Shares of Cable One (NYSE: CABO) are set to open sharply lower on Friday, plummeting 12.60% in pre-market trading following the release of the company's disappointing first-quarter 2025 financial results and the announcement of a dividend suspension.
The telecommunications company reported 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. Furthermore, Cable One reported a 2.3% year-over-year decline in residential data subscribers and a 3.1% drop in residential data average revenue per user (ARPU) to $78.84, signaling potential challenges in its core business segments. These factors combined have significantly shaken investor confidence in Cable One's near-term prospects, leading to the sharp stock sell-off.
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