Shares of Comcast have seen an increase in trading following the company's strong quarterly earnings report and the announcement of a $15 billion stock buyback.

Strong Earnings and Sales Performance

Comcast has exceeded Wall Street's expectations with its fourth-quarter adjusted earnings of 84 cents per share, surpassing the predicted 79 cents per share. This marks an improvement from the adjusted earnings of 82 cents per share reported a year ago.

The company also reported sales of $31.25 billion, exceeding estimates of $30.44 billion. In comparison, sales during the same quarter last year amounted to $30.55 billion.

Diverse Business Portfolio

Comcast boasts a diverse business portfolio, which includes Universal Studios theme parks, television networks NBC and CNBC, the Peacock streaming video service, and the Xfinity Mobile service.

Highlights from Comcast Segments

  • Theme Parks: Comcast's theme park division witnessed an increase in adjusted earnings before interest, depreciation, and amortization, reaching $872 million in the fourth quarter compared to $782 million a year ago.
  • Peacock: The Peacock streaming video service experienced significant growth with 3 million net additions in the quarter. Revenue also surged by 57%, surpassing $1 billion for the first time.
  • Broadband: While Comcast did observe a loss of 34,000 domestic broadband customers in the fourth quarter compared to the previous year, this figure was narrower than the anticipated loss of 61,000 customers.

Optimism and Plans for the Future

CEO Brian Roberts expressed optimism regarding the quarterly results, emphasizing impressive accomplishments such as record-breaking Adjusted EBITDA at Theme Parks, being the top studio in the worldwide box office since 2015, and maintaining Peacock's position as the fastest-growing streamer in the U.S.

Additionally, the company increased its annual dividend by 8 cents (a 6.9% increase from the previous year) to $1.24 per share. Correspondingly, it declared a quarterly cash dividend of 31 cents per share.

Market Response

Following the positive earnings report and stock buyback announcement, Comcast's stock rose by 2.7% to $44.99 in premarket trading on Thursday.

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