Shenandoah Telecommunications (NASDAQ:SHEN) Posts Earnings Results, Beats Estimates By $0.04 EPS

Shenandoah Telecommunications (NASDAQ:SHEN) posted its earnings results on Wednesday. The utilities provider reported ($0.19) EPS for the quarter, topping analysts’ consensus estimates of ($0.23) by $0.04, FiscalAI reports. The business had revenue of $93.93 million for the quarter, compared to analysts’ expectations of $94.10 million. Shenandoah Telecommunications had a negative net margin of 10.83% and a negative return on equity of 4.54%.

Here are the key takeaways from Shenandoah Telecommunications’ conference call:

• Glo Fiber growth accelerated, with 8,600 net data additions in Q3, up 48% year over year, bringing total data customers to approximately 109,000 and passings to more than 500,000. Penetration reached 21.7%, leaving substantial runway toward the company’s 37% medium-term target.
• Fiber businesses continued to drive results, with combined Glo Fiber and commercial fiber revenue rising 19.5% and reaching 52% of consolidated revenue. Total revenue increased 4.6% to $93.9 million, while Adjusted EBITDA grew 11.8% to $33.2 million, and management expects margins to expand another 300–400 basis points in 2027.
• 2026 capital expenditure guidance increased to $255 million–$275 million from $220 million–$250 million, partly because government grant reimbursements are expected to extend into 2027. The company also continues to face pressure in incumbent markets, where broadband ARPU fell 3% and video RGUs declined 13% year over year.
• Management expects to complete the major network expansion by year-end and begin generating positive free cash flow in 2027, supported by low-double-digit Adjusted EBITDA growth and capital intensity in the mid-20% range. Net leverage is projected to decline from approximately 5.7–5.8 times EBITDA at year-end 2026 to below 5 times by the end of 2027 and below 4 times by 2029.
• Glo Fiber ARPU is expected to decline modestly again in the fourth quarter due to promotional pricing, but management expects it to stabilize and begin rising in 2027 as equipment fees take effect. Incumbent-market ARPU pressure is expected to moderate with a new everyday-pricing rate card planned for early 2027.

Shenandoah Telecommunications Stock Down 3.8%

SHEN traded down $0.38 during trading on Wednesday, hitting $9.65. The company had a trading volume of 520,635 shares, compared to its average volume of 473,573. The company has a market cap of $534.22 million, a PE ratio of -12.33 and a beta of 0.76. The business has a 50-day moving average of $11.49 and a 200-day moving average of $13.43. The company has a debt-to-equity ratio of 0.83, a current ratio of 0.85 and a quick ratio of 0.85. Shenandoah Telecommunications has a 1-year low of $9.13 and a 1-year high of $17.34.

Shenandoah Telecommunications Increases Dividend

The business also recently declared an annual dividend, which will be paid on Tuesday, December 1st. Investors of record on Monday, November 2nd will be issued a $0.12 dividend. This is a boost from Shenandoah Telecommunications’s previous annual dividend of $0.11. This represents a yield of 123.0%. The ex-dividend date of this dividend is Monday, November 2nd. Shenandoah Telecommunications’s dividend payout ratio is currently -15.38%.

Wall Street Analyst Weigh In

A number of equities analysts have commented on SHEN shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of Shenandoah Telecommunications in a report on Friday, July 31st. BWS Financial restated a “buy” rating and set a $26.00 target price on shares of Shenandoah Telecommunications in a research note on Thursday, July 30th. Finally, Wall Street Zen raised Shenandoah Telecommunications from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Two research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $27.50.

Insiders Place Their Bets

In related news, CFO James Volk bought 4,283 shares of the company’s stock in a transaction dated Friday, July 31st. The stock was bought at an average price of $11.67 per share, with a total value of $49,982.61. Following the transaction, the chief financial officer owned 92,671 shares of the company’s stock, valued at approximately $1,081,470.57. This trade represents a 4.85% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. 5.01% of the stock is currently owned by corporate insiders.

About Shenandoah Telecommunications

Shenandoah Telecommunications Company, also known as Shentel, is a telecommunications provider headquartered in Edinburg, Virginia. The company delivers broadband communications services to residential and commercial customers, with a focus on high-speed internet, fiber-optic connectivity, video and voice services.

Shentel operates its Glo Fiber network in selected communities and provides broadband services through its legacy cable and fiber networks. Its service territory primarily includes markets in Virginia, West Virginia, Maryland and Pennsylvania.