The analysts wrote, “Cablevision reported a significant deterioration in operating and financial results in 4Q12. While Hurricane Sandy was a material issue during the quarter, excluding the impact of the storm underlying results continue to deteriorate due to higher programming costs, competitive pressures, and an increase in capital expenditures. Cablevision has made significant investment to its content and infrastructure after years of underinvestment and year-over-year comparisons should reverse in 2H13; however we believe the company continues to face multiple hurdles in its efforts to return to growth including further increases in programming costs and continuing competition pressures. Moreover, with the sale of Optimum West for $1.6 billion (bought in 2010 for $1.4 billion) to Charter Communications (CHTR, Not Rated, $86.39) Cablevision will lose its primary source of growth, but the company’s high levels of debt may preclude any improvement in capital returns as proceeds from the sale are expected to be used primarily to pay down debt.”
Cablevision traded down 1.36% on Friday, hitting $13.80. Cablevision has a 1-year low of $10.76 and a 1-year high of $18.86. The stock’s 50-day moving average is currently $15.05. The company has a market cap of $3.632 billion and a price-to-earnings ratio of 21.13.
Cablevision last posted its quarterly earnings results on Thursday, February 28th. The company reported ($0.32) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by $0.41. The company had revenue of $1.70 billion for the quarter, compared to the consensus estimate of $1.70 billion. During the same quarter in the previous year, the company posted $0.22 earnings per share. The company’s revenue for the quarter was up .4% on a year-over-year basis. On average, analysts predict that Cablevision will post $0.77 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on CVC. Analysts at Wunderlich downgraded shares of Cablevision from a “buy” rating to a “hold” rating in a research note to investors on Friday. They now have a $15.00 price target on the stock, down previously from $20.00. Separately, analysts at Deutsche Bank reiterated a “hold” rating on shares of Cablevision in a research note to investors on Friday, December 7th. They now have a $17.00 price target on the stock. Finally, analysts at Goldman Sachs downgraded shares of Cablevision to a “sell” rating in a research note to investors on Thursday, December 6th.
Five equities research analysts have rated the stock with a buy rating, one has given an overweight rating, nine have given a hold rating, and three have issued a sell rating to the stock. The company has a consensus rating of “hold” and an average price target of $16.44.
Cablevision Systems Corporation (Cablevision), through wholly owned subsidiary CSC Holdings, LLC (CSC Holdings, and collectively with Cablevision) and their subsidiaries, owns and operates cable television systems and owns companies, which provides regional news, other programming and advertising sales services for the cable television industry, provide telephone service, operate motion picture theatres and operate a newspaper publishing business.
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