Altice USA Earnings: Growth Remains Elusive Despite Continued Steady Progress

Altice USA continues to show improvement in an environment where growth has slowed and fixed-wireless broadband continues to take incremental market share, though at a slower pace. Similar to its cable peers, we’ve trimmed our growth expectations for Altice, particularly around the small business market, reducing our fair value estimate to $7 from $9. We suspect Altice has opportunities to improve its financial position and deliver value for shareholders, but it remains in a challenging situation that creates very high uncertainty. We continue to caution investors that the firm’s extremely high debt load leaves little room for error and that small changes in our assumptions can yield big swings in our fair value estimate.