Cable One (CABO) posted an "extremely disappointing" Q1 as revenue and earnings before interest, taxes, depreciation and amortization trailed Wall Street estimates, KeyBanc Capital Markets said Thursday in a report.
"Misexecution" leaves company guidance for a rebound in revenue and high-speed data subscribers "not carrying much weight," the report said.
"Management is putting in initiatives to drive higher connect through 'Flex Connect' and 'Lift,' which are expected to put connects on a better trajectory, though different initiatives over the past several years have failed to drive this outcome," KeyBanc said.
KeyBanc lowered its adjusted EBITDA estimates by 1.8% in 2025 and 1% in 2026 and downgraded its rating on Cable One stock to sector weight from overweight, citing "the consistent lack of execution in the last couple of quarters."
Cable One shares slumped 32% in recent Friday trading.
Price: 177.25, Change: -84.74, Percent Change: -32.34
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