Latest news with #AlticeUSA
Yahoo
6 days ago
- Business
- Yahoo
3 Profitable Stocks Showing Warning Signs
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages. Just because a business is in the green today doesn't mean it will thrive tomorrow. Profits are valuable, but they're not everything. At StockStory, we help you identify the companies that have real staying power. That said, here are three profitable companies to steer clear of and a few better alternatives. Trailing 12-Month GAAP Operating Margin: 18.4% Based in Long Island City, Altice USA (NYSE:ATUS) is a telecommunications company offering cable, internet, telephone, and television services across the United States. Why Do We Think ATUS Will Underperform? Demand for its offerings was relatively low as its number of broadband subscribers has underwhelmed Sales were less profitable over the last five years as its earnings per share fell by 27.4% annually, worse than its revenue declines Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution Altice's stock price of $2.32 implies a valuation ratio of 0.3x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than ATUS. Trailing 12-Month GAAP Operating Margin: 30.5% With almost 100% of its properties under franchise agreements, Choice Hotels (NYSE:CHH) is a hotel franchisor known for its diverse brand portfolio including Comfort Inn, Quality Inn, and Clarion. Why Do We Avoid CHH? Revenue per room has disappointed over the past two years due to weaker trends in its daily rates and occupancy levels Demand is forecasted to shrink as its estimated sales for the next 12 months are flat Waning returns on capital imply its previous profit engines are losing steam At $126.92 per share, Choice Hotels trades at 18.1x forward P/E. If you're considering CHH for your portfolio, see our FREE research report to learn more. Trailing 12-Month GAAP Operating Margin: 13.9% With roots dating back to 1807 when Charles Wiley opened a small printing shop in Manhattan, John Wiley & Sons (NYSE:WLY) is a global academic publisher that provides scientific journals, books, digital courseware, and knowledge solutions for researchers, students, and professionals. Why Should You Dump WLY? Sales tumbled by 1.6% annually over the last five years, showing market trends are working against its favor during this cycle Earnings per share were flat over the last two years and fell short of the peer group average Free cash flow margin dropped by 4.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up Wiley is trading at $39.30 per share, or 16.3x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including WLY in your portfolio, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
Yahoo
11-05-2025
- Business
- Yahoo
Analyst Estimates: Here's What Brokers Think Of Altice USA, Inc. (NYSE:ATUS) After Its First-Quarter Report
Investors in Altice USA, Inc. (NYSE:ATUS) had a good week, as its shares rose 6.1% to close at US$2.62 following the release of its quarterly results. It was a pretty bad result overall; while revenues were in line with expectations at US$2.2b, statutory losses exploded to US$0.16 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results. Our free stock report includes 2 warning signs investors should be aware of before investing in Altice USA. Read for free now. Taking into account the latest results, the 16 analysts covering Altice USA provided consensus estimates of US$8.57b revenue in 2025, which would reflect a small 3.2% decline over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 78% to US$0.075. Before this earnings announcement, the analysts had been modelling revenues of US$8.56b and losses of US$0.19 per share in 2025. Although the revenue estimates have not really changed Altice USA'sfuture looks a little different to the past, with a considerable decrease in the loss per share forecasts in particular. View our latest analysis for Altice USA There's been no major changes to the consensus price target of US$2.95, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Altice USA analyst has a price target of US$7.40 per share, while the most pessimistic values it at US$1.00. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates. One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. Over the past five years, revenues have declined around 2.4% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 4.2% decline in revenue until the end of 2025. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 2.7% per year. So while a broad number of companies are forecast to grow, unfortunately Altice USA is expected to see its revenue affected worse than other companies in the industry. The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Altice USA's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Altice USA going out to 2027, and you can see them free on our platform here. Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Altice USA that you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
10-05-2025
- Business
- Yahoo
Altice USA, Inc. (ATUS): Among the Best American Penny Stocks to Buy Now
We recently compiled a list of the . In this article, we are going to take a look at where Altice USA, Inc. (NYSE:ATUS) stands against the other American penny stocks. American penny stocks comprise shares of US-based companies that trade under $5 on public exchanges. Besides their perceived appeal to retail investors due to cheap price and the possibility to affordably amass a large number of shares, American penny stocks are distinct for representing two important factors – the small-cap factor and the US country factor. Readers should know that these two factors are known for significantly outperforming their broad market counterparts in the last 15 years after the Great Financial Crisis. For reference, small-cap factor has outperformed its large-cap counterparts throughout the 2010s as the economy experienced a relatively peaceful period with relatively low interest rates, which is highly favorable for small, high-growth businesses. Likewise, the US stock market has consistently outperformed the World stock market, including major markets like Europe, China, and Japan, thanks to superior productivity growth and valuation expansion. The situation drastically reversed in late 2024 and early 2025 with the election of a new US administration. The US stock market underperformed by more than 15% markets like Germany and China since the beginning of the year. The small-cap factor fell out of favor relative to the large-cap factor. The former event was driven by aggressive Trump 2.0 cuts and tariff threats, which put the US export/import base at risk, while the latter is driven by market uncertainty and investors flying to safe assets such as gold, bonds, or mature large-cap stocks. We believe that both these developments are temporary shocks and do not represent structural or definitive changes. In this context, a smart way to make money in the market would be to take a contrarian bet and buy American small-cap and penny stocks while they are relatively underpriced vs. their global and large-cap counterparts. READ ALSO: 13 Best Canadian Penny Stocks to Invest in Now First of all, we are firm believers that US investors should 'stay at home' and continue to favor domestic stocks. The superior performance of the US stock market was not luck, but rather consistent productivity growth through deregulation, capital favoring risky but promising projects, and a more prominent hustle mentality. The European Central Bank confirms these findings and mentions that between Q4 2019 and Q2 2024, labor productivity per hour worked increased by 0.9% in the Euro area, whereas it increased by 6.7% in the US. This difference is significant and compounds over time, leading to drastic differences in stock price performance over 5-10 years or more. Odds are that the US will continue to outperform Europe and the rest of the world in productivity gains. According to analysts, Trump turmoil is a temporary thing; tariff uncertainty should naturally resolve at some point, through either a trade deal or a withdrawal by the President himself. Furthermore, the Trump 2.0 regime has some aces up its sleeve, such as tax cuts and further deregulation, which is a heaven for productivity growth. Europe, on the other hand, remains a slow bureaucratic machine that is fueling its economic growth through debt issuance and industrial-military projects that bring very little value added (for reference, the German €500 billion spending bill will mostly result in new missiles that will probably never be fired). Likewise, China has its own problems, such as stalled population growth and increasing threats of onshoring and outsourcing to India and other regions. India got itself stuck in a new war with Pakistan, which might negatively impact its investment climate and economic growth. Second, small caps and penny stocks became cheaper due to recessionary threats and widespread signals that the US economy is slowing down. While many sectors, such as construction and industrial automation, are indeed in a slowdown, the stock market is a forward-looking animal that gauges developments that would impact the economy 6-12 months from now. In other words, the market is very likely to return to growth upon the slightest positive signal. We believe there are many indications that the US will be able to avoid a deep economic recession. Rumors, as well as thorough analysts from leading banks like JP Morgan, say that the tariff saga is approaching a possible end through a deal with China and other large trade partners. China is likely to sit at the negotiating table as its economic outlook has been deteriorating as well – it turns out that around 20 million jobs in the country are directly dependent on commerce with the US. Avoiding a trade deal with the US might be more catastrophic for China than it might be for the US. Also, the latest report shows that the US economy added 177,000 jobs in April, beating expectations by a wide margin, which indicates that CEOs are reluctant to downscale their business and rather anticipate a gradual rejuvenation in the business environment later in the year. With that being said, contrary to the prevailing belief, our opinion is that the US economy is far from doomed. History shows that stock markets have always recovered and always scored new highs. In this context, the best American penny stocks could become favored again and outperform the broad market. To compile our list of the best American penny stocks, we used a screener to identify companies based in the US with a share price below $5.00. Then we compared the list with Insider Monkey's proprietary database of hedge funds' ownership, as of Q4 2024, and included in the article the top 10 stocks with the largest number of hedge funds that own the stock, ranked in ascending order. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A customer watching a movie on their HD television through a video-on-demand service. Altice USA, Inc. (NYSE:ATUS) delivers internet, television, mobile, and voice services to more than 4.6 million residential and business customers in the US. The company also operates Optimum Media, offering audience-based, multiscreen advertising solutions to local, regional, and national businesses. The ATUS has built a decent national scale, with a presence in 21 states. The year 2024 was transformative for Altice USA, Inc. (NYSE:ATUS), with the company achieving significant milestones in fiber deployment, reaching 3 million fiber passings and surpassing 538,000 fiber customers. The company recorded its best quarter for fiber net additions with 57,000, and achieved impressive mobile growth with 40,000 line net additions, marking the best mobile performance in five years. Despite these achievements, broadband subscriber net losses were 39,000 in Q4, affected by hurricane impacts in North Carolina and various pilot programs. Revenue performance showed mixed results, with total revenue of $9 billion declining 3.1% YoY, though this represented an improvement from prior year declines. Altice USA, Inc. (NYSE:ATUS) is implementing a strategic network roadmap that includes fiber expansion and multi-gig rollout across its footprint through network innovations and disciplined investments. For 2025, the company expects to stabilize adjusted EBITDA and enhance capital efficiency, targeting approximately $1.3 billion in capital expenditure. The company's new pricing approach is expected to deliver up to an incremental $100 million in revenue in 2025, while operational efficiencies are projected to moderate other operating expenses by 4% to 6% by the end of 2026. Additionally, the company maintained positive free cash flow growth of 23% YoY to $149 million in 2024, despite increased cash interest costs. ATUS transformation and commitment already bring improvements in financial performance and future guidance, which makes it one of the best American stocks to buy on our list. Overall ATUS ranks 2nd on our list of the best American penny stocks to buy now. While we acknowledge the potential of ATUS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ATUS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. 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Yahoo
08-05-2025
- Business
- Yahoo
Altice's (NYSE:ATUS) Q1 Earnings Results: Revenue In Line With Expectations
Telecommunications and cable services provider Altice USA (NYSE:ATUS) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 4.4% year on year to $2.15 billion. Its GAAP loss of $0.16 per share was significantly below analysts' consensus estimates. Is now the time to buy Altice? Find out in our full research report. Revenue: $2.15 billion vs analyst estimates of $2.16 billion (4.4% year-on-year decline, in line) EPS (GAAP): -$0.16 vs analyst estimates of -$0.08 (significant miss) Adjusted EBITDA: $799 million vs analyst estimates of $810.8 million (37.1% margin, 1.4% miss) Operating Margin: 16%, down from 17.5% in the same quarter last year Free Cash Flow was -$168.6 million, down from $63.57 million in the same quarter last year Broadband Subscribers: 3.96 million, down 176,400 year on year Market Capitalization: $1.24 billion Dennis Mathew, Altice USA Chairman and Chief Executive Officer, said: "Our first quarter results reflect steady progress against our operational and financial priorities. We achieved record customer growth in our fiber and mobile businesses and saw sequential improvement in our broadband subscriber performance, all while successfully completing two major programming negotiations with favorable outcomes and minimal disruptions to our customers. We are activating competitive strategies with enhanced go-to-market effectiveness, deepening penetration of both new and existing products, and transforming our operations to drive efficiency, leading to our lowest churn levels in three years. Based on our continued progress and momentum we expect to deliver approximately $3.4bn of Adjusted EBITDA in Full Year 2025, representing a meaningful improvement from prior year trends, as we stay focused on sustainable growth, shareholder value, and delivering best-in-class services to the communities we serve." Based in Long Island City, Altice USA (NYSE:ATUS) is a telecommunications company offering cable, internet, telephone, and television services across the United States. Examining a company's long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Altice struggled to consistently generate demand over the last five years as its sales dropped at a 2% annual rate. This was below our standards and is a sign of poor business quality. We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Altice's recent performance shows its demand remained suppressed as its revenue has declined by 3.5% annually over the last two years. Altice also discloses its number of broadband subscribers and pay tv subscribers, which clocked in at 3.96 million and 1.79 million in the latest quarter. Over the last two years, Altice's broadband subscribers averaged 3.2% year-on-year declines while its pay tv subscribers averaged 12.1% year-on-year declines. This quarter, Altice reported a rather uninspiring 4.4% year-on-year revenue decline to $2.15 billion of revenue, in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to decline by 4.1% over the next 12 months, similar to its two-year rate. This projection doesn't excite us and indicates its newer products and services will not catalyze better top-line performance yet. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Altice's operating margin might fluctuated slightly over the last 12 months but has generally stayed the same, averaging 18.3% over the last two years. This profitability was top-notch for a consumer discretionary business, showing it's an well-run company with an efficient cost structure. This quarter, Altice generated an operating profit margin of 16%, down 1.5 percentage points year on year. This reduction is quite minuscule and indicates the company's overall cost structure has been relatively stable. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Sadly for Altice, its EPS declined by 27.4% annually over the last five years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand. In Q1, Altice reported EPS at negative $0.16, down from negative $0.05 in the same quarter last year. This print missed analysts' estimates. Over the next 12 months, Wall Street is optimistic. Analysts forecast Altice's full-year EPS of negative $0.34 will reach break even. We struggled to find many positives in these results as its EPS and EBITDA missed significantly. Its number of broadband subscribers also fell short of Wall Street's estimates. Overall, this was a weaker quarter. The stock traded down 4.5% to $2.52 immediately following the results. The latest quarter from Altice's wasn't that good. One earnings report doesn't define a company's quality, though, so let's explore whether the stock is a buy at the current price. If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. 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Yahoo
10-04-2025
- Business
- Yahoo
Should You Think About Buying Altice USA, Inc. (NYSE:ATUS) Now?
While Altice USA, Inc. (NYSE:ATUS) might not have the largest market cap around , it saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. As a stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. However, what if the stock is still a bargain? Let's examine Altice USA's valuation and outlook in more detail to determine if there's still a bargain opportunity. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Altice USA appears to be overvalued by 28% at the moment, based on our discounted cash flow valuation. The stock is currently priced at US$2.45 on the market compared to our intrinsic value of $1.91. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Given that Altice USA's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. View our latest analysis for Altice USA Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Altice USA's earnings over the next few years are expected to increase by 39%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? ATUS's optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe ATUS should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping an eye on ATUS for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there's no upside from mispricing. However, the positive outlook is encouraging for ATUS, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. If you'd like to know more about Altice USA as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 2 warning signs for Altice USA you should be aware of. If you are no longer interested in Altice USA, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
