Charter Communications Earnings: Sees Bigger Losses, Misses Street

Charter Communications Inc. (NASDAQ:CHTR) reported its results for the third quarter. Charter Communications offers residential and commercial customers traditional cable video programming (basic and digital video), high-speed Internet services, and telephone services, as well as advanced broadband services.

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Charter Communications Inc. Earnings Cheat Sheet

Results: Loss widened to $87 million (87 cents per diluted share) from $85 million (loss of 79 cents per share) in the same quarter a year earlier.

Revenue: Rose 3.9% to $1.88 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Charter Communications Inc. fell short of the mean analyst estimate of a loss of 44 cents per share. It beat the average revenue estimate of $1.84 billion.

Quoting Management: “We entered the quarter in a stronger competitive position from a product, pricing and service standpoint, benefiting customer trends and triple play sales,” said Tom Rutledge, Charter President and CEO. “We are enhancing the foundation of our operating structure, business practices and product offerings to support sustainable growth. The investments we make in the near term lay the groundwork for increased penetration across all of our products with a greater customer lifetime value. I am confident about our future and our ability to drive long-term growth and maximize return on investment.”

Key Stats:

The company has now missed analyst estimates for the last four quarters. It fell short by 42 cents in the second quarter, by 48 cents in the first quarter, and by 22 cents in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 5.2% to $1.88 billion in the second quarter. The figure rose 3.2% in the first quarter from the year earlier and climbed 2.8% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: The average estimate for the fourth quarter is down from a loss of 13 cents per share ninety days ago to a loss of 20 cents, indicating that analysts are increasingly pessimistic about the company’s next quarter performance. For the fiscal year, the average estimate has moved from a loss of $1.91 a share to a loss of $2.42 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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