Charter Communications Third Quarter Earnings Sneak Peek

Charter Communications, Inc. (NASDAQ:CHTR) will unveil its latest earnings on Tuesday, November 6, 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 net loss of 44 cents per share, a narrower loss from the year-earlier quarter net loss of 77 cents. During the past three months, the average estimate has moved down from a loss of 43 cents. Between one and three months ago, the average estimate moved down. It has risen from a loss of 47 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 42 cents, reporting a loss of of 84 cents per share against a mean estimate of net loss of 42 cents per share.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

A Look Back: In the second quarter, the company’s loss narrowed to a loss of $83 million (84 cents a share) from a loss of $107 million (98 cents) a year earlier, but missed analyst expectations. Revenue rose 5.2% to $1.88 billion from $1.79 billion.

Wall St. Revenue Expectations: Analysts predict a rise of 5% in revenue from the year-earlier quarter to $1.9 billion.

Analyst Ratings: There are mostly holds on the stock with five of eight analysts surveyed giving that rating.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 2.3% in the third quarter of the last fiscal year, 2.8% in the fourth quarter of the last fiscal year and 3.2% in the first quarter before increasing again in the second quarter.

Stock Price Performance: Between October 25, 2012 and October 31, 2012, the stock price rose $1.22 (1.6%), from $76.19 to $77.41. 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.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.31 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. The company improved this liquidity measure from 0.3 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 8.6% to $367 million while liabilities rose by 4.7% to $1.19 billion.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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

Don’t Miss These Additional Hot Stories:

Is Ford’s Stock a Buy After a Record Quarter?

Will Sirius’s Stock Still Be a Buy After the Buyout?

Is Facebook Harmful to Your Health and Wallet?