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Telecom Stock Roundup: BCE, Windstream Post Strong Q3, Mixed Bag for DISH, TELUS & Liberty Global

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Third-quarter 2015 financial results continued to rule over the telecom sector last week. Several sector participants declared their financial numbers, and the outcome was a mixed bag.

Leading Canadian integrated telecom operator BCE Inc. BCE and small-sized rural telecom operator in the U.S., Windstream Holdings Inc. WIN reported better-than-expected financial results in the third quarter. Both the companies saw their top and bottom lines outpacing the respective Zacks Consensus Estimate.

On the other hand, U.S. satellite TV giant DISH Network Corp, DISH , major European cable MSO (multi-service operator) Liberty Global Plc. LBTYA and Canadian integrated telecom behemoth TELUS Corp. TU posted mixed financial results for the third-quarter 2015. All the three companies surpassed the Zacks Consensus Estimate with respect to earnings but saw disappointment on the revenue front.

Outside the U.S., Spanish telecom behemoth Telefonica SA TEF and its Brazilian subsidiary Telefonica Brasil SA VIV also reported quarterly results. Telefonica's top and bottom line missed the Zacks Consensus Estimate. Telefonica Brasil fared better, with its bottom line on par with the estimate and revenues exceeding the same.

(Read the last Telecom Stock Roundup for Nov 5, 2015 .)

Recap of the Week's Most Important Stories

1. Windstream's third-quarter 2015 GAAP net loss stood at $7 million or a loss of 8 cents per share compared with net income of $8 million or 8 cents in the year-ago quarter. The company reported adjusted loss per share of 13 cents, considerably narrower than the Zacks Consensus Estimate of a loss of 41 cents.

Pro forma revenues increased 3% year over year to $1,498.6 million in the third quarter, much above the Zacks Consensus Estimate of $1,460 million. (Read More: Windstream Q3 Loss Narrower than Expected, Revenues Top .)

2. Third-quarter 2015 net income of BCE was approximately $565.1 million, up 23.2% year over year. GAAP earnings per share were 67 cents, up 13% year over year. Adjusted net income per ADS (American Depositary Share) came in at 72 cents, above the Zacks Consensus Estimate of 65 cents. Total revenue came in at approximately $4,087 million, up 2.9% year over year and ahead of the Zacks Consensus Estimate of $4,031 million. (Read More: BCE Beats Q3 Earnings and Revenues on Wireless Strength .)

3. DISH's quarterly net income came in at $196.5 million or 42 cents per share compared with $145.5 million or 31 cents in the year-ago quarter. Earnings per share of 42 cents steered past the Zacks Consensus Estimate of 40 cents. Total revenue in the quarter stood at approximately $3,733.6 million, up 1.5% year over year but lagged the Zacks Consensus Estimate of $3,792 million. The company lost 23,000 pay-TV subscribers in the reported quarter. (Read More: DISH Network Q3 Earnings Top, Revenues Lag Expectations .)

4. GAAP net income of TELUS in the third quarter of 2015 was approximately $279.1 million, up 2.8% year over year. GAAP earnings per share were 47 cents, up 5.2% year over year. However, adjusted earnings per share in the reported quarter were 50 cents, above the Zacks Consensus Estimate of 48 cents. Total revenue came in at approximately $2,413 million, up 4.2% year over year, but fell short of the Zacks Consensus Estimate of $2,423 million. (Read More: TELUS Q3 Earnings Beat, Revenues Lag Estimates .)

5. Liberty Global reported third quarter adjusted earnings per share of 12 cents, outshining the Zacks Consensus Estimate of 4 cents. The earnings upside was primarily driven by strong subscriber growth and robust ARPU. Meanwhile, quarterly total revenue of $4,289 million though up 2.2% year over year lagged the Zacks Consensus Estimate of $4,617 million. (Read More: Liberty Global Q3 Earnings Trump Estimates, Revenues Lag .)

Price Performance

The following table shows the price movement of major telecom players over the past week and the last six months.

Company Last Week Last 6 Months
VZ -1.78% -6.73%
T -1.67% 1.04%
S -10.71% -14.89%
TMUS -3.76% 10.10%
VOD 3.18% -2.27%
CHL -4.69% -12.47%
AMX -4.57% -17.27%
CMCSA 0.15% 7.44%
DISH -1.73% -5.94%

Over the last five trading sessions, the share price movement of most of the major telecom stocks was in the red. Sprint lost a substantial 10.71% during this period. Likewise, over the last six months, the price performance of key telecom stocks has been predominantly negative . Although T-Mobile US gained a considerable 10.10%, America Movil, Sprint and China Mobile depreciated a substantial 17.27%, 14.89% and 12.47%, over the same time frame.

What's Next in the Telecom Sector?

We do not foresee any significant changes in the telecom industry or overall global economic factors that can likely affect the industry in the coming week. As a result, we expect stocks to trade in line with the broader market movement.

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TELEFONICA S.A. (TEF): Free Stock Analysis Report

TELUS CORP (TU): Free Stock Analysis Report

DISH NETWORK CP (DISH): Free Stock Analysis Report

TELEF BRASIL SA (VIV): Free Stock Analysis Report

LIBERTY GLBL-A (LBTYA): Free Stock Analysis Report

WINDSTREAM HLDG (WIN): Free Stock Analysis Report

BCE INC (BCE): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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