Reflecting On Telecommunication Services Stocks' Q3 Earnings: Lumen (NYSE:LUMN)

Let’s dig into the relative performance of Lumen (NYSE:LUMN) and its peers as we unravel the now-completed Q3 telecommunication services earnings season.

The sector is a tale of two cities. Satellite telecommunication is generally buoyed by rising global demand for connectivity in costly-to-connect and remote areas. On the other hand, terrestrial telecommunication companies face an uphill battle, as they mostly sell into a deflationary market, where the price of moving a bit tends to decrease over time with better technology. Despite the differences in demand drivers, companies across the entire industry must contend competition from larger telecom conglomerates and hyperscalers expanding their own networks as well as newer entrants such as SpaceX's StarLink.

The 5 telecommunication services stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.7%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.2% since the latest earnings results.

Lumen (NYSE:LUMN)

With approximately 350,000 route miles of fiber optic cable spanning North America and the Asia Pacific, Lumen Technologies (NYSE:LUMN) operates a vast fiber optic network that provides communications, cloud connectivity, security, and IT solutions to businesses and consumers.

Lumen reported revenues of $3.09 billion, down 4.2% year on year. This print exceeded analysts’ expectations by 0.9%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and revenue estimates.

“This quarter, we demonstrated what disciplined execution and bold ambition can achieve,” said Kate Johnson, president and CEO of Lumen Technologies.

The stock is down 26.2% since reporting and currently trades at $7.73.

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

Best Q3: Globalstar (NASDAQ:GSAT)

Known for powering the emergency SOS feature in newer Apple iPhones, Globalstar (NASDAQ:GSAT) operates a network of low-earth orbit satellites that provide voice and data communications services in remote areas where traditional cellular networks don't reach.

Globalstar reported revenues of $73.85 million, up 2.1% year on year, outperforming analysts’ expectations by 7.1%. The business had a stunning quarter with a beat of analysts’ EPS and revenue estimates.

The market seems happy with the results as the stock is up 31.8% since reporting. It currently trades at $63.61.

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

Weakest Q3: Array (NYSE:AD)

Operating as a majority-owned subsidiary of Telephone and Data Systems since its founding in 1983, Array (NYSE:Array) is a regional wireless telecommunications provider serving 4.6 million customers across 21 states with mobile phone, internet, and IoT services.

Array reported revenues of $47.12 million, up 83.1% year on year, exceeding analysts’ expectations by 15.7%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 13.2% since the results and currently trades at $53.99.

Read our full analysis of Array’s results here.

Cogent (NASDAQ:CCOI)

Operating a massive network spanning 20,000 miles of fiber optic cable and connecting to over 3,200 buildings worldwide, Cogent Communications (NASDAQ:CCOI) provides high-speed Internet access, private network services, and data center colocation to businesses and bandwidth-intensive organizations across 54 countries.

Cogent reported revenues of $241.9 million, down 5.9% year on year. This number came in 1.7% below analysts' expectations. More broadly, it was actually a strong quarter as it logged a beat of analysts’ EPS estimates.

Cogent had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 45.7% since reporting and currently trades at $20.81.

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

Iridium (NASDAQ:IRDM)

With a constellation of 66 low-earth orbit satellites providing coverage to every inch of the planet, Iridium Communications (NASDAQ:IRDM) operates a global satellite network that provides voice and data services to customers in remote areas where traditional telecommunications are unavailable.

Iridium reported revenues of $226.9 million, up 6.7% year on year. This result beat analysts’ expectations by 1.7%. It was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and a decent beat of analysts’ revenue estimates.

The stock is down 9.4% since reporting and currently trades at $17.82.

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

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