Wednesday, February 3, 2010

Today's award for honest reporting....goes to Comcast! (CMCSA)

They actually subtract stimulus-related earnings from their calculation of Free Cash Flow!

Cable giant Comcast (CMCSA) is flat this morning, after beating EPS estimates by 6cents in 2009's fourth quarter.

Excluding a 4cent tax benefit, they earned 29cents per share versus the street expectation of 27cents.  Operating cash flow margin was a huge 38.4%.

For the full year, Free Cash Flow per share increased to $4.4billion or 1.53 per share.  That's a current Free Cash Flow Yield of 9.4% and it's 10.3% if you use 2010 estimates.  That is probably a higher yield than is necessary, as Comcast's bonds due in 2033 yield 6.275%.  Their Free Cash Flow Yield should be closer to 7.5%, so the stock is likely headed higher.

Copyright 2010 AlphaNinja

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