Cable One (NYSE:CABO) Issues Quarterly Earnings Results

Cable One (NYSE:CABO) announced its quarterly earnings results on Thursday. The company reported ($75.66) earnings per share for the quarter, missing the consensus estimate of $4.51 by ($80.17), FiscalAI reports. The firm had revenue of $332.15 million for the quarter, compared to analysts’ expectations of $341.27 million. Cable One had a negative net margin of 112.20% and a negative return on equity of 16.70%.

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

• Broadband net losses narrowed to approximately 7,500 from 17,100 in Q2, the company’s best net-add result in seven quarters, but subscribers continued to decline. Customer acquisition improved, while retention remains a priority.
• Revenue fell 11.6% year over year to $332.2 million, and Adjusted EBITDA declined to $159.8 million from $201.9 million. Free cash flow, defined as Adjusted EBITDA less capital expenditures, was $81.9 million versus $130.1 million a year earlier; competitive pricing and lower broadband ARPU weighed on results.
• Business-services sold revenue rose 17% sequentially, with gains across primary sales channels and particularly strong results in enterprise and carrier. The company said it is focused on converting sold revenue into installed, billable revenue.
• Net leverage was 4.1 times at quarter-end after a net $500 million revolver draw, and the company said it is evaluating financing alternatives to maintain flexibility. It reported $674.8 million in cash and $3.55 billion in gross debt.

Cable One Trading Down 16.1%

Shares of CABO traded down $0.83 during trading hours on Friday, reaching $4.33. 493,901 shares of the company traded hands, compared to its average volume of 811,708. Cable One has a 12 month low of $4.01 and a 12 month high of $137.99. The company has a current ratio of 0.48, a quick ratio of 0.48 and a debt-to-equity ratio of 9.27. The company’s fifty day moving average price is $13.34 and its two-hundred day moving average price is $55.12.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the stock. Zacks Research raised shares of Cable One from a “strong sell” rating to a “hold” rating in a research note on Friday, October 9th. Williams Trading set a $86.00 target price on Cable One in a research note on Friday, August 7th. TD Cowen cut their target price on Cable One from $111.00 to $86.00 and set a “hold” rating on the stock in a research note on Friday, August 7th. BNP Paribas Exane reduced their price target on Cable One from $40.00 to $13.00 and set a “neutral” rating on the stock in a report on Tuesday, September 29th. Finally, Wall Street Zen lowered Cable One from a “hold” rating to a “sell” rating in a research report on Saturday. Four investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Cable One presently has a consensus rating of “Reduce” and a consensus price target of $80.00.

Cable One Company Profile

Cable One, Inc is a broadband communications provider serving residential and business customers in smaller cities and rural communities across the United States. The company operates primarily under the Sparklight brand and provides connectivity services over its cable and fiber networks.

Its consumer offerings include high-speed internet, video entertainment and traditional voice services, along with related products such as Wi-Fi solutions and streaming-oriented television options. For business customers, Cable One provides internet access, data connectivity, communications services and other technology solutions designed for organizations of various sizes.

Cable One traces its history to the cable operations of Graham Holdings Company and became an independent publicly traded company in 2015.