Comcast's (CMCSA) Q2 results are expected to reflect continued pressure in its broadband business and softer parks performance, partially offset by improving content trends, UBS Securities said.
The brokerage said in a note Monday that it expects revenue to rise 1.6% in the quarter. Adjusted EBITDA is projected to decline 6.6%. UBS attributed the decline to accelerating weakness in connectivity and slower parks growth.
UBS forecasts broadband subscriber losses of 153,000. The brokerage said that would be an improvement from a year earlier. Connectivity revenue is expected to decline 3.4% while connectivity EBITDA is expected to decline 6.1%.
The investment firm expects content revenue to increase 14%. It cited World Cup and NBA advertising, Peacock profitability and stronger studio performance as key drivers.
UBS maintained its neutral rating, with a $32 price target.
Shares of Comcast were up more than 3% in Tuesday trading.
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