As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the wireless, cable and satellite industry, including Verizon (NYSE: VZ) 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 Q4. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
Thankfully, share prices of the companies have been resilient as they are up 9.2% on average since the latest earnings results.
Verizon (NYSE: VZ)
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 $35.68 billion, up 1.6% year on year. This print exceeded analysts’ expectations by 0.9%. Despite the top-line beat, it was still a mixed quarter for the company with EPS in line with analysts’ estimates but a miss of analysts’ adjusted operating income estimates.
The stock is up 11.4% since reporting and currently trades at $43.64.
Is now the time to buy Verizon? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $31.92 billion, up 2.1% year on year, outperforming analysts’ expectations by 1%. The business had a strong quarter with a decent beat of analysts’ EPS estimates.
Comcast pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.1% since reporting. It currently trades at $36.94.
Is now the time to buy Comcast? Access our full analysis of the earnings results here, it’s free.
Slowest Q4: 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 $2.24 billion, down 2.9% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
Interestingly, the stock is up 1.8% since the results and currently trades at $2.76.
Read our full analysis of Altice’s results here.
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 $152.6 million, down 9.6% year on year. This result missed analysts’ expectations by 0.9%. It was a slower quarter as it also recorded a significant miss of analysts’ adjusted operating income estimates.
WideOpenWest had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 21.1% since reporting and currently trades at $5.05.
Read our full, actionable report on WideOpenWest 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 $387.2 million, down 6% year on year. This print came in 0.6% below analysts' expectations. Taking a step back, it was a mixed quarter as it also produced a solid beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.
The stock is down 1.4% since reporting and currently trades at $263.67.
Read our full, actionable report on Cable One here, it’s free.
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