Optimum Communications (NYSE:OPTU) Posts Quarterly Earnings Results, Misses Expectations By $0.14 EPS

Optimum Communications (NYSE:OPTU) released its quarterly earnings results on Thursday. The company reported ($0.15) EPS for the quarter, missing the consensus estimate of ($0.01) by ($0.14), Briefing.com reports. The firm had revenue of $2.18 billion for the quarter, compared to analysts’ expectations of $2.15 billion. The business’s revenue for the quarter was down 2.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.12) earnings per share.

Here are the key takeaways from Optimum Communications’ conference call:

• Adjusted EBITDA grew 7.7% YoY to $902M in Q4 and margin expanded to 41.3% (the first YoY EBITDA growth in 16 quarters), driven by improved gross margins and roughly $60M of operating expense reductions.
• Total revenue declined 2.3% YoY and Optimum lost 62,000 net broadband subscribers in Q4 (4.2M total), reflecting hyper‑competitive market dynamics and the company’s deliberate, more disciplined promotional/pricing approach that pressured net adds.
• Broadband ARPU rose 2.8% to $76.71 and residential ARPU was up 0.4% (to $134.49), while gross margin improved ~180 bps to ~69.5%, reflecting better product mix, rate actions, and programming cost discipline.
• Lightpath continues to scale as a differentiated growth platform—FY revenue $468M (+13%), $362M of AI‑driven contracts awarded (240% YoY increase), and an inaugural ~$1.7B ABS priced to refinance Lightpath debt to support future growth.
• The balance sheet remains a material risk with pro forma leverage around 7.3x last‑twelve‑month adjusted EBITDA, ~ $1.4B liquidity and a 3.3 year weighted average debt life; management says significant debt reduction is necessary but provided limited specifics.

Optimum Communications Stock Performance

Shares of Optimum Communications stock traded down $0.01 during trading hours on Friday, reaching $1.68. 2,346,712 shares of the company were exchanged, compared to its average volume of 1,828,656. The firm has a market cap of $786.97 million, a PE ratio of -0.42 and a beta of 1.51. Optimum Communications has a 1 year low of $1.52 and a 1 year high of $3.04. The stock’s fifty day moving average is $1.75 and its 200 day moving average is $2.08.

Optimum Communications News Summary

Here are the key news stories impacting Optimum Communications this week:

• Positive Sentiment: Q4 revenues beat Street estimates (reported $2.18B vs ~$2.15B) and several outlets called sales better-than-expected — a near-term upside that offsets some earnings concerns. Optimum Q4 Revenues Beat Estimates
• Positive Sentiment: Management highlighted operational improvements — fiber subscriber additions, mobile service growth and better EBITDA — which support medium-term profitability and revenue mix improvement. What Investors Need to Know
• Neutral Sentiment: Full Q4 earnings call transcript and presentation are available for review — useful for investors who want detail on guidance, segment trends and capital allocation. Q4 Earnings Call Transcript
• Negative Sentiment: EPS missed materially: reported loss-per-share of $-0.15 vs. expectations around $-0.01, widening the loss year-over-year and disappointing earnings-focused investors. Earnings Call Transcript with EPS Detail
• Negative Sentiment: Revenue was down roughly 2.3% year-over-year and residential weakness was cited as a drag — a demand concern for the core business that limits near-term upside. Revenues Decline Y/Y
• Negative Sentiment: Benchmark issued a downgrade ahead of/around the print, contributing added selling pressure and signaling increased analyst skepticism. Benchmark Downgrades OPTU

Analysts Set New Price Targets

Several analysts recently issued reports on OPTU shares. Evercore set a $2.50 price objective on shares of Optimum Communications in a report on Friday, November 7th. Zacks Research lowered shares of Optimum Communications from a “hold” rating to a “strong sell” rating in a report on Friday, January 16th. Citigroup lowered their price objective on shares of Optimum Communications from $3.25 to $2.75 and set a “buy” rating for the company in a research report on Wednesday, November 12th. Barclays dropped their target price on shares of Optimum Communications from $3.00 to $2.00 and set an “equal weight” rating for the company in a report on Friday, November 7th. Finally, Benchmark lowered Optimum Communications from a “buy” rating to a “hold” rating in a research report on Tuesday. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, Optimum Communications presently has a consensus rating of “Reduce” and an average target price of $2.46.

Institutional Investors Weigh In On Optimum Communications

A number of hedge funds have recently bought and sold shares of OPTU. Cibc World Markets Corp acquired a new position in Optimum Communications during the 4th quarter worth approximately $29,000. Voleon Capital Management LP acquired a new position in Optimum Communications during the third quarter worth approximately $31,000. Xponance LLC purchased a new position in shares of Optimum Communications during the fourth quarter worth approximately $34,000. New York State Common Retirement Fund acquired a new stake in Optimum Communications during the 4th quarter worth $39,000. Finally, Morningstar Investment Management LLC purchased a new stake in shares of Optimum Communications in the third quarter valued at about $39,000. Institutional investors and hedge funds own 54.85% of the company’s stock.

Optimum Communications Company Profile

Altice USA, Inc, together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, telephony, and mobile services to approximately five million residential and business customers. The company’s video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications.