Brian Roberts joined CNBC's "Squawk on the Street" to breakdown the report.

"This is the best second quarter in 10 years for video. We've seen churn, the customers who disconnect, reduce every month for 27-29 months in a row," Roberts said citing the company's experiences, content, and improving customer service that allow this momentum to continue.

Roberts pointed to the company's voice control remotes, which he says is "a game changer," in terms of products and innovation that is widening the gap between other cable companies and Comcast

"We are putting out 800,000 voice remotes a month and people are using it 200 million times a month. Nobody else has that and its paying dividends right now," he said.

Roberts then tackled the question of providing wireless services to Comcast customers and the potential for growth and innovation in that area.

"First, we have more Wi-Fi hotspots than any company in America, and we have the best Wi-Fi of any company in America. We rent the Verizon (VZN) network on a wholesale basis, we have that agreement wherever that technology goes. Finally, its 5G itself, we believe in the internet of things there's no reason we can't capture both residential and business services," he said.

Finally, CNBC reporter David Faber pressed Roberts on the growing sentiment by consumers to turn away from cable subscribers and it's impact on television and video.

"We had the best up front since we've owned NBC, 12.5% growth in CPMs (cost per impressions), similar double digits with our other big networks. That's the strongest upfront we've had in six years and tells you something about video's health," Roberts said

Moreover, the company added 100,000 video customers, in the last three months and NBC Universal continues to be number one network in terms of the 18-49 demographic. 'We're Having a Wonderful Run, and I'm very optimistic we can continue this growth." Roberts said.

Shares of Comcast are higher 1% to $67.85 on Wednesday morning. 

(Comcast is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings with a free trial.)

Separately, TheStreet Ratings rates Comcast as a "Buy" with a ratings score of "A+." This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that TheStreet Ratings rates.

The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, reasonable valuation levels and solid stock price performance. TheStreet Ratings feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that TheStreet Ratings evaluated.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

You can view the full analysis from the report here: CMCSA

Loading ...