Cablevision's Q1 Misses Street Estimate, Shares Drop

Cablevision's iO Optimum digital video accounts increased 2.1% on a year-over-year basis, and the company also posted adequate year-over-year increases in high-speed internet and internet phone subscribers, as well, but in this stock market, they weren't nearly enough to offset the earnings per share underperformance. Although there are a few exceptions, in this market, institutional investors want to see companies exceed expectations both in earnings and in underlining, key metrics.

At that's somewhat unfair in Cablevision's case, as the company is performing reasonably well in a sector that features new competitors for cable television, such as Verizon (VZ), and amid tight family budgets.

Stock Analysis: First discussed on May 29, 2009 at a price of $19.03, I still like Cablevision's shares here. One quarter is not enough to change the thesis that CVC's future is bright, in terms of both increased customer revenue units, and revenue per customer. Further, the company has improved a previously weak operational area -- customer service -- hence, I expect the top-line to surge higher as the U.S. economic recovery strengthens. I'd put sell/stop loss at: $17.

Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.