NEW YORK (TheStreet) -- Shares of Cablevision Systems Corp. (CVC) are up 1.87% to $16.87 on heavy trading volume as the company said it swung to a profit in the first quarter, driven by higher rates and advertising sales that boosted its cable revenue, the Wall Street Journal reports.
The company's results significantly outpaced market expectations, even as it lost customers during the quarter.
The cable provider reported a profit of $89.8 million, or 33 cents per share, compared with a year-earlier loss of $16.1 million, or six cents per share. The year-earlier period included a loss of $71.7 million on equity derivative contracts and a $9.3 million loss from discontinued operations.
Overall revenue was up 4.3% to $1.58 billion, while cable advertising revenue gained 17%.
Analysts polled by Thomson Reuters expected per-share profit of three cents and revenue of $1.56 billion.
In the latest period, Cablevision's total customers declined by roughly 2,000 to 3.19 million from a year earlier. The company lost a net 14,000 video customers, but that was partially offset by gaining broadband and voice customers, the Journal said.
TheStreet Ratings team rates CABLEVISION SYS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CABLEVISION SYS CORP (CVC) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow."