Altice USA Q3 revenue down 5.4%

Overview

• Altice USA Q3 revenue fell 5.4% yr/yr, facing intense competition and low-growth environment

• Net loss of $1.63 bln includes $1.6 bln non-cash impairment charge

• Company to change name to Optimum Communications, Inc., ticker to "OPTU"

Outlook

• Altice USA reiterates full-year Adjusted EBITDA outlook of $3.4 bln for FY 2025

• Company targets 175k total new passings in FY 2025, primarily as fiber new builds

• Altice USA expects to launch 2-Gig speeds in first market by November 2025

Result Drivers

• GROSS MARGIN - Record gross margin performance driven by video gross margin expansion

• FIBER CUSTOMER GROWTH - Achieved milestone of over 700k fiber customers, a 46% increase yr/yr

• COMPETITION IMPACT - Intense competition and low-growth environment led to softer broadband subscriber trends

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 7 "hold" and 5 "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 Altice USA Inc is $2.00, about 7.5% below its November 5 closing price of $2.15

Press Release: ID:nBw99Vx8pa

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(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.)