Goldman Sachs Comments On Cablevision Systems Following Earnings

Cablevision Systems CVC reported 4Q10 total revenue of $1.87bn, adj. EBITDA of $632mn, and diluted EPS of $0.38. Goldman's price target and estimates are under review pending greater clarity on recent reclassifications. 4Q metrics muddied by Bresnan closing. Nevertheless, legacy RGU metrics were clearly impacted by the Fox retransmission dispute in October, which accounted for nearly all of the record 35K subscriber losses. Though CVC added HSI and voice customers, both metrics remained at depressed levels, attributable to less effective marketing and churn amid the retrans dispute. Bresnan results were more encouraging, reflecting rising video customers and a QoQ improvement in HSI adds. Commentary suggests trends stabilized following the dispute and it looks for CVC to be more aggressive pursuing sub growth in legacy and Bresnan markets. During the quarter CVC increased the rate of stock buybacks to $160mn and the company already repurchased $163mn in the quarter to-date. With an estimated $20mn remaining on its current authorization, CVC announced an additional $500mn repurchase authorization. CVC closed Wednesday at $36.76