Bottom Line Inc

January 30, 2019 | Comcast Corporation | CMCSA

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This week’s Stock of the Week is much more diverse than you think.

Cable and Beyond

Comcast Corporation (CMCSA), best known to consumers as a cable-TV provider, is in reality a well-diversified communications powerhouse with cable networks, broadcast TV—including NBC and Telemundo—plus films and theme parks.

It is moving strongly into the mobile market with cellular-service provider Xfinity Mobile and recently beat Fox in a bidding war to acquire Sky, the British version of Comcast’s media and entertainment divisions. The erosion of cable subscribers continues to worry some investors, but cable is not going away, and Comcast is broadening its reach through wireless and mobile services. Its businesses are mostly very high-margin and profitable, and it is putting new emphasis on theme parks—it just finished construction in Asia, a major growth area.

A tax anomaly led to unusually high earnings being reported for 2017, but operating earnings remain strong and growing. Comcast is in the midst of a $5 billion share-repurchase program, and its dividend of $0.84/share/yr., recently yielding 2.32%, appears secure. Revenue was $84.5 billion in 2017 and likely will be reported as $94 billion for 2018 and $109 billion this year.

Fiscal year: December. Earnings per share: 2019 est./$2.81…2018 est./$2.55…2017/$4.75.

Jack Newell is chairman and CEO of Dover Partners Inc., Dayton, Ohio, which manages $100 million. Dover-Partners.com

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