Q4 Earnings Highs And Lows: WideOpenWest (NYSE:WOW) Vs The Rest Of The Cable and Satellite Stocks
Let's dig into the relative performance of WideOpenWest (NYSE:WOW) and its peers as we unravel the now-completed Q4 cable and satellite earnings season.
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 5 cable and satellite stocks we track reported a weak Q4; on average, revenues were in line with analyst consensus estimates. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and cable and satellite stocks have had a rough stretch, with share prices down 19.7% on average since the previous earnings results.
Weakest Q4: 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 $168.8 million, down 6.5% year on year, falling short of analyst expectations by 1%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
"We continue to make great progress in our expansion markets, passing 48,400 homes in 2023, including nearly 23,000 in the fourth quarter, the most robust quarterly expansion of our network in our 25-year history, which puts us in a strong position to grow our footprint and subscriber base in 2024," said Teresa Elder, WOW!'s CEO.
WideOpenWest delivered the slowest revenue growth of the whole group. The stock is up 3.6% since the results and currently trades at $3.58.
Read our full report on WideOpenWest here, it's free.
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 revenue unfortunately falling short of expectations. One bright spot was that the company returned to sequential residential high-speed data customer growth in the fourth quarter.
Cable One had the weakest performance against analyst estimates among its peers. The stock is down 17.6% since the results and currently trades at $392.43.
Is now the time to buy Cable One? Access our full analysis of the earnings results here, it's free.
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 delivered the biggest analyst estimates beat in the group. The stock is down 4.7% since the results and currently trades at $2.05.
Read our full analysis of Altice USA's results here.
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 mixed quarter for the company, with adjusted EBITDA and EPS exceeding analysts' estimates. On the other hand, its full-year revenue, adjusted EBITDA, and EPS guidance fell short.
The stock is down 38.5% since the results and currently trades at $3.15.
Read our full, actionable report on Sirius XM here, it's free.
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 mixed quarter for the company: Revenue beat by a very small amount. On the other hand, residential video subscriber count was in line while internet subscribers missed by a bit. Adjusted EBITDA was below expectations, leading to an EPS miss vs. analysts' expectations.
Charter scored the fastest revenue growth among its peers. The stock is down 32.9% since the results and currently trades at $256.9.
Read our full, actionable report on Charter here, it's free.
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