Cablevision announced it lost 34,000 cable subscribers in the fourth quarter, more than the 24,000 estimated by Wunderlich Securities and 25,000 estimated by Wells Fargo, according to Bloomberg. This was the 10th consecutive quarter in which Cablevision lost subscribers.
But the Bethpage, NY-based cable company increased its average monthly cable revenue per customer by 5.3% for the quarter.
Exclusive Report: Jim Cramer’s Best Stocks for 2015
Cablevision also posted a 3.4% decline in adjusted operating cash flow, an important metric in the cable TV industry, to $440.9 million.
The company announced the number of video customers declined 4.7% year-over-year to 2.68 million in the quarter ended December 31.
Net income attributable to Cablevision shareholders rose 9% year-over-year to $56 million, or 20 cents a share, from $51.8 million, or 19 cents a share. The boost was due in part to a 9% increase in cable advertising revenue and the aforementioned 5.3% increase in average monthly cable revenue per customer.
Net revenue rose to $1.63 billion from $1.58 billion.
Analysts polled by Thomson Reuters had expected a profit of 19 cents a share on revenue of $1.63 billion.
Separately, 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 solid stock price performance, impressive record of earnings per share growth and revenue growth. However, as a counter to these strengths, we find that net income has been generally deteriorating over time."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- CABLEVISION SYS CORP has improved earnings per share by 18.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CABLEVISION SYS CORP increased its bottom line by earning $0.48 versus $0.25 in the prior year. This year, the market expects an improvement in earnings ($1.14 versus $0.48).
- The gross profit margin for CABLEVISION SYS CORP is rather high; currently it is at 51.57%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CVC's net profit margin of 4.39% significantly trails the industry average.
- Net operating cash flow has slightly increased to $321.28 million or 5.78% when compared to the same quarter last year. Despite an increase in cash flow, CABLEVISION SYS CORP's cash flow growth rate is still lower than the industry average growth rate of 22.45%.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Media industry. The net income has significantly decreased by 75.7% when compared to the same quarter one year ago, falling from $294.60 million to $71.49 million.
- You can view the full analysis from the report here: CVC Ratings Report