Cablevision Systems (CVC) Tops Q1 Earnings & Revenues

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Cablevision Systems Corp. CVC is a leading cable MSO (multi service operator) in the U.S.  Cablevision provides video, high-speed broadband (Internet), telephony and WiFi services to individuals and business enterprises.

Online video streaming service providers such as Netflix, Amazon.com, YouTube, etc. have become major threats for cable TV operators like Cablevision. Online videos provide an extremely cheap source of TV programming unless the customer is keen on viewing real-time programs like sporting events. This business model is gaining momentum, especially amid volatile economic conditions.

Cablevision is consistently focusing on its WiFi network, referred to as the "Optimum WiFi Network", for growth. The company has activated WiFi across its entire service area and has roughly 1.5 million WiFi hotspots active throughout its entire service area. Additionally, Cablevision expects ongoing investments in the Wi-Fi network to continue enhancing the value of its Freewheel service.

Cablevision currently carries a Zacks Rank #1 (Strong Buy). The company has generated positive average earnings surprise in last four successive quarters with an average beat of 6.83%. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Cablevision Tops Q1 earnings estimate. Our consensus earnings estimate called for an adjusted EPS of 17 cents while the company reported adjusted EPS was 34 cents. Investors should note that these figures take out stock option expenses.

Revenue:   Cablevision reported total revenue of $1,640.8 million, outpacing our estimate of $1,631 million.

Key States to Note:   I n the reported quarter, Cablevision lost 15,000 video customers. At first quarter end, the company had 2.579 million video subscribers. Quarterly high-speed broadband customer addition was 19,000. At quarter end, the company had 2.828 million high-speed Internet subscribers. The company also lost 8,000 voice customers. At quarter end, Cablevision System had 2.185 million voice subscribers.

Check back later for our full write up on this Cablevision earnings report later!  

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CABLEVISION SYS (CVC): Free Stock Analysis Report

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