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 Cable One (NYSE:CABO) 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 Q1. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.7% below.
While some wireless, cable and satellite stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.9% since the latest earnings results.
Cable One (NYSE:CABO)
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 $380.6 million, down 5.9% year on year. This print fell short of analysts’ expectations by 1.5%. Overall, it was a slower quarter for the company with a miss of analysts’ adjusted operating income estimates.
Cable One Total Revenue
Cable One delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 39.8% since reporting and currently trades at $158.05.
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, in line with analysts’ expectations. The business had a satisfactory quarter with a decent beat of analysts’ EPS estimates but a miss of analysts’ domestic broadband customers estimates.
Comcast Total Revenue
The market seems content with the results as the stock is up 1.8% since reporting. It currently trades at $35.01.
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 estimates.
As expected, the stock is down 7.2% since the results and currently trades at $2.45.
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 $33.49 billion, up 1.5% year on year. This result was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it underperformed in some other aspects of the business.
The company added 1,194,000 customers to reach a total of 146 million. The stock is up 1.3% since reporting and currently trades at $43.48.
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. This print beat analysts’ expectations by 1%. Zooming out, it was a mixed quarter as it also produced a decent beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ EPS estimates.
AT&T pulled off the fastest revenue growth among its peers. The stock is up 1.8% since reporting and currently trades at $27.45.
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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