CMCSA reported lower-than-anticipated revenue, though its earnings exceeded expectations
Comcast Corporation (NASDAQ: CMCSA) announced first-quarter profits of 71 cents per share, higher than Wall Street's estimated 68 cents per share. However, the reported revenue of $26.66 billion came in lower than analysts' estimated $26.75 billion. The company also warned that the coronavirus could weigh on films, theme parks and advertising in the second quarter. At last check, CMCSA is down 4.2% to trade at $37.38.
CMCSA is struggling to rebound off its March 23, annual low of $31.70. The stock was recently turned away by the 60-day moving average, with the $39 level also acting as a ceiling on the charts. While the security is eyeing a 8% monthly pop, the equity is still down 17.2% year-to-date.
While today's report hasn't sparked much analyst chatter, the majority of the brokerage bunch is quite bullish, with 12 out of 18 sporting a "buy" or better rating, and the remaining six giving CMCSA a tepid "hold." Meanwhile, the 12-month consensus price target of $45.39 is a 22.7% premium to current levels.
The options pits have been surprisingly optimistic as well. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 6.49 calls were bought for every put in the past 10 days. This ratio sits in the 91st percentile of its annual range, suggesting the appetite for calls is much higher than usual.