Wrapping up Q4 earnings, we look at the numbers and key takeaways for the cable and satellite stocks, including Sirius XM (NASDAQ:SIRI) 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 5 cable and satellite stocks we track reported a weak Q4; on average, revenues were in line with analyst consensus estimates. 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 had a rough stretch, with share prices down 18% on average since the previous earnings results.
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 $2.29 billion, flat year on year, falling short of analyst expectations by 0.2%. It was a mixed quarter for the company, with adjusted EBITDA and EPS exceeding analysts’ estimates. On the other hand, its full-year revenue, adjusted EBITDA, and EPS guidance fell short.
The stock is down 38.5% since the results and currently trades at $3.15.
Read our full report on Sirius XM here, it’s free.
Best Q4: 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 $411.8 million, down 3.2% year on year, falling short of analyst expectations by 1.6%. It was a mixed quarter for the company, with revenue unfortunately falling short of expectations. One bright spot was that the company returned to sequential residential high-speed data customer growth in the fourth quarter.
Cable One had the weakest performance against analyst estimates among its peers. The stock is down 17.6% since the results and currently trades at $392.43.
Is now the time to buy Cable One? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $168.8 million, down 6.5% year on year, falling short of analyst expectations by 1%. It was a weak quarter for the company, with a miss of analysts’ earnings estimates.
WideOpenWest had the slowest revenue growth in the group. The stock is up 3.6% since the results and currently trades at $3.58.
Read our full analysis of WideOpenWest’s results here.
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 $13.71 billion, flat year on year, in line with analyst expectations. It was a mixed quarter for the company: Revenue beat by a very small amount. On the other hand, residential video subscriber count was in line while internet subscribers missed by a bit. Adjusted EBITDA was below expectations, leading to an EPS miss vs. analysts’ expectations.
Charter achieved the fastest revenue growth among its peers. The stock is down 32.9% since the results and currently trades at $256.9.
Read our full, actionable report on Charter here, it’s free.
Altice USA (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 USA reported revenues of $2.30 billion, down 2.9% year on year, in line with analyst expectations. It was a weak quarter for the company, with a miss of analysts’ earnings estimates.
Altice USA pulled off the biggest analyst estimates beat among its peers. The stock is down 4.7% since the results and currently trades at $2.05.
Read our full, actionable report on Altice USA here, it’s free.
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