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 Q3. Today, we are looking at wireless, cable and satellite stocks, starting with Comcast (NASDAQ:CMCSA).
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.
In light of this news, share prices of the companies have held steady as they are up 3.7% on average since the latest earnings results.
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 $32.07 billion, up 6.5% year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.
Comcast achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $42.60.
Is now the time to buy Comcast? Access our full analysis of the earnings results here, it’s free.
Best Q3: 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 $13.8 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.
The market seems happy with the results as the stock is up 23% since reporting. It currently trades at $402.84.
Is now the time to buy Charter? Access our full analysis of the earnings results here, it’s free.
Weakest 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 $2.17 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. Interestingly, the stock is up 1.5% since the results and currently trades at $27.81.
Read our full analysis of Sirius XM’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 $2.23 billion, down 3.9% year on year. This number was in line with analysts’ expectations. More broadly, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates.
The stock is down 4.6% since reporting and currently trades at $2.49.
Read our full, actionable report on Altice here, it’s free.
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 $393.6 million, down 6.4% year on year. This result topped analysts’ expectations by 0.6%. Zooming out, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates.
The stock is up 6% since reporting and currently trades at $409.86.
Read our full, actionable report on Cable One here, it’s free.
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), has 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 heading into 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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