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Cablevision Systems Corporation (CVC) Beats on Earnings - Tale of the Tape

Zacks Equity Research

Cablevision Systems Corporation (CVC) is a leading cable MSO (multi service operator) in the U.S. which offers triple-play cable video programming, high-speed broadband (Internet) and voice (telephony) services to both residential and commercial customers under the “Optimum” brand name. The company also provides Ethernet-based data, Internet, voice, and video transport and managed services.


Cablevision has undertaken several initiatives to enhance the quality of its video offerings. The company increased its TV to GO services to more than 125 networks. Cablevision also strengthened its Multi-Room DVR service which enables customers to record up to 15 programs simultaneously while the launch of Optimum TV app will allow users to access Optimum content from anywhere. Cablevision Systems Corporation is consistently focusing on its WiFi network, referred to as the “Optimum WiFi Network”, for future growth.


However, Cablevision is persistently losing video customers despite the implementation of several growth-oriented strategies. Customer penetration rate for video, high-speed data and voice has also declined on an annual basis. Low-cost online video streaming service providers such as Netflix Inc., Hulu.com, YouTube etc., have become severe threats to cable TV operators.


Currently, Cablevision Systems Corporation has a Zacks Rank #3 (Hold), but that could definitely change following Cablevision Systems Corporation’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:


Earnings: Cablevision Systems Corporation beats on earnings. Our consensus earnings estimate called for EPS of 19 cents/share, and the company reported EPS of 20 cents/share instead. Investors should note that these figures take out stock option expenses.


Revenue: Cablevision Systems Corporation reported revenues of $1,631 million. This surpassed our consensus estimate of $1,627 million.


Key Stats to Note: Cablevision Systems Corporation reported Average Monthly Cable Revenue per Customer (RPC) of $155.20, up 5.3% year over year. However, the company continue to lose video customers.


Stock Price: Cablevision Systems Corporation shares were down almost 0.15%. Clearly, the initial reaction to the release is negative.
 

Check back later for our full write up on this Cablevision Systems Corporation earnings report later!


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