Charter Communications Second Quarter Earnings Sneak Peek

Charter Communications, Inc. (NASDAQ:CHTR) will unveil its latest earnings on Tuesday, August 7, 2012. 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.

Charter Communications, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 42 cents per share, a narrower loss from the year-earlier quarter net loss of 67 cents. During the past three months, the average estimate has moved down from a loss of 35 cents. Between one and three months ago, the average estimate moved up. It has dropped from a loss of 33 cents during the last month.

Past Earnings Performance: The company enters this earnings report having missed estimates the last four quarters. Last quarter, the company fell short of expectations by 48 cents, reporting net loss of of 95 cents per share against a mean estimate of a loss of 47 cents per share.

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Stock Price Performance: Between May 7, 2012 and August 1, 2012, the stock price rose $16.52 (26.7%), from $61.82 to $78.34. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 5, 2012, when shares rose for eight straight days, increasing 8.5% (+$5.63) over that span. It saw one of its worst periods between February 27, 2012 and March 7, 2012 when shares fell for eight straight days, dropping 4.8% (-$3.03) over that span.

A Look Back: In the first quarter, the company’s loss narrowed to a loss of $94 million (95 cents a share) from a loss of $110 million (97 cents) a year earlier, but missed analyst expectations. Revenue rose 3.2% to $1.83 billion from $1.77 billion.

Wall St. Revenue Expectations: Analysts are projecting a rise of 4.5% in revenue from the year-earlier quarter to $1.87 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 1.1% in the second quarter of the last fiscal year, 2.3% in the third quarter of the last fiscal year and 2.8% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Analyst Ratings: With five analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts. Over the last three months, the stock’s average rating has increased from hold to moderate buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.3 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

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

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