Overview

• Cable One Q2 revenue fell 3.4% yr/yr but beat analyst expectations

• Adjusted EBITDA for Q2 beats analyst estimates despite a net loss of $438 mln

• Says broadband customer results didn’t meet its expectations in the quarter

• Co repaid $70.8 mln of debt in Q2, maintaining strong liquidity

Outlook

• Cable One sees sequential growth in residential broadband customer connections

• Company expects improved operating performance through simplified pricing strategies

• Cable One anticipates stronger customer response from segmented marketing campaigns

• Company notes modest increase in residential data revenue sequentially

Result Drivers

• VIDEO REVENUE DECLINE - Co attributes $9 mln revenue decrease to decline in residential video revenues as it exits video product lifecycle

• ASSET IMPAIRMENTS - Net loss driven by $456.2 mln non-cash asset impairment charges, triggered by stock price decline

• DATA REVENUE STABILITY - Residential data revenue decreased slightly yr/yr but increased sequentially, aided by higher ARPU

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", 5 "hold" and 1 "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 $345.00, about 61.6% above its July 30 closing price of $132.64

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBw7Vf5MPa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)