Telecommunications and cable services provider Optimum Communications (NYSE:OPTU) will be reporting earnings this Thursday before the bell. Here’s what to expect.
Optimum Communications missed analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $2.11 billion, down 5.4% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates. It reported 3.87 million broadband subscribers, down 4.1% year on year.
Is Optimum Communications a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Optimum Communications’s revenue to decline 4.5% year on year to $2.13 billion, a further deceleration from the 2.9% decrease it recorded in the same quarter last year.
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. Optimum Communications has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Optimum Communications’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. AT&T delivered year-on-year revenue growth of 3.6%, beating analysts’ expectations by 2.1%, and Verizon reported revenues up 2%, topping estimates by 0.7%. AT&T traded up 9.3% following the results while Verizon was also up 12.1%.
Read our full analysis of AT&T’s results here and Verizon’s results here.
Investors in the wireless, cable and satellite segment have had fairly steady hands going into earnings, with share prices down 1.6% on average over the last month. Optimum Communications is down 18.6% during the same time and is heading into earnings with an average analyst price target of $2.16 (compared to the current share price of $1.61).
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