- Shares of Comcast fell on Tuesday after the company provided updated full-year broadband additional guidance.
- Comcast expects to add a total of 1.3 million net broadband this year, Dave Watson, Comcast Cable’s president and CEO, said at the UBS Global TMT virtual conference.
- According to FactSet’s estimates, that’s less than an estimated 1.4 million.
Comcast shares tumbled Tuesday after Comcast Cable President and CEO Dave Watson said the company expects to add 1.3 million high-speed Internet subscribers for the year. According to the FactSet consensus, this falls short of analysts’ expectations for 1.4 million customers.
The company’s stock was down more than 5% on an otherwise green day for tech stocks. Watson’s remarks were made at the UBS Global TMT virtual conference.
The figure shows that Comcast could add 185,000 new high-speed Internet customers during the fourth quarter, down from 538,000 added in the same quarter last year.
This is the second time this year that Comcast has provided early guidance on broadband customers that has caused the stock to decline. Comcast CFO Michael Cavanagh warned earlier in September that the company expects broadband speeds to slow during the third quarter.
Investors have feared a slowdown in the broadband segment after the rise in internet services due to the Kovid-19 pandemic. Comcast’s shares are down about 19% from their 52-week high hit on September 3, 2021.
Disclosure: Comcast owns Businesshala’s parent company NBCUniversal.