Analyst Note| Michael Hodel, CFA |
Altice USA posted a small (0.2%) year-over-year revenue decline during the third quarter, as accruals for rebates of regional sports network fees and credits for storm outages weighed on otherwise solid results. Continued cost control efforts produced improved profitability, despite investments to grow the wireless business. Altice also reported encouraging early results from its fiber-to-the-home initiative in the New York market, with 44% of new customers in eligible areas taking fiber service. We don’t plan to change our $30 fair value estimate, leaving the shares modestly undervalued.