Shares of Shenandoah Telecommunications (NASDAQ: SHEN) plummeted 7.60% in pre-market trading on Wednesday after the company reported disappointing first-quarter 2025 financial results that fell short of analyst expectations.
The telecommunications service provider posted a net loss of $10.6 million, or $0.19 per share, for the quarter ended March 31, 2025. This loss was significantly wider than the $0.14 per share loss anticipated by analysts, representing a 35.71% miss. The company's performance also deteriorated compared to the same period last year when it reported a loss of $0.08 per share.
While Shenandoah Telecommunications' revenue grew 26.93% year-over-year to $87.9 million, it still fell short of the $89.31 million consensus estimate. The company attributed the revenue growth primarily to its Glo Fiber expansion and the integration of acquired Horizon markets. However, investors appear concerned about the widening losses and the company's ability to manage costs during its expansion phase. The first quarter saw operating expenses surge to $93.99 million, putting pressure on the company's bottom line despite the top-line growth.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.