Comcast Earnings: The Market Overreacts as Muted Seasonality Gives and Takes

Investors cheered last quarter when Comcast posted smaller broadband customer losses than typical seasonality would have suggested were likely. The opposite has now occurred as the back-to-school season failed to deliver customer growth during the third quarter. The decline in housing sales has muted typical seasonality, but the broadband market is also clearly more competitive than in years past. We continue to believe broadband competition remains highly rational, however, and that Comcast is well-positioned to maintain market share. Our fair value estimate remains $60.