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Comcast (CMCSA) Slashes Projections

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By Douglas A. McIntyre Published
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Cable companies are taking a beating, and Comcast (CMCSA) has cut some of it guidance, which will make matters worse.

The firm said that reflecting an increasingly challenging economic and competitive environment and consistent with trends across the sector, Revenue Generating Units (sum of all digital cable, phone, basic cable and high-speed internet) are now expected to increase by approximately 6 million to 57 million, versus previous guidance of approximately 6.5 million additions.

In addition, cable capital expenditures are expected to be approximately $6.0 billion for the year, a 5% increase from originally issued guidance, reflecting increased advanced digital set-top box purchase, Comcast’s digital acceleration program, expanded network enhancements and acquisition-related investments.

Due to the changes, the firm’s consolidated free cash flow is expected to be approximately 80% of 2006, compared to previous estimates of 2007 consolidated free cash flow of at least 90% of 2006.

The news took Comcast shares down almost 5% after hours to $19.75 and is likely to hit Time Warner Cable (TWC), Cablevision (CVC), and Charter (CHTR) tomorrow.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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