Shenandoah Telecommunications

Shenandoah Telecommunications Co. (SHEN - Snapshot Report )is a solid Growth and Income pick. The company offers a dividend yield of 1.1%, while its industry peers pay virtually no income. 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%.

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.

Recent Acquisition

In early December, the company announced that it completed the acquisition of cable assets and customers in Virginia and West Virginia from Rapid Communications, LLC.

Growth in the Third Quarter

In early November, the Zacks #1 Rank (“strong buy”) 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.

Wall Street Sees More Growth Next Year

Analyst earnings estimates of $1.19 per share for 2009 were increased by 10% over the past 60 days and represent growth of 8% year-over-year.

Industry Comparisons

Shenandoah Telecommunications is a solid Growth and Income pick. The company offers a dividend yield of 1.1%, while its industry peers pay virtually no income. 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%. Shenandoah’s return on equity (ROE) of 14% compares favorably to a negative industry average.