Stock of the Day

April 16, 2020

Optimum Communications (OPTU)

$0.95
+$0.07 (+8.4%)
Market Cap: $239.69M

About Optimum Communications

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. It also provides voice over Internet protocol telephone services; and mobile services, such as data, talk, and text. In addition, the company offers Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony services, managed Wi-Fi, managed desktop and server backup, and collaboration services comprising audio and web conferencing; fiber-to-the-tower services to wireless carriers; data services consisting of wide area networking and dedicated data access, as well as wireless mesh networks; and enterprise class telephone services that include traditional multi-line phone service. Further, it provides business e-mail, hosted private branch exchange, web space storage, and network security monitoring; and international calling and toll free numbers. Additionally, the company offers audience-based and IP-authenticated cross-screen advertising solutions; and television and digital advertising services, as well as operates news channels under the News 12 Networks, Cheddar, and i24NEWS names. It also provides broadband communications and video services under the Optimum and Suddenlink brands. The company was incorporated in 2015 and is headquartered in Long Island City, New York. Altice USA, Inc. is a subsidiary of Next Alt. S.a.r.l.

Today's Trend

Optimum Communications, Inc. (NYSE: OPTU) is under pressure as analysts signal weaker-than-expected profitability and maintain a strongly bearish view of the stock.

  • Optimum appointed Adriana Rios Welton as general counsel and chief corporate responsibility officer. The addition could strengthen legal, governance and corporate-responsibility leadership, although the near-term financial impact is unclear. Optimum Appoints Adriana Rios Welton as General Counsel and Chief Corporate Responsibility Officer
  • Optimum Communications shares remain below both their 50-day and 200-day moving averages, indicating continued technical weakness. The stock has traded near the lower end of its 12-month range, while the company remains unprofitable.
  • Zacks Research reduced EPS estimates across multiple periods, including Q1–Q4 2027, FY2027 and FY2028. FY2027 EPS is now projected at ($0.97), down from ($0.83), while FY2028 EPS was lowered to ($0.80) from ($0.68).
  • The analyst also cut estimates for Q2 2028 EPS to ($0.35) from ($0.30) and Q3 2028 EPS to $0.02 from $0.03. The repeated reductions suggest expectations for a slower path to profitability.
  • Zacks Research reiterated a “Strong Sell” rating. The bearish stance adds pressure to the stock, particularly following Optimum’s previous quarterly EPS miss and the company’s projected full-year loss of approximately $0.83 per share.
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