CMCSA is brushing off better-than-expected Q1 earnings and revenue
Comcast Corp (NASDAQ:CMCSA) stock is down 6.6% in premarket trading, even after the company shared first-quarter earnings of $1.09 per share on $29.89 billion in revenue -- both topping analyst's expectations. The equity is reacting to continued subscriber losses, with Comcast losing 199,000 broadband and 427,000 cable TV customers for the quarter, despite a 1.7% rise in broadband revenue.
CMCSA is set to open near the $33 level, which acted as support recently. The stock is also slipping back beneath its 10-day moving average, a trendline that pressured it lower during April’s pullback. Coming into today, Comcast stock is down 8.2% this year, and 14.6% year over year, with this drop putting it on track for another potential lower low in its downtrend.
In the options pits, sentiment has turned bearish in recent weeks. Comcast stock’s 10-day put/call volume ratio of 1.49, per data from the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX), ranks in the 85th percentile of its annual range -- a notable increase in put activity relative to calls.
Analysts, however, remain split. Of the brokerages covering CMCSA, 16 rate the stock a “strong buy,” while 14 recommend a "hold". Meanwhile, the average 12-month price target of $42.85 is a 24.3% premium to last night's close.