Looking back on telecommunication services stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Iridium (NASDAQ: IRDM) and its peers.

The sector is a tale of two cities. Satellite telecommunication is generally buoyed by rising global demand for connectivity in costly-to-connect and remote areas. On the other hand, terrestrial telecommunication companies face an uphill battle, as they mostly sell into a deflationary market, where the price of moving a bit tends to decrease over time with better technology. Despite the differences in demand drivers, companies across the entire industry must contend competition from larger telecom conglomerates and hyperscalers expanding their own networks as well as newer entrants such as SpaceX's StarLink.

The 5 telecommunication services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.7%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17.2% since the latest earnings results.

Best Q3: Iridium (NASDAQ: IRDM)

With a constellation of 66 low-earth orbit satellites providing coverage to every inch of the planet, Iridium Communications (NASDAQ: IRDM) operates a global satellite network that provides voice and data services to customers in remote areas where traditional telecommunications are unavailable.

Iridium reported revenues of $226.9 million, up 6.7% year on year. This print exceeded analysts’ expectations by 1.7%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS estimates and a decent beat of analysts’ revenue estimates.

"We continue to execute with discipline, focusing efforts on growth markets where our unique network delivers a competitive advantage, specifically in government, regulated industries, and critical infrastructure," said Matt Desch, CEO of Iridium.

Unsurprisingly, the stock is down 18.1% since reporting and currently trades at $16.11.

Is now the time to buy Iridium? Access our full analysis of the earnings results here, it’s free for active Edge members.

Lumen (NYSE: LUMN)

With approximately 350,000 route miles of fiber optic cable spanning North America and the Asia Pacific, Lumen Technologies (NYSE: LUMN) operates a vast fiber optic network that provides communications, cloud connectivity, security, and IT solutions to businesses and consumers.

Lumen reported revenues of $3.09 billion, down 4.2% year on year, outperforming analysts’ expectations by 0.9%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 26.9% since reporting. It currently trades at $7.65.

Is now the time to buy Lumen? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Array (NYSE: AD)

Operating as a majority-owned subsidiary of Telephone and Data Systems since its founding in 1983, Array (NYSE: Array) is a regional wireless telecommunications provider serving 4.6 million customers across 21 states with mobile phone, internet, and IoT services.

Array reported revenues of $47.12 million, up 83.1% year on year, exceeding analysts’ expectations by 15.7%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 3.7% since the results and currently trades at $45.91.

Read our full analysis of Array’s results here.

Cogent (NASDAQ: CCOI)

Operating a massive network spanning 20,000 miles of fiber optic cable and connecting to over 3,200 buildings worldwide, Cogent Communications (NASDAQ: CCOI) provides high-speed Internet access, private network services, and data center colocation to businesses and bandwidth-intensive organizations across 54 countries.

Cogent reported revenues of $241.9 million, down 5.9% year on year. This result came in 1.7% below analysts' expectations. Taking a step back, it was still a strong quarter as it logged a beat of analysts’ EPS estimates.

Cogent had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 55.2% since reporting and currently trades at $17.16.

Read our full, actionable report on Cogent here, it’s free for active Edge members.

Globalstar (NASDAQ: GSAT)

Known for powering the emergency SOS feature in newer Apple iPhones, Globalstar (NASDAQ: GSAT) operates a network of low-earth orbit satellites that provide voice and data communications services in remote areas where traditional cellular networks don't reach.

Globalstar reported revenues of $73.85 million, up 2.1% year on year. This print beat analysts’ expectations by 7.1%. It was a very strong quarter as it also produced an impressive beat of analysts’ revenue estimates and full-year revenue guidance beating analysts’ expectations.

The stock is up 17.9% since reporting and currently trades at $56.89.

Read our full, actionable report on Globalstar here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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