What's in Store for Charter Communications' (CHTR) Q2 Earnings?
Charter Communications CHTR is set to report its second-quarter 2023 results on July 28.
The Zacks Consensus Estimate for second-quarter 2023 revenues is pegged at $13.86 billion, indicating a 1.92% increase from the year-ago quarter’s reported figure.
The consensus mark for earnings dropped 1.16% to $7.7 per share in the past 30 days, suggesting a decline of 12.5% from the figure reported in the year-ago quarter.
Charter’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters, having an earnings surprise of 2.03%, on average.
Charter Communications, Inc. Price and EPS Surprise
Charter Communications, Inc. price-eps-surprise | Charter Communications, Inc. Quote
Let’s see how things are shaping up for the upcoming announcement.
Factors to Consider
Charter is likely to have benefited from an expanding network and fiber-optic construction, thanks to Spectrum’s expanding network infrastructure. Its acquisitions of 400 megahertz of spectrum, which enhanced existing broadband services, are expected to have helped Charter’s prospects in the to-be-reported quarter.
Continuous enhancements in the availability of Charter’s Spectrum One network has been a major growth driver. In the previous reported quarter, Charter added 686K Spectrum mobile lines. Our model estimate for mobile lines net additions in the second quarter is pegged at 510K, indicating 48.3% growth on a year-over-year basis.
The company’s total residential revenues are likely to reflect a strong momentum in its mobile service segment partly offset by lower voice and video revenues. Higher mix of non-video customers and growth of lower priced video packages is expected to have kept the top line under pressure.
Our model estimate for second-quarter 2023 mobile service revenues is pegged at $500.3 million, indicating a 20.6% year-over-year growth. However, voice and video revenues are pegged at $365.9 million and $4.19 billion, indicating an 8.1% and a 6.5% decline year over year, respectively.
The top-line growth in the to-be-reported quarter is expected to have been affected by the increasing competition in the cable space and sluggish Internet subscribers’ addition rate.
Charter gained 76K Internet customers in the last reported quarter, down from 185K added in the year-ago quarter. Our model estimate for Internet customers net addition is pegged at 59K.
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 -5.03% 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:
Autohome ATHM has an Earnings ESP of +7.61% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Autohome shares are down 1.2% year to date. ATHM is set to announce second-quarter 2023 results on July 27, 2023.
Meta Platforms META has an Earnings ESP of +5.83% and a Zacks Rank #2
Meta shares have gained 142.4% year to date. META is set to report its second-quarter 2023 results on July 26.
Intel INTC has an Earnings ESP of +19.64% and a Zacks Rank #2.
Intel shares have gained 27.5% year to date. INTC is set to report its second-quarter 2023 results on July 27.
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