How did ATUS's Q1 2024 earnings surprise analysts?

Altice USA's (ATUS) Q1 2024 earnings fell short of analysts' expectations, with the company reporting a net loss of $12.9 million for the quarter. This disappointing result was primarily due to a decrease in revenue and an increase in expenses.

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|ATUS|ATUS.N|Altice USA|2023 Q2|-24.128941342258234|8.6144E7|169|
|ATUS|ATUS.N|Altice USA|2023 Q3|-22.64471783735057|7.5515E7|169|
|ATUS|ATUS.N|Altice USA|2023 Q4|40.860544765686306|-1.13792E8|169|
|ATUS|ATUS.N|Altice USA|2024 Q1|-141.3731151748476|-1.2896E7|169|

The earnings per share (EPS) surprise was -0.05, indicating that the actual EPS was below the consensus estimate. This negative surprise reflects the challenges faced by Altice USA in generating profits during the quarter.

Analysts had high hopes for Altice USA, with the average analyst price target standing at $3.5, reflecting a "Buy" consensus rating. However, the company's performance in Q1 2024 failed to meet these expectations, raising questions about its short-term prospects.

Equities research analysts at Zacks Research had lowered their Q1 2024 earnings estimates for Altice USA, predicting an EPS of ($0.01) for the quarter, down from their prior estimate of $0.05. This downward revision indicated a growing concern among analysts about the company's financial performance.

Furthermore, institutional investors have shown a lack of confidence in Altice USA, with several research firms adjusting their ratings and price targets. For instance, HSBC lowered its rating from "buy" to "reduce," and Wells Fargo & Company decreased its target price. These actions suggest that analysts are cautious about the company's future outlook.

In conclusion, Altice USA's Q1 2024 earnings were a significant disappointment for analysts, primarily due to a revenue decline and increased expenses. The company's financial performance continues to be a concern, as reflected in the lowered earnings estimates and the cautious stance of institutional investors.