Stamford, Connecticut-based Charter Communications, Inc. (CHTR) operates as a broadband connectivity and cable operator company serving residential and commercial customers. With a market cap of $49.2 billion, Charter Communications operates in 41 states with services available to more than 58 million homes and businesses in markets of all demographics and sizes.
The telecom giant is set to unveil its fourth-quarter results before the market opens on Friday, Jan. 31. Ahead of the event, analysts expect Charter to report a non-GAAP profit of $9.45 per share, up a staggering 33.7% from $7.07 per share reported in the year-ago quarter. While the company has surpassed Wall Street’s bottom-line projections twice over the past four quarters, it has missed the estimates on two other occasions. Its adjusted EPS for the last reported quarter increased 6.9% year-over-year to $8.82, exceeding analysts’ estimates by 3.2%.
For the full fiscal 2024, analysts expect CHTR to deliver an adjusted EPS of $34.46, up 14.9% from $29.99 in fiscal 2023. While in fiscal 2025, its earnings are expected to grow 5.3% year-over-year to $36.30 per share.
CHTR stock has declined 4.6% over the past 52 weeks, substantially underperforming the Communication Services Select Sector SPDR ETF Fund’s (XLC) 31.6% surge and the S&P 500 Index’s ($SPX) 24.4% returns during the same time frame.
Charter Communications’ stock prices soared 11.9% after the release of its better-than-expected Q3 results on Nov. 1. Driven by the surge in mobile services, advertising sales and other revenues, the company’s topline grew by a resilient 1.6% year-over-year to $13.8 billion, exceeding Wall Street’s expectations. Meanwhile, it reported a staggering 47.6% year-over-year growth in free cash flows, totaling $1.6 billion.
Furthermore, the company also showcased disciplined expense management, which led to a 3.6% year-over-year growth in adjusted EBITDA, reaching $5.6 billion.
The consensus opinion on CHTR stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 24 analysts covering the stock, nine recommend “Strong Buy,” 11 suggest “Hold,” and four advise a “Strong Sell” rating. Its mean price target of $416.86 represents a 19.8% premium to current price levels.
