Summary
- ATUS stock has rebounded 17% on Thursday and Friday, but is still down 71% in a year and carries a 20%+ Free Cash Flow Yield.
- However, we see the 29% collapse in ATUS shares on November 2 after Q3 results as the right reaction. The business is not getting better.
- Revenues fell 4.3% and EBIT fell 12.7% year-on-year in Q3. Broadband losses were worse than Q2, unlike at ATUS' larger Cable peers.
- ATUS's fiber roll-out is accelerating but not helping. Free Cash Flow was down two-thirds year-to-date and leverage has risen to 6.0x.
- The new CEO indicated no change in strategy. There was no update on the Suddenlink sale process. ATUS is too speculative. Avoid.
For further details see:
Altice USA: 17% Bounce In Two Days Despite Weak Q3 Results