Boston, MA 03/19/2014 (wallstreetpr) – It is no longer a question of when Shenandoah Telecommunications Company (NASDAQ:SHEN) shares will enter uptrend trading. That has happened and the question begging for answer is about how long the uptrend can be maintained.
The stock was a mover in the previous session, rising as much as 10 percent to establish a new one-year high, and managing to close $33.21, up 8.85 percent. The Tuesday surge in the stock price came on the back of solid volume where far more shares changed hands than in a normal daily session.
The stock’s breakout has always been a long time coming given its recent strong quarterly performance results and favorable technical. Since February 25, the stock has breached key barriers and is up more than 24 percent, but still going up.
Positive revisions
Shenandoah Telecommunications Company (NASDAQ:SHEN) has witnessed positive revisions in its earnings estimates in the past 30 days. These revisions suggest that more solid trading is still ahead for the stock.
There is thus no concern as to whether the breakouts witnessed in the stock could continue, and the support lines in this case are the successful completion of infrastructure upgrade and the compelling results in the most recent quarter.
The company CEO Christopher E. French recently observed that they are set on the path of attaining consolidated net income growth going forward due to the increasing revenue from cable and wireless businesses. Moreover, the Shenandoah Telecommunications Company (NASDAQ:SHEN) continues to add more customers and this bodes well for its future. Perhaps the most important point to note is that the company expects reduced capital spending this year given that it was able to complete its 4G network upgrade in the fourth quarter. The projection is that $75 million will be spent in capital expenditure this year, against $117 million in 2013.
Fourth quarter performance
In the quarter ended December 31, Shenandoah Telecommunications Company (NASDAQ:SHEN) posted net income of $6.7 million from continuing operations. That contrasted with net income of $4.9 million in the corresponding quarter of 2012. The encouraging results in the quarter were attributed to the strong growth in the cable and wireless segments. Revenue in the quarter was up 4 percent to $78 million, against $75 million in the same quarter a year earlier.
