Telecommunications and cable services provider Optimum Communications (NYSE:OPTU) will be reporting results this Thursday before market hours. Here’s what you need to know.
Optimum Communications beat analysts’ revenue expectations last quarter, reporting revenues of $2.18 billion, down 2.3% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates. It reported 3.81 million broadband subscribers, down 4.7% year on year.
Is Optimum Communications a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Optimum Communications’s revenue to decline 3.8% year on year, in line with the 4.4% decrease it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Optimum Communications has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Optimum Communications’s peers in the consumer discretionary - wireless, cable and satellite segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Comcast delivered year-on-year revenue growth of 10.9%, beating analysts’ expectations by 3.4%, and Sirius XM reported revenues up 1.1%, topping estimates by 1.1%. Comcast traded down 6.2% following the results while Sirius XM was up 1.7%.
Read our full analysis of Comcast’s results here and Sirius XM’s results here.
There has been positive sentiment among investors in the consumer discretionary - wireless, cable and satellite segment, with share prices up 6% on average over the last month. Optimum Communications is up 3.2% during the same time and is heading into earnings with an average analyst price target of $1.64 (compared to the current share price of $1.44).
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