Q1 Earnings Highlights: Charter (NASDAQ:CHTR) Vs The Rest Of The Wireless, Cable and Satellite Stocks

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Charter (NASDAQ:CHTR) and the best and worst performers in the wireless, cable and satellite industry.

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 mixed Q1. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.7% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.2% since the latest earnings results.

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 $13.74 billion, flat year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ EBITDA estimates but a miss of analysts’ EPS estimates.

"We continue to execute on our long-held strategy of delivering the best network and products, at the best value, combined with unmatched service," said Chris Winfrey, President and CEO of Charter.

The stock is up 17% since reporting and currently trades at $391.75.

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

Best Q1: 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 $29.89 billion, flat year on year, in line with analysts’ expectations. The business had a satisfactory quarter with a decent beat of analysts’ EPS estimates but a miss of analysts’ domestic broadband customers estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $34.66.

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

Weakest Q1: 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 $2.15 billion, down 4.4% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS and adjusted operating income estimates.

As expected, the stock is down 14.4% since the results and currently trades at $2.26.

Read our full analysis of Altice’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 $380.6 million, down 5.9% year on year. This result lagged analysts' expectations by 1.5%. It was a slower quarter as it also recorded a miss of analysts’ adjusted operating income and residential video subscribers estimates.

Cable One had the weakest performance against analyst estimates among its peers. The stock is down 45% since reporting and currently trades at $144.56.

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

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 $2.07 billion, down 4.3% year on year. This print missed analysts’ expectations by 0.6%. Aside from that, it was a mixed quarter as it also logged a decent beat of analysts’ EBITDA estimates.

The stock is up 1.2% since reporting and currently trades at $21.65.

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

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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