Altice USA Inc (ATUS) Is Surging In 2025: Here's Why!

Ladies and gentlemen, buckle up! We're diving into the world of telecommunications and fiber optics, where Altice USA Inc (ATUS) is making waves and surging like never before. This stock is ON FIRE, and you need to know why!

First things first, let's talk about the elephant in the room: FIBER GROWTH! Altice USA has surpassed the 500k customer milestone for its fiber network, and that's not all. They've achieved 3 million passings at the end of 2024, marking a 58% increase in total fiber customers compared to the end of 2023. This is a game-changer, folks! The demand for high-speed internet is skyrocketing, and Altice is right there to meet it.

But wait, there's more! Altice USA reported the best mobile line net add performance in five years, with a 43% increase in ending mobile lines compared to the end of 2023. Optimum Mobile added 40,000 net mobile lines in Q4 2024 and 137,000 in FY 2024. This is a clear indication that the company is successfully diversifying its revenue streams and attracting new customers. The mobile market is hot, and Altice is right in the middle of it!

Now, let's talk about the elephant in the room: FINANCIAL PERFORMANCE. Altice USA's recent financial performance has shown mixed results, which may not fully explain the stock surge in 2025. Here's a breakdown of the key financial metrics:

1. Revenue Growth: Altice USA reported a total revenue of $2.2 billion in Q4 2024, which is a 2.9% decrease year over year. For the full year 2024, the total revenue was $9.0 billion, a 3.1% decrease year over year. This decline in revenue growth suggests that the company is facing challenges in maintaining its top-line performance.

2. Earnings Per Share (EPS): The company reported a net income loss of $(0.12) per share on a diluted basis in Q4 2024 and $(0.22) per share for the full year 2024. This is a significant decline compared to the net income of $0.12 per share in FY 2023. The decrease in EPS indicates that the company is struggling with profitability, which could be a concern for investors.

3. Free Cash Flow: Altice USA generated a free cash flow of $49.9 million in Q4 2024 and $149.4 million for the full year 2024. While this is positive, it is important to note that the company's capital expenditures increased by 32.1% year over year in Q4 2024, which could impact its future free cash flow.

Despite these financial challenges, Altice USA has shown some positive operational highlights that could contribute to the stock surge:

- Fiber Growth: The company surpassed the 500k customer milestone for its fiber network and achieved 3 million passings at the end of 2024. This represents a 58% increase in total fiber customers compared to the end of 2023. The acceleration in fiber customer growth could be seen as a positive sign for future revenue growth.

- Mobile Performance: Altice USA reported the best mobile line net add performance in 5 years, with a 43% increase in ending mobile lines compared to the end of 2023. This could indicate that the company is successfully diversifying its revenue streams and attracting new customers.

- Network Expansion: The company continues to expand its network and roll out multi-gig service, which could enhance its competitive position and attract new customers.

In conclusion, while Altice USA's recent financial performance shows some challenges, the company's operational highlights, such as fiber growth and mobile performance, could be contributing factors to the stock surge in 2025. However, investors should carefully consider the company's financial metrics and operational strategies before making investment decisions.