The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Globalstar (NASDAQ:GSAT) and the rest of the telecommunication services stocks fared in Q4.
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 6 telecommunication services stocks we track reported a very strong Q4. As a group, revenues beat analysts’ consensus estimates by 1.5%.
While some telecommunication services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.6% since the latest earnings results.
Weakest Q4: 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 $61.18 million, up 16.7% year on year. This print exceeded analysts’ expectations by 1.6%. Despite the top-line beat, it was still a mixed quarter with a significant miss of analysts’ EBITDA estimates.
Globalstar scored the fastest revenue growth of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $21.56.
Is now the time to buy Globalstar? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $213 million, up 9.4% year on year, outperforming analysts’ expectations by 4.3%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates.
Iridium pulled off the biggest analyst estimates beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $27.99.
Is now the time to buy Iridium? Access our full analysis of the earnings results here, it’s free.
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 $252.3 million, down 7.3% year on year, falling short of analysts’ expectations by 2.5%. Still, it was a satisfactory quarter as it posted a solid beat of analysts’ EPS estimates.
Cogent delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 11% since the results and currently trades at $71.26.
Read our full analysis of Cogent’s results here.
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 $3.33 billion, down 5.3% year on year. This print beat analysts’ expectations by 4.2%. Overall, it was a stunning quarter as it also logged an impressive beat of analysts’ EPS estimates.
The stock is flat since reporting and currently trades at $5.07.
Read our full, actionable report on Lumen here, it’s free.
Telephone and Data Systems (NYSE:TDS)
Operating primarily through its majority-owned subsidiary UScellular and wholly-owned TDS Telecom, Telephone and Data Systems (NYSE:TDS) provides wireless, broadband, video, and voice communications services to 4.6 million wireless and 1.2 million broadband customers across the United States.
Telephone and Data Systems reported revenues of $1.24 billion, down 5.5% year on year. This result topped analysts’ expectations by 1%. It was an exceptional quarter as it also recorded an impressive beat of analysts’ EPS estimates.
The stock is down 9.2% since reporting and currently trades at $35.97.
Read our full, actionable report on Telephone and Data Systems here, it’s free.
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