Cable, internet, and telephone services provider Charter (NASDAQ: CHTR) will be reporting earnings this Friday before market hours. Here’s what to expect.
Charter met analysts’ revenue expectations last quarter, reporting revenues of $13.53 billion, down 1.7% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a miss of analysts’ EBITDA estimates. It reported 29.39 million internet subscribers, down 1.7% 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, the market is expecting Charter’s revenue to be flat year on year, in line with its flat revenue from the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Charter has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Charter’s peers in the consumer discretionary - wireless, cable and satellite segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AT&T delivered year-on-year revenue growth of 5.3%, beating analysts’ expectations by 2.1%, and Comcast reported flat revenue, in line with consensus estimates. AT&T traded down 2.9% following the results while Comcast was up 2.8%.
Read our full analysis of AT&T’s results here and Comcast’s results here.
There has been positive sentiment among investors in the consumer discretionary - wireless, cable and satellite segment, with share prices up 8% on average over the last month. Charter is up 10.6% during the same time and is heading into earnings with an average analyst price target of $170.94 (compared to the current share price of $120.17).
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