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Altice Q1 Earnings Miss Estimates, Revenues Decline Y/Y
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Altice USA, Inc. (ATUS - Free Report) reported soft first-quarter 2025 results, with both the bottom line and revenues missing the Zacks Consensus Estimate. The company witnessed revenue contraction year over year, owing to weak demand trends in the Residential, Business Services and Wholesale segments. However, growth in mobile line and fiber customer net additions, focus on network upgrades, improved customer care and financial discipline were the positives.
Net Income
Altice reported a net loss of $71.3 million or a loss of 16 cents per share compared with a loss of $12.3 million or a loss of 5 cents per share in the prior-year quarter. Declining revenues year over year led to a wider loss during the quarter. The bottom line missed the Zacks Consensus Estimate by 7 cents. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Altice USA, Inc. Price, Consensus and EPS Surprise
Total revenues in the quarter were $2.15 billion, down from $2.25 billion in the prior-year quarter. Declining net sales from broadband and video customers impeded the top line, which missed the consensus estimate of $2.16 billion. However, the company is steadily expediting DOCSIS 3.1 upgrades to expand its fiber footprint. The company is well on track to reach its goal of adding 1 million fiber customers by the end of 2026. ATUS’ new offerings, such as Whole Home WiFi and Total Care, are gaining strong popularity.
The company made progress in its growth strategies by accelerating network enhancement and customer experience. At the quarter-end, Altice had 2.99 billion FTTH (Fiber to the Home) passings, about 33,200 of which were added during the quarter.
FTTH broadband net additions were more than 68,500 in the quarter, led by more than double the pace of fiber migrations of existing customers and higher fiber gross additions. Total fiber broadband customers reached 606,700 by the end of the quarter. Residential average revenue per user (ARPU) declined to $133.93 from $135.67 a year ago.
Business services and Wholesale revenues declined to $363.5 million from the year-ago quarter’s tally of $364.9 million. However, net sales surpassed our revenue estimate of $341.8 million.
News and Advertising revenues decreased to $102.4 million from the year-ago quarter’s $105.7 million. Net sales beat our revenue estimate of $99.4 million.
Residential revenues (which include Broadband, Video and Telephony) were $1.66 billion, down from $1.76 billion in the year-earlier quarter. This was primarily due to the loss of higher ARPU video customers. The segment's revenues missed our estimate of $1.71 billion.
Other Quarterly Details
Operating income declined to $343.5 million from $393.2 million in the year-ago quarter. Adjusted EBITDA was $799.01 million compared with $846.5 million in the prior-year quarter. Optimum Mobile witnessed healthy subscriber growth during the quarter, reaching 509,000 customers. Altice’s total passings grew more than 25,200 and reached 9.85 million at the end of the first quarter of 2025.
Cash Flow & Liquidity
In the first quarter, Altice generated $187.4 million of cash from operating activities compared with $399.6 million a year ago. As of March 31, 2025, the company’s net debt was $24.9 billion.
Outlook
For 2025, the company expects revenue in the range of $8.6-8.7 billion, and adjusted EBITDA is expected at approximately $3.4 billion. Capital expenditure is projected at $1.2 billion.
ATUS’ Zacks Rank & Stocks to Consider
Altice currently carries a Zacks Rank #5 (Strong Sell).
Here are some better-ranked stocks that investors may consider.
In the trailing four quarters, InterDigital delivered an earnings surprise of 160.15%. It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. InterDigital boasts a comprehensive portfolio of more than 33,000 granted patents and applications. The company witnessed an exceptional year in innovation in 2024, with more than 5,000 new patent filings worldwide.
T-Mobile US, Inc. (TMUS - Free Report) carries a Zacks Rank #2 at present. Headquartered in Bellevue, WA, T-Mobile is a national wireless service provider. It continues to deploy 5G with the mid-band 2.5 GHz spectrum from Sprint. The 2.5 GHz 5G delivers superfast speeds and extensive coverage with signals that go through walls and trees, unlike 5G networks that are controlled by the mmWave spectrum. This gives T-Mobile a competitive edge over AT&T and Verizon.
Juniper Networks, Inc. (JNPR - Free Report) sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 4.88%.
Juniper is leveraging the 400-gig cycle to capture hyperscale switching opportunities inside the data center. The company is set to capitalize on the increasing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence. Juniper also introduced new features within the AI-driven enterprise portfolio that enable customers to simplify the rollout of their campus wired and wireless networks while bringing greater insight to network operators.
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Altice Q1 Earnings Miss Estimates, Revenues Decline Y/Y
Altice USA, Inc. (ATUS - Free Report) reported soft first-quarter 2025 results, with both the bottom line and revenues missing the Zacks Consensus Estimate. The company witnessed revenue contraction year over year, owing to weak demand trends in the Residential, Business Services and Wholesale segments. However, growth in mobile line and fiber customer net additions, focus on network upgrades, improved customer care and financial discipline were the positives.
Net Income
Altice reported a net loss of $71.3 million or a loss of 16 cents per share compared with a loss of $12.3 million or a loss of 5 cents per share in the prior-year quarter. Declining revenues year over year led to a wider loss during the quarter. The bottom line missed the Zacks Consensus Estimate by 7 cents. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Altice USA, Inc. Price, Consensus and EPS Surprise
Altice USA, Inc. price-consensus-eps-surprise-chart | Altice USA, Inc. Quote
Revenues
Total revenues in the quarter were $2.15 billion, down from $2.25 billion in the prior-year quarter. Declining net sales from broadband and video customers impeded the top line, which missed the consensus estimate of $2.16 billion. However, the company is steadily expediting DOCSIS 3.1 upgrades to expand its fiber footprint. The company is well on track to reach its goal of adding 1 million fiber customers by the end of 2026. ATUS’ new offerings, such as Whole Home WiFi and Total Care, are gaining strong popularity.
The company made progress in its growth strategies by accelerating network enhancement and customer experience. At the quarter-end, Altice had 2.99 billion FTTH (Fiber to the Home) passings, about 33,200 of which were added during the quarter.
FTTH broadband net additions were more than 68,500 in the quarter, led by more than double the pace of fiber migrations of existing customers and higher fiber gross additions. Total fiber broadband customers reached 606,700 by the end of the quarter. Residential average revenue per user (ARPU) declined to $133.93 from $135.67 a year ago.
Business services and Wholesale revenues declined to $363.5 million from the year-ago quarter’s tally of $364.9 million. However, net sales surpassed our revenue estimate of $341.8 million.
News and Advertising revenues decreased to $102.4 million from the year-ago quarter’s $105.7 million. Net sales beat our revenue estimate of $99.4 million.
Residential revenues (which include Broadband, Video and Telephony) were $1.66 billion, down from $1.76 billion in the year-earlier quarter. This was primarily due to the loss of higher ARPU video customers. The segment's revenues missed our estimate of $1.71 billion.
Other Quarterly Details
Operating income declined to $343.5 million from $393.2 million in the year-ago quarter. Adjusted EBITDA was $799.01 million compared with $846.5 million in the prior-year quarter. Optimum Mobile witnessed healthy subscriber growth during the quarter, reaching 509,000 customers. Altice’s total passings grew more than 25,200 and reached 9.85 million at the end of the first quarter of 2025.
Cash Flow & Liquidity
In the first quarter, Altice generated $187.4 million of cash from operating activities compared with $399.6 million a year ago. As of March 31, 2025, the company’s net debt was $24.9 billion.
Outlook
For 2025, the company expects revenue in the range of $8.6-8.7 billion, and adjusted EBITDA is expected at approximately $3.4 billion. Capital expenditure is projected at $1.2 billion.
ATUS’ Zacks Rank & Stocks to Consider
Altice currently carries a Zacks Rank #5 (Strong Sell).
Here are some better-ranked stocks that investors may consider.
InterDigital (IDCC - Free Report) carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the trailing four quarters, InterDigital delivered an earnings surprise of 160.15%. It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. InterDigital boasts a comprehensive portfolio of more than 33,000 granted patents and applications. The company witnessed an exceptional year in innovation in 2024, with more than 5,000 new patent filings worldwide.
T-Mobile US, Inc. (TMUS - Free Report) carries a Zacks Rank #2 at present. Headquartered in Bellevue, WA, T-Mobile is a national wireless service provider. It continues to deploy 5G with the mid-band 2.5 GHz spectrum from Sprint. The 2.5 GHz 5G delivers superfast speeds and extensive coverage with signals that go through walls and trees, unlike 5G networks that are controlled by the mmWave spectrum. This gives T-Mobile a competitive edge over AT&T and Verizon.
Juniper Networks, Inc. (JNPR - Free Report) sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 4.88%.
Juniper is leveraging the 400-gig cycle to capture hyperscale switching opportunities inside the data center. The company is set to capitalize on the increasing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence. Juniper also introduced new features within the AI-driven enterprise portfolio that enable customers to simplify the rollout of their campus wired and wireless networks while bringing greater insight to network operators.