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 wireless, cable and satellite stocks fared in Q4.
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.
Luckily, wireless, cable and satellite stocks have performed well with share prices up 10.7% on average since the latest earnings results.
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 fell short of analysts’ expectations by 0.6%. Overall, it was a mixed quarter for the company with an impressive beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.
The stock is up 2.1% since reporting and currently trades at $273.
Is now the time to buy Cable One? 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 and adjusted operating income estimates.
Comcast achieved the biggest analyst estimates beat and fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $37.33.
Is now the time to buy Comcast? Access our full analysis of the earnings results here, it’s free.
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.
The stock is up 4.4% since the results and currently trades at $2.83.
Read our full analysis of Altice’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 $13.93 billion, up 1.6% year on year. This number met analysts’ expectations. Overall, it was a satisfactory quarter as it also put up a decent beat of analysts’ EPS estimates.
The stock is up 14.4% since reporting and currently trades at $385.26.
Read our full, actionable report on Charter here, it’s free.
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 result beat analysts’ expectations by 0.9%. More broadly, it was a mixed quarter as it also logged EPS in line with analysts’ estimates but a miss of analysts’ adjusted operating income estimates.
The company added 1,332,000 customers to reach a total of 146.1 million. The stock is up 13% since reporting and currently trades at $44.25.
Read our full, actionable report on Verizon here, it’s free.
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