Reflecting On Wireless, Cable and Satellite Stocks’ Q4 Earnings: Charter (NASDAQ:CHTR)
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Charter (NASDAQ:CHTR) and the rest of the wireless, cable and satellite stocks fared in Q4.
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.
While some wireless, cable and satellite stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.1% since the latest earnings results.
Charter (NASDAQ:CHTR)
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. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a decent beat of analysts’ EPS estimates.
"Our multi-year investments in network evolution, expansion and execution are delivering tangible results," said Chris Winfrey, President and CEO of Charter.
Charter Total Revenue
The stock is down 1.9% since reporting and currently trades at $330.21.
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, outperforming analysts’ expectations by 1%. The business had a strong quarter with a decent beat of analysts’ EPS and adjusted operating income estimates.
Comcast Total Revenue
Comcast pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The results as the stock is down 11.9% since reporting. It currently trades at $32.88.
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 13.7% since the results and currently trades at $2.34.
Known for its commercial-free music channels, Sirius XM (NASDAQ:SIRI) is a broadcasting company that provides satellite radio and online radio services across North America.
Sirius XM reported revenues of $2.19 billion, down 4.3% year on year. This print surpassed analysts’ expectations by 0.7%. More broadly, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates but full-year revenue guidance slightly missing analysts’ expectations.
The stock is down 15.9% since reporting and currently trades at $18.35.
Founded by Alexander Graham Bell, AT&T (NYSE:T) is a multinational telecomm conglomerate providing a range of communications and internet services.
AT&T reported revenues of $32.3 billion, flat year on year. This number beat analysts’ expectations by 0.7%. Taking a step back, it was a mixed quarter as it also produced a decent beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.
The stock is up 13.1% since reporting and currently trades at $25.67.
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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