Cable One (NYSE:CABO) Posts Earnings Results, Misses Expectations By $80.17 EPS

Cable One (NYSE:CABO) issued its quarterly earnings results on Thursday. The company reported ($75.66) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.51 by ($80.17), FiscalAI reports. The company had revenue of $332.15 million during the quarter, compared to the consensus estimate of $341.27 million. Cable One had a negative return on equity of 3.97% and a negative net margin of 72.83%.

Here are the key takeaways from Cable One’s conference call:

• Broadband net losses narrowed to approximately 7,500 from 17,100 in Q2, the company’s best net-add result in seven quarters, but subscribers continued to decline. Customer acquisition improved, while retention remains a priority.
• Revenue fell 11.6% year over year to $332.2 million, and Adjusted EBITDA declined to $159.8 million from $201.9 million. Free cash flow, defined as Adjusted EBITDA less capital expenditures, was $81.9 million versus $130.1 million a year earlier; competitive pricing and lower broadband ARPU weighed on results.
• Business-services sold revenue rose 17% sequentially, with gains across primary sales channels and particularly strong results in enterprise and carrier. The company said it is focused on converting sold revenue into installed, billable revenue.
• Net leverage was 4.1 times at quarter-end after a net $500 million revolver draw, and the company said it is evaluating financing alternatives to maintain flexibility. It reported $674.8 million in cash and $3.55 billion in gross debt.

Cable One Stock Performance

Shares of NYSE:CABO traded down $0.83 on Friday, reaching $4.33. 493,901 shares of the company’s stock were exchanged, compared to its average volume of 938,259. The firm has a market capitalization of $24.55 million, a price-to-earnings ratio of -0.02 and a beta of 0.61. Cable One has a fifty-two week low of $4.01 and a fifty-two week high of $137.99. The business’s 50-day moving average is $13.34 and its two-hundred day moving average is $55.12. The company has a quick ratio of 0.48, a current ratio of 0.48 and a debt-to-equity ratio of 9.27.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. TD Cowen decreased their price objective on shares of Cable One from $111.00 to $86.00 and set a “hold” rating for the company in a report on Friday, August 7th. Weiss Ratings upgraded shares of Cable One from a “sell (e)” rating to a “sell (e+)” rating in a research note on Friday, October 2nd. Wall Street Zen cut shares of Cable One from a “hold” rating to a “sell” rating in a research report on Saturday. BNP Paribas Exane decreased their price target on Cable One from $40.00 to $13.00 and set a “neutral” rating for the company in a research note on Tuesday, September 29th. Finally, Williams Trading set a $86.00 price target on Cable One in a research note on Friday, August 7th. Four research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Cable One presently has an average rating of “Reduce” and a consensus price target of $80.00.

Cable One Company Profile

Cable One, Inc is a broadband communications provider serving residential and business customers in smaller cities and rural communities across the United States. The company operates primarily under the Sparklight brand and provides connectivity services over its cable and fiber networks.

Its consumer offerings include high-speed internet, video entertainment and traditional voice services, along with related products such as Wi-Fi solutions and streaming-oriented television options. For business customers, Cable One provides internet access, data connectivity, communications services and other technology solutions designed for organizations of various sizes.

Cable One traces its history to the cable operations of Graham Holdings Company and became an independent publicly traded company in 2015.