Comcast's Stock Is Falling on Mixed Q2 Results
Shares of the television and media conglomerate Comcast (NASDAQ: CMCSA) fell today after the company reported second-quarter results that beat earnings estimates but fell short of revenue expectations.
Comcast's non-GAAP (adjusted) earnings per share of $1.21 were better than analysts' consensus estimate of $1.12. However, the company's $26.69 billion in revenue was down 3% from the year-ago quarter and missed consensus estimates of $30.02 billion.
Comcast's share price was down by as much as 6.5% today and had slid 2.8% as of 12:26 p.m. ET.
Peacock is strong, but entertainment revenue is sliding
Comcast's disappointing second-quarter revenue was mostly the result of its underperforming content and experiences sales compared to last year. Sales in this segment were down 7.5% to $10.06 billion compared to the year-ago quarter.
Fueling the decline was a 27% drop in revenue from its studios segment and an 11% decline in theme park sales. The company attributed the park declines to lower guest attendance and its movie studio sales declines to lower theatrical revenue compared to the hit movies it released in the year-ago quarter -- Super Mario Bros. Movie and Fast X.
The bright spot in Comcast's second-quarter results was its streaming service, Peacock. Streaming subscribers increased 38% in the quarter to 33 million, and its losses narrowed to $348 million, down from $651 million in Q2 2023.
The increase in subscribers helped the company's media revenue increase by 2.1% to $6.32 billion in the quarter.
Studio and park revenue could rebound
Comcast's management appears optimistic that the company's studio and theme park sales will turn around, with CEO Brian Roberts saying in prepared remarks, "In Studios and Theme Parks, we faced difficult comparisons to last year, but our upcoming film and TV content and the debut of Epic Universe bode very well for the future."
Epic Universe is the company's newest park, slated to open next year.
But with Comcast's share price down more than 12% year to date, it's clear that the company has more work to do before investors are optimistic that the media giant is back on the right track.
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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool recommends Comcast. The Motley Fool has a disclosure policy.
