What to Expect When Comcast (CMCSA) Releases Earnings Monday Morning

NEW YORK (TheStreet) -- Shares of Comcast Corp  (CMCSA) closed up 1.13% to $58.41 in Friday's regular trading session, ahead of its first quarter 2015 earnings release on Monday, before the market opens.

The company is expected to report earnings of 74 cents per share on revenue of $17.41 billion for the first quarter, according to Wall Street analysts.

In the same quarter of last year, the company earned 71 cents per share on revenue of $17.41 billion.

Comcast recently announced the termination of its $45 billion merger agreement with Time Warner Cable  (TWC), citing regulatory pressure. 

But, TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio says the FCC and the Department of Justice got this one wrong. 

"Obviously they're looking at a snapshot of what the world looks like in 2015. In 2018, I think we'll be laughing that they didn't let this deal happen," he added. 

Philadelphia-based Comcast is a media and technology company, operating under its two primary businesses, Comcast Cable and NBCUniversal.

Separately, TheStreet Ratings team rates COMCAST CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate COMCAST CORP (CMCSA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, notable return on equity, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.2%. Since the same quarter one year prior, revenues slightly increased by 4.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Media industry and the overall market, COMCAST CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 87.14% to $4,643.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 49.26%.
  • You can view the full analysis from the report here: CMCSA Ratings Report

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