Internet, cable TV, and phone provider Cable One (NYSE:CABO) will be announcing earnings results tomorrow after market close. Here’s what to look for.
Cable One beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $393.6 million, down 6.4% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates. It reported 1.06 million residential data subscribers, flat year on year.
Is Cable One a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Cable One’s revenue to decline 5.4% year on year to $389.4 million, a further deceleration from the 3.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $11.89 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Cable One’s peers in the wireless, cable and satellite segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Comcast delivered year-on-year revenue growth of 2.1%, beating analysts’ expectations by 1%, and Charter reported revenues up 1.6%, in line with consensus estimates. Comcast traded down 9.9% following the results while Charter was up 1.4%.
Read our full analysis of Comcast’s results here and Charter’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the wireless, cable and satellite stocks have shown solid performance, the group has generally underperformed, with share prices down 3.4% on average over the last month. Cable One is down 23.7% during the same time and is heading into earnings with an average analyst price target of $476.67 (compared to the current share price of $255.08).
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