A month has gone by since the last earnings report for Altice USA, Inc. (ATUS Quick QuoteATUS - Free Report) . Shares have lost about 3.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Altice USA, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Altice Surpasses Q4 Earnings & Revenue Estimates

Altice 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.

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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -16.57% due to these changes.

VGM Scores

At this time, Altice USA, Inc. has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Altice USA, Inc. has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.