Altice Q4 Report: Revenue Meets Expectations, Stock Drops

Company Overview

Altice USA (NYSE:ATUS) provides telecommunications services including cable, internet, telephone, and television across the US.

Q4 CY2024 Highlights

Revenue: $2.24 billion (in line with estimates)
EPS (GAAP): -$0.12 (significantly below estimates)
Adjusted EBITDA: $837.5 million (4% below estimates)
Operating Margin: 15.2% (up from 13.1% YoY)
Free Cash Flow Margin: 2.2% (down from 8.7% YoY)
Broadband Subscribers: 4 million (down 169,100 YoY)

Financial Performance

* Altice's sales have declined at a 1.7% annual rate over the past five years.
* Revenue has declined by 3.7% annually over the past two years.
* Broadband subscribers have decreased by an average of 3% YoY over the past two years.
* Pay TV subscribers have decreased by an average of 11.6% YoY over the past two years.

Analyst Outlook

Analysts expect Altice's revenue to decline by 4.1% over the next 12 months.

Cash Flow

Altice's free cash flow margin averaged 1.5% over the past two years.
In Q4, free cash flow clocked in at $49.88 million, equivalent to a 2.2% margin.

Key Takeaways

Despite meeting revenue expectations, Altice's EPS and EBITDA fell short of estimates.
The stock price declined by 6.3% post-report.

Investment Considerations

The company's recent performance suggests a potential investment opportunity.
For a more comprehensive analysis, refer to our full research report.