Cable, internet, and telephone services provider Charter (NASDAQ:CHTR) will be reporting earnings this Friday before the bell. Here’s what you need to know.
Charter met analysts’ revenue expectations last quarter, reporting revenues of $13.74 billion, flat year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EBITDA estimates but a miss of analysts’ EPS estimates. It reported 30.02 million internet subscribers, down 1.6% 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 be flat year on year at $13.76 billion, in line with its flat revenue from the same quarter last year. Adjusted earnings are expected to come in at $9.77 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 6 upward revisions over the last 30 days (we track 17 analysts). Charter has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Charter’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AT&T delivered year-on-year revenue growth of 3.5%, beating analysts’ expectations by 1.3%, and Verizon reported revenues up 5.2%, topping estimates by 2.3%. Verizon traded up 5.3% following the results.
Read our full analysis of AT&T’s results here and Verizon’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 12.9% on average over the last month. Charter is down 1.4% during the same time and is heading into earnings with an average analyst price target of $442.67 (compared to the current share price of $398).
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