Comcast Gears Up to Report Q2 Earnings: What's in the Cards?

Comcast CMCSA is scheduled to report its second-quarter 2025 results on July 31.

The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.17 per share, which has remained unchanged over the past 30 days. The figure indicates a 3.31% decrease from the year-ago quarter’s reported figure.

The consensus mark for revenues is pegged at $29.84 billion, indicating a 0.5% increase from the year-ago quarter’s reported figure.

CMCSA’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 8.75%.

Comcast Corporation Price and EPS Surprise

Comcast Corporation price-eps-surprise | Comcast Corporation Quote

Let us see how things are shaping up for the upcoming announcement.

Factors to Consider

Comcast is likely to have faced some pressure on the bottom line in the second quarter of 2025 as it continued investing in wireless convergence and customer retention. The company rolled out a promotion offering one unlimited mobile line free for 12 months to all new and existing broadband customers on traditional and premium plans. While this move was designed to increase customer lifetime value, the associated promotional cost is expected to have weighed on profitability during the quarter under review.

Broadband revenue growth might have been limited in the second quarter, with the company still seeing muted connect activity and an uptick in churn from record-low levels in recent years. Comcast reported a loss of 199,000 broadband subscribers in the first quarter, and this pressure is likely to have continued as competition from fiber and fixed wireless providers remained strong. The top line is expected to have taken a hit due to this trend, even as broadband ARPU rises slightly.

In the small and medium-sized business (SMB) segment, Comcast has delivered mid-single-digit ARPU growth over the past few years. However, the company acknowledged elevated competition in this segment, which might have affected revenue growth and operational efficiency in the quarter under review. While product penetration remains strong, with over half of SMB customers using more than one service, revenue performance and margin expansion could have both taken a hit in the second quarter due to pricing pressure and increased market activity.

Theme parks are expected to deliver uneven results. Universal Hollywood is likely to have seen a drag on revenues due to the lingering impact of wildfires and slower visitor recovery, which the company expects to be gradual. In contrast, Epic Universe drove strong interest through early previews and ticket sales, creating buzz and visibility that may have supported segment-level revenues.

On a more positive note, Comcast completed its acquisition of Nitel on April 1. The company expects Nitel to have added a few hundred basis points to revenue growth in business services for the quarter to be reported, though its near-term effect on EBITDA is expected to be minimal.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not exactly the case here.

Comcast currently has an Earnings ESP of -1.61% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Accel Entertainment ACEL has an Earnings ESP of +22.73% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Accel Entertainment shares have gained 20% year to date. Accel Entertainment is scheduled to report its second-quarter 2025 results on Aug. 5.

Roku ROKU currently has an Earnings ESP of +7.41% and a Zacks Rank #2.

Roku shares have gained 26% year to date. Roku is slated to report its second-quarter 2025 results on July 31.

Birkenstock Holding PLC BIRK has an Earnings ESP of +2.68% and a Zacks Rank #3 at present.

Birkenstock Holding PLC shares have lost 9.8% year to date. Birkenstock Holding PLC is scheduled to report its third-quarter fiscal 2025 results on Aug. 14.

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This article originally published on Zacks Investment Research (zacks.com).

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