Cable, internet, and telephone services provider Charter (NASDAQ: CHTR) will be reporting earnings this Friday before market open. Here’s what to expect.
Charter met analysts’ revenue expectations last quarter, reporting revenues of $13.6 billion, down 1% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates. It reported 29.56 million internet subscribers, up 5.7% 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 decline 1.9% 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 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 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 2.3%, missing analysts’ expectations by 0.6%, and AMC Entertainment reported revenues up 14.2%, topping estimates by 8.7%. AMC Entertainment traded up 14.9% following the results.
Read our full analysis of AT&T’s results here and AMC Entertainment’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Charter is down 2% during the same time and is heading into earnings with an average analyst price target of $209.94 (compared to the current share price of $129.11).
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