Shenandoah Telecommunications (NASDAQ:SHEN) Issues Earnings Results

Shenandoah Telecommunications (NASDAQ:SHEN) released its quarterly earnings data on Wednesday. The utilities provider reported ($0.17) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.28) by $0.11, FiscalAI reports. The company had revenue of $93.46 million for the quarter, compared to the consensus estimate of $92.83 million. Shenandoah Telecommunications had a negative return on equity of 4.64% and a negative net margin of 11.35%.

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 Trading Up 4.4%

SHEN traded up $0.52 during mid-day trading on Wednesday, hitting $12.36. The stock had a trading volume of 198,868 shares, compared to its average volume of 338,728. The stock’s fifty day simple moving average is $14.31 and its 200-day simple moving average is $14.18. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.12 and a quick ratio of 1.12. The firm has a market capitalization of $683.78 million, a price-to-earnings ratio of -15.41 and a beta of 0.67. Shenandoah Telecommunications has a 1-year low of $9.66 and a 1-year high of $17.34.

Analyst Upgrades and Downgrades

SHEN has been the subject of a number of recent analyst reports. Wall Street Zen cut Shenandoah Telecommunications from a “hold” rating to a “sell” rating in a report on Saturday, May 2nd. Weiss Ratings cut Shenandoah Telecommunications from a “sell (d+)” rating to a “sell (d-)” rating in a report on Monday, May 4th. BWS Financial restated a “buy” rating and issued a $26.00 target price on shares of Shenandoah Telecommunications in a research note on Monday, May 4th. Finally, Craig Hallum assumed coverage on Shenandoah Telecommunications in a report on Thursday, April 9th. They issued a “buy” rating and a $29.00 price target for the company. Two analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Shenandoah Telecommunications has an average rating of “Hold” and an average price target of $27.50.

Hedge Funds Weigh In On Shenandoah Telecommunications

Several institutional investors and hedge funds have recently made changes to their positions in the company. Baird Financial Group Inc. acquired a new stake in Shenandoah Telecommunications during the 1st quarter worth $158,000. Royal Bank of Canada grew its stake in Shenandoah Telecommunications by 11.8% in the first quarter. Royal Bank of Canada now owns 37,008 shares of the utilities provider’s stock valued at $465,000 after acquiring an additional 3,904 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Shenandoah Telecommunications by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 28,964 shares of the utilities provider’s stock worth $364,000 after acquiring an additional 1,248 shares in the last quarter. Millennium Management LLC increased its holdings in shares of Shenandoah Telecommunications by 48.3% in the first quarter. Millennium Management LLC now owns 448,976 shares of the utilities provider’s stock worth $5,644,000 after acquiring an additional 146,221 shares in the last quarter. Finally, Goldman Sachs Group Inc. raised its position in shares of Shenandoah Telecommunications by 27.8% during the first quarter. Goldman Sachs Group Inc. now owns 532,984 shares of the utilities provider’s stock worth $6,700,000 after purchasing an additional 116,040 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.