Internet, cable TV, and phone provider Cable One (NYSE:CABO) will be reporting results this Thursday afternoon. Here’s what to expect.
Cable One met analysts’ revenue expectations last quarter, reporting revenues of $348.9 million, down 8.4% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates. It reported 870,000 residential data subscribers, down 6.7% year on year.
Is Cable One a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Cable One’s revenue to decline 8.9% year on year, a further deceleration from the 4.5% 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 will stay the course heading into earnings. Cable One has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Cable One’s peers in the consumer discretionary - wireless, cable and satellite segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AT&T delivered year-on-year revenue growth of 5.3%, beating analysts’ expectations by 2.1%, and Comcast reported flat revenue, in line with consensus estimates. AT&T traded down 2.9% following the results while Comcast was up 2.8%.
Read our full analysis of AT&T’s results here and Comcast’s results here.
There has been positive sentiment among investors in the consumer discretionary - wireless, cable and satellite segment, with share prices up 4.7% on average over the last month. Cable One is down 56.7% during the same time and is heading into earnings with an average analyst price target of $44.25 (compared to the current share price of $4.87).
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