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

Shenandoah Telecommunications (NASDAQ:SHEN) posted its quarterly earnings data on Wednesday. The utilities provider reported ($0.19) EPS for the quarter, beating analysts’ consensus estimates of ($0.23) by $0.04, FiscalAI reports. Shenandoah Telecommunications had a negative net margin of 10.68% and a negative return on equity of 4.58%. The firm had revenue of $93.93 million for the quarter, compared to the consensus estimate 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 Trading Up 1.2%

Shares of SHEN stock traded up $0.12 on Friday, reaching $10.25. 117,511 shares of the stock were exchanged, compared to its average volume of 476,743. The stock has a 50 day moving average price of $11.40 and a 200 day moving average price of $13.41. The stock has a market cap of $567.54 million, a PE ratio of -13.31 and a beta of 0.76. Shenandoah Telecommunications has a one year low of $9.13 and a one year high of $17.34. The company has a debt-to-equity ratio of 0.88, a current ratio of 0.71 and a quick ratio of 0.85.

Shenandoah Telecommunications Increases Dividend

The company also recently disclosed an annual dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Monday, November 2nd will be issued a dividend of $0.12 per share. The ex-dividend date of this dividend is Monday, November 2nd. This represents a yield of 123.0%. This is a positive change from Shenandoah Telecommunications’s previous annual dividend of $0.11. Shenandoah Telecommunications’s dividend payout ratio (DPR) is currently -14.10%.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Shenandoah Telecommunications in a research note on Thursday. BWS Financial restated a “buy” rating and set a $26.00 target price on shares of Shenandoah Telecommunications in a report on Thursday, July 30th. Finally, Wall Street Zen upgraded Shenandoah Telecommunications from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Two investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $27.50.

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.