Cablevision Systems reported a Q1 net loss of $26.3 million, or $-0.09/share (vs. -0.20/share last year), in-line with analysts' forecast. Sales rose 12.5% to $1.59b, compared to the Street's estimate of $1.58b. Cablevision reiterated its full-year 2007 guidance as follows: total revenue growth and adjusted operating cash flow growth in the mid-teens, basic video subscriber growth of 1%-2%, revenue generating unit net additions of 850k - 950k and capex of $600m - $650m. Bloomberg reports Cablevision's cable customers spent $116.95/month on average during the quarter, or 21% higher than rival Comcast's. An analyst at Buckingham Research commented, "The shares are not trading on fundamentals but on how much the Dolans are willing to pay." Shares of Cablevision jumped 9.9% to $35.90 on Wednesday, following news the company will sell itself to the Dolan family for $10.6b in cash, or $36.26/share. Some investors however, believe the offer is too cheap, such as Mario Gabelli's Gamco Investors -- the firm's second-largest outside shareholder, with an 8.5% stake.
Sources: Press release [pdf], Bloomberg, MarketWatch
Commentary: Dolan Family to Take Cablevision Private for $10.6 Billion; Shares Rise • Comcast and Cable Stocks: Pressured By Apple? • Cablevision Earnings Conference Call Transcript (later today)
Stocks/ETFs to watch: Cablevision Systems Corp. (CVC). Competitors: Verizon Communications Inc. (VZ), Comcast Corp. (CMCSA), DirecTV Group Inc. (DTV). ETFs: Consumer Discretionary SPDR (XLY), PowerShares FTSE RAFI Consumer Services (PRFS)
Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.