Cablevision (CVC) Stock Up After CEO Dolan Expresses Interest in Deal

NEW YORK (TheStreet) -- Shares of Cablevision  (CVC) were up 3.34% to $21.03 in late afternoon trading Wednesday after CEO James Dolan said he would be interested in a deal with Time Warner Cable (TWC), Comcast  (CMCSA), and other cable operators.

Consolidation in the cable TV marketplace in New York would offer a "great deal of ingenuity and much more access to resources for the customers and lower prices," Dolan said on Wednesday in Chicago at the Internet & Television Expo, according to CNBC.

Dolan added he would not be interested in a deal with Verizon's (VZ) FiOS TV and Internet service.

Cablevision operates primarily in the New York area.

More than 18.9 million shares had changed hands as of 3:40 p.m., compared to the daily average volume of 3,233,430.

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 revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and feeble growth in the company's earnings per share."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 5.7%. Since the same quarter one year prior, revenues slightly increased by 2.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The gross profit margin for CABLEVISION SYS CORP is rather high; currently it is at 50.71%. Regardless of CVC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CVC's net profit margin of 2.76% is significantly lower than the industry average.
  • CABLEVISION SYS CORP's earnings per share declined by 41.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CABLEVISION SYS CORP increased its bottom line by earning $1.14 versus $0.48 in the prior year. For the next year, the market is expecting a contraction of 28.1% in earnings ($0.82 versus $1.14).
  • 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 50.3% when compared to the same quarter one year ago, falling from $89.76 million to $44.63 million.
  • You can view the full analysis from the report here: CVC Ratings Report

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