Analyst Note| Michael Hodel, CFA |
As telegraphed in September, Altice USA posted weak customer metrics during the third quarter. The firm also made good on its promise to discuss its capital allocation strategy. Management trimmed capital spending and share repurchase budgets for the remainder of the year in preparation for accelerated network investment in 2022 and 2023. Share repurchases will likely remain muted for the foreseeable future as the firm reduces leverage, which is unfortunate given where the stock is trading.