Shares of Charter Communications (CHTR) sank more than 15% on Friday after posting a fourth quarter earnings miss. The telecom company also posted a surprise loss of boradband subscribers.
Yahoo Finance's Julie Hyman and Jared Blikre report the details.
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Editor's note: This article was written by Stephanie Mikulich.
Video Transcript
JULIE HYMAN: Let's talk about Charter Communications. The stock having its biggest single drop on record with that 16.5% drop after it missed quarterly profit estimates and posted a surprise drop in broadband subscribers as well. Basically, there's a lot of competition in this area. And Charter is suffering as a result.
It lost 61,000 internet customers last quarter. A year earlier, it had gained 105,000. Cable TV customers, that also lost customers there. So all of that contributing to the declines.
JARED BLIKRE: There's a reason these guys pay dividends in telecommunications, so people own the stock. I do have a couple of analysts quotes here this is Wells Fargo Securities. They rate the stock an overweight with a price target of 460. They say broadband users worse than expected, while average revenue per user that's came in weaker as well.
The negative subtrend is not itself a surprise, but the extent of sub losses is arguably a bit worse than street expectations. And then vital knowledge real quick, the broadband number quote is weak and will receive a lot of attention. And I think we just did that, yes.
Yeah.
