Wunderlich Securities Earnings Preview: Comcast Corporation (CMCSA)

Wunderlich Securities is maintaining its Buy rating on Comcast CMCSA moving into Tuesday morning's earnings release, commenting that the stock is "Inexpensive based on higher NBCU valuation." Matthew Harrigan of Wunderlich Equity Research notes that "Our FiOS/U-Verse matrix suggests reasonable upside on the cable valuation, even allowing for continued market share erosion, while we believe that the Street has not accorded upside on the NBCU transaction that is aligned with major moves in integrated studio network comparables since the joint venture was announced in December 2009." Comcast Corporationis a provider of video, high-speed Internet and phone services to residential and business customers in the United States. Earnings are Tuesday morning at 8:30am EST. Wunderlich is estimating EPS of $0.33, and sales to $9.1 billion. Further, Wunderlich notes that "A Comcast executive admitted that NBCU was actually looking at the possibility of using broadband to sell programming outside the footprint, although we still view this as quite unlikely. Comcast believes that it does have in-home rights for streaming to tablets but recognizes that networks need to monitor usage." Shares of Comcast are up $0.08 in pre-market trade, to $26.68.