Shenandoah Telecommunications (NASDAQ:SHEN) Issues Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Shenandoah Telecommunications beat earnings expectations, reporting a quarterly loss of $0.19 per share versus the $0.23 consensus estimate. Revenue reached $93.93 million, slightly below analysts’ $94.10 million forecast.
• Glo Fiber drove growth, adding 8,600 net data customers in the third quarter and surpassing 500,000 passings. Fiber revenue rose 19.5%, while adjusted EBITDA increased 11.8% to $33.2 million.
• The company raised 2026 capital expenditure guidance to $255 million–$275 million and continues to face pressure in legacy markets, but management expects positive free cash flow in 2027 as network expansion winds down and leverage declines.

Shenandoah Telecommunications (NASDAQ:SHEN - Get Free Report) issued its earnings results on Wednesday. The utilities provider reported ($0.19) earnings per share for the quarter, topping the consensus estimate of ($0.23) by $0.04, FiscalAI reports. Shenandoah Telecommunications had a negative net margin of 10.83% and a negative return on equity of 4.54%. The company had revenue of $93.93 million for the quarter, compared to analyst estimates of $94.10 million.

Here are the key takeaways from Shenandoah Telecommunications' conference call:

• Glo Fiber growth accelerated, with 8,600 net data additions in Q3, up 48% year over year, bringing total data customers to approximately 109,000 and passings to more than 500,000. Penetration reached 21.7%, leaving substantial runway toward the company’s 37% medium-term target.
• Fiber businesses continued to drive results, with combined Glo Fiber and commercial fiber revenue rising 19.5% and reaching 52% of consolidated revenue. Total revenue increased 4.6% to $93.9 million, while Adjusted EBITDA grew 11.8% to $33.2 million, and management expects margins to expand another 300–400 basis points in 2027.
• 2026 capital expenditure guidance increased to $255 million–$275 million from $220 million–$250 million, partly because government grant reimbursements are expected to extend into 2027. The company also continues to face pressure in incumbent markets, where broadband ARPU fell 3% and video RGUs declined 13% year over year.
• Management expects to complete the major network expansion by year-end and begin generating positive free cash flow in 2027, supported by low-double-digit Adjusted EBITDA growth and capital intensity in the mid-20% range. Net leverage is projected to decline from approximately 5.7–5.8 times EBITDA at year-end 2026 to below 5 times by the end of 2027 and below 4 times by 2029.
• Glo Fiber ARPU is expected to decline modestly again in the fourth quarter due to promotional pricing, but management expects it to stabilize and begin rising in 2027 as equipment fees take effect. Incumbent-market ARPU pressure is expected to moderate with a new everyday-pricing rate card planned for early 2027.

Shenandoah Telecommunications Price Performance

Shares of NASDAQ:SHEN traded down $0.38 on Wednesday, hitting $9.65. The company had a trading volume of 520,635 shares, compared to its average volume of 473,573. The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 0.83. The company has a market cap of $534.22 million, a PE ratio of -12.33 and a beta of 0.76. Shenandoah Telecommunications has a 52-week low of $9.13 and a 52-week high of $17.34. The business has a 50 day moving average of $11.49 and a 200 day moving average of $13.43.

Shenandoah Telecommunications Increases Dividend

The business also recently disclosed an annual dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Monday, November 2nd will be given a $0.12 dividend. This is an increase from Shenandoah Telecommunications's previous annual dividend of $0.11. This represents a dividend yield of 123.0%. The ex-dividend date is Monday, November 2nd. Shenandoah Telecommunications's dividend payout ratio (DPR) is currently -15.38%.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on SHEN shares. BWS Financial restated a "buy" rating and issued a $26.00 price target on shares of Shenandoah Telecommunications in a report on Thursday, July 30th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Shenandoah Telecommunications in a research report on Friday, July 31st. Finally, Wall Street Zen raised Shenandoah Telecommunications from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. Two analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Shenandoah Telecommunications has an average rating of "Hold" and a consensus target price of $27.50.

Insider Buying and Selling

In other news, CFO James Volk bought 4,283 shares of Shenandoah Telecommunications stock in a transaction on Friday, July 31st. The shares were bought at an average cost of $11.67 per share, for a total transaction of $49,982.61. Following the acquisition, the chief financial officer owned 92,671 shares in the company, valued at approximately $1,081,470.57. This trade represents a 4.85% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Corporate insiders own 5.01% of the company's stock.

About Shenandoah Telecommunications

Shenandoah Telecommunications Company, also known as Shentel, is a telecommunications provider headquartered in Edinburg, Virginia. The company delivers broadband communications services to residential and commercial customers, with a focus on high-speed internet, fiber-optic connectivity, video and voice services.

Shentel operates its Glo Fiber network in selected communities and provides broadband services through its legacy cable and fiber networks. Its service territory primarily includes markets in Virginia, West Virginia, Maryland and Pennsylvania.

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