PHILADELPHIA - Comcast Corporation (NASDAQ:CMCSA) shares rose 2.5% following the announcement of its second-quarter financial results, which revealed an adjusted earnings per share (EPS) of $1.21, surpassing analyst expectations by $0.09.
However, the company's revenue fell short of forecasts, coming in at $29.69 billion against the consensus estimate of $30.03 billion.
The increase in Comcast's stock price is attributed to the company's profit beat, as the adjusted EPS showed a 7.0% improvement compared to the same quarter last year. Despite the revenue dip of 2.7% year-over-year (YoY), the company's adjusted EPS growth and strategic investments in its businesses have been well received by investors.
Chairman and CEO Brian L. Roberts highlighted the company's achievements, including a high single-digit growth in adjusted EPS and a record-high adjusted EBITDA margin of 41.9% in its Connectivity & Platforms segment.
Additionally, the company's media arm saw a return to adjusted EBITDA growth, largely driven by Peacock, which experienced its best quarterly improvement since its launch in 2020.
While the company's Studios and Theme Parks faced challenging comparisons to the previous year, Roberts remained optimistic about future growth opportunities. The upcoming Paris Summer Olympics were cited as a showcase of Comcast's advanced technology and storytelling expertise.
In the connectivity domain, Comcast reported a 3.6% increase in domestic broadband average rate per user, contributing to a 3.0% growth in domestic broadband revenue, which reached $6.6 billion. The company's domestic wireless customer lines saw a 20% surge compared to the previous year, now totaling 7.2 million.
Despite the overall revenue decline, the company's focus on network expansion and upgrade strategies, along with the growth in its media and wireless segments, have contributed to the positive market response. The return of capital to shareholders, amounting to $3.4 billion through dividends and share repurchases, further underscores Comcast's commitment to shareholder value.
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