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Charter (CHTR) to Report Q4 Earnings: What's in the Offing?

Charter Communications CHTR is set to report its fourth-quarter 2022 results on Jan 27, 2023.

The Zacks Consensus Estimate for fourth-quarter 2022 revenues is pegged at $13.70 billion, indicating a 3.67% increase from the year-ago quarter’s reported figure.

The consensus mark for earnings has increased by a penny to $8.03 per share in the past 30 days, suggesting a decline of 10.08% from the figure reported in the year-ago quarter.

Charter’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in the remaining quarter, having an earnings surprise of 14.04%, on average.

Charter Communications, Inc. Price and EPS Surprise

 

Charter Communications, Inc. Price and EPS Surprise
Charter Communications, Inc. Price and EPS Surprise

Charter Communications, Inc. price-eps-surprise | Charter Communications, Inc. Quote

Let’s see how things have shaped up for the upcoming announcement.

Factors to Consider

Charter’s top-line growth in the to-be-reported quarter is expected to reflect a sluggish Internet subscribers addition rate. In the last reported quarter, Charter had 30.3 million internet customers, up only 1.4% year over year. Charter gained 75K Internet customers in the last reported quarter, significantly down from the 265K it added in the third quarter of 2021.

Charter’s fourth-quarter 2022 top line is expected to have been negatively impacted by increasing competition in the cable space. However, collaboration with companies like Comcast CMCSA and Apple TV+ is expected to have helped Charter’s prospects in the to-be-reported quarter.

Charter has collaborated with Comcast to offer a streaming platform — Xumo — on various branded 4K streaming devices and smart TVs. Charter and Comcast have also rebranded Flex, the 4K streaming device Comcast licensed to the joint venture, as Xumo Stream Box, and XClass TV as Xumo TV.

However, Charter is likely to have benefited from an expanding mobile user base, owing to its new Spectrum 1 offering.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Charter has an Earnings ESP of -0.11% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a couple of stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming release:

Las Vegas Sands LVS has an Earnings ESP of +8.47% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

LVS is set to announce fourth-quarter 2022 results on Jan 25, 2023. Las Vegas shares have moved up 23.4% in the past year.

Take-Two Interactive Software TTWO has an Earnings ESP of +6.46% and a Zacks Rank #3.

Take-Two Interactive is set to announce third-quarter fiscal 2023 results on Feb 6, 2023. TTWO shares have been down 32.9% in the past year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Comcast Corporation (CMCSA) : Free Stock Analysis Report

Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report

TakeTwo Interactive Software, Inc. (TTWO) : Free Stock Analysis Report

Charter Communications, Inc. (CHTR) : Free Stock Analysis Report

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