Why Altice USA Shares Are Hitting New 52-Week Lows Thursday

Altice USA Inc ATUS shares are trading lower by nearly 30% Thursday after the company reported worse-than-expected financial results.

What Happened: Altice said third-quarter revenue declined 7% year-over-year to $2.39 billion, which missed average analyst estimates of $2.45 billion, according to Benzinga Pro. The broadband communications company reported third-quarter earnings of 19 cents per share, which missed average estimates of 35 cents per share.

"While we are operating in a very competitive environment and are starting to see some macroeconomic pressures across our business, we are confident that we have the right strategy to return to sustainable growth," said Dexter Goei, executive chairman of Altice USA.

Altice said it expects to continue to accelerate investments in key growth initiatives. The company reiterated cash capex guidance of approximately $1.7 billion to $1.8 billion for full-year 2022.

See Also: Why Fastly Shares Are Popping Off

Analyst Assessment: Multiple analysts lowered price targets on the stock following the company's quarterly results.

• Credit Suisse analyst Douglas Mitchelson maintained Altice USA with a Neutral rating and lowered the price target from $7 to $6.
• RBC Capital analyst Kutgun Maral maintained Altice USA with an Outperform rating and lowered the price target from $12 to $10.
• JP Morgan analyst Philip Cusick maintained Altice USA with a Neutral rating and lowered the price target from $12 to $7.

ATUS Price Action: Altice is making new 52-week lows on Thursday.

The stock was down 28.5% at $4.48 at time of publication.

Photo: courtesy of Altice USA.