Three telecom giants reported Q2 earnings over three days, and now that the market has had time to digest, a theme is emerging in the sector.
One positive trend from the trio of reports last week is that telecommunications companies are no longer paying up for growth through promotions or subsidization. All three companies grew earnings per share (EPS) year over year (YOY) in Q2, indicating stronger retention economics and subscriber growth. Additionally, all three increased shareholder returns through buybacks and dividends, a signal to the market that management thinks it's sitting on a cheap stock.
