NEW YORK - Altice USA reported its fourth quarter results on Thursday, falling short of analysts' expectations, resulting in a 1.11% drop in after-hours trading. The telecommunications company posted adjusted earnings per share of -$0.12, significantly lower than the consensus estimate of $0.04, bringing to light the struggles within the company. Revenue for the quarter was $2.23 billion, slightly less than the projected $2.24 billion and down 2.9% year-over-year. Despite this earnings miss, Altice USA highlighted strong growth within its fiber and mobile business segments.
During the fourth quarter, it added 57,000 fiber customers, reaching a total of 538,000 - marking a 58% increase since the end of 2023. "2024 is going to be a transformative year for Optimum, marked by significant strides to strengthen our operations, improve customer experience, and bolster financial discipline," said Dennis Mathew, President and CEO of Altice USA. The fundamental broadband service units faced losses of 39,000 during the fourth quarter and 170,000 for the entirety of 2024. Internal challenges such as low switching activity, competitive pressure, and muted trends within limited-income segments have impacted broadband performance.
Shifting focus, PBF Energy Inc. also presented disappointing results as it reported larger-than-expected losses amid challenging market conditions. The Parsippany, New Jersey-based oil refining company announced adjusted losses of $2.82 per share for the fourth quarter, worse than analysts' estimates of $1.97. Its revenue reached $7.35 billion, falling short of the $7.76 billion consensus. Interestingly, PBF reported operational losses of $383.2 million compared to only $47.2 million during the same period last year. Excluding special items, the adjusted operational loss widened to $427.9 million from $46.1 million year-over-year.
For the entire year of 2024, PBF Energy reported operational losses of $699 million, contrasting sharply with operational income of $2.95 billion recorded in 2023. The company, nonetheless, declared its quarterly dividend of $0.275 per share to be paid on March 14, 2025, for shareholders on record as of February 27, 2025. Despite the losses, PBF ended 2024 with roughly $536 million in cash and $921 million in net debt. Notably, it returned over $60 million to shareowners through dividends and stock repurchases during the fourth quarter, totaling around $450 million for the year.
Another significant player reporting results was CDON AB, whose stock fell 5.5% following its fourth-quarter announcement. The company recorded its total group gross merchandise volume (GMV) lagging by 8% against expectations, with the group’s post-marketing gross profit margin (GPAM) down by 19.6%. This decline was attributed to lower organic traffic and higher marketing spend. CDON experienced a year-on-year decline of 10.8% in GMV for the fourth quarter, with more pronounced drops of 16.6% within its CDON Marketplace segment. Some mitigation occurred with a 6.2% increase within the Fyndiq segment, yet overall average declined by 16.4% compared to the previous year. Despite the lackluster results, the company maintained its long-term goals of becoming the leading market player in Northern Europe, targeting double-digit market share growth beyond its current 1.0%-1.5%.
Jefferies reflected on the disappointing outcomes for CDON, stating, "The Q4 results were disappointing against expectations. Our management is not satisfied with the performance for 2024 and acknowledged it did not meet our expectations." CDON's management remains hopeful as they aim to significantly increase supply and improve customer satisfaction moving forward.
Finally, Revenio Group Oyj saw its shares plummet by 11% after announcing its fourth-quarter earnings, showcasing overall sales declines of 1.0% from expected results. The company’s constant currency (CER) growth was -1.1%, also failing to meet consensus forecasts of +5.3%. Despite the overall declines, Revenio reported notable growth within its tonometer segment, driven by recent launches of probe and slit lamp devices. Other products, including the HOME2, IC200, and veterinary devices also performed well.
Meanwhile, the eye exam segment, especially the ultra-widefield EIDON product, yielded strong sales, with the number of installed units utilizing the iCare ILLUME screening solution quadruplicated by 2024. Revenio underlined its steady revenue growth, which includes software licenses, service contracts, and probe sales accounting for nearly one-third of total net revenue. They expect this revenue stream to expand moving forward.
Despite these promising segments, the company’s profitability was affected, as adjusted EBIT fell by 4.1% compared to expectations, likely due to higher-than-expected employee costs. There were no significant costs from U.S. clinical trials for iCare ILLUME during the fourth quarter, yet lower profits impacted net income, pulling down earnings per share (EPS) by 8.5% below consensus. Looking forward, the company reiterated its guidance for 2025, anticipating growth between 6% to 15%, claiming, "We expect investors to be disappointed due to the profit shortfall relative to consensus and the need to adjust expectations widely for 2025."
These varied results across different sectors portray the complex and often unpredictable nature of the current market environment, as companies grapple with competition, market conditions, and operational challenges as they strive to meet both shareholder expectations and their growth objectives.