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Altice USA (ATUS) Reports Wider-Than-Expected Loss in Q1

Altice USA, Inc.ATUS posted a wider-than-expected loss in first-quarter 2018.

Bottom- and Top-Line Performances

The company reported a loss of 16 cents per share in the first quarter, wider than the Zacks Consensus Estimate of a loss of 13 cents per share. The reported loss is also wider than the loss of 12 cents per share posted in the year-ago quarter.

Revenues in the reported quarter came in at $2,329.7 million, missing the Zacks Consensus Estimate of $2,338 million. However, the top line inched up 1.2% year over year.

Broadband sales were $701.6 million, up 12.1% year over year. Business services and wholesale revenues came in at $333.1 million, up 4.3% year over year. Advertising sales in the quarter totaled $87.6 million, up 5.1% year over year. However, Pay TV revenues came in at $1,033.7 million, down 4.6% year over year. Telephony sales in the reported quarter were $166 million, down 8.2% year over year. Other sales came in at $7.7 million, slipping 12% year over year.  

Other Financial Details

Quarterly operating income was $313 million compared with $250.1 million posted in the year-ago quarter. Adjusted EBITDA grew 4% year over year in first-quarter 2018 to $981 million. Quarterly adjusted EBITDA margin was 42.1%, up 110 basis points year over year.

Operating free cash flow for Altice in the first quarter grew 5.4% year over year to $723 million.

Capital expenditure was $216.7 million, up 33% year over year. At the end of the first three months of 2018, the company's outstanding debt came in at $20.6 billion, down $175 million from the end of 2017.

Guidance

Altice anticipates revenues to be up 2.5-3% year over year in 2018. This Zacks Rank #3 (Hold) company also reiterated the plan to expand its adjusted EBITDA and cash flow margins, over the medium to long term.

Stocks to Consider

Some better-ranked stocks in the same space are listed below:

Corning Incorporated GLW carries a Zacks Rank of 2 (Buy). The company's earnings per share (EPS) are predicted to be up 4% in the next three to five years. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here .  

Spirent Communications PLC SPMYY also holds a Zacks Rank #2. The company's EPS is estimated to rise 11.00%, over the next three to five years.

Viavi Solutions Inc. VIAV has a Zacks Rank of 2. The company's EPS is projected to improve 20.00% during the same time frame.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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