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stock has rallied ahead of its first-quarter earnings, which analysts see climbing 10% when the company reports Thursday. But while Comcast earnings are rising, some see weaker results at the cable giant's recently acquired Sky
division.Comcast (CMCSA) earnings in the March quarter are expected to reach 68 cents a share, up from 62 cents in the year-ago quarter."Cable has been one of the best performing sectors year-to-date, outperforming FAANG and the broader markets substantially," Barclays analyst Kannan Venkateshwar said in a recent note to clients. "From a valuation perspective, stocks in the space are trading rich or close to fair value."He added that cable stocks "will need either meaningful earnings revisions or capital allocation changes to alter trajectory substantially."Comcast is ranked No. 22 in the IBD 50 roster of growth companies. Venkateshwar added that Sky could hamper Comcast results."Comcast will see a meaningful Q1 impact at Sky due to foreign exchange as well as the pressure from sports costs," he said.Sky Sports Programming Costs RiseIn his note to clients, UBS analyst John Hodulik agreed, adding he expects weaker results at media arm NBCUniversal."We expect Sky to show about 1% revenue and 14% EBITDA (earnings before interest, taxes, depreciation and amoritization) declines due to currency pressure, no price increases, and higher programming cost," he said.But Hodulik expects stronger Sky results in the second half of 2019.And he added: "We expect strong cable results to highlight Q1 earnings for Comcast."Focus Will Be On SkyOppenheimer analyst Tim Horan said in his report that the Comcast earnings call focus "will be on the integration/strategy of its recent Sky acquisition."Comcast acquired U.K.-based Sky last year, beating out Walt Disney (DIS). Sky operates pay TV and streaming services in the U.K., Ireland, Italy, Germany, Austria and Spain. It has 23 million subscribers when combining satellite TV, broadband, phone and internet streaming customers.In the March 2018 quarter, Comcast lost 96,000 video subscribers, but added 380,000 high-speed internet customers.Comcast stock slipped 0.3% to close at 41.85 on the stock market today. Shares in Comcast trade just above a buy point of 40.62.Comcast stock is up nearly 23% in 2019 after struggling last year. It's not the only big gainer among cable TV stocks.Charter Communications (CHTR) has shot up 26% in 2019. Charter reports first-quarter earnings on April 30.Follow Reinhardt Krause on Twitter @reinhardtk_tech.YOU MAY ALSO LIKE:See Stocks Just Added To — And Cut From — IBD's Top ScreensIBD's ETF Market StrategyMarketSmith: Research, Charts, Data And Coaching All In One PlaceIBD Digital: Unlock IBD's Premium Stock Lists, Tools And Analysis TodayStocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth StocksThe post Comcast Earnings Due With
Sky Seen Posting Weak Quarter On Sports Costs appeared first on Investor's Business Daily. Weiter zum vollständigen Artikel bei "Investors Business Daily"
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