Cablevision Systems Earnings: Streak of Four Straight Profit Rises Snapped

S&P 500 (NYSE:SPY) component Cablevision Systems Corporation (NYSE:CVC) reported a lower net income in the third quarter compared with a year earlier, falling below analysts’ estimates. Cablevision Systems is a telecommunications, media, and entertainment company with a portfolio of operations in the United States.

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Cablevision Systems Earnings Cheat Sheet for the Third Quarter

Results: Net income for Cablevision Systems Corporation fell to $39.3 million (14 cents per share) vs. $112.1 million (37 cents per share) a year earlier. This is a decline of 64.9% from the year earlier quarter.

Revenue: Rose 8% to $1.67 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CVC fell short of the mean analyst estimate of 32 cents per share. Analysts were expecting revenue of $1.67 billion.

Quoting Management: Cablevision President and CEO James L. Dolan commented: “For the third quarter of 2011, Cablevision achieved revenue growth driven primarily by the addition of the Bresnan properties. Our cable operations reported improved subscriber metrics that included increases in both high-speed data customers and voice lines, while the company continued to generate healthy free cash flow. As we are operating in a challenging environment, we are continuing our efforts to capitalize on the strength of our network and products and on building our business for the long-term,” concluded Mr. Dolan.

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the second quarter, net income rose 44.3% from the year earlier, while the figure increased 40.3% in the first quarter, 45.2% in the fourth quarter of the last fiscal year and 13.3% in the third quarter of the last fiscal year.

The company has now missed analyst estimates for the last four quarters. It fell short by 21 cents in the second quarter, by 4 cents in the first quarter, and by 3 cents in the fourth quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 42 cents a share to 33 cents over the last ninety days. At $1.26 per share, the average estimate for the fiscal year has fallen from $1.60 ninety days ago.

Competitors to Watch: Comcast Corporation (NASDAQ:CMCSA), Time Warner Cable Inc. (NYSE:TWC), Mediacom Communications Corp. (NASDAQ:MCCC), Time Warner Inc. (NYSE:TWX), Charter Communications, Inc. (NASDAQ:CHTR), DISH Network Corp. (NASDAQ:DISH), The Walt Disney Company (NYSE:DIS), Liberty Global Inc. (NASDAQ:LBTYA), and China Cablecom Hldgs. Ltd. (NASDAQ:CABL).

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(Source: Xignite Financials)