Analyst: Hurricane Could Cost Cablevision $40 Million

Hurricane Sandy could cost New York cable operator Cablevision Systems between $25 million to $40 million

On Tuesday, Cablevision reported that it was experiencing widespread service interruptions and that its crews were in the field attempting to restore its Optimum TV, phone and Internet service. The company has about 3 million customers in the tri-state area.

Eagan noted that Hurricane Irene in 2011 cost Cablevision around $20 million. Hurricane Sandy has caused more damage, so the analyst moved his expectations for the company's loss above that for Irene.

He said that assuming the $25 million-$40 million loss figure is correct, it would mean that adjusted operating cash flow for Cablevision would decline 17 percent-19 percent in the current fourth quarter. The analyst, who recently upgraded Cablevision's stock, said he was already expecting declines in the second half with a shift towards adjusted operating cash growth next year.

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