Wrapping up Q1 earnings, we look at the numbers and key takeaways for the cable and satellite stocks, including Charter (NASDAQ:CHTR) 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. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, but cable and satellite stocks have shown resilience, with share prices up 7.9% on average since the previous earnings results.
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 $13.68 billion, flat year on year, in line with analysts' expectations. Overall, it was a weaker quarter for the company with a miss of analysts' earnings estimates.
"Our differentiated converged connectivity products provide us with significant competitive advantages that position Charter for sustainable customer and financial growth," said Chris Winfrey, President and CEO of Charter.
The stock is up 27.3% since reporting and currently trades at $330.30.
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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 performed better than its peers, but it was unfortunately a mixed quarter for the company.
Comcast scored the fastest revenue growth among its peers. The stock is flat since reporting and currently trades at $40.38.
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 with a miss of analysts' earnings estimates.
Cable One posted the weakest performance against analyst estimates in the group. As expected, the stock is down 4.9% since the results and currently trades at $376.96.
Altice (NYSE:ATUS) Based in Long Island City, Altice USA (NYSE: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. Overall, it was a weak quarter for the company with a miss of analysts' earnings and broadband subscribers estimates.
The stock is down 6.9% since reporting and currently trades at $1.90.
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. Zooming out, it was a weak quarter for the company with a miss of analysts' earnings estimates and revenue guidance for next quarter missing analysts' expectations.
WideOpenWest had the slowest revenue growth among its peers. The stock is up 13.4% since reporting and currently trades at $5.50.
This content was originally published on Stock Story
