Cable One (NYSE:CABO) Misses Q3 Revenue Estimates

Internet, cablegram TV, and telephone supplier Cable One (NYSE:CABO) fell abbreviated of the markets gross expectations successful Q3 CY2025, with income falling 4.5% twelvemonth connected twelvemonth to $376 million. Its GAAP nett of $14.52 per stock was 94.5% supra analysts’ statement estimates.

Is present the clip to bargain Cable One? Find retired successful our afloat probe report.

• Revenue: $376 cardinal vs expert estimates of $378.9 cardinal (4.5% year-on-year decline, 0.8% miss)

• EPS (GAAP): $14.52 vs expert estimates of $7.46 (94.5% beat)

• Adjusted EBITDA: $201.9 cardinal vs expert estimates of $203 cardinal (53.7% margin, 0.6% miss)

• Operating Margin: 25.2%, down from 28% successful the aforesaid 4th past year

• Free Cash Flow Margin: 22.5%, down from 25.2% successful the aforesaid 4th past year

• Residential Data Subscribers: 910,400, down 149,100 twelvemonth connected year

• Market Capitalization: $807.3 million

Founded successful 1986, Cable One (NYSE:CABO) provides high-speed internet, cablegram television, and telephone services, chiefly successful smaller markets crossed the United States.

A company’s semipermanent income show is 1 awesome of its wide quality. Any concern tin enactment up a bully 4th oregon two, but the champion consistently turn implicit the agelong haul. Unfortunately, Cable One’s 3.1% annualized gross maturation implicit the past 5 years was sluggish. This fell abbreviated of our benchmark for the user discretionary assemblage and is simply a mediocre baseline for our analysis.

Long-term maturation is the astir important, but wrong user discretionary, merchandise cycles are abbreviated and gross tin beryllium hit-driven owed to rapidly changing trends and user preferences. Cable One’s show shows it grew successful the past but relinquished its gains implicit the past 2 years, arsenic its gross fell by 5.1% annually.

Cable One besides discloses its fig of residential information subscribers and residential video subscribers, which clocked successful astatine 910,400 and 58,400 successful the latest quarter. Over the past 2 years, Cable One’s residential information subscribers averaged 2.3% year-on-year declines portion its residential video subscribers averaged 23.9% year-on-year declines.

This quarter, Cable One missed Wall Street’s estimates and reported a alternatively uninspiring 4.5% year-on-year gross decline, generating $376 cardinal of revenue.

Looking ahead, sell-side analysts expect gross to diminution by 2.8% implicit the adjacent 12 months. Although this projection is amended than its two-year trend, it’s pugnacious to consciousness optimistic astir a institution facing request difficulties.

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