The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how wireless, cable and satellite stocks fared in Q4, starting with WideOpenWest (NYSE:WOW).
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.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
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 $152.6 million, down 9.6% year on year. This print fell short of analysts’ expectations by 0.9%. Overall, it was a slower quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
"I am pleased with the progress we made in 2024, especially in our Greenfield markets where we passed an additional 31,500 new homes and increased our penetration rate to 16.6%," said Teresa Elder, WOW!'s CEO.
WideOpenWest delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 1.9% since reporting and currently trades at $4.25.
Read our full report on WideOpenWest 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 delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 7.2% since reporting. It currently trades at $34.64.
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.
As expected, the stock is down 14.4% since the results and currently trades at $2.32.
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 print 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 1.6% since reporting and currently trades at $342.09.
Read our full, actionable report on Charter here, it’s free.
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 $2.19 billion, down 4.3% year on year. This result surpassed analysts’ expectations by 0.7%. Taking a step back, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates but full-year revenue guidance slightly missing analysts’ expectations.
The stock is down 7.6% since reporting and currently trades at $20.18.
Read our full, actionable report on Sirius XM here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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