Unpacking Q3 Earnings: WideOpenWest (NYSE:WOW) In The Context Of Other Wireless, Cable and Satellite Stocks

As the Q3 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 WideOpenWest (NYSE:WOW) 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 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 3.4% since the latest earnings results.

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. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

WideOpenWest delivered the slowest revenue growth of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $5.15.

Read our full report on WideOpenWest 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 2.6% since reporting. It currently trades at $21.60.

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

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 $2.11 billion, down 5.4% year on year, falling short of analysts’ expectations by 1.4%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.

Altice delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 9.2% since the results and currently trades at $1.97.

Read our full analysis of Altice’s results here.

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 number met analysts’ expectations. More broadly, it was a mixed quarter as it also produced a narrow beat of analysts’ EBITDA estimates but a miss of analysts’ Mobility revenue estimates.

AT&T scored the fastest revenue growth among its peers. The stock is down 1.5% since reporting and currently trades at $25.65.

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

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 result missed analysts’ expectations by 1.2%. Aside from that, it was a mixed quarter as it also logged 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 3.7% since reporting and currently trades at $40.79.

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

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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