Cablevision Systems Shares Plunged: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Cablevision Systems (NYS: CVC) fell off the table just after 10 a.m. ET today, falling 10% as the trading day continued.

So what: Fourth-quarter earnings fell to $60.6 million, or $0.22 per share, from $113.9 million a year earlier. At the same time, revenue grew 7.3% to $1.69 billion.

Now what: Pressure on the company's margins is coming from higher content costs, and the pressure doesn't seem to be letting up. Cablevision said it wouldn't increase rates this year to stem the loss of customers, and investors are concerned about the margin pressure. Cablevision is facing a common challenge of losing cable customers, and investors are worrying about falling margins and fewer customers leading to even lower profits in the future.

Interested in more info on Cablevision Systems? Add it to your watchlist byclicking here.

At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners