Cable One (NYSE:CABO) Announces Earnings Results

Cable One (NYSE:CABO) posted its earnings results on Thursday. The company reported ($204.35) EPS for the quarter, missing the consensus estimate of $4.14 by ($208.49), FiscalAI reports. The firm had revenue of $348.93 million during the quarter, compared to the consensus estimate of $349.86 million. Cable One had a positive return on equity of 5.36% and a negative net margin of 21.94%.

Here are the key takeaways from Cable One’s conference call:

• Residential broadband lost 17,000 customers in Q2 as elevated churn continued, while residential data subscribers fell 6.6% year over year.
• Financial results weakened year over year, with revenue down to $348.9 million, adjusted EBITDA down 14.6% to $173.5 million, and free cash flow after capital expenditures declining to $99.5 million.
• Customer acquisition showed sequential improvement, with digital and door-to-door channels increasing to roughly 35% of connects; management said momentum continued into Q3 while retention initiatives remain the top priority.
• Cable One is expanding its value proposition through mobile, higher-speed and multi-gig capabilities, Wi-Fi and security products, and targeted pricing; management believes these initiatives can improve retention and customer lifetime value over time.
• The company reduced debt by nearly $130 million during the first half, but still had $3.06 billion of gross debt and a 4.2x net leverage ratio; management is evaluating financing alternatives but provided no details, including regarding MBI.

Cable One Stock Up 2.7%

NYSE:CABO traded up $1.19 during trading hours on Thursday, hitting $44.56. 188,770 shares of the stock traded hands, compared to its average volume of 216,703. The firm has a 50 day moving average price of $43.78 and a 200 day moving average price of $73.51. The firm has a market cap of $252.64 million, a price-to-earnings ratio of -0.76 and a beta of 0.54. Cable One has a fifty-two week low of $33.38 and a fifty-two week high of $180.74. The company has a current ratio of 1.75, a quick ratio of 1.75 and a debt-to-equity ratio of 2.09.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the company. Wells Fargo & Company reduced their price target on Cable One from $90.00 to $70.00 and set an “underweight” rating for the company in a research report on Friday, May 1st. TD Cowen cut their price objective on Cable One from $142.00 to $111.00 and set a “hold” rating for the company in a report on Friday, May 1st. BNP Paribas Exane raised shares of Cable One from an “underperform” rating to a “neutral” rating and lowered their price objective for the stock from $60.00 to $40.00 in a research note on Tuesday, July 14th. Weiss Ratings reissued a “sell (d-)” rating on shares of Cable One in a research note on Friday, July 17th. Finally, Zacks Research raised Cable One from a “strong sell” rating to a “hold” rating in a report on Friday, July 3rd. Four equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, Cable One has a consensus rating of “Reduce” and a consensus target price of $91.50.

Institutional Investors Weigh In On Cable One

A number of institutional investors have recently modified their holdings of CABO. Baupost Group LLC MA acquired a new stake in Cable One in the third quarter valued at approximately $12,068,000. Charles Schwab Investment Management Inc. lifted its stake in shares of Cable One by 20.6% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 147,470 shares of the company’s stock valued at $16,642,000 after purchasing an additional 25,191 shares during the last quarter. Marshall Wace LLP boosted its holdings in Cable One by 4.3% in the third quarter. Marshall Wace LLP now owns 146,318 shares of the company’s stock worth $25,906,000 after purchasing an additional 6,000 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Cable One by 0.7% in the fourth quarter. Geode Capital Management LLC now owns 116,806 shares of the company’s stock worth $13,184,000 after purchasing an additional 864 shares in the last quarter. Finally, Ameriprise Financial Inc. increased its position in Cable One by 32.5% during the third quarter. Ameriprise Financial Inc. now owns 57,870 shares of the company’s stock worth $10,246,000 after buying an additional 14,198 shares during the last quarter. Institutional investors and hedge funds own 89.92% of the company’s stock.

Cable One Company Profile

Cable One, Inc (NYSE:CABO) is an American provider of broadband communications services, offering a suite of residential and business solutions over a hybrid fiber-coaxial network. The company delivers high-speed internet access, digital video, voice communications and mobile services, alongside advanced managed Wi-Fi and cybersecurity tools. Cable One’s infrastructure supports both traditional cable offerings and converged IP-based platforms designed to meet evolving customer needs.

In addition to consumer-focused services, Cable One caters to small and medium-sized enterprises with dedicated business-class connectivity, Ethernet solutions and cloud-based voice applications.