Following substantial second-quarter net income growth, Cable One Inc. executives said on an Aug. 9 earnings call the company is "very bullish" on acquisitions.
One recent acquisition for the company was NewWave Communications, a midsize broadband company servicing rural areas of the Midwest and South, in May 2017. Cable One said it has added 145,142 customers from the NewWave acquisition so far in 2018, with 108,645 of those being residential broadband customers.
The company reported a second-quarter net income of $43.8 million, or $7.65 per share, up from $27.9 million, or $4.85 per share in the year-ago period, representing a 57.2% increase. The S&P Global Market Intelligence consensus EPS estimates for the just-ended quarter were $7.89 on a GAAP basis and $8.00 on a normalized basis, with three analysts reporting.
Total revenues for the quarter came to $268.4 million, up 11.4% from $241.0 million in the second quarter of 2017.
Residential broadband brought in $122.5 million in revenue for the quarter, an 18.3% increase from the year-ago period, while residential video brought in $87.5 million, a modest 3.1% increase from the second quarter of 2017.
The company’s total customers for the quarter came to 799,616, a 0.7% decline from the year-ago period.
Looking ahead, CFO Kevin Coyle said that the company’s third-quarter financial results will fully reflect acquired NewWave operations for both 2017 and 2018 for the first time.