Altice USA, Inc. (ATUS) Reports Q1 Loss, Lags Revenue Estimates

Group 1: Earnings Performance - Altice USA reported a quarterly loss of $0.16 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.09, and compared to a loss of $0.05 per share a year ago, indicating an earnings surprise of -77.78% [1] - The company posted revenues of $2.15 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.48%, and down from $2.25 billion in the same quarter last year [2] - Over the last four quarters, Altice USA has not surpassed consensus EPS estimates and has consistently missed revenue estimates [2] Group 2: Stock Performance and Outlook - Altice USA shares have increased by about 10% since the beginning of the year, contrasting with a -4.3% decline in the S&P 500 [3] - The company's earnings outlook is critical for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $2.15 billion, and -$0.30 on revenues of $8.57 billion for the current fiscal year [7] Group 3: Industry Context - The Communication - Components industry, to which Altice USA belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Altice USA's stock performance [5] - The unfavorable trend in estimate revisions has resulted in a Zacks Rank 5 (Strong Sell) for Altice USA, suggesting expected underperformance in the near future [6]