It is easy to forget, sometimes, that entertainment leader Paramount (PARA) still has linear television channels, and that communications titan Comcast (CMCSA) still shows these. Thus, it is good news for all concerned that Paramount and Comcast renewed a carriage deal allowing those networks to air on Comcast lines. Investors, however, were underwhelmed, and shares dipped fractionally in Tuesday afternoon’s trading.
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A Reuters report noted that the deal is an extension of the original deal struck back in 2022, and will run on a “multi-year” basis. Interestingly, there already has been one extension of the deal, noted a Variety report, which was struck back in 2023. So we can figure that this latest extension should run out in somewhere around 2026, or possibly 2027, since this one is said to be a “multi-year” arrangement.
These are suppositions we must make, as the Reuters report noted that terms of the deal were not disclosed. At any rate, this deal means that Paramount’s linear television operations—including things like Comedy Central and MTV—will continue to reach the various customers on Comcast platforms. With over 14 million cable subscribers and 29 million broadband subscribers, there is a substantial pool of same at stake here. And the linear channels need all the help they can get, until they are spun off or sold, as some have projected will ultimately happen.
Earnings Ahead
With just over three weeks remaining until Comcast releases its earnings report, according to a report from Zacks Equity Research, it is clear that investors will be watching those numbers released closely. Early projections suggest earnings of $0.88 per share, a 4.76% growth against the same time last year. Revenue is also on track to rise, though to a lesser extent; revenue is set to come in at $31.64 billion, which would be up 1.23%.
But with cable television classified as part of the “consumer discretionary” sector, that may ultimately hurt Comcast a bit given the economic environment. However, given that Comcast is as complex as it is—with a movie studio and theme park as part of its operations, among other things—it may be that Comcast will surprise us when the earnings numbers are released.
Is Comcast Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CMCSA stock based on 14 Buys and eight Holds assigned in the past three months, as indicated by the graphic below. After a 12.87% loss in its share price over the past year, the average CMCSA price target of $49.11 per share implies 31.91% upside potential.
