Charter Communications (CHTR) Misses Q1 Earnings, Revenues
Leading U.S cable TV operator, Charter Communications Inc. CHTR, primarily offers three services – video, high-speed data and voice over its broadband cable systems to both residential and business customers.
We are impressed with Charter Communications’ merger with Time Warner Cable and Bright House Networks, which have strengthened its foothold in hybrid fiber coax and fiber networks. This should also help Charter Communications better address small, medium-sized and large businesses. Notably, the Time Warner Cable and Bright House deals have benefited Charter Communications in terms of geographic expansion and operating cost synergies, which in turn, should boost its bottom line and free cash flow in the upcoming quarterly results.
On the other hand, Charter Communications continues to operate in a saturated multi-channel U.S. video market. Moreover, the company faces stiff competition from online video streaming service providers such as Netflix Inc. NFLX, Hulu.com, YouTube etc. as they provide an extremely cheap source of TV programming. Netflix currently carries a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Moreover, Charter Communications has a leveraged balance sheet.
Charter Communications currently carries a Zacks Rank #5 (Strong Sell). The company has suffered a massive positive average earnings surprise of 79.71% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings:Charter Communications lags earnings estimate in the first-quarter 2017. Our consensus earnings per share estimate were 99 cents while the company reported earnings per share of 57 cents. Investors should note that these figures take out stock option expenses.
Revenue:Charter Communications generated total revenue of $10,164 million, which lagged the Zacks Consensus Estimate of $10,253 million.
Key Stats to Note: During the first quarter of 2017, residential high-speed Internet subscribers rose by 428,000 to 21.802 million. Voice subscribers grew 37,000 to 10.364 million. However, video subscribers decreased by 100,000 to 16.736 million.
Charter Communications, Inc. Price and EPS Surprise
Charter Communications, Inc. Price and EPS Surprise | Charter Communications, Inc. Quote
Check back later for our full write up on this Charter Communications earnings report later!
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