Cablevision Boosted By Revs Growth, Improved Margins
06.02.05, 10:18 AM ET
Source
Prudential Equity Group maintained an "underweight" rating and a $26 price target on Cablevision Systems (nyse: CVC - news - people ) after the company filed its first-quarter 10-Q. Free cash flow came in at $21 million, compared with $10 million in red ink in the year-ago period. "The improvement was mostly due to strong cable revenue growth and improved operating margin, offset by somewhat higher capital expenditures and incremental working capital usage." Current assets increased by 10.8% to $2.63 billion, partially impacted by the previously announced deal to move most of the Rainbow DBS distribution assets, collectively known as "VOOM," to EchoStar Communications (nasdaq: DISH - news - people ) and a Regional Programming Partners restructuring agreement with News Corp. (nyse: NWS - news - people ). EchoStar will carry some of VOOM's 21 high-definition channels this year and the rest beginning next year. Concerning recent news that Cablevision was open to takeover bids, Prudential said, "Should the company receive a bid to be acquired, it is likely that the offer would be at a premium to the current share price." The research firm has left its earnings-per-share estimates for fiscal 2005 and 2006 unchanged at a loss of 56 cents and earnings of 6 cents, respectively.
06.02.05, 10:18 AM ET
Source
Prudential Equity Group maintained an "underweight" rating and a $26 price target on Cablevision Systems (nyse: CVC - news - people ) after the company filed its first-quarter 10-Q. Free cash flow came in at $21 million, compared with $10 million in red ink in the year-ago period. "The improvement was mostly due to strong cable revenue growth and improved operating margin, offset by somewhat higher capital expenditures and incremental working capital usage." Current assets increased by 10.8% to $2.63 billion, partially impacted by the previously announced deal to move most of the Rainbow DBS distribution assets, collectively known as "VOOM," to EchoStar Communications (nasdaq: DISH - news - people ) and a Regional Programming Partners restructuring agreement with News Corp. (nyse: NWS - news - people ). EchoStar will carry some of VOOM's 21 high-definition channels this year and the rest beginning next year. Concerning recent news that Cablevision was open to takeover bids, Prudential said, "Should the company receive a bid to be acquired, it is likely that the offer would be at a premium to the current share price." The research firm has left its earnings-per-share estimates for fiscal 2005 and 2006 unchanged at a loss of 56 cents and earnings of 6 cents, respectively.
