Cable One (NYSE: CABO) shares plummeted 29.19% in pre-market trading on Friday, following a trifecta of negative news that rattled investor confidence. The telecommunications company reported disappointing first-quarter 2025 financial results, announced the suspension of its quarterly cash dividend, and received downgrades from multiple analysts.

The company's Q1 2025 earnings report, released late Thursday, revealed earnings per share (EPS) of just $0.46, falling drastically short of the analyst consensus estimate of $8.41. This represents a staggering 94.3% miss and a significant decline from the $8.11 EPS reported in the same quarter last year. Cable One's revenue also disappointed, coming in at $380.6 million, down 5.9% year-over-year and below the expected $386.9 million.

Adding to investor concerns, Cable One announced the suspension of its quarterly cash dividend, a move that will free up approximately $67 million annually. The company plans to redirect these funds towards accelerated debt repayment, refinancing support, and ongoing investment in organic growth initiatives. This decision, while potentially beneficial for the company's long-term financial health, has clearly unsettled income-focused investors.

Following the earnings release and dividend suspension announcement, several analysts downgraded Cable One stock. KeyBanc Capital Markets lowered its rating from Overweight to Sector Weight, removing its previous $650 price target. Raymond James also downgraded the stock from Outperform to Market Perform, further contributing to the negative sentiment surrounding the company.

The combination of disappointing financial results, the dividend suspension, and analyst downgrades has created a perfect storm for Cable One's stock, leading to the significant pre-market plunge. Investors will be closely watching the company's performance in the coming quarters to see if management's strategic decisions and focus on debt reduction and organic growth initiatives can help turn the tide and restore confidence in the stock.