Overview

* Cable One ( CABO ) Q2 revenue fell 3.4% yr/yr but beat analyst expectations

* Adjusted EBITDA for Q2 beats analyst estimates despite a net loss of $438 mln

* Says broadband customer results didn't meet its expectations in the quarter

* Co repaid $70.8 mln of debt in Q2, maintaining strong liquidity

Outlook

* Cable One ( CABO ) sees sequential growth in residential broadband customer connections

* Company expects improved operating performance through simplified pricing strategies

* Cable One ( CABO ) anticipates stronger customer response from segmented marketing campaigns

* Company notes modest increase in residential data revenue sequentially

Result Drivers

* VIDEO REVENUE DECLINE - Co attributes $9 mln revenue decrease to decline in residential video revenues as it exits video product lifecycle

* ASSET IMPAIRMENTS - Net loss driven by $456.2 mln non-cash asset impairment charges, triggered by stock price decline

* DATA REVENUE STABILITY - Residential data revenue decreased slightly yr/yr but increased sequentially, aided by higher ARPU

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $381.07 $379.20

Revenue mln mln (6

Analysts

)

Q2 Net -$437.98

Income mln

Q2 Beat $203.21 $200 mln

Adjusted mln (6

EBITDA Analysts

)

Q2 -$489.32

Operatin mln

g Income

Q2 -$534.60

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the integrated telecommunications services peer group is "buy."

* Wall Street's median 12-month price target for Cable One Inc ( CABO ) is $345.00, about 61.6% above its July 30 closing price of $132.64

* The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)