Cable, internet, and telephone services provider Charter (NASDAQ: CHTR) will be reporting earnings tomorrow before the bell. Here’s what investors should know.
Charter beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $13.8 billion, up 1.6% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ adjusted operating income estimates. It reported 30.26 million internet subscribers, down 1.3% year on year.
Is Charter a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Charter’s revenue to grow 1.1% year on year to $13.87 billion, in line with its flat revenue from the same quarter last year. Adjusted earnings are expected to come in at $9.17 per share.
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 four times over the last two years.
Looking at Charter’s peers in the wireless, cable and satellite segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Comcast delivered year-on-year revenue growth of 2.1%, beating analysts’ expectations by 1%, and AT&T reported flat revenue, topping estimates by 0.7%. AT&T traded up 7.4% following the results.
Read our full analysis of Comcast’s results here and AT&T’s results here.
There has been positive sentiment among investors in the wireless, cable and satellite segment, with share prices up 5.4% on average over the last month. Charter is down 2.1% during the same time and is heading into earnings with an average analyst price target of $404.66 (compared to the current share price of $350).
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