Earnings Preview: Comcast

Comcast (CMCSA, CMCSK) is expected to report Q2 earnings before market open Wednesday, July 30, with a conference call scheduled for 8:30 a.m. ET.

Guidance

Analysts are looking for EPS of 23c on revenue of $5.58B. The consensus range for EPS is 19c to 25c, while the consensus range for revenue is $8.50B to $8.71B, according to First Call. The FCC is expected to rule that Comcast violated federal rules when it prevented some of its customers from sharing videos over the Internet, according to several published reports. The decision could prevent Comcast and other Internet providers from charging their customers additional fees for using large amounts of bandwith.

Analyst Views

Goldman Sachs upgraded Comcast to Buy from Neutral on July 16, due to the company's defensive nature as well as what the firm considers to be an overdone drop in the company's share price In the beginning of July, Comcast was initiated with a Hold by Collins Stewart. The firm believes investors will continue to be concerned about the cable operator's subscription losses and the possibility that it will increase its capital expenditures in 2009. On the other hand, J.P. Morgan was more upbeat about the company as they initiated Comcast with an Overweight rating and $28 target on July 1.