Analysts Are Updating Their Comcast Corporation (NASDAQ:CMCSA) Estimates After Its Yearly Results

It's been a good week for Comcast Corporation (NASDAQ:CMCSA) shareholders, because the company has just released its latest full-year results, and the shares gained 6.7% to US$46.26. The result was positive overall - although revenues of US$122b were in line with what the analysts predicted, Comcast surprised by delivering a statutory profit of US$3.71 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Comcast after the latest results.

See our latest analysis for Comcast

Following last week's earnings report, Comcast's 29 analysts are forecasting 2024 revenues to be US$123.9b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$3.87, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$123.5b and earnings per share (EPS) of US$3.93 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$50.29, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Comcast, with the most bullish analyst valuing it at US$60.00 and the most bearish at US$42.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Comcast shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Comcast's revenue growth is expected to slow, with the forecast 1.9% annualised growth rate until the end of 2024 being well below the historical 4.5% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.1% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Comcast.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Comcast's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$50.29, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Comcast. Long-term earnings power is much more important than next year's profits. We have forecasts for Comcast going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Comcast , and understanding them should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.