Why Cablevision Shares Dropped
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What: Shares of Cablevision were getting kicked off the air today, falling as much as 12% today, after the media company posted a disappointing quarter, in part due to the effects of Hurricane Sandy.
So what: The Long Island-based cable provider reported a loss on continuing operations of $0.32 a share, way below expectations of $0.09 per-share profit. Management blamed Sandy for part of the losses, saying it disrupted service for 60% of customers in the New York region, and damaged more than 450 miles of cable lines. Revenue dropped 1.6%, to $1.66 billion, slightly below estimates of $1.7 billion.
Now what:Factoring in a gain on a settlement from a lawsuit with Dish Network, Cablevision actually made a profit of $0.45 per share, which helps make up for the otherwise miserable quarter. Considering that revenues were relatively in line with estimates, there doesn't seem to be much concern for long-term problems, as the loss this quarter stemmed from outsized costs from Sandy. While competition also seems to be affecting Cablevision, I expect more normal results to return in its next report.
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The article Why Cablevision Shares Dropped originally appeared on Fool.com.Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.
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