Cable, internet, and telephone services provider Charter (NASDAQ: CHTR) will be reporting earnings this Friday before market hours. Here’s what to look for.
Charter missed analysts’ revenue expectations last quarter, reporting revenues of $13.6 billion, down 2.3% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates. It reported 29.68 million internet subscribers, up 5.9% 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 decline 1.3% year on year, a deceleration from its flat revenue in the same quarter last year.
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 multiple times over the last two years.
Looking at Charter’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. AT&T delivered year-on-year revenue growth of 2.9%, beating analysts’ expectations by 0.9%, and Monarch reported revenues up 8.9%, topping estimates by 5.2%. Monarch traded up 15.8% following the results.
Read our full analysis of AT&T’s results here and Monarch’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 10.3% on average over the last month. Charter is up 11.2% during the same time and is heading into earnings with an average analyst price target of $275.47 (compared to the current share price of $241.99).
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