A Look Back at Wireless, Cable and Satellite Stocks’ Q3 Earnings: AT&T (NYSE:T) Vs The Rest Of The Pack
As we wrap up the Q3 earnings season, it’s time to take a closer look at the numbers and key takeaways for the wireless, cable, and satellite stocks. In this article, we’ll delve into the performance of these companies, including industry giant AT&T (NYSE:T) and its peers.
The Challenges Faced by Wireless, Cable, and Satellite Stocks
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
As a group, these companies reported a slower Q3, with revenues in line with analysts’ consensus estimates. Amidst this news, share prices of the companies have had a rough stretch, with an average decline of 6.1% since the latest earnings results.
AT&T (NYSE:T)
Founded by Alexander Graham Bell, AT&T (NYSE:T) is a multinational telecomm conglomerate providing a range of communications and internet services. The company reported revenues of $30.21 billion, flat year on year. This print fell short of analysts’ expectations by 0.8%. Overall, it was a slower quarter for the company with a miss of analysts’ EPS and Mobility revenue estimates.
AT&T Total Revenue
Interestingly, the stock is up 6% since reporting and currently trades at $22.80. While this may seem counterintuitive, there are several factors that contributed to the price increase. For one, the company’s efforts to improve its network infrastructure and expand its services into new markets have been well-received by investors.
Read our full report on AT&T here, it’s free
Best Q3: 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. The company reported revenues of $13.8 billion, up 1.6% year on year, outperforming analysts’ expectations by 1%. The business had a satisfactory quarter with a decent beat of analysts’ adjusted operating income estimates.
Charter Total Revenue
The market seems happy with the results as the stock is up 7% since reporting. It currently trades at $350.44. This significant increase in value can be attributed to several factors, including the company’s strong financial performance and its ability to expand its services into new markets.
Is now the time to buy Charter?
Access our full analysis of the earnings results here, it’s free
Weakest Q3: 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. The company reported revenues of $2.17 billion, down 4.4% year on year, falling short of analysts’ expectations by 0.8%. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs.
The Outlook for 2025
Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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The wireless, cable, and satellite stocks have faced significant challenges in recent years, but some companies have managed to adapt and thrive. AT&T’s efforts to improve its network infrastructure and expand its services into new markets have been well-received by investors, while Charter’s strong financial performance has driven up the stock price. On the other hand, Sirius XM’s disappointing earnings results have led to a decline in share value.
As we move forward, it will be essential for these companies to continue adapting to changing consumer habits and technological advancements. With the outlook for 2025 still uncertain, investors will need to remain vigilant and monitor the performance of these stocks closely.
