Internet, cable TV, and phone provider Cable One (NYSE: CABO) will be reporting earnings this Thursday after the bell. Here’s what to look for.
Cable One missed analysts’ revenue expectations last quarter, reporting revenues of $363.7 million, down 6.1% year on year. It was a slower quarter for the company, with a miss of analysts’ adjusted operating income estimates and a slight miss of analysts’ revenue estimates. It reported 899,700 residential data subscribers, down 5.8% 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 5.6% year on year, in line with the 5.9% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 Q1 results, giving us a hint as to what we can expect. Comcast delivered year-on-year revenue growth of 10.9%, beating analysts’ expectations by 3.4%, and AT&T reported revenues up 2.9%, topping estimates by 0.9%. Comcast traded down 5.9% following the results while AT&T was up 2.8%.
Read our full analysis of Comcast’s results here and AT&T’s results here.
There has been positive sentiment among investors in the consumer discretionary - wireless, cable and satellite segment, with share prices up 12.5% on average over the last month. Cable One is up 4.5% during the same time and is heading into earnings with an average analyst price target of $111.75 (compared to the current share price of $99.24).
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