Based in Stamford, Connecticut, Charter Communications, Inc. (CHTR) is a broadband connectivity and cable operator company serving residential and commercial customers. With a market cap of nearly $47 billion, the company provides innovative services to meet customers' connectivity needs, including broadband, cable TV, and subscription-based internet, video, and voice services. It is expected to announce its fiscal Q3 earnings results before the market opens on Friday, Nov. 1.
Ahead of this event, analysts project the telecommunications company to report a profit of $8.55 per share, up 3.6% from $8.25 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in two of the last four quarters while missing on other two occasions. In Q2, the company reported an EPS of $8.49, which topped the consensus estimates by 12.5%.
For fiscal 2024, analysts expect CHTR to report an EPS of $32.51, up 8.4% from $29.99 in fiscal 2023. Moreover, EPS is expected to increase 4.4% year-over-year to $33.95 in fiscal 2025.
Shares of CHTR have declined 16.1% on a YTD basis, significantly lagging behind both the S&P 500 Index's ($SPX) 21.9% rise and the Communication Services Select Sector SPDR ETF’s (XLC) 24.5% return over the same period.
Charter Communications’ underperformance can be attributed to a significant decline in its internet customers and video subscribers primarily due to increasing competition in the industry. However, on Jul. 26, shares of CHTR jumped 16.6% after its Q2 earnings release as its profit of $8.49 per share and revenue of $13.7 billion both surpassed Wall Street estimates. The better-than-expected performance was driven by the company’s transformational initiatives, leading to a 2.6% increase in adjusted EBITDA and robust growth in mobile service revenue, offsetting a decline in residential and SMB Internet customers.
Analysts' consensus view on Charter Communications’ stock is cautious, with a "Hold" rating overall. Among 25 analysts covering the stock, seven recommend "Strong Buy," 13 suggest "Hold," and five indicate “Strong Sell.” This configuration is slightly less bullish than three months ago, with eight analysts suggesting a "Strong Buy."
The average analyst price target for CHTR is $370.09, indicating a 13.5% potential upside from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
