Winners And Losers Of Q3: Lumen Technologies (NYSE:LUMN) Vs The Rest Of The Wireless, Cable and Satellite Stocks
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 Lumen Technologies (NYSE:LUMN) and the rest of the wireless, cable and satellite stocks fared in Q3.
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 9 wireless, cable and satellite stocks we track reported a slower Q3. As a group, revenues were in line with analysts’ consensus estimates.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.3% since the latest earnings results.
Slowest Q3: Lumen Technologies (NYSE:LUMN)
Tracing its origins back to CenturyLink’s acquisition of Level 3 Communications, Lumen Technologies (NYSE:LUMN) provides telecom services, including voice, high-speed internet, and cloud solutions for residential and business customers.
Lumen Technologies reported revenues of $3.22 billion, down 11.5% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
"The largest technology companies in the world are choosing Lumen to help build the backbone for the AI economy. What's more, enterprises are recognizing that every AI strategy needs a network strategy, and they're coming to Lumen for help," said Kate Johnson, president and CEO of Lumen Technologies.
Lumen Technologies Total Revenue
Lumen Technologies delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 27.8% since reporting and currently trades at $5.50.
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 $13.8 billion, up 1.6% year on year, outperforming analysts’ expectations by 1%. The business had a satisfactory quarter with a decent beat of analysts’ adjusted operating income estimates.
Charter Total Revenue
The market seems happy with the results as the stock is up 7% since reporting. It currently trades at $350.56.
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 $2.17 billion, down 4.4% year on year, falling short of analysts’ expectations by 0.8%. It was a slower quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
Sirius XM delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. The company reported 39.07 million users, down 2.5% year on year. As expected, the stock is down 19.3% since the results and currently trades at $22.10.
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 $393.6 million, down 6.4% year on year. This number beat analysts’ expectations by 0.6%. Aside from that, it was a slower quarter as it recorded a significant miss of analysts’ EPS estimates.
The stock is down 17.2% since reporting and currently trades at $320.14.
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 $30.21 billion, flat year on year. This result lagged analysts' expectations by 0.8%. It was a slower quarter as it also produced a miss of analysts’ EPS estimates.
The stock is up 4.6% since reporting and currently trades at $22.49.
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% each in November and December), 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 the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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