Wireless, Cable and Satellite Stocks Q3 Highlights: AT&T (NYSE:T)

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how wireless, cable and satellite stocks fared in Q3, starting with AT&T (NYSE:T).

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 Q3. As a group, revenues were in line with analysts’ consensus estimates.

While some wireless, cable and satellite stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.2% since the latest earnings results.

AT&T (NYSE:T)

Founded by Alexander Graham Bell, AT&T (NYSE:T) is a multinational telecomm conglomerate providing a range of communications and internet services.

AT&T reported revenues of $30.71 billion, up 1.6% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ EBITDA estimates but a miss of analysts’ Mobility revenue estimates.

AT&T pulled off the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 4.9% since reporting and currently trades at $24.36.

Read our full report on AT&T here, it’s free for active Edge members.

Best Q3: 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, outperforming analysts’ expectations by 0.8%. The business had a satisfactory quarter with a beat of analysts’ EPS estimates but a miss of analysts’ pandora subscribers estimates.

The market seems content with the results as the stock is up 4.9% since reporting. It currently trades at $22.10.

Is now the time to buy Sirius XM? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: 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 million, down 8.9% year on year, exceeding analysts’ expectations by 1.1%. Still, it was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

WideOpenWest delivered the slowest revenue growth in the group. The stock is flat since the results and currently trades at $5.18.

Read our full analysis of WideOpenWest’s results here.

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 $33.82 billion, up 1.5% year on year. This number missed analysts’ expectations by 1.2%. More broadly, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates.

The company lost 17,000 customers and ended up with a total of 146.1 million. The stock is up 2.4% since reporting and currently trades at $40.28.

Read our full, actionable report on Verizon here, it’s free for active Edge members.

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 $31.2 billion, down 2.7% year on year. This result topped analysts’ expectations by 1.6%. Taking a step back, it was a mixed quarter as it also logged a decent beat of analysts’ revenue estimates but a miss of analysts’ adjusted operating income estimates.

Comcast delivered the biggest analyst estimates beat among its peers. The stock is down 3% since reporting and currently trades at $27.71.

Read our full, actionable report on Comcast here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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