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Comcast ’s ( CMCSA ) programming costs should moderate after 2017, boosting the cable TV side of its business, while its NBCUniversal division gets a lift from its own contract renewals, says a bullish Nomura report. Nomura analyst Anthony DiClemente expects Comcast to report a strong first quarter. Comcast is slated to post Q1 earnings on April 27. Some analysts have been raising estimates for Comcast’s Q1 video subscriber additions. “Comcast is likely to meet or beat Q1 expectations,” said DiClemente in the report. “We expect 2016 to be a strong year of execution for Comcast, driven by video and broadband subscriber upside, as well as NBCU tailwinds from retransmission and affiliate fee growth, constructive parks trends and the Rio Olympics.” Comcast stock has gained more than 10% in 2016, and was down a fraction, near 62, in early trading in the stock market today . “After 2017, we believe Comcast likely has the majority of its major programming rights locked in until around 2020, suggesting substantial earnings potential and operating leverage in the out years,” said DiClemente. “Comcast (also) stands to benefit from the other side of the rights negotiation table through its ownership of NBCUniversal.” He says NBCU has upcoming renewals with Dish Network ( DISH ) and Verizon Communications ( VZ ). Comcast is the nation’s No. 1 cable TV provider. Charter Communications ( CHTR ) will be No. 2 if federal regulators approve its acquisitions of Time Warner Cable ( TWC ) and Bright House Networks. The Federal Communications Commission is expected to approve the Charter-Time Warner Cable deal with conditions, but California regulators may not green-light the merger until May. Scalper1 News
Scalper1 News