Comcast (NASDAQ:CMCSA) has reported a robust first quarter for 2024, with adjusted earnings per share (EPS) and revenue surpassing analyst estimates. The company announced an adjusted EPS of $1.04, which is $0.05 higher than the consensus estimate of $0.99. Revenue for the quarter was also ahead of expectations, coming in at $30.06 billion against the predicted $29.84 billion. This news prompted a positive market response, with Comcast shares inching up by 1.9%.
The telecommunications giant attributed its strong performance to double-digit growth in adjusted EPS and free cash flow, as well as a significant return of capital to shareholders amounting to $3.6 billion through dividends and share repurchases. Brian L. Roberts, Chairman and CEO, highlighted the company's success in the competitive marketplace, noting a 4.2% increase in domestic broadband average rate per user and a 21% increase in domestic wireless customer lines. "We delivered double-digit growth in Adjusted EPS and free cash flow while returning $3.6 billion to shareholders," said Roberts.
Comcast's connectivity businesses saw a 7% revenue growth, with the adjusted EBITDA for Connectivity & Platforms rising 1.5% to $8.2 billion. The adjusted EBITDA margin also saw an increase, reaching 40.5%. The company's Studios segment continued to leverage its intellectual property, with "Kung Fu Panda 4" grossing over $480 million worldwide. Additionally, the streaming service Peacock saw a 55% rise in paid subscribers compared to the previous year, contributing to a 54% increase in revenue for the platform.
Despite the competitive environment, Comcast has maintained its strong balance sheet and continues to invest aggressively in its businesses. The company's focus on expanding its Adjusted EBITDA margin across Connectivity & Platforms and delivering revenue growth in its connectivity businesses has positioned it for sustained long-term growth. Roberts expressed pride in the company's consistent high-level performance and its strategic positioning for the future.
Investors have responded positively to Comcast's first-quarter achievements, as reflected in the modest uptick in the company's stock price following the earnings release. With a clear strategy and strong financial results, Comcast is poised to maintain its momentum in the dynamic media and technology landscape.