Shenandoah Telecommunications Reports Fourth Quarter FY 2022 Earnings Results on December 31, 2022
February 26, 2023
Earnings Overview
SHENANDOAH TELECOMMUNICATIONS ($NASDAQ:SHEN) reported their fourth quarter of FY2022 financial results on December 31, 2022. The quarter, which ended on February 22, 2023, saw a 230.0% decrease in total revenue of USD -1.8 million compared to the same period last year. Net income, however, increased 11.8% year over year to USD 70.0 million.
Transcripts Simplified
In 2022, Shenandoah Telecommunications launched its Glo Fiber Symmetrical multi-gig service in 17 markets. They had 445,000 approved Glo Fiber passings with franchise agreements in place, and construction is progressing in rural markets with government grant funding to launch gigabit fiber services in 4 counties in the first half of 2023. The company had 24,000 customers and 31,000 total RGUs for their broadband service at the end of the year. Data penetration rate climbed from 15.1% to 16.5%, and average revenue per user was $73.48.
For the Incumbent Cable operating results, data RGUs grew 3.1% year-over-year, and total RGUs grew 1.6% year-over-year to approximately 190,000. Data penetration increased from 50.4% to 51.7%.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Shenandoah Telecommunications. More…
| Total Revenues | Net Income | Net Margin |
| 267.37 | -8.38 | -0.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Shenandoah Telecommunications. More…
| Operations | Investing | Financing |
| 74.89 | -184.18 | 69 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Shenandoah Telecommunications. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 977.72 | 339.71 | 12.73 |
Key Ratios Snapshot
Some of the financial key ratios for Shenandoah Telecommunications are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -25.0% | -61.6% | -0.5% |
| FCF Margin | ROE | ROA |
| -42.9% | -0.1% | -0.1% |
Market Price
SHENANDOAH TELECOMMUNICATIONS reported their fourth quarter FY 2022 earnings results on December 31, 2022. On Wednesday, the company’s stock opened at $18.4 and closed at $19.9, which was a 5.5% increase from the previous closing price of $18.9. This increase in the share price was largely due to the company’s fourth quarter earnings results which were much better than analyst estimates.
This remarkable growth in SHENANDOAH’s net income was mainly driven by an increase in their operating revenues, which increased by 17% year-over-year. Going forward, many analysts believe that SHENANDOAH will continue to be financially stable and will have positive returns for investors. Live Quote…
Analysis
As GoodWhale, we had the opportunity to analyze the financials of SHENANDOAH TELECOMMUNICATIONS with the help of our star chart. The star chart shows that SHENANDOAH TELECOMMUNICATIONS has a high health score of 8/10 which indicates that it is capable to pay off its debt and fund future operations. Further, SHENANDOAH TELECOMMUNICATIONS is strong in dividend, medium in asset, profitability and weak in growth. We also classify SHENANDOAH TELECOMMUNICATIONS as ‘rhino’ which is a type of company that has achieved moderate revenue or earnings growth. Given such results, it is likely that investors interested in companies that depend on strong dividend growth, as well as those who focus on assets and profitability will be interested in SHENANDOAH TELECOMMUNICATIONS. Investors seeking rapid growth may however, not find this company attractive. More…
Peers
In the telecommunications industry, Shenandoah Telecommunications Co competes with Swoop Holdings Ltd, PT Link Net Tbk, and AT&T Inc. All four companies offer similar services, including wireless, Internet, and television.
However, each company has its own strengths and weaknesses. For example, Shenandoah Telecommunications Co has a strong presence in rural areas, while AT&T Inc has a strong presence in urban areas.
– Swoop Holdings Ltd ($ASX:SWP)
Swoop Holdings Ltd is a company that provides online marketing and advertising services. The company has a market cap of 74.47M as of 2022 and a Return on Equity of -13.81%. The company’s main business is providing online marketing and advertising services to businesses and individuals. The company also provides other services such as web design, web development, and social media marketing.
– PT Link Net Tbk ($IDX:LINK)
PT Link Net Tbk is an Indonesia-based company engaged in the provision of internet service provider (ISP) and pay television (TV) services. The Company offers its services under the brand names of First Media and Nexmedia. It operates in two segments: ISP and Pay TV. The Company’s ISP segment offers high speed internet access, while its Pay TV segment provides digital TV services. The Company offers its services to residential, small and medium enterprises and corporate customers. As of December 31, 2011, the Company operated in 33 provinces in Indonesia and served approximately 1.5 million subscribers.
– AT&T Inc ($NYSE:T)
AT&T Inc. is an American multinational conglomerate holding company headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world’s largest telecommunications company, the second largest provider of mobile telephone services, and the largest provider of fixed telephone services in the United States through AT&T Communications. Since June 14, 2018, it is also the parent company of mass media conglomerate WarnerMedia, making it the world’s largest entertainment company in terms of revenue. As of 2021, AT&T is ranked #9 on the Fortune 500 rankings of the largest United States corporations by total revenue.
AT&T Inc. has a market capitalization of 126.06 billion as of 2021 and a return on equity of 12.91%. The company is the world’s largest telecommunications company and the second largest provider of mobile telephone services. AT&T Inc. is also the largest provider of fixed telephone services in the United States. The company’s main business is providing telecommunications services, including wireless, data, and voice services. AT&T Inc. also provides pay TV services through its DirecTV and U-verse subsidiaries.
Summary
Shenandoah Telecommunications Co. (SHEN) reported their earnings results for the fourth quarter of FY2022, with total revenue of -$1.8 million and net income of $70 million. This represents a decrease of 230% in revenue versus the same period last year, but an 11.8% year-over-year increase in net income. Overall, the market responded positively, as the stock price moved up the same day.
As such, SHEN is a good investment opportunity for investors that are looking for a stable but consistent return. The company also appears to be focusing on cost-cutting initiatives and improving operational efficiency, which could lead to an even more impressive bottom-line in the years to come.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
