Comcast Makes Gains

Posted by Admin - April 28, 2010

Comcast Corp. reported increased subscribers over the last quarter, which has helped to produce higher earnings this quarter. The nation’s largest cable provider has a great deal to be optimistic about, it seems.

The performance, which included a return to advertising growth at the cable giant after a two-year drought, beat expectations on Wall Street and signaled that the cable industry is weathering a storm of new competition and bouncing back from a deep recession that had raised concerns about consumers cutting back their monthly television, Internet and phone bills.

Sanford C. Bernstein & Co. analyst Craig Moffett said Comcast’s first-quarter growth “looks good on virtually every dimension,” noting that even its video subscriber losses were less than expected.

“With telCo incursions now slowing, and household formation likely stabilizing, this could potentially be the front edge of a meaningful trend improvement,” said Moffett.

Comcast Corp. has every reason to remain optimistic, but they should also remain vigilant and not get overconfident–the recession isn’t over yet, which means they aren’t out of trouble yet.