Earnings Preview: Comcast Corp.

Comcast Corp. (CMCSA, CMCSK) is expected to report Q3 earnings before market open Wednesday, October 29, with a conference call scheduled for 8:30 am.

Guidance

Analysts are looking for EPS of 22c on revenue of $8.59B. The consensus range for EPS is 20c to 26c while the consensus range for revenue is $8.51B to $8.70B, according to First Call.

Analyst Views

Bank of America recently initiated Comcast with a Buy rating. The firm thinks the company has a strong balance sheet, a stable outlook, and an attractive valuation. Bank of America forecasts that the digital broadcast transition next February will enable Comcast to increase its subscriber base. In addition, the firm predicts that the company's Q3 and Q4 results will cause investors to become more confident about Comcast's outlook.

On the other hand, Kaufman Bros. recently lowered their target on Comcast to $21 from $24, while maintaining its Hold rating. The firm believes that the cable company will report in-line results along with drops in basic subscriptions and slower data growth. Comcast recently said that it would lay off about 300 of its employees.

Meanwhile, the company announced that it would double Internet speeds for the majority of its high-speed Internet customers, and offer even faster, more expensive "wideband" service to many of its Internet users. Investors will want to know if Comcast's faster Internet connections will allow it to increase its market share and/or earnings.