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

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Altice USA, Inc. (ATUS - Free Report) 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 - Free Report) 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 - Free Report) 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 - Free Report) 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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