As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the wireless, cable and satellite industry, including Comcast (NASDAQ:CMCSA) and its peers.
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 Q1. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.7% below.
In light of this news, share prices of the companies have held steady as they are up 1.6% on average since the latest earnings results.
Best Q1: Comcast (NASDAQ:CMCSA)
Formerly known as American Cable Systems, Comcast (NASDAQ:CMCSA) is a multinational telecommunications company offering a wide range of services.
Comcast reported revenues of $29.89 billion, flat 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 but a miss of analysts’ domestic broadband customers estimates.
“We had strong financial results in the first quarter, growing Adjusted EPS mid-single digits and generating $5.4 billion of free cash flow while investing in our six growth businesses and returning $3.2 billion to shareholders," said Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation.
Comcast Total Revenue
Interestingly, the stock is up 2.7% since reporting and currently trades at $35.34.
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 $30.63 billion, up 2% year on year, outperforming analysts’ expectations by 1%. The business performed better than its peers, but it was unfortunately a mixed quarter with a decent beat of analysts’ adjusted operating income estimates but EPS in line with analysts’ estimates.
AT&T Total Revenue
AT&T pulled off the fastest revenue growth among its peers. The market seems content with the results as the stock is up 1.3% since reporting. It currently trades at $27.30.
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 $2.15 billion, down 4.4% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS and adjusted operating income estimates.
Interestingly, the stock is up 8.7% since the results and currently trades at $2.87.
Initially started in Denver as a cable television provider, WideOpenWest (NYSE:WOW) provides high-speed internet, cable, and telephone services to the Midwest and Southeast regions of the U.S.
WideOpenWest reported revenues of $150 million, down 7.1% year on year. This number surpassed analysts’ expectations by 1.3%. Zooming out, it was a mixed quarter as it also logged a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ EBITDA estimates.
WideOpenWest delivered the biggest analyst estimates beat but had the slowest revenue growth among its peers. The stock is up 5.3% since reporting and currently trades at $4.58.
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 $13.74 billion, flat year on year. This print was in line with analysts’ expectations. More broadly, it was a mixed quarter as it also produced a decent beat of analysts’ EBITDA estimates but a miss of analysts’ EPS estimates.
The stock is up 26.6% since reporting and currently trades at $424.
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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