Charter Communications Prepares for Q1 Earnings Report on April 25

Charter Communications, Inc. (CHTR), with a market cap of $47.5 billion, is a leading broadband and cable operator headquartered in Stamford, Connecticut. The company provides a comprehensive range of subscription-based services for residential and commercial clients across the United States, including internet, video, mobile, and voice options, as well as broadband connectivity services like fixed internet and WiFi.

Upcoming Earnings Expectations

Charter is slated to release its Q1 earnings report on Friday, April 25, prior to the market opening. Analysts anticipate that CHTR will show a profit of $8.63 per share, indicating a 14.3% increase compared to last year’s profit of $7.55 per share. Historically, Charter has performed well, exceeding analysts’ earnings expectations in three of the past four quarters, with only one miss. In Q4, the company achieved an EPS of $10.10, surpassing the consensus estimate by 5.9%, driven by impressive growth in its total mobile line offerings.

Projected Growth for Fiscal 2025

Looking ahead to 2025, analysts project that CHTR will generate an EPS of $38.01, marking an 8.7% increase from $34.97 in fiscal 2024. Additionally, earnings are expected to leap 10.2% year-over-year to $41.87 per share in fiscal 2026.

Stock Performance Analysis

Over the last year, CHTR shares have risen by 25.5%, significantly outpacing the S&P 500 Index’s ($SPX) 3.2% rise and the Communication Services Select Sector SPDR ETF Fund’s (XLC) 10.4% return during the same period.

After its Q4 earnings announcement on January 31, CHTR shares jumped by 2.6%. The company reported a 16% year-over-year revenue increase, totaling $13.9 billion. This growth was largely influenced by a 37.4% increase in revenue from residential mobile services, a 26.4% boost in advertising sales, and a 14.6% rise in other revenue sources, even as the company experienced a loss of over 177,000 internet subscribers during the quarter. Notably, it successfully added 529,000 new mobile lines, underscoring its strength in the wireless market segment.

Analysts’ Outlook

Overall, analysts express cautious optimism regarding CHTR’s stock, assigning it a “Moderate Buy” rating. Among 24 analysts monitoring the stock, recommendations include 10 “Strong Buys,” nine “Holds,” and five “Strong Sells.” The average price target of $411.55 suggests a potential upside of 23.1% from current price levels.

On the date of publication, Kritika Sarmah 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.

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