Shenandoah Telecommunications Company

Shenandoah Telecommunications Company (SHEN) delivered double-digit surprises on earnings in both of the last 2 quarters. During the past 4 consecutive quarters, SHEN topped EPS estimates by an average of 8%.

Company Description

Shenandoah Telecommunications provides a broad range of telecommunications services through its operating subsidiaries. Its services include local and long distance telephone, Internet and data services, cable television, wireless voice and data services, alarm monitoring, and telecommunications equipment, along with many other associated solutions in the Mid-Atlantic and Southeastern United States.

Strong Fundamentals

Shenandoah’s dividend yield of 1.2% is ahead of the industry average as most of the company’s peers pay no income.

The company has a solid balance sheet, showing a low debt to equity of 8%.

The company’s earnings per share are expected to grow by 14% over the next 3 – 5 years, compared to the industry average of 10%.

Growth in the Third Quarter

In early November, the company reported third-quarter results, noting that it delivered solid performance despite the economic environment.

Net income from continuing operations totaled $7.4 million, versus the year-prior $6.1 million. Total revenues reached $37.4 million, a 15% increase from last year’s $32.7 million.

The company delivered double-digit surprises on earnings in both of the last 2 quarters. During the past 4 consecutive quarters, SHEN topped EPS estimates by an average of 8%.

Results for the fourth quarter are scheduled for release on March 5.

Read the full analyst report on SHEN