Cable One Q3 revenue slightly misses estimates
Cable One reported a 4.5% year-over-year decline in Q3 revenue, slightly missing analyst expectations, while net income surged 95.7% due to equity sales gains. Adjusted EBITDA exceeded estimates despite a 5.5% decline. The company attributed revenue losses to a drop in residential video subscribers and higher churn in residential data customers. Analysts maintain a "hold" rating on the stock, with a median 12-month price target of $345, significantly above its recent trading price of $143.42.
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Overview
- Cable One Q3 revenue declines 4.5% yr/yr, slightly missing analyst expectations
- Net income for Q3 rises 95.7% yr/yr, driven by gains on equity sales
- Adjusted EBITDA slightly beats estimates despite a 5.5% yr/yr decline
Outlook
- Company did not provide specific guidance for future quarters or full year in its press release
Result Drivers
- RESIDENTIAL VIDEO DECLINE - Co attributes $8.7 mln revenue decrease to decline in residential video subscribers, partially offset by rate adjustment
- RESIDENTIAL DATA CHURN - Higher than expected churn in residential data customers, despite modest growth in connects, per CEO Julie Laulis
- EQUITY SALES GAINS - $67.4 mln gains on sales of equity investments primarily drove net income increase
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q3 Slight $376.01 $379.11
Revenue Miss* mln mln (6
Analysts
)
Q3 Net $86.53
Income mln
Q3 Slight $201.86 $201.48
Adjusted Beat* mln mln (6
EBITDA Analysts
)
Q3 $94.73
Operatin mln
g Income
Q3 $134.52
Pretax mln
Profit
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
- The current average analyst rating on the shares is “hold” and the breakdown of recommendations is 1 “strong buy” or “buy”, 5 “hold” and 1 “sell” or “strong sell”
- The average consensus recommendation for the integrated telecommunications services peer group is “buy.”
- Wall Street’s median 12-month price target for Cable One Inc is $345.00, about 58.4% above its November 5 closing price of $143.42
- The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 5 three months ago
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
