Cable One Earnings Decline, Dividend Cut Sparks Downgrade

Cable One (CABO) reported a 5.9% year-over-year revenue decline in the first quarter of 2025, with sales falling to $380.6 million and net income dropping sharply compared to the previous year. The company missed Wall Street’s revenue estimates and continues to face subscriber attrition, particularly in residential data and video segments. In response to these challenges and to prioritize debt reduction and growth initiatives, Cable One unexpectedly eliminated its dividend, a move that led to a downgrade by Raymond James and concerns about investor confidence. Despite these setbacks, management remains optimistic about long-term growth, highlighting strategic investments, a robust liquidity position, and an ongoing multi-year transformation plan. Analyst sentiment currently rates the stock as 'Hold,' with mixed outlooks on future performance and price targets suggesting potential upside but with significant uncertainty. The company’s sluggish revenue growth over recent years and projected continued declines present ongoing headwinds for its recovery.