CABO Earnings Prediction
The chart below shows how CABO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CABO sees a +1.92% change in stock price 10 days leading up to the earnings, and a -6.67% change 10 days following the report. On the earnings day itself, the stock moves by -0.42%. This data can give you a slight idea of what to expect for the next quarter's release.
CABO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
393.56M
-6.37%
-0.23%
Gross Margin
51.78%
-4.43%
0.47%
Operating Margin
29.60%
-8.95%
-1.30%
Net Margin
11.23%
55.76%
-7.04%
EPS
7.58
43.29%
-7.11%
No Data Available
CABO Earnings Analysis
Cable One, Inc. Corporation (CABO.N) Earnings Conference Call
Positive
Residential ARPU Stability: 1. Stable ARPU: Residential ARPU stabilized sequentially in Q3 2024, with expectations for this trend to continue through the end of the year, indicating a positive outlook for revenue stability.
Business Data Revenue Increase: 2. Business Broadband Growth: Business data revenues increased by $1.6 million or 2.9% year-over-year, driven by strong demand across carrier, wholesale, and enterprise segments, showcasing the company's growth in high-revenue customer segments.
Network Utilization Efficiency: 3. Strong Network Performance: The network maintained low peak utilization rates of 19% downstream and 18% upstream, demonstrating the capacity to support continued growth without significant capital increases.
Dividend Distribution Success: 4. Successful Dividend Distribution: Cable One distributed $17 million in dividends to shareholders during Q3 2024, reflecting a commitment to returning capital to investors while maintaining financial health.
Debt Repayment Strategy: 5. Debt Repayment Commitment: The company repaid $54.6 million of debt in Q3 2024, including a $50 million voluntary repayment of its revolving credit facility, highlighting a disciplined approach to capital management.
Negative
Revenue Decline Analysis: 1. Decline in Total Revenues: Total revenues for Q3 2024 were $393.6 million, down from $420.3 million in Q3 2023, indicating a year-over-year decrease of approximately 6.5%.
Residential Data Revenue Decline: 2. Decrease in Residential Data Revenues: Residential data revenues decreased by $17.1 million or 6.9% year-over-year, primarily due to a 7.1% decrease in ARPU.
Customer Loss from ACP End: 3. Customer Losses Due to ACP Expiration: The discontinuation of the Affordable Connectivity Program resulted in a loss of 5,300 customers, contributing to a sequential decline of 3,400 customers in the quarter.
Adjusted EBITDA Decrease: 4. Adjusted EBITDA Decline: Adjusted EBITDA was $213.6 million, down from $230 million in the prior year quarter, reflecting a decrease of 7.1% year-over-year.
Adjusted EBITDA Decline: 5. Decrease in Adjusted EBITDA Less CapEx: Adjusted EBITDA less capital expenditures was $136.6 million in Q3 2024, a decrease of $15.6 million or 10.2% from the prior year.
CABO FAQs
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CABO Earning Call Sentiment
Cable One, Inc. (CABO) Q3 2024 Earnings Call Transcript
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00:00
00:00
CABO.N
-4.12%Positive
The earnings call summary presents a mixed picture: while there are positive aspects like improved net income and debt repayment, there are notable negatives such as declining total revenues and adjusted EBITDA. The Q&A section reveals uncertainties in market strategy and competitive pressures, particularly regarding wireless competition and pricing power. Despite a strong market cap for a small-cap company, the lack of clear strategic direction and the potential cash outlay for MBI acquisition contribute to a neutral sentiment, with stock price likely to remain stable within -2% to 2%.
