Internet, cable TV, and phone provider Cable One (NYSE:CABO) will be announcing earnings results this Thursday after the bell. Here’s what to look for.
Cable One missed analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $380.6 million, down 5.9% year on year. It was a slower quarter for the company, with a miss of analysts’ adjusted operating income estimates and a miss of analysts’ residential video subscribers estimates. It reported 1.04 million residential data subscribers, down 2% year on year.
Is Cable One a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Cable One’s revenue to decline 3.8% year on year to $379.5 million, improving from the 7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $8.23 per share.
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.
Looking at Cable One’s peers in the wireless, cable and satellite segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Verizon delivered year-on-year revenue growth of 5.2%, beating analysts’ expectations by 2.3%, and AT&T reported revenues up 3.5%, topping estimates by 1.3%. Verizon traded up 5.3% following the results while AT&T was also up 2%.
Read our full analysis of Verizon’s results here and AT&T’s results here.
There has been positive sentiment among investors in the wireless, cable and satellite segment, with share prices up 7.5% on average over the last month. Cable One is up 2% during the same time and is heading into earnings with an average analyst price target of $253.25 (compared to the current share price of $138.57).
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