Cable One Q1 revenue falls 7%, misses estimates

Overview

• U.S. broadband provider's Q1 revenue fell 7%, missing analyst expectations

• Adjusted EBITDA for Q1 declined and missed analyst expectations

• Net income rose, driven by asset sale gains and lower equity investment losses

Outlook

• Cable One did not provide specific guidance for the current quarter or full year

Result Drivers

• RESIDENTIAL SUBSCRIBER LOSSES - Co said revenue decline was mainly due to fewer residential data and video subscribers, with only partial offset from higher ARPU and rate adjustments

• BUSINESS DATA WEAKNESS - Business data revenues declined year-over-year, contributing to overall revenue decrease

• ASSET SALE GAIN - Net income rose mainly due to a $26.6 mln gain on sale of fiber-to-the-tower contract rights and lower equity investment losses

Company press release: ID:nBw3pr11La

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the integrated telecommunications services peer group is "buy."

• Wall Street's median 12-month price target for Cable One Inc is $142.00, about 57.7% above its April 29 closing price of $90.04

• The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago

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