Shenandoah Telecommunications (NASDAQ:SHEN) Releases Earnings Results, Beats Estimates By $0.11 EPS

Shenandoah Telecommunications (NASDAQ:SHEN) announced its earnings results on Wednesday. The utilities provider reported ($0.17) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.28) by $0.11, FiscalAI reports. The business had revenue of $93.46 million for the quarter, compared to analysts’ expectations of $92.83 million. Shenandoah Telecommunications had a negative return on equity of 4.54% and a negative net margin of 10.83%.

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 Price Performance

Shares of NASDAQ SHEN traded up $0.16 during mid-day trading on Friday, reaching $11.98. The company’s stock had a trading volume of 61,538 shares, compared to its average volume of 345,259. The company has a debt-to-equity ratio of 0.83, a current ratio of 0.85 and a quick ratio of 1.12. Shenandoah Telecommunications has a 52 week low of $9.66 and a 52 week high of $17.34. The stock has a fifty day moving average of $14.15 and a two-hundred day moving average of $14.19. The firm has a market capitalization of $662.73 million, a PE ratio of -15.47 and a beta of 0.67.

Analysts Set New Price Targets

Several research firms recently weighed in on SHEN. Wall Street Zen downgraded Shenandoah Telecommunications from a “hold” rating to a “sell” rating in a research report on Saturday, May 2nd. BWS Financial reiterated a “buy” rating and issued a $26.00 price target on shares of Shenandoah Telecommunications in a research report on Thursday. Craig Hallum began coverage on shares of Shenandoah Telecommunications in a research note on Thursday, April 9th. They issued a “buy” rating and a $29.00 price objective for the company. Finally, Weiss Ratings downgraded shares of Shenandoah Telecommunications from a “sell (d+)” rating to a “sell (d-)” rating in a research report on Monday, May 4th. Two investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $27.50.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in SHEN. The Manufacturers Life Insurance Company grew its holdings in Shenandoah Telecommunications by 5.5% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 18,768 shares of the utilities provider’s stock valued at $256,000 after buying an additional 986 shares in the last quarter. Inceptionr LLC bought a new stake in shares of Shenandoah Telecommunications during the fourth quarter valued at approximately $221,000. Caxton Associates LLP purchased a new position in shares of Shenandoah Telecommunications in the first quarter worth $194,000. Jump Financial LLC purchased a new position in shares of Shenandoah Telecommunications in the second quarter worth $190,000. Finally, Graham Capital Management L.P. bought a new position in shares of Shenandoah Telecommunications during the fourth quarter worth $177,000. 61.96% of the stock is owned by hedge funds and other institutional investors.

Shenandoah Telecommunications Company Profile

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.