Telecommunications and cable services provider Altice USA (NYSE:ATUS) will be reporting earnings tomorrow afternoon. Here’s what you need to know.
Altice met analysts’ revenue expectations last quarter, reporting revenues of $2.24 billion, down 3.6% year on year. It was a slower quarter for the company, with a miss of analysts’ earnings and EBITDA estimates. It reported 4.09 million residential broadband customers, down 3.3% year on year.
Is Altice a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Altice’s revenue to decline 3.4% year on year to $2.24 billion, in line with the 3.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.04 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 4 downward revisions over the last 30 days (we track 12 analysts). Altice has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Altice’s peers in the wireless, cable and satellite segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Charter delivered year-on-year revenue growth of 1.6%, meeting analysts’ expectations, and Comcast reported revenues up 6.5%, topping estimates by 1.1%. Comcast traded up 3% following the results.
Read our full analysis of Charter’s results here and Comcast’s results here.
Investors in the wireless, cable and satellite segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Altice is up 10.9% during the same time and is heading into earnings with an average analyst price target of $2.61 (compared to the current share price of $2.65).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.