Q2 Earnings Review: Wireless, Cable and Satellite Stocks Led by Verizon (NYSE:VZ)

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the wireless, cable and satellite industry, including Verizon (NYSE:VZ) 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 8.6% on average since the latest earnings results.

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. This print exceeded analysts’ expectations by 2.3%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates.

Verizon pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. The company added 162,000 customers to reach a total of 146.1 million. Unsurprisingly, the stock is up 8.5% since reporting and currently trades at $44.25.

Is now the time to buy Verizon? Access our full analysis of the earnings results here, it’s free.

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, outperforming analysts’ expectations by 1.8%. The business performed better than its peers, but it was unfortunately a mixed quarter with a beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.

The market seems content with the results as the stock is up 4.1% since reporting. It currently trades at $33.84.

Is now the time to buy Comcast? 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.

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 $381.1 million, down 3.4% year on year. This result met analysts’ expectations. Taking a step back, it was a slower quarter as it recorded a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.

The stock is up 27.4% since reporting and currently trades at $162.94.

Read our full, actionable report on Cable One 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 print was in line with analysts’ expectations. Zooming out, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.

The stock is down 29.1% since reporting and currently trades at $269.31.

Read our full, actionable report on Charter here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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