Cable and Satellite Stocks Q2 Recap: Benchmarking Cable One (NYSE:CABO)
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Cable One (NYSE:CABO) and the rest of the cable and satellite stocks fared in Q2.
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 6 cable and satellite stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts. However, cable and satellite stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
Weakest Q2: 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 $394.5 million, down 7% year on year. This print fell short of analysts’ expectations by 1.3%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings estimates.
"We believe our strategic initiatives intended to drive penetration deeper across all market segments are setting the stage for sustainable long-term growth," said Julie Laulis, Cable One President and CEO.
Cable One delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 12.5% since reporting and currently trades at $352.72.
Read our full report on Cable One here, it’s free.
Best Q2: 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 $13.69 billion, flat year on year, in line with analysts’ expectations. It was a good quarter for the company with a decent beat of analysts’ earnings estimates.
Charter pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 10.2% since reporting. It currently trades at $347.
Is now the time to buy Charter? Access our full analysis of the earnings results here, it’s free.
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 $29.69 billion, down 2.7% year on year, falling short of analysts’ expectations by 1.1%. It was a mixed quarter for the company with EPS exceeding expectations.
The stock is flat since the results and currently trades at $39.66.
Read our full analysis of Comcast’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 $2.24 billion, down 3.6% year on year, in line with analysts’ expectations. Overall, it was a weaker quarter for the company with a miss of analysts’ earnings estimates.
The stock is down 4.8% since reporting and currently trades at $2.
Read our full, actionable report on Altice here, it’s free.
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 $158.8 million, down 8% year on year, in line with analysts’ expectations. Overall, it was a slower quarter for the company with a miss of analysts’ subscribers estimates.
WideOpenWest had the slowest revenue growth among its peers. The stock is up 7% since reporting and currently trades at $5.52.
Read our full, actionable report on WideOpenWest here, it’s free.
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