NYSE$OPTU

Optimum Communications Inc A · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Altice USA's Q4 2019 results reflected slight revenue growth, driven by residential and business services, but net income was minimal and Adjusted EBITDA declined due to mobile losses.

Altice USA reported a slight increase in total revenue for Q4 2019, driven by growth in Residential and Business Services revenues, while News and Advertising revenue declined. Net income was minimal, and Adjusted EBITDA saw a slight decrease, impacted by mobile losses. The company is focused on network investments and expects revenue growth to accelerate in 2020.

  • Total revenue increased by 0.8% year-over-year in Q4 2019, reaching $2.475 billion.
  • Residential revenue grew by 0.1%, with broadband growth of 11.1%.
  • Business Services revenue increased by 4.1% year-over-year in Q4 2019.
  • Net income attributable to stockholders was $0.3 million in Q4 2019.

Headline financials

Total Revenue

$2.47B

Previous: $2.46B+0.8%
EPS (adj)

$0.14

Previous: $0.30-53.3%
Net Income

$1.33M

Previous: $213M-99.4%
Operating Income

$427M

Previous: $529M-19.2%

Revenue & EPS history

Altice USA · Revenue · Quarterly

$2.47B

Q4 2019+0.8%vs Q4 2018
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Revenue by segment

Altice USA · $2.47B total across 7 segments · Q4 2019

  • Video
    $969M
  • Broadband
    $826M
  • Business Services & Wholesale
    $362M
  • News and Advertising
    $149M
  • Telephony
    $146M
  • Mobile
    $18.1M
  • Other
    $4.22M

Forward guidance

For the full year 2020, Altice USA anticipates revenue growth (ex-mobile) of 2.0% to 2.5%, Adjusted EBITDA margin (ex-mobile) expansion, capital expenditures of $1.3 billion to $1.4 billion, a year-end leverage target of 4.5x to 5.0x net debt / Adjusted EBITDA (L2QA basis), and share repurchases of $1.7 billion.

Tailwinds

  • Revenue growth (ex-mobile) of 2.0% to 2.5%
  • Adjusted EBITDA margin (ex-mobile) expansion
  • Capital expenditures of $1.3 billion to $1.4 billion
  • Year-end Leverage target 4.5x to 5.0x net debt / Adjusted EBITDA (L2QA basis)
  • Share repurchases of $1.7 billion

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

-1.7%

Avg return

Earnings day

-2.6%

Avg return

5 days after

-4.8%

Avg return

30 days after

53%

19 / 36 earnings

Positive

+27.7%

Q2 2022

Best reaction

-33.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-13.0%-31.4%-21.0%
Q4 2025+3.7%+0.0%-13.0%
Q3 2025-4.7%-8.4%-14.4%
Q2 2025-8.5%-6.7%-6.3%
Q1 2025+4.6%+3.0%-15.1%
Q4 2024+0.7%+5.9%-7.0%
Q3 2024-4.2%-2.3%-5.7%
Q1 2024-2.5%-1.5%+22.2%
Q4 2023+6.9%-2.0%+30.9%
Q3 2023+0.7%-15.2%-20.8%
Q2 2023+13.1%+8.1%-4.4%
Q1 2023-12.9%-5.7%-17.3%
Q4 2022+1.0%-10.1%-25.4%
Q3 2022-33.7%-30.0%-36.1%
Q2 2022+27.7%+27.4%+7.2%
Q1 2022-10.4%-5.5%+12.2%
Q4 2021-19.2%-21.4%-20.3%
Q3 2021+4.4%+1.4%-2.1%
Q2 2021-9.3%-9.4%-18.2%
Q1 2021+3.1%+3.0%+2.2%
Q4 2020-7.0%-7.1%-7.6%
Q3 2020+3.3%+4.4%+31.5%
Q2 2020+7.1%+11.1%+8.7%
Q1 2020-5.2%-10.7%-2.4%
Q4 2019-5.1%-2.5%-24.6%
Q3 2019-17.8%-17.0%-19.9%
Q2 2019+3.9%+0.4%+10.6%
Q1 2019+5.6%+3.3%+1.3%
Q4 2018+1.8%+0.6%+0.8%
Q3 2018+9.3%+12.8%+8.1%
Q2 2018+1.3%+2.0%+5.2%
Q1 2018+10.2%+14.7%+8.0%
Q4 2017-5.2%+0.5%-3.7%
Q3 2017-9.4%-7.5%-26.1%
Q4 2016-3.9%-3.9%-5.7%
Q2 2017+3.1%+7.0%-2.9%
Q1 2017
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2012
Q1 2012

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