Wireless, Cable and Satellite Stocks Q2 Results: Benchmarking Comcast (NASDAQ:CMCSA)
As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the wireless, cable and satellite industry, including Comcast (NASDAQ:CMCSA) 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 9 wireless, cable and satellite stocks we track reported a mixed Q2. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
Thankfully, wireless, cable and satellite stocks have been resilient with share prices up 5.6% 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 $29.69 billion, down 2.7% year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a mixed quarter for the company with a decent beat of analysts’ earnings estimates.
Interestingly, the stock is up 6.7% since reporting and currently trades at $42.18.
Is now the time to buy Comcast? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $2.18 billion, down 3.2% year on year, in line with analysts’ expectations. The business had a strong quarter with full-year revenue guidance exceeding analysts’ expectations and a decent beat of analysts’ earnings estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 21.3% since reporting. It currently trades at $27.20.
Is now the time to buy Sirius XM? Access our full analysis of the earnings results here, it’s free.
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, falling short of analysts’ expectations by 1.3%. It was a softer quarter as it posted a miss of analysts’ earnings estimates.
Cable One delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 11.1% since the results and currently trades at $358.
Read our full analysis of Cable One’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 $13.69 billion, flat year on year. This print met analysts’ expectations. It was a satisfactory quarter as it also recorded a decent beat of analysts’ earnings estimates.
The stock is up 4.3% since reporting and currently trades at $328.50.
Read our full, actionable report on Charter 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. This number met analysts’ expectations. More broadly, it was a slower quarter as it produced a miss of analysts’ operating margin and subscribers estimates.
WideOpenWest had the slowest revenue growth among its peers. The stock is down 3.1% since reporting and currently trades at $5.
Read our full, actionable report on WideOpenWest here, it’s free.
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