Looking back on wireless, cable and satellite stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Altice (NYSE: ATUS) 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 8 wireless, cable and satellite stocks we track reported a slower Q2. As a group, revenues beat analysts’ consensus estimates by 0.8%.
Thankfully, share prices of the companies have been resilient as they are up 9.5% on average since the latest earnings results.
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 $2.15 billion, down 4.2% year on year. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with a significant miss of analysts’ adjusted operating income and EPS estimates.
Dennis Mathew, Altice USA Chairman and Chief Executive Officer, said: "Our second quarter results reflect continued momentum across our operational and financial priorities. We delivered sequential and year over year improvement in broadband subscriber trends and grew broadband ARPU year over year, reinforcing the strength of our core offering. We saw progress across our footprint, driven by targeted localized offers, improved sales channel performance, and stronger go-to-market execution, while churn reached its lowest second-quarter level in three years. We continued to scale our award-winning network, drove penetration of fiber, mobile, and our value-added services categories, executed efficiencies across workforce, programming, and network operations, and took important steps to enhance our capital structure. With these improvements in place, we remain focused on long-term growth, disciplined execution, and delivering value to our customers, communities, and shareholders. "
Altice delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 13.4% since reporting and currently trades at $2.70.
Read our full report on Altice here, it’s free.
Best Q2: 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 $34.5 billion, up 5.2% year on year, outperforming analysts’ expectations by 2.3%. The business had a satisfactory quarter with a beat of analysts’ EPS estimates.
Verizon delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The company added 162,000 customers to reach a total of 146.1 million. The market seems happy with the results as the stock is up 6% since reporting. It currently trades at $43.23.
Is now the time to buy Verizon? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: 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 $144.2 million, down 9.2% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
WideOpenWest delivered the slowest revenue growth in the group. Interestingly, the stock is up 52.7% since the results and currently trades at $5.20.
Read our full analysis of WideOpenWest’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 $2.14 billion, down 1.8% year on year. This number met analysts’ expectations. Taking a step back, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.
The stock is flat since reporting and currently trades at $23.08.
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 $13.77 billion, flat year on year. This print was in line with analysts’ expectations. More broadly, it was a slower quarter as it recorded a significant miss of analysts’ EPS and adjusted operating income estimates.
The stock is down 30.3% since reporting and currently trades at $264.97.
Read our full, actionable report on Charter here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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