The telecom industry saw strong performances by most of the key stocks last week. A few developments even made it to the headlines.

With respect to fourth-quarter results, leading cable MSO (multi-service operator) Charter Communications Inc. (CHTR Quick QuoteCHTR - Free Report) posted strong financial numbers wherein both the top and the bottom line surpassed the Zacks Consensus Estimate. During the reported quarter, the company gained 357,000 high-speed Internet and 39,000 voice customers but lost 51,000 video customers at the Residential segment. On the other hand, itadded 12,000 video customers, 34,000 high-speed Internet and 27,000 voice customers at the Commercial segment.

Moreover, Charter Communications recently announced plans to launch experimental field trials of the upcoming 5G wireless network.  Notably, the company has an agreement with U.S. telecom behemoth Verizon Communications Inc. (VZ Quick QuoteVZ - Free Report) to operate as a mobile virtual network operator using the latter’s wireless network.

Leading satellite TV operator DISH Network Corp. declared mixed financial results in the fourth quarter of 2016. While the bottom line surpassed the Zacks Consensus Estimate, the top line lagged the same. As of Dec 31, 2016, DISH Network had about 13.671 million pay-TV customers. The company gained 28,000 pay-TV subscribers in the reported quarter compared with a loss of 12,000 in the year-ago quarter.

Furthermore,Liberty Global Plc. (LBTYA Quick QuoteLBTYA - Free Report) , a leading European quad-play cable MSO, reported mixed financial results in the fourth quarter of 2016. While the company reported profit in the reported quarter, revenues fell short of the Zacks Consensus Estimate. During the reported quarter, Liberty Global added a total of 323,700 RGUs, (revenue generating unit) including net gains of 230,600 and 117,500 subscribers for broadband Internet and telephony services, respectively. However, the company lost 24,400 video customers.

Apart from the earnings news, national telecom operator Sprint Corp. (S Quick QuoteS - Free Report) has once again fortified its foothold in the wireless industry by upgrading its unlimited data plans. As part of the promotion, new customers can buy a single line on Sprint’s unlimited plan for $50 a month, and from two to five lines for $90 a month. Any extra line will cost $40 each. These rates will be applicable till Mar 31, 2018, post which the prices will spring back to the normal rates.

According to a recent FierceTelecom report, U.S. telecom giant AT&T Inc. (T Quick QuoteT - Free Report) has also come up with an unlimited data plan. The plan will reportedly start at $100 per month for unlimited data, talk and text for a single line. A family plan entailing four subscribers will cost $40 per line, or $180 monthly. AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

In the merger and acquisition front, telecommunications and data service firm Windstream Holdings, Inc. gained all of the state and federal regulatory approvals for its acquisition of EarthLink Holdings Corp. . The deal is likely to conclude in the first quarter of 2017. In addition, BCE Inc.’s (BCE Quick QuoteBCE - Free Report) subsidiary, Bell Canada, has gained approval from the Innovation, Science and Economic Development Canada and the Competition Bureau for the $3.9 billion acquisition of Manitoba Telecom Services Inc. ("MTS"). This marks the final clearance of all hurdles by Bell Canada required to complete the transaction, clearing the path for the scheduled launch of Bell MTS on Mar 17, 2017.

Read the last Telecom Stock Roundup for Feb 16, 2017.

Recap of the Week’s Most Important Stories

1.    GAAP net income of Charter Communications in the fourth quarter was $454 million or $1.67 per share compared with a net income of $130 million or 48 cents in the year-ago quarter (calculated on proforma basis). Quarterly earnings per share of $1.67 were significantly above the Zacks Consensus Estimate of $1.06.Fourth-quarter 2016 total revenue of $10,275 million increased 7.2% year over year (calculated on proforma basis) beating the Zacks Consensus Estimate of $10,250 million (read more:  Charter Communications Tops Q4 Earnings & Revenues).

2.    DISH Network’s quarterly net income came in at $342.7 million or 70 cents per share as against a net loss of $125.3 million or a loss of 27 cents in the year-ago quarter. Earnings per share of 70 cents outpaced the Zacks Consensus Estimate of 66 cents.Total revenue in the reported quarter was approximately $3,724.2 million, down 1.4% year over year and also below the Zacks Consensus Estimate of $3,753 million (read more: DISH Network Tops Q4 Earnings, Misses on Revenues).

3.    GAAP net income at Liberty Global in the fourth quarter was $2,235 million or $2.45 per share as against a net loss of $284 million or a loss of 32 cents in the prior-year quarter. Quarterly total revenue of $4,216.6 million was down 1.7% year over year missing the Zacks Consensus Estimate of $4,256 million (read more:  Liberty Global Earnings Top, Revenues Lag in Q4).

4.    The unlimited data plan of Sprint will also offer high-definition (HD) video streaming and 10 GB of LTE mobile-hotspot data a month for new subscribers. However, to enjoy HD video streaming on an unlimited plan, subscribers may have to pay a separate $75-a-month. Sprint also plans to update its older gaming and music streams from 2 Mbps to 8 Mbps, and from 500 Kbps to 1.5 Mbps, respectively (read more: Is Sprint Upgrading its Unlimited Data Plan?).

5.    AT&T’s data plan also allows unlimited calling from the U.S. to Canada and Mexico as well as unlimited texting to over 120 countries. Moreover, the inclusion of the ‘Roam North America’ feature will enable customers on this plan to talk, text and use data in Canada and Mexico without paying any extra roaming charges.However, the plan doesn't include hotspot data (read more:   AT&T Joins Unlimited Data Plan Battle, Offers $100 Plan).

Price Performance

The following table shows the price movement of the major telecom players over the past week and the last six months.

Over the last five trading sessions, share price movement of most of the major telecom stocks was positive. Vodafone (3.76%), Verizon (3.60%) and T-Mobile US (2.81%) gained substantially over the same time frame. However, over the last six months, the price performance of most of the major telecom stocks witnessed a mixed trend.

Among the stocks that gained significantly are Sprint (51.80%), T-Mobile US (34.70%), DISH Network (24.85%). On the other hand, the stock price of Comcast (42.22%) and Vodafone (18.76%) suffered the most over the same time frame.

What’s Next in the Telecom Space?

We expect a busy week ahead for the telecom sector as several leading telecom operators like Telephone and Data Systems, United States Cellular, American Tower, Frontier Communications and Windstream Holdings are slated to release their quarterly earnings results. In addition, Cable ONE is also scheduled to report fourth-quarter 2016 results.

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