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Charter Earnings: What To Look For From CHTR

CHTR Cover Image

Cable, internet, and telephone services provider Charter (NASDAQ: CHTR) will be reporting earnings this Friday before the bell. Here’s what investors should know.

Charter met analysts’ revenue expectations last quarter, reporting revenues of $13.67 billion, flat year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates. It reported 29.79 million internet subscribers, down 1.5% year on year.

Is Charter a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Charter’s revenue to decline 1.3% year on year to $13.74 billion, a reversal from the 1.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $9.83 per share.

Charter Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Charter has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Charter’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. AT&T delivered year-on-year revenue growth of 3.6%, beating analysts’ expectations by 2.1%, and Nike reported flat revenue, topping estimates by 1.7%. Nike traded down 10.5% following the results.

Read our full analysis of AT&T’s results here and Nike’s results here.

Investors in the consumer discretionary segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Charter is down 12.7% during the same time and is heading into earnings with an average analyst price target of $294.12 (compared to the current share price of $182.90).

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