Before Tuesday’s opening bell, Comcast (CMCSA) released its fourth quarter financial results. Here’s what the results mean for mutual fund investors.
Inside CMCSA's Results
The company reported fourth quarter earnings of $1.925 billion, or 74 cents per share, up from $1.91 billion, or 72 cents per share, last year. Adjusted EPS came in at 77 cents – below analysts’ view of 78 cents.
For FY2014, Comcast reported EPS of $3.20, compared to $2.56 in 2013. Adjusted EPS was $2.93, below analysts’ view of $3.23.
Revenue rose to $17.73 billion from $16.93 billion. On average, analysts expected to see revenue of $17.68 billion.
For FY2014, revenue rose 6% to $68.78 billion and beat analysts’ view of $68.74 billion.
Dividends, Buybacks and the TWC Deal
With its fourth quarter report, Comcast announced that it has raised its quarterly dividend by 11%. While the company has been making an effort to raise its dividend every year, it still offers a dividend yield less than 2%, so it is not ideal for income-focused investors. Comcast also announced that it plans to buy back $4.25 billion worth of shares in 2015.
The spotlight has been on the proposed deal for Comcast to acquire Time Warner Cable (TWC) in a $45.2 billion deal. While it’s uncertain if this deal will be approved by regulators, approval of the deal would result in Comcast gaining control of half of the the high-speed broadband market in the U.S.
Mutual Funds to Watch
Investors interested in CMCSA may consider a mutual fund as an alternative to owning the individual stock. The funds below currently hold the largest stakes in CMCSA.
|VTSMX||Vanguard Total Stock Market Index||1.52%|
|DODGX||Dodge & Cox||1.06%|
The Bottom Line
The funds listed above allow investors to gain exposure to CMCSA while remaining diversified. Investors interested in CMCSA may also be interested in Time Warner Cable (TWC) or Walt Disney (DIS).