Cable ONE Inc. CABO is a small-sized cable MSO (multi service operator) in the U.S. The company provides basic video, digital video, high-speed broadband (Internet) and telephony services to individuals and business enterprises.Cable ONE made major changes in its channels and their availability to customers. New line-ups were implemented to make news, sports and other channels easily accessible to viewers.The acquisition of cable operator — NewWave Communications — will enable the company to create a leading high-speed data and cable company. The deal will aid Cable ONE to expand footprint into non-metropolitan markets and non-urban areas like Arkansas, Illinois, Indiana, Louisiana, Mississippi, Missouri and Texas. The company has optimized its strategy and operations for these regions.However, we are concerned about the company’s operation in a saturated and competitive multi-channel U.S. video market. Moreover, cable companies continue to face stiff competition from online video streaming service providers because of their cheap source of TV programming. Further, gaining customers from competitors is a difficult task as most pay-TV operators are offering innovative packages.Zacks Rank: Cable ONE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here. The company has generated a negative average earnings surprise of 6.93% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:Earnings: Cable ONE surpassed Q3 2017 earnings estimate. Our consensus earnings estimate called for an EPS of $4.91 and the company reported EPS of $5.48. Investors should note that these figures take out stock option expenses.Revenue: Cable ONE reported total revenues of $253.8 million, up 23.5% year-over-year. However, this figure missed the Zacks Consensus Estimate of $255.8 million.Key States to Note: At the end of the third quarter of 2017, Cable ONE had total customer base of 796,110, up 21% year over year. Residential customers were 731.099, up 20.4% year over year. Business customers were 65,011, up 28.3% year over year.Cable One, Inc. Price and EPS Surprise Cable One, Inc. Price and EPS Surprise | Cable One, Inc. QuoteCheck back later for our full write up on this Cable ONE earnings report later! Wall Street’s Next AmazonZacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.Click for details >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cable One, Inc. (CABO): Free Stock Analysis Report To read this article on Zacks.com click here.