Altice USA (NYSE:ATUS) Shares Gap Down Following Weak Earnings

Shares of Altice USA, Inc. (NYSE:ATUS) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $2.09, but opened at $1.76. Altice USA shares last traded at $1.99, with a volume of 324,811 shares trading hands.

The company reported $0.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.08 by ($0.05). Altice USA had a negative net margin of 0.62% and a negative return on equity of 1.54%. The firm had revenue of $2.24 billion during the quarter, compared to analyst estimates of $2.25 billion. During the same quarter last year, the business posted $0.17 earnings per share. The company’s revenue for the quarter was down 3.6% on a year-over-year basis.

Wall Street Analyst Weigh In

ATUS has been the subject of several recent analyst reports. JPMorgan Chase & Co. reiterated an “underweight” rating on shares of Altice USA in a research note on Thursday, April 11th. Loop Capital lowered their price target on shares of Altice USA from $3.00 to $2.00 and set a “hold” rating on the stock in a report on Tuesday, April 23rd. BNP Paribas cut shares of Altice USA from a “neutral” rating to an “underperform” rating and set a $1.00 price target on the stock. in a report on Tuesday, April 9th. The Goldman Sachs Group began coverage on shares of Altice USA in a report on Monday, July 1st. They issued a “sell” rating and a $2.00 price target on the stock. Finally, Evercore ISI lowered their price target on shares of Altice USA from $3.00 to $2.00 and set an “in-line” rating on the stock in a report on Tuesday, July 2nd. Six research analysts have rated the stock with a sell rating, four have issued a hold rating and one has issued a buy rating to the stock. Based on data from MarketBeat.com, Altice USA has an average rating of “Hold” and a consensus target price of $2.07.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in ATUS. Swedbank AB bought a new position in Altice USA in the first quarter valued at approximately $66,000. Apollo Management Holdings L.P. increased its stake in Altice USA by 4.6% in the first quarter. Apollo Management Holdings L.P. now owns 2,281,533 shares of the company’s stock valued at $5,955,000 after acquiring an additional 100,000 shares during the last quarter. Alpine Global Management LLC bought a new position in Altice USA in the first quarter valued at approximately $65,000. Mitsubishi UFJ Trust & Banking Corp increased its stake in Altice USA by 13.0% in the first quarter. Mitsubishi UFJ Trust & Banking Corp now owns 460,585 shares of the company’s stock valued at $1,193,000 after acquiring an additional 53,158 shares during the last quarter. Finally, State Board of Administration of Florida Retirement System bought a new position in Altice USA in the first quarter valued at approximately $687,000. 54.85% of the stock is owned by institutional investors.

Altice USA Stock Down 4.8 %

The business’s 50 day moving average is $2.10 and its 200-day moving average is $2.25. The firm has a market capitalization of $823.33 million, a P/E ratio of 179.00, a PEG ratio of 0.66 and a beta of 1.48.

About Altice USA

Altice USA, Inc, together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, telephony, and mobile services to residential and business customers. The company's video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications.