Analyst Gordon Hodges says 1.052 million end-subscribers beat his 992,000 estimate. He says the company's national penetration of TV households grew 23% sequentially, while penetration of San Francisco Bay Area TV households grew 21%. Hodges thinks a rollout of regional distribution centers offering near next-day delivery in major metropolitan areas has led to increased national penetration, and could lead to lower monthly churn.
Hodges raised his $41 million EBITDA 2003 estimate to $42 million, and lowered the $237 million revenue estimate to $251 million. He also upped the 2004 $60 million EBITDA estimate to $62 million, and upped the $325 million revenue estimate to $339 million. He has a $25 target, and reiterates his buy rating.