Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Array (NYSE: AD) and its peers.

The sector is a tale of two cities. Satellite telecommunication is generally buoyed by rising global demand for connectivity in costly-to-connect and remote areas. On the other hand, terrestrial telecommunication companies face an uphill battle, as they mostly sell into a deflationary market, where the price of moving a bit tends to decrease over time with better technology. Despite the differences in demand drivers, companies across the entire industry must contend competition from larger telecom conglomerates and hyperscalers expanding their own networks as well as newer entrants such as SpaceX's StarLink.

The 5 telecommunication services stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.7%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.8% since the latest earnings results.

Weakest Q3: Array (NYSE: AD)

Operating as a majority-owned subsidiary of Telephone and Data Systems since its founding in 1983, Array (NYSE: Array) is a regional wireless telecommunications provider serving 4.6 million customers across 21 states with mobile phone, internet, and IoT services.

Array reported revenues of $47.12 million, up 83.1% year on year. This print exceeded analysts’ expectations by 15.7%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates.

"We are off to a great start as an independent tower company," said Doug Chambers, Array Interim President and CEO.

Array pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 8.7% since reporting and currently trades at $51.86.

Read our full report on Array here, it’s free for active Edge members.

Best Q3: Globalstar (NASDAQ: GSAT)

Known for powering the emergency SOS feature in newer Apple iPhones, Globalstar (NASDAQ: GSAT) operates a network of low-earth orbit satellites that provide voice and data communications services in remote areas where traditional cellular networks don't reach.

Globalstar reported revenues of $73.85 million, up 2.1% year on year, outperforming analysts’ expectations by 7.1%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 29.9% since reporting. It currently trades at $62.69.

Is now the time to buy Globalstar? Access our full analysis of the earnings results here, it’s free for active Edge members.

Cogent (NASDAQ: CCOI)

Operating a massive network spanning 20,000 miles of fiber optic cable and connecting to over 3,200 buildings worldwide, Cogent Communications (NASDAQ: CCOI) provides high-speed Internet access, private network services, and data center colocation to businesses and bandwidth-intensive organizations across 54 countries.

Cogent reported revenues of $241.9 million, down 5.9% year on year, falling short of analysts’ expectations by 1.7%. Still, its results were good as it locked in a beat of analysts’ EPS estimates.

Cogent delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 43.1% since the results and currently trades at $21.78.

Read our full analysis of Cogent’s results here.

Lumen (NYSE: LUMN)

With approximately 350,000 route miles of fiber optic cable spanning North America and the Asia Pacific, Lumen Technologies (NYSE: LUMN) operates a vast fiber optic network that provides communications, cloud connectivity, security, and IT solutions to businesses and consumers.

Lumen reported revenues of $3.09 billion, down 4.2% year on year. This result surpassed analysts’ expectations by 0.9%. Overall, it was an exceptional quarter as it also produced a beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue estimates.

The stock is down 21.7% since reporting and currently trades at $8.20.

Read our full, actionable report on Lumen here, it’s free for active Edge members.

Iridium (NASDAQ: IRDM)

With a constellation of 66 low-earth orbit satellites providing coverage to every inch of the planet, Iridium Communications (NASDAQ: IRDM) operates a global satellite network that provides voice and data services to customers in remote areas where traditional telecommunications are unavailable.

Iridium reported revenues of $226.9 million, up 6.7% year on year. This print beat analysts’ expectations by 1.7%. It was an exceptional quarter as it also logged a beat of analysts’ EPS estimates and a decent beat of analysts’ revenue estimates.

The stock is down 12.8% since reporting and currently trades at $17.14.

Read our full, actionable report on Iridium here, it’s free for active Edge members.

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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