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Altice (ATUS) to Report Q2 Earnings: What's in the Cards?

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Altice USA, Inc. (ATUS - Free Report) is scheduled to report second-quarter 2021 results on Jul 28, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 100%. It pulled off a trailing four-quarter earnings surprise of 61.5%, on average.

This Long Island City, NY-based company is expected to have recorded year-over-year higher revenues in the second quarter. Increased demand for broadband and higher speeds is likely to have majorly driven its performance.

Factors at Play

Altice, the provider of Optimum and Suddenlink-branded broadband services, accelerated its network performance through investments in fiber and enhanced its product offerings.

During the quarter, Altice completed the acquisition of Morris Broadband, LLC for an enterprise value of $310 million, expanding its footprint in North Carolina.

Altice introduced the Smart Wi-Fi 6, an evolution to its connectivity portfolio, to support the growing data usage of consumers and number of connected devices at homes.

Altice launched the Federal Communications Commission’s Emergency Broadband Benefit Program. The company is committed to keeping communities connected and make broadband more accessible.

News 12 Networks, in partnership with the Google News Initiative, unveiled an AI solution that creates automated content destinations for local media companies. Owned by Altice, News 12 is part of the Altice News group. Such developments are likely to have had a positive impact on Altice’s top line.

For the June quarter, the Zacks Consensus Estimate for revenues is pegged at $2,516 million, which indicates growth of 1.7% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at 47 cents, which suggests an increase of 147.4%.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Altice this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Altice’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +6.38% as the former is pegged at 50 cents and the latter at 47 cents.

Altice USA, Inc. Price and EPS Surprise

Altice USA, Inc. Price and EPS Surprise

Altice USA, Inc. price-eps-surprise | Altice USA, Inc. Quote

Zacks Rank: Altice currently has a Zacks Rank #4 (Sell).

Stocks to Consider

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Boyd Gaming Corporation (BYD - Free Report) is slated to release second-quarter 2021 results on Jul 27. It has an Earnings ESP of +54.29% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Cheesecake Factory Incorporated (CAKE - Free Report) is scheduled to release second-quarter 2021 results on Jul 27. The company has an Earnings ESP of +8.18% and a Zacks Rank #1.

Matador Resources Company (MTDR - Free Report) has an Earnings ESP of +2.63% and a Zacks Rank #1. The company is set to report second-quarter 2021 results on Jul 27.