Wrapping up Q1 earnings, we look at the numbers and key takeaways for the cable and satellite stocks, including Altice (NYSE:ATUS) and its peers.
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 weak Q1; on average, revenues were in line with analyst consensus estimates. while next quarter's revenue guidance was 1.9% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and cable and satellite stocks have held roughly steady amidst all this, with share prices up 2.6% on average since the previous earnings results.
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 $2.25 billion, down 1.9% year on year, in line with analysts' expectations. It was a weak quarter for the company, with a miss of analysts' earnings estimates and a miss of analysts' broadband subscribers estimates.
The stock is flat since the results and currently trades at $2.04.
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Best Q1: 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 $30.06 billion, up 1.2% year on year, in line with analysts' expectations. It was an unexciting quarter, with revenue slightly ahead and adjusted EBITDA slightly below.
Comcast scored the fastest revenue growth among its peers. The stock is down 5% since the results and currently trades at $38.15.
Weakest Q1: 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 $404.3 million, down 4.2% year on year, falling short of analysts' expectations by 1%. It was a weak quarter for the company, as its adjusted EBITDA and EPS fell short of Wall Street's estimates.
Cable One had the weakest performance against analyst estimates in the group. The stock is down 11.8% since the results and currently trades at $349.61.
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 $161.5 million, down 6.2% year on year, in line with analysts' expectations. It was a weak quarter for the company, with revenue guidance for next quarter missing analysts' expectations.
WideOpenWest had the slowest revenue growth among its peers. The stock is up 6.2% since the results and currently trades at $5.15.
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 $2.16 billion, flat year on year, surpassing analysts' expectations by 1.4%. It was a slower quarter for the company, with a miss of analysts' core subscribers estimates.
Sirius XM scored the biggest analyst estimates beat among its peers. The stock is up 10.4% since the results and currently trades at $3.51.
This content was originally published on Stock Story
