Q4 Cable and Satellite Earnings Review: First Prize Goes to Cable One (NYSE:CABO)
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 Q4. Today, we are looking at cable and satellite stocks, starting with Cable One (NYSE:CABO).
The massive physical footprints of 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 traditional cable subscriptions in favor of streaming options. While that is a headwind, this affinity to streaming means more households need high-speed internet, and companies that successfully serve customers can enjoy high retention rates and pricing power since the options for internet connectivity in any geography is usually limited.
The 4 cable and satellite stocks we track reported a weaker Q4; on average, revenues were in line with analyst consensus estimates. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. The beginning of 2024 saw mixed inflation data, however, leading to more volatile stock performance, and cable and satellite stocks have had a rough stretch, with share prices down 19.8% on average since the previous earnings results.
Best Q4: 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 $411.8 million, down 3.2% year on year, falling short of analyst expectations by 1.6%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' revenue estimates.
“Our return to sequential residential high-speed data customer growth in the fourth quarter, as expected, is very encouraging," said Julie Laulis, Cable One President and CEO.
Cable One delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The stock is down 20.4% since the results and currently trades at $379.11.
Is now the time to buy Cable One? Access our full analysis of the earnings results here, it's free.
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 $2.29 billion, flat year on year, falling short of analyst expectations by 0.2%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.
The stock is down 34.4% since the results and currently trades at $3.36.
Is now the time to buy Sirius XM? Access our full analysis of the earnings results here, it's free.
Weakest Q4: Altice USA (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 USA reported revenues of $2.30 billion, down 2.9% year on year, in line with analyst expectations. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
Altice USA scored the biggest analyst estimates beat in the group. The stock is up 4.7% since the results and currently trades at $2.25.
Read our full analysis of Altice USA's results here.
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 $13.71 billion, flat year on year, in line with analyst expectations. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
Charter delivered the fastest revenue growth among its peers. The stock is down 29.2% since the results and currently trades at $271.
Read our full, actionable report on Charter here, it's free.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
