Q4 Earnings Review: Wireless, Cable and Satellite Stocks Led by Comcast (NASDAQ:CMCSA)
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Comcast (NASDAQ:CMCSA) and the best and worst performers in the wireless, cable and satellite industry.
The massive physical footprints of cell phone towers, fiber in the ground, or satellites in space make it challenging for companies in this industry to adjust to shifting consumer habits. Over the last decade-plus, consumers have ‘cut the cord’ to their landlines and traditional cable subscriptions in favor of wireless communications and streaming video. These trends do mean that more households need cell phone plans and high-speed internet. Companies that successfully serve customers can enjoy high retention rates and pricing power since the options for mobile and internet connectivity in any geography are usually limited.
The 8 wireless, cable and satellite stocks we track reported a mixed Q4. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Formerly known as American Cable Systems, Comcast (NASDAQ:CMCSA) is a multinational telecommunications company offering a wide range of services.
Comcast reported revenues of $31.92 billion, up 2.1% year on year. This print exceeded analysts’ expectations by 1%. Overall, it was a strong quarter for the company with a decent beat of analysts’ EPS and adjusted operating income estimates.
“We had the best financial performance in our company’s 60-year history with record revenue, EBITDA and EPS along with significant free cash flow,” said Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation.
Comcast Total Revenue
Comcast achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 9.2% since reporting and currently trades at $33.91.
Operating as Spectrum, Charter (NASDAQ:CHTR) is a leading telecommunications company offering cable television, high-speed internet, and voice services across the United States.
Charter reported revenues of $13.93 billion, up 1.6% year on year, in line with analysts’ expectations. The business had a satisfactory quarter with a decent beat of analysts’ EPS estimates.
Charter Total Revenue
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $335.90.
Based in Long Island City, Altice USA (NYSE:ATUS) is a telecommunications company offering cable, internet, telephone, and television services across the United States.
Altice reported revenues of $2.24 billion, down 2.9% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
As expected, the stock is down 14.8% since the results and currently trades at $2.31.
Founded in 1986, Cable One (NYSE:CABO) provides high-speed internet, cable television, and telephone services, primarily in smaller markets across the United States.
Cable One reported revenues of $387.2 million, down 6% year on year. This print missed analysts’ expectations by 0.6%. Aside from that, it was a mixed quarter as it also logged an impressive beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.
The stock is down 5.3% since reporting and currently trades at $253.34.
Formed in 1984 as Bell Atlantic after the breakup of Bell System into seven companies, Verizon (NYSE:VZ) is a telecom giant providing a range of communications and internet services.
Verizon reported revenues of $35.68 billion, up 1.6% year on year. This result surpassed analysts’ expectations by 0.9%. More broadly, it was a mixed quarter as it also recorded EPS in line with analysts’ estimates but a miss of analysts’ adjusted operating income estimates.
The company added 1,332,000 customers to reach a total of 146.1 million. The stock is up 9.6% since reporting and currently trades at $42.93.
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn’t slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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