Shenandoah Telecommunications (NASDAQ:SHEN) Announces Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Key Points

• Shenandoah Telecommunications beat quarterly expectations: EPS was a loss of $0.17, $0.11 better than estimates, while revenue reached $93.46 million versus the $92.83 million consensus.
• Glo Fiber remained the growth engine: The company added a record 6,200 data customers, surpassed 100,000 customers, and increased fiber revenue 21.4%. Management maintained 2026 revenue guidance of $370 million–$377 million and adjusted EBITDA guidance of $131 million–$136 million.
• Legacy broadband pressures persist: Video subscribers fell 14.1%, broadband ARPU declined 2.6%, and churn rose to 1.73%, although management expects lower capital spending and completed expansion programs to support positive free cash flow in 2027.

Shenandoah Telecommunications (NASDAQ:SHEN - Get Free Report) posted its earnings results on Wednesday. The utilities provider reported ($0.17) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.28) by $0.11, FiscalAI reports. Shenandoah Telecommunications had a negative net margin of 11.35% and a negative return on equity of 4.64%. The firm had revenue of $93.46 million during the quarter, compared to analyst estimates of $92.83 million.

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

• Glo Fiber momentum remained strong, with a record 6,200 net additions, more than 100,000 data customers, 31.3% year-over-year data-customer growth, and fiber revenue up 21.4%. Fiber businesses accounted for 51% of consolidated revenue for the first time.
• Second-quarter revenue increased 5.5% to $93.5 million and adjusted EBITDA rose 12.9% to $32 million, lifting the adjusted EBITDA margin by 200 basis points to 34.3%. Management reiterated 2026 guidance of $370 million–$377 million in revenue and $131 million–$136 million in adjusted EBITDA.
• The company expects to substantially complete its Glo Fiber expansion and subsidized construction programs by the end of 2026, supporting a return to positive free cash flow in 2027 through lower capital intensity, continued EBITDA growth, and reduced financing costs.
• Incumbent broadband markets continued to weaken, with video revenue pressured by a 14.1% decline in video subscribers, broadband data ARPU down 2.6% year over year, and churn rising to 1.73%. Management is using lower pricing in rural markets to address satellite competition, which may support retention and subscriber growth but weighs on near-term ARPU.
• Commercial fiber bookings and installations remained healthy, while management cited a potential data-center opportunity and a master service agreement with a major hyperscaler; however, no specific customer commitments or revenue contribution have been announced.

Shenandoah Telecommunications Stock Up 4.4%

Shares of NASDAQ SHEN traded up $0.52 during mid-day trading on Wednesday, reaching $12.36. 198,868 shares of the company traded hands, compared to its average volume of 338,728. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.12 and a current ratio of 1.12. The stock has a market cap of $683.78 million, a PE ratio of -15.41 and a beta of 0.67. The company's fifty day moving average is $14.31 and its two-hundred day moving average is $14.18. Shenandoah Telecommunications has a fifty-two week low of $9.66 and a fifty-two week high of $17.34.

Analyst Ratings Changes

Several equities research analysts recently commented on SHEN shares. Weiss Ratings cut Shenandoah Telecommunications from a "sell (d+)" rating to a "sell (d-)" rating in a report on Monday, May 4th. Craig Hallum initiated coverage on Shenandoah Telecommunications in a report on Thursday, April 9th. They issued a "buy" rating and a $29.00 price objective for the company. Wall Street Zen lowered Shenandoah Telecommunications from a "hold" rating to a "sell" rating in a report on Saturday, May 2nd. Finally, BWS Financial reissued a "buy" rating and issued a $26.00 price target on shares of Shenandoah Telecommunications in a report on Monday, May 4th. Two analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $27.50.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Invesco Ltd. grew its position in Shenandoah Telecommunications by 34.0% in the 4th quarter. Invesco Ltd. now owns 607,617 shares of the utilities provider's stock worth $7,024,000 after purchasing an additional 154,115 shares during the last quarter. Caitlin John LLC raised its position in shares of Shenandoah Telecommunications by 324.0% during the fourth quarter. Caitlin John LLC now owns 4,550 shares of the utilities provider's stock valued at $53,000 after buying an additional 3,477 shares during the last quarter. Empowered Funds LLC lifted its stake in shares of Shenandoah Telecommunications by 10.8% in the fourth quarter. Empowered Funds LLC now owns 228,132 shares of the utilities provider's stock valued at $2,637,000 after buying an additional 22,242 shares during the period. Millennium Management LLC lifted its stake in shares of Shenandoah Telecommunications by 1,116.6% in the fourth quarter. Millennium Management LLC now owns 1,087,246 shares of the utilities provider's stock valued at $12,569,000 after buying an additional 997,882 shares during the period. Finally, Bridgeway Capital Management LLC lifted its stake in shares of Shenandoah Telecommunications by 6.7% in the fourth quarter. Bridgeway Capital Management LLC now owns 353,132 shares of the utilities provider's stock valued at $4,082,000 after buying an additional 22,242 shares during the period. Institutional investors and hedge funds own 61.96% of the company's stock.

About Shenandoah Telecommunications

Shenandoah Telecommunications Company operates as a diversified communications provider offering both wireless and wireline services across rural markets in the Mid-Atlantic region. Headquartered in Edinburg, Virginia, the company designs, builds and maintains network infrastructure to deliver mobile connectivity, high-speed broadband access and related telecommunications solutions to residential, business and wholesale customers.

In its wireless segment, the company owns and operates a portfolio of cellular towers and associated spectrum under a long-term partnership with a national carrier.

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