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Comcast (NASDAQ:CMCSA) just delivered a knockout quarter, smashing expectations with record-breaking earnings. Adjusted EPS surged 13.9% to $0.96, outpacing analyst estimates, while revenue climbed 2.1% to $31.9 billion. The big drivers? A 4.9% jump in connectivity revenue and a massive 28% surge in Peacock's streaming business. For the whole year, Peacock's revenue reached $4.9 billion, 46% growth, thanks in part to the Paris Olympics. Meanwhile, the company continued rewarding investors, announcing its 17th straight dividend hike and a $15 billion share repurchase planclear signals of confidence in its future. Despite its strong Q4 results, Comcast's stock dropped by nearly 12% this morning as investors focused on a sharper-than-expected loss in broadband customers
But it's not all smooth sailing. The traditional cable TV business is fading fast, with video revenue sliding 5.8%. Yet, Comcast is leaning hard into high-growth areasPeacock's mobile subscribers surged with 1.2 million new line additions. Investments in next-gen network tech, like DOCSIS 4.0, are setting up its broadband business for long-term dominance. Even theme parks held steady, though Epic Universe's pre-opening costs shaved 3.9% off EBITDA. That's a short-term hit, but the 2025 launch could be a game-changer.
Looking ahead, Comcast isn't slowing down. It's making bold moves, from acquiring Nitel to expanding its sports footprint with an 11-year NBA and WNBA broadcasting deal. The Epic Universe theme park is set to open next year, and a potential cable network spin-off could unlock even more value. With a rock-solid balance sheet and a clear focus on growth, Comcast is playing the long gameshifting from legacy TV to a future built on connectivity, content, and cash flow. Investors, take note.
This article first appeared on GuruFocus.