The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how wireless, cable and satellite stocks fared in Q3, starting with Sirius XM (NASDAQ: SIRI).
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 Q3. As a group, revenues 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 3.4% since the latest earnings results.
Best Q3: Sirius XM (NASDAQ: SIRI)
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 $2.16 billion, flat year on year. This print exceeded analysts’ expectations by 0.8%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates but a miss of analysts’ pandora subscribers estimates.
Interestingly, the stock is up 2.6% since reporting and currently trades at $21.60.
Is now the time to buy Sirius XM? Access our full analysis of the earnings results 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 $376 million, down 4.5% year on year, falling short of analysts’ expectations by 0.8%. The business performed better than its peers, but it was unfortunately a mixed quarter with a beat of analysts’ EPS estimates but a miss of analysts’ residential video subscribers estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 12.6% since reporting. It currently trades at $117.
Is now the time to buy Cable One? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: 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 million, down 8.9% year on year, exceeding analysts’ expectations by 1.1%. Still, it was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
WideOpenWest delivered the slowest revenue growth in the group. The stock is flat since the results and currently trades at $5.15.
Read our full analysis of WideOpenWest’s results here.
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 $31.2 billion, down 2.7% year on year. This result beat analysts’ expectations by 1.6%. Zooming out, it was a mixed quarter as it also produced a decent beat of analysts’ revenue estimates but a miss of analysts’ adjusted operating income estimates.
Comcast pulled off the biggest analyst estimates beat among its peers. The stock is down 2.5% since reporting and currently trades at $27.81.
Read our full, actionable report on Comcast here, it’s free for active Edge members.
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. This number was in line with analysts’ expectations. Taking a step back, it was a mixed quarter as it also recorded a narrow beat of analysts’ EBITDA estimates but a miss of analysts’ Mobility revenue estimates.
AT&T scored the fastest revenue growth among its peers. The stock is down 1.5% since reporting and currently trades at $25.65.
Read our full, actionable report on AT&T here, it’s free for active Edge members.
Market Update
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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