How did CABO's Q4 2024 earnings surprise investors?

Cable One's (CABO) Q4 2024 earnings fell short of investor expectations, as evidenced by the negative EPS surprise of -0.52. This underperformance was likely a result of continued challenges in revenue growth, as seen in the previous quarter's financial results.

Investors had expressed concerns about CABO's ability to generate revenue growth, as reflected in the company's Q3 2024 earnings report. Despite a slight increase in business data revenue, the overall revenue decline and the missed earnings expectations suggest that investors may have reacted negatively to the news.

1. **Revenue Decline**: Total revenue for Q4 2024 was not provided, but the Q3 2024 results showed a decrease in residential data revenue and a slight increase in business data revenue. The overall trend of revenue decline could have contributed to the earnings shortfall.
2. **Expense Management**: Cable One has been managing expenses effectively, as evidenced by the decrease in operating expenses in Q3 2024. However, if these cost-saving measures were not sufficient to offset revenue shortfalls, it could have impacted earnings negatively.
3. **Market Conditions**: The broader market conditions and competition in the broadband sector may also have played a role in CABO's performance. Investors often look for signs of market saturation, increased competition, and technological disruptions that could affect cable companies' revenue streams.

In conclusion, CABO's Q4 2024 earnings miss is likely to raise concerns among investors about the company's revenue growth trajectory and its ability to compete in the evolving broadband market. The company will need to address these issues effectively to restore investor confidence and sustain its financial performance.