Altice (ATUS) To Report Earnings Tomorrow: Here Is What To Expect

Telecommunications and cable services provider Altice USA (NYSE:ATUS) will be reporting results tomorrow before market hours. Here's what to look for.

Altice met analysts' revenue expectations last quarter, reporting revenues of $2.30 billion, down 2.9% year on year. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

Is Altice a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Altice's revenue to decline 2.4% year on year to $2.24 billion, improving from the 5.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Altice has missed Wall Street's revenue estimates four times over the last two years.

Looking at Altice's peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Sirius XM posted flat year-on-year revenue, beating analysts' expectations by 1.4%, and Charter reported flat revenue, in line with consensus estimates. Charter's stock price was unchanged following the results.

Read our full analysis of Sirius XM's results here and Charter's results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share prices down 5.9% on average over the last month. Altice is down 22.4% during the same time and is heading into earnings with an average analyst price target of $3.5 (compared to the current share price of $1.94).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.