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Altice (ATUS) Surpasses Q4 Earnings & Revenue Estimates

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Altice USA, Inc. (ATUS - Free Report) reported healthy fourth-quarter 2021 results, wherein both the bottom and the top lines beat the Zacks Consensus Estimate.

Net Income

Net income in the quarter was $251.7 million or 56 cents per share compared with $330.5 million or 60 cents per share in the prior-year quarter. The decline was primarily due to lower operating income and loss on investments and the sale of affiliate interests. The bottom line, however, beat the Zacks Consensus Estimate by 5 cents.

In 2021, net income was $990.3 million or $2.14 per share compared with $436.2 million or 75 cents per share in 2020.

Altice USA, Inc. Price, Consensus and EPS Surprise Altice USA, Inc. Price, Consensus and EPS Surprise

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

Revenues

Quarterly total revenues slipped 0.6% year over year to $2,521.1 million. The figure includes Residential revenue decline of 2%, Business Services revenue growth of 12.1%, and News and Advertising revenue decline of 11.7%. The top line surpassed the Zacks Consensus Estimate of $2,514 million.

In 2021, Altice’s revenues increased 2% year over year to $10,090.8 million.

The company made progress on its growth strategies by accelerating the network enhancement and customer experience. It plans to bring 100% fiber broadband to more than two-thirds of its footprint over the next four years to reach a total of 6.5 million FTTH passings by the end of 2025.

In the quarter, Broadband-only customer usage averaged 556 GB per month. Residential revenue per customer relationship declined 1.6% year over year to $137.79.

Residential revenues (which include Broadband, Video and Telephony) were $1,917.8 million. Business services and wholesale revenues totaled $406 million. News and Advertising revenues were $170.2 million.

Other Quarterly Details

Operating income declined to $598.8 million from $608.7 million in the year-ago quarter. Adjusted EBITDA was $1,083 million compared with $1,151 million in the prior-year quarter.

During 2021, Altice repurchased 23.6 million shares for a total price of almost $804.9 million, at an average price of $34.12.

Cash Flow & Liquidity

In 2021, Altice generated $2,854.1 million of cash from operating activities compared with $2,980.2 million in 2020. Free cash flow was $1,622.4 million, down from $1,906.2 million. As of Dec 31, 2021, the company’s cash and cash equivalents totaled $196 million with net debt of $24,400 million.

Zacks Rank & Stocks to Consider

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

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Vocera Communications, Inc. (VCRA - Free Report) is a better-ranked stock in the broader Zacks Computer and Technology sector that sports a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 4.9% over the past 60 days.

Vocera Communications pulled off a trailing four-quarter earnings surprise of 115.4%, on average. The stock has returned 74.6% in the past year.

SeaChange International, Inc. (SEAC - Free Report) carries a Zacks Rank #2 (Buy). The consensus estimate for current-year earnings has been revised upward by 10% over the past 60 days.

SeaChange International delivered a trailing four-quarter earnings surprise of 37.2%, on average. The stock has, however, declined 13.6% in the past year.

Qualcomm, Inc. (QCOM - Free Report) , carrying a Zacks Rank #2, is another solid pick for investors. The consensus estimate for current-year earnings has been revised 12.2% upward over the past 60 days.

Qualcomm delivered a trailing four-quarter earnings surprise of 12.2%, on average. It has appreciated 19.9% in the past year.