NASDAQ$CMCSA

Comcast Corp · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Comcast's financial performance in Q1 2020 was impacted by COVID-19, with revenue decreasing slightly and net income declining significantly.

Comcast Corporation reported a slight decrease in revenue and a significant decrease in net income for the first quarter of 2020. Revenue decreased by 0.9% to $26.6 billion, while net income attributable to Comcast decreased by 39.6% to $2.1 billion. The company's results were affected by the impact of COVID-19, particularly on NBCUniversal and Sky.

  • Consolidated Adjusted EBITDA was $8.1 billion, Adjusted EPS was $0.71 and Free Cash Flow was $3.3 billion.
  • Total customer relationships across Cable Communications and Sky increased 2.6% year-over-year to 55.8 million.
  • Cable Communications total customer relationships increased by 371,000, marking the best first quarter result on record.
  • Total high-speed internet customer net additions were 477,000 (excluding 32,000 free Internet Essentials customers), the best quarterly result in 12 years.

Headline financials

Total Revenue

$26.6B

Previous: $26.9B-0.9%
EPS (adj)

$0.71

Previous: $0.76-6.6%
Total Customer Relationships

55.8M

Previous: 54.4M+2.6%
Customer Relationship Net Adds

371.0K

No prior period
Video Customer Net Adds

-409.0K

No prior period
Wireless Line Net Adds

216.0K

No prior period
Capital Expenditures

-$1.88B

Previous: -$2.09B+10.1%
Free Cash Flow

$3.94B

Previous: $5.14B-23.3%
Net Income

$2.15B

Previous: $3.55B-39.6%
Operating Income

$4.85B

Previous: $5.18B-6.4%
Gross Profit

$26.6B

Previous: $26.9B-0.9%
Cash & Equivalents

$8.52B

Previous: $3.5B+143.5%
Total Assets

$262B

Previous: $256B+2.4%
Stock-Based Comp

$298M

Previous: $245M+21.6%

Revenue & EPS history

Comcast · Revenue · Quarterly

$26.6B

Q1 2020-0.9%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Comcast · $31.2B total across 5 segments · Q3 2023

  • Residential Connectivity
    $18B+8.5%
  • Media
    $6.03B+15.3%
  • Studios
    $2.52B-20.4%
  • Theme Parks
    $2.42B+17.2%
  • Business Services Connectivity
    $2.32B

Forward guidance

The company expects Cable Communications results to be negatively affected in the second quarter by the significant deterioration in domestic economic conditions and by the costs associated with support of customer connectivity. NBCUniversal and Sky results also will be negatively impacted to a greater extent in the second quarter 2020. As a result, the company expects the impacts of COVID-19 to increase in significance in the second quarter 2020 and to have a material adverse impact on consolidated results of operations over the near-to-medium term.

Tailwinds

  • Investments in network continue to pay off as we are handling significant increases in traffic and meeting our customers’ needs.
  • We have continued to innovate.
  • We are distributing our content in new ways, as evidenced by the recent launch of Peacock on X1 and Flex.
  • We've also taken decisive action, having moved over 95% of our U.S. call-center employees to work from home and putting in place new procedures that have allowed more than 15,000 construction workers to safely come back to work to build our theme park in Beijing.
  • We have a strong balance sheet, terrific portfolio of assets, and a world-class management team.

Headwinds

  • Cable Communications results will be negatively affected in the second quarter by the significant deterioration in domestic economic conditions in recent weeks and by the costs associated with our support of customer connectivity as the population increasingly works and learns remotely from home.
  • NBCUniversal results will be negatively impacted to a greater extent in the second quarter 2020.
  • Sky results will be negatively impacted to a greater extent in the second quarter 2020.
  • We expect the impacts of COVID-19 to increase in significance in the second quarter 2020.
  • We expect the impacts of COVID-19 to have a material adverse impact on our consolidated results of operations over the near-to-medium term.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.4%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+1.1%

Avg return

30 days after

55%

40 / 73 earnings

Positive

+13.3%

Q1 2023

Best reaction

-13.5%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.9%-5.9%-14.2%
Q4 2025+2.8%+4.8%+9.0%
Q3 2025-5.2%-3.8%-6.4%
Q2 2025+2.2%+0.0%+4.5%
Q1 2025-3.7%-1.5%+0.1%
Q4 2024-11.0%-10.2%-4.0%
Q3 2024+3.1%+0.8%+2.2%
Q2 2024-3.6%+0.4%-0.3%
Q1 2024-4.1%-5.2%-4.2%
Q4 2023+5.6%+6.5%-4.3%
Q3 2023-7.3%-3.4%-0.4%
Q2 2023+5.4%+5.6%+6.0%
Q1 2023+13.3%+12.8%+8.1%
Q4 2022-1.2%-1.9%-7.7%
Q3 2022+1.4%+0.2%+13.2%
Q2 2022-13.5%-13.1%-15.1%
Q1 2022-10.6%-9.2%-0.7%
Q4 2021+2.6%+3.1%-2.9%
Q3 2021-1.9%+0.4%-2.6%
Q2 2021+1.5%+0.4%+2.4%
Q1 2021+3.8%+4.7%+6.0%
Q4 2020+2.4%+5.7%+8.9%
Q3 2020+0.6%+1.5%+23.3%
Q2 2020-2.5%-1.6%+1.5%
Q1 2020-5.2%-7.6%+1.5%
Q4 2019-6.0%-7.2%-3.4%
Q3 2019-0.2%-0.8%-2.0%
Q2 2019-0.5%-1.8%-5.4%
Q1 2019+2.9%+4.0%+2.0%
Q4 2018+3.6%+1.1%+10.4%
Q3 2018+3.3%+10.5%+9.6%
Q2 2018+5.0%+7.1%+9.2%
Q1 2018-0.1%-5.9%-4.8%
Q4 2017-0.7%-1.1%-6.9%
Q3 2017-0.1%-2.2%-2.6%
Q2 2017+0.4%+2.5%+2.2%
Q1 2017+1.0%+1.4%+5.5%
Q4 2016+3.4%+2.7%+3.2%
Q3 2016-4.7%-4.2%+7.2%
Q2 2016+1.0%+0.5%-2.5%
Q1 2016+0.2%
Q4 2015+6.6%
Q3 2015-0.4%
Q2 2015-3.6%
Q1 2015-0.8%
Q4 2014+2.4%
Q3 2014+0.8%
Q2 2014+1.7%
Q1 2014+2.7%
Q4 2013+1.1%
Q3 2013-0.3%
Q2 2013+7.3%
Q1 2013+2.0%
Q4 2012+3.9%
Q3 2012+3.2%
Q2 2012+4.9%
Q1 2012-0.8%
Q4 2011-0.3%
Q3 2011+1.5%
Q2 2011-4.1%
Q1 2011-2.0%
Q4 2010+3.3%
Q3 2010+6.2%
Q2 2010-0.9%
Q1 2009+8.3%
Q1 2010+8.3%
Q4 2007+1.4%
Q2 2009+1.4%
Q4 2009+1.4%
Q3 2009-2.2%
Q3 2008-2.2%
Q4 2008-0.7%
Q2 2008-0.7%

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