Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Comcast (NASDAQ:CMCSA) 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 8.5% on average since the latest earnings results.
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 print exceeded analysts’ expectations by 1.8%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.
“We delivered solid financial results in the second quarter, growing Adjusted EPS by 3% and generating $4.5 billion of free cash flow, while continuing to invest in our growth businesses and returning $2.9 billion to shareholders," said Brian L. Roberts, Chairman and Chief Executive Officer of Comcast Corporation.
Interestingly, the stock is up 5% since reporting and currently trades at $34.15.
Is now the time to buy Comcast? Access our full analysis of the earnings results 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 pulled off 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 8.4% since reporting. It currently trades at $44.24.
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 49.5% since the results and currently trades at $5.09.
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 number was in line with analysts’ expectations. Aside from that, 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 flat since reporting and currently trades at $2.37.
Read our full, actionable report on Altice here, it’s free.
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 $13.77 billion, flat year on year. This result met analysts’ expectations. Taking a step back, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.
The stock is down 28.2% since reporting and currently trades at $272.71.
Read our full, actionable report on Charter here, it’s free.
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 thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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