Cable One (NYSE:CABO) Issues Earnings Results, Misses Expectations By $0.15 EPS

Cable One (NYSE:CABO) announced its quarterly earnings results on Thursday. The company reported $6.12 earnings per share for the quarter, missing the consensus estimate of $6.27 by ($0.15), FiscalAI reports. The firm had revenue of $352.96 million for the quarter, compared to analysts’ expectations of $360.01 million. Cable One had a negative net margin of 23.74% and a positive return on equity of 7.36%.

Here are the key takeaways from Cable One’s conference call:

• In Q1 total revenue fell to $353 million from $380.6 million a year ago, with residential data revenue down ~5.1% (driven by a ~6.1% subscriber decline) and 12,600 net residential broadband losses sequentially, pressuring adjusted EBITDA to $183.3 million.
• The business generated roughly $115 million of free cash flow in Q1 and ~$500 million LQA, repaid the $575 million convertible, voluntarily paid down ~$90.6 million of debt, and finished the quarter with ~$700 million undrawn revolver capacity and a ~4x net leverage LQA.
• Management is rolling out operational fixes—targeted retention programs (AI tools, stepped promo roll-offs, speed upgrades), a new CRM later this year, an MSO-wide mobile launch (2 months in) with encouraging early response, and plans to expand multi‑gig capability from 53% to most markets by year‑end.
• The planned MBI acquisition remains on track to close in early Q4 with the purchase consideration locked at $480 million, and management now expects assumed/refinanced MBI debt of about $895–$925 million, which will modestly increase leverage but is described as manageable with proactive refinancing plans.
• Competitive intensity remains high—about 80% of the footprint faces one or more FWA competitors and satellite/LEO offers are increasing—driving elevated churn concentrated in ~15% of markets and expected back‑book ARPU pressure (management cited a $2–$5 potential adjustment over time).

Cable One Stock Up 2.1%

Shares of CABO stock traded up $1.90 during midday trading on Thursday, reaching $91.94. 178,442 shares of the stock were exchanged, compared to its average volume of 117,174. Cable One has a 1 year low of $70.37 and a 1 year high of $269.17. The company’s 50 day moving average is $100.54 and its two-hundred day moving average is $111.62. The company has a current ratio of 0.40, a quick ratio of 0.40 and a debt-to-equity ratio of 1.81. The firm has a market cap of $521.31 million, a PE ratio of -1.44 and a beta of 0.69.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Baupost Group LLC MA purchased a new stake in Cable One in the third quarter worth $12,068,000. Charles Schwab Investment Management Inc. lifted its position in Cable One by 20.6% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 147,470 shares of the company’s stock valued at $16,642,000 after buying an additional 25,191 shares during the period. Marshall Wace LLP lifted its position in Cable One by 4.3% during the third quarter. Marshall Wace LLP now owns 146,318 shares of the company’s stock valued at $25,906,000 after buying an additional 6,000 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Cable One by 0.7% during the 4th quarter. Geode Capital Management LLC now owns 116,806 shares of the company’s stock valued at $13,184,000 after buying an additional 864 shares in the last quarter. Finally, Ameriprise Financial Inc. boosted its holdings in shares of Cable One by 32.5% during the 3rd quarter. Ameriprise Financial Inc. now owns 57,870 shares of the company’s stock valued at $10,246,000 after buying an additional 14,198 shares in the last quarter. Hedge funds and other institutional investors own 89.92% of the company’s stock.

Wall Street Analysts Forecast Growth

CABO has been the topic of a number of analyst reports. Zacks Research cut shares of Cable One from a “strong-buy” rating to a “hold” rating in a research report on Thursday, April 16th. Wells Fargo & Company cut their target price on Cable One from $107.00 to $90.00 and set an “underweight” rating on the stock in a research note on Friday, February 27th. BNP Paribas Exane downgraded Cable One from a “neutral” rating to an “underperform” rating and set a $80.00 price target on the stock. in a report on Tuesday, February 24th. TD Cowen lowered their price target on Cable One from $260.00 to $142.00 and set a “hold” rating for the company in a research report on Friday, February 27th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Cable One in a report on Monday, April 20th. Five research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, Cable One has an average rating of “Reduce” and a consensus target price of $114.25.

About Cable One

Cable One, Inc (NYSE:CABO) is an American provider of broadband communications services, offering a suite of residential and business solutions over a hybrid fiber-coaxial network. The company delivers high-speed internet access, digital video, voice communications and mobile services, alongside advanced managed Wi-Fi and cybersecurity tools. Cable One’s infrastructure supports both traditional cable offerings and converged IP-based platforms designed to meet evolving customer needs.

In addition to consumer-focused services, Cable One caters to small and medium-sized enterprises with dedicated business-class connectivity, Ethernet solutions and cloud-based voice applications.