As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at cable and satellite stocks, starting with Altice (NYSE:ATUS).
The massive physical footprints of 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 traditional cable subscriptions in favor of streaming options. While that is a headwind, this affinity to streaming means more households need high-speed internet, and companies that successfully serve customers can enjoy high retention rates and pricing power since the options for internet connectivity in any geography is usually limited.
The 6 cable and satellite stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive as of late, employment measures bordered on concerning. The markets will be determining whether this rate cut (and more potential ones in 2024 and 2025) are ideal timing to support the economy or a bit too late for a macro that has already cooled too much.
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 3.6% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a miss of analysts’ earnings estimates.
Interestingly, the stock is up 13.3% since reporting and currently trades at $2.38.
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Best Q2: 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 $13.69 billion, flat year on year, in line with analysts’ expectations. The business had a satisfactory quarter with a decent beat of analysts’ earnings estimates.
Charter achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 8.3% since reporting. It currently trades at $341.
Weakest Q2: Cable One (NYSE:CABO) Founded in 1986, Cable One (NYSE:CABO) provides high-speed internet, cable television, and telephone services, primarily in smaller markets across the United States.
Cable One reported revenues of $394.5 million, down 7% year on year, falling short of analysts’ expectations by 1.3%. It was a softer quarter as it posted a miss of analysts’ earnings and operating margin estimates.
Cable One delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 14% since the results and currently trades at $346.49.
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 $2.18 billion, down 3.2% year on year. This print was in line with analysts’ expectations. More broadly, it was a slower quarter as it produced a miss of analysts’ earnings estimates and full-year revenue guidance missing analysts’ expectations.
The stock is down 32.1% since reporting and currently trades at $23.47.
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 $29.69 billion, down 2.7% year on year. This print missed analysts’ expectations by 1.1%. All in all, it was a mixed quarter for the company. Comcast beat analysts' adjusted EBITDA and EPS expectations. On the other hand, its revenue unfortunately missed with a roughly in line broadband customer count.
The stock is flat since reporting and currently trades at $39.70.
This content was originally published on Stock Story
