As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at wireless, cable and satellite stocks, starting with Charter (NASDAQ:CHTR).
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 slower Q2. As a group, revenues beat analysts’ consensus estimates by 0.6%.
In light of this news, share prices of the companies have held steady as they are up 1% on average 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 $13.77 billion, flat 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’ EPS and adjusted operating income estimates.
"Our converged connectivity revenue grew by over 5% in the second quarter, with a long runway for growth," said Chris Winfrey, President and CEO of Charter.
Unsurprisingly, the stock is down 35.7% since reporting and currently trades at $244.35.
Read our full report on Charter here, it’s free for active Edge members.
Best Q2: AT&T (NYSE:T)
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 $30.71 billion, up 1.6% year on year, in line with analysts’ expectations. The business performed better than its peers, but it was unfortunately a mixed quarter with a narrow beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 3.4% since reporting. It currently trades at $25.14.
Is now the time to buy AT&T? Access our full analysis of the earnings results here, it’s free for active Edge members.
Slowest Q2: WideOpenWest (NYSE:WOW)
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 $144.2 million, down 9.2% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
WideOpenWest delivered the slowest revenue growth in the group. Interestingly, the stock is up 51% since the results and currently trades at $5.14.
Read our full analysis of WideOpenWest’s results here.
Altice (NYSE:ATUS)
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 4.2% year on year. This print met analysts’ expectations. Taking a step back, it was a softer quarter as it logged a significant miss of analysts’ adjusted operating income and EPS estimates.
The stock is down 8.4% since reporting and currently trades at $2.18.
Read our full, actionable report on Altice here, it’s free for active Edge members.
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 $381.1 million, down 3.4% year on year. This number was in line with analysts’ expectations. However, it was a slower quarter as it produced a significant miss of analysts’ adjusted operating income and EPS estimates.
The stock is up 25.9% since reporting and currently trades at $161.06.
Read our full, actionable report on Cable One here, it’s free for active Edge members.
Market Update
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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