Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Globalstar (NASDAQ: GSAT) and its peers.
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 Q3. As a group, revenues beat analysts’ consensus estimates by 3.9%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
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. This print exceeded analysts’ expectations by 7.1%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS and revenue estimates.
Interestingly, the stock is up 24% since reporting and currently trades at $59.83.
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, outperforming analysts’ expectations by 1.7%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and a decent beat of analysts’ revenue estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.5% since reporting. It currently trades at $19.17.
Is now the time to buy Iridium? Access our full analysis of the earnings results here, it’s free.
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 21.3% since the results and currently trades at $57.86.
Read our full analysis of Array’s results here.
Viasat (NASDAQ: VSAT)
Operating a fleet of 23 satellites that orbit the Earth and beam connectivity from space, Viasat (NASDAQ: VSAT) provides satellite-based communications networks and services for airlines, maritime vessels, governments, businesses, and residential customers worldwide.
Viasat reported revenues of $1.14 billion, up 1.7% year on year. This result lagged analysts' expectations by 0.6%. Taking a step back, it was still a very strong quarter as it put up a beat of analysts’ EPS estimates.
The stock is up 17.5% since reporting and currently trades at $42.08.
Read our full, actionable report on Viasat 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 $241.9 million, down 5.9% year on year. This number missed analysts’ expectations by 1.7%. Zooming out, it was actually a strong quarter as it recorded 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 39.6% since reporting and currently trades at $23.13.
Read our full, actionable report on Cogent here, it’s free.
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