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On Monday, Altice USA, Inc. (NYSE:ATUS), a cable service provider with a market capitalization of approximately $964 million, conducted its 2025 Annual Meeting of Stockholders, where multiple key proposals were put to a vote. According to InvestingPro analysis, the company appears slightly undervalued at current levels, though it faces operational challenges with 7 additional key insights available to subscribers. The New York-based cable service provider’s stockholders approved the election of all nine director nominees for one-year terms. The directors elected include Patrick Drahi, David Drahi, Dexter Goei, Dennis Mathew, Mark Mullen (NASDAQ:MULN), Dennis Okhuijsen, Susan Schnabel, Charles Stewart, and Raymond (NSE:RYMD) Svider. This leadership team faces significant challenges, as InvestingPro data shows the company operates with substantial debt of $25.6 billion and a concerning current ratio of 0.36, indicating potential liquidity constraints.
Additionally, stockholders ratified the appointment of KPMG LLP as the company’s independent registered public accounting firm for the fiscal year 2025. The compensation of Altice USA’s named executive officers was also approved on an advisory basis, as was the frequency of future votes on executive pay, which will be held every three years.
The shareholders further approved the Fourth Amended and Restated Certificate of Incorporation. Voting results for each proposal were detailed in the company’s SEC filing, with the number of votes cast for and against, as well as abstentions and broker non-votes, where applicable.
No other matters were voted on at the Annual Meeting. This information is based on a press release statement filed with the SEC on Friday, June 13, 2025. The company’s Class A stockholders are entitled to one vote per share, while Class B stockholders have twenty-five votes per share, as stipulated in the company’s Amended and Restated Certificate of Incorporation. While currently unprofitable, analysts tracked by InvestingPro expect the company to return to profitability this year, with detailed analysis available in the comprehensive Pro Research Report, one of 1,400+ company deep-dives available to subscribers.
In other recent news, Altice USA reported first-quarter 2025 earnings that did not meet Wall Street expectations. The company announced an earnings per share (EPS) of -$0.16, falling short of the forecasted -$0.08. Additionally, Altice’s revenue for the quarter was $2.15 billion, slightly below the anticipated $2.16 billion. Despite these financial misses, Altice’s gross margin improved to 68.8%, a 180 basis point increase from the previous year. The company continues to target a 70% gross margin by the end of 2026.
In terms of strategic business moves, Altice USA has entered into an agreement to sell certain tower assets for approximately $60 million, with the transaction expected to close by early Q3. The company also plans to sell its i24 news business to NEXT Alt or an affiliate, pending regulatory approvals. On the analyst front, discussions with bondholders were paused during the quarter, with no agreement reached on potential transactions. Altice USA remains focused on managing its debt maturities, with no significant maturities until 2027.
Additionally, Altice USA has been enhancing its product offerings, including the launch of a new low-income product aimed at income-constrained segments. The company has also introduced a Whole Home WiFi service and expanded its fiber network, aiming to reach 1 million fiber customers by the end of 2026. These developments reflect Altice USA’s ongoing efforts to stabilize its performance and expand its market presence amidst a competitive landscape.
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