Shenandoah Telecommunication Co.

Shenandoah Telecommunication Co.'s (SHEN - Snapshot Report) share price has been rallying since early October, helped by the company's solid third-quarter results and rising analyst estimates.

Company Description

Shenendoah Telecommunications Co, through its subsidiaries, provides regulated and unregulated telecom services to end-users in the Southeastern United States. The company has a market cap of $567 million.

Third-Quarter Results

Shenandoah reported third-quarter results on Nov 4 that were ahead of analyst estimates. Revenue was up 15% from last year to $37.4 million. Net income totaled $6.8 million, up 33% from last year.

This produced earnings of 32 cents per share, ahead of analyst estimates by 6 cents. This was the second consecutive earnings surprise for Shenandoah, which beat estimates by 29% last quarter.

Growth Segment

Shenandoah noted that it saw strong sales growth in its wireless segment as a Sprint PCS affiliate, with a 16% bump from last year to 205,777 subscribers.

Analyst Estimates

Since the solid quarterly results, analysts have boosted their earnings projections. The current-year estimate is up 7 cents to $1.07 per share.

The next-year estimate is up as well, climbing to $1.19 per share from $1.03 last month, an 11% earnings growth projection.

The Chart

As previously mentioned, shares of SHEN have been rallying since early October, helped by the company's strong third-quarter results. Looking back a number of years, this stock is once again approaching its all-time high, just beyond $25. Take a look at the chart below.