5 out of 5 communications services stocks deliver EPS wins this week: Earnings Scorecard

Communications services stocks grabbed the spotlight this week as Wall Street digested earnings reports from major names, including Netflix (NFLX) and Meta Platforms (META).

The communications services sector (XLC) lost over 8% so far this year, compared to the nearly 12% rise in the broader S&P 500 Index.

In this week's earnings recap, five tickers reported results, all of which reported earnings beats. On the revenue side, four companies exceeded revenue expectations, while one company trailed estimates.

Below are the latest quarterly reports from some key players, which reported results this week:

Netflix (NFLX) shares closed 5% lower on Wednesday following a weaker-than-expected revenue outlook. The streaming giant reported third-quarter revenue of $12.9B, in line with Wall Street estimates, but forecast fourth-quarter revenue of $13.4B, below analysts’ expectations.

Similarly, Meta Platforms (META) slipped 7% after the company’s third-quarter results. Meta’s Q3 earnings showed an increase of 26% in revenues over the past year to a record high of $64.6B. However, its costs and expenses showed an increase of 68% year-over-year. The company now expects to spend $135B to $145B on capital expenditures, increasing the lower end from $130B but remaining within estimates of $138B in capex.

Investors were also disappointed after AT&T’s (T) postpaid phone subscriber additions for the third quarter came in below expectations. Even though the telecom company reported revenue and adjusted earnings above consensus estimates, shares still closed over 6% lower on Wednesday.

For the upcoming week, Alphabet (GOOG), Verizon (VZ), and T-Mobile US (TMUS) are some communication services names that are scheduled to report quarterly results.