Why Altice (ATUS) Stock Is Falling Today
Jabin Bastian /
August 1, 2024
What Happened:
Shares of telecommunications and cable services provider Altice USA (NYSE:ATUS) fell 19% in the pre-market session after the company reported second-quarter earnings results. Its revenue, EPS, free cash flow, and adjusted EBITDA fell below Wall Street's estimates. Notably, internet revenue came in at $915M (-5.3% y/y) below the consensus estimate of $926M. Overall, this was a bad quarter for Altice.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Altice? Access our full analysis report here, it's free.
What is the market telling us:
Altice's shares are very volatile and over the last year have had 71 moves greater than 5%. But moves this big are very rare even for Altice and that is indicating to us that this news had a significant impact on the market's perception of the business.
The biggest move we wrote about over the last year was 4 months ago, when the company dropped 13.6% on the news that Wells Fargo analyst downgraded the stock's rating from Equal Weight (Hold) to Under Weight (Sell) and lowered the price target from $2 to $1. The analyst cited "increased competition in the fiber business" and raised doubts about a potential acquisition by Charter Communications. As a reminder, shares of ATUS rose in February 2024 after Bloomberg reported that Charter Communications was considering acquiring the company.
Altice is down 41.1% since the beginning of the year, and at $1.90 per share it is trading 47.8% below its 52-week high of $3.64 from August 2023. Investors who bought $1,000 worth of Altice's shares 5 years ago would now be looking at an investment worth $69.64.
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