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Altice (NYSE:ATUS) Q3 2020 Earnings Prep

in EARNINGS/INVESTING IDEAS by

Altice USA, Inc. (NYSE:ATUS) is scheduled to report Q3 earnings results on October 29, 2020.

The company is expected to report earnings of $0.25/share on revenue of $2.49 billion. The consensus earnings per share (EPS) of $0.25/share is based on a poll of 11 analysts and represents a growth in eps of 107.2% over the same quarter last year, when the company reported earnings of $0.12/share.

The revenue forecast of $2.49 billion based on a poll of 17 analysts implies a year-over-year (YoY) growth in revenue of 2.1%. Last year the company reported $2.439 billion in revenue for the quarter.

Expected to report EPS growth of 107.2% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $2,490.03 $2,438.66 2.1%
EPS $0.25 $0.12 107.2%

Earnings Call Trends

Historically, management has exceeded analyst expectations 3 out of the last 6 tracked quarters, and missed expectations 5 quarters.

What are your expectations from Altice USA, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.16 $0.19 21.2% Beat
Q1, 2020 $0.11 $0 Missed
Q4, 2019 $0.18 $0 Missed
Q3, 2019 $0.15 $0.12 −21.0% Missed
Q2, 2019 $0.15 $0.13 −14.9% Missed
Q1, 2019 $0.04 -$0.04 −196.5% Missed
Q4, 2018 $0.11 $0.30 163.6% Beat
Q3, 2018 $0.01 $0.04 619.4% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 7.1%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 30, 2020 $25.19 $26.99 7.1% Increase
April 30, 2020 $26.36 $24.99 −5.2% Decline
February 12, 2020 $29.46 $27.97 −5.1% Decline
November 5, 2019 $31.61 $25.98 −17.8% Decline

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.94, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.94 implies a 0.2% chance of earnings manipulation.

Fundamentals And Technical Analysis

Altice USA, Inc. is currently trading at $27.10/share, down −2.0% for the day. The company is trading at approximately 85.3% of its 52-week high of $31.78/share. The company’s stock price is up 0.4% since the last earnings report and down −3.2% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 48.42 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:ATUS Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 83.34 and a forward P/E multiple of 38.40.

Altice USA, Inc.’s current share price also implies a price-to-book (P/B) multiple of 13.64. The following table summarizes some other key fundamental ratios:

Data as of October 27, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $27.10
P/E Ratio 83.3x
P/E Ratio (Fwd) 38.4x
PEG Ratio −2.7
Total Debt / Total Capital 62.6%
Levered Free Cash Flow $1.565 billion
EV / EBITDA 9.8x

Finbox

Altice USA, Inc. is a large-cap stock with a market capitalization of $15.666 billion and a total enterprise value of $40.522 billion. The company operates in the Communication Services sector and the Media industry.

Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, and telephony services to approximately 4.9 million residential and business customers. The company’s video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications. It also provides voice over Internet protocol (VoIP) telephone services; and mobile services, such as data, talk, and text. In addition, the company offers Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony services, managed Wi-Fi, managed desktop and server backup, and managed collaboration services comprising audio and web conferencing; fiber-to-the-tower services to wireless carriers; data services, consisting of wide area networking and dedicated data access, as well as wireless mesh networks; and enterprise class telephone services, which include traditional multi-line phone service. Further, it provides business e-mail, hosted private branch exchange, Web space storage, and network security monitoring; and international calling consisting and toll free numbers. Additionally, the company offers audience-based and IP-authenticated cross-screen advertising solutions; and television and digital advertising services, as well as operates news channels under the News 12 Networks, Cheddar, and i24NEWS names. It also provides network construction and maintenance services and commercial and residential installations, disconnections, and maintenance services. The company provides communications and video services under Optimum and Suddenlink brand names. Altice USA, Inc. was incorporated in 2015 and is headquartered in Long Island City, New York. Altice USA, Inc. operates as a subsidiary of Next Alt S.a.r.l.

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