Comcast gains on Q1 revenue
Shares of Comcast Corp. were up 7 percent in mid-day trading action, following news that the MSO topped Wall Street's revenue estimates in the first quarter. Analysts' consensus estimates called for revenue of $2.58 billion, but Comcast pushed passed those estimates, reporting $2.67 billion for the first quarter 2002.
The better-than-expected results were fueled in part by strong subscriber growth. The company added 203,700 digital cable subscribers, a weekly average of more than 15,000. High-speed Internet customer adds totaled 92,400. "With our cable system rebuild virtually complete, the power of our upgraded cable systems is evident in the significant contribution to growth by our new digital cable and high-speed Internet services," Comcast President Brian Roberts said in a statement.
Last year, Comcast agreed to purchase AT&T Broadband for $72 million. Analysts at Salomon Smith Barney believe the acquisition is an excellent strategic fit for Comcast. "Although the combined company's pro forma market capitalization will be quite large, we believe AT&T Comcast's revenue and cash flow growth rates will look like a high-growth, mid-cap company," the analyst firm said in a research note. AT&T Comcast will have a footprint covering roughly 38 million homes.