Wrapping up Q2 earnings, we look at the numbers and key takeaways for the wireless, cable and satellite stocks, including Sirius XM (NASDAQ:SIRI) 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 8% on average since the latest earnings results.
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 print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 2.4% since reporting and currently trades at $23.51.
Read our full report on Sirius XM 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 achieved 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 8.2% since reporting. It currently trades at $44.14.
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 estimates and a significant miss of analysts’ EPS estimates.
WideOpenWest delivered the slowest revenue growth in the group. Interestingly, the stock is up 49.2% since the results and currently trades at $5.08.
Read our full analysis of WideOpenWest’s results here.
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 result met analysts’ expectations. More broadly, it was a softer quarter as it recorded a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
Altice had the weakest performance against analyst estimates among its peers. The stock is down 2.1% since reporting and currently trades at $2.33.
Read our full, actionable report on Altice here, it’s free.
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 $30.31 billion, up 2.1% year on year. This number beat analysts’ expectations by 1.8%. More broadly, 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 up 4.1% since reporting and currently trades at $33.86.
Read our full, actionable report on Comcast here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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