Charter Communications (NASDAQ:CHTR) is set to give its latest quarterly earnings report on Friday, 2025-04-25. Here's what investors need to know before the announcement.
Analysts estimate that Charter Communications will report an earnings per share (EPS) of $8.47.
Anticipation surrounds Charter Communications's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Earnings History Snapshot
In the previous earnings release, the company beat EPS by $0.88, leading to a 0.0% drop in the share price the following trading session.
Here's a look at Charter Communications's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 9.22 | 8.62 | 7.98 | 7.92 |
| EPS Actual | 10.10 | 8.82 | 8.49 | 7.55 |
| Price Change % | 3.0% | 12.0% | 17.0% | -2.0% |
Performance of Charter Communications Shares
Shares of Charter Communications were trading at $337.51 as of April 23. Over the last 52-week period, shares are up 29.46%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Observations about Charter Communications
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Charter Communications.
Analysts have given Charter Communications a total of 5 ratings, with the consensus rating being Buy. The average one-year price target is $392.0, indicating a potential 16.14% upside.
Analyzing Ratings Among Peers
The following analysis focuses on the analyst ratings and average 1-year price targets of Cable One and Comcast, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Cable One, with an average 1-year price target of $405.0, suggesting a potential 20.0% upside.
- Analysts currently favor an Neutral trajectory for Comcast, with an average 1-year price target of $40.63, suggesting a potential 87.96% downside.
Peers Comparative Analysis Summary
The peer analysis summary provides a snapshot of key metrics for Cable One and Comcast, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Charter Communications | Buy | 1.57% | $14.48B | 9.88% |
| Cable One | Neutral | -5.97% | $287.36M | -5.72% |
| Comcast | Neutral | 2.11% | $21.89B | 5.58% |
Key Takeaway:
Charter Communications ranks highest in revenue growth among its peers. It also leads in gross profit margin. However, it has a lower return on equity compared to its peers.
Get to Know Charter Communications Better
Charter is the product of the 2016 merger of three cable companies, each with a decades-long history in the business: Legacy Charter, Time Warner Cable, and Bright House Networks. The firm now holds networks capable of providing television, internet access, and phone services to roughly 57 million US homes and businesses, around 35% of the country. Across this footprint, Charter serves 29 million residential and 2 million commercial customer accounts under the Spectrum brand, making it the second-largest US cable company behind Comcast. The firm also owns, in whole or in part, sports and news networks, including Spectrum SportsNet (long-term local rights to Los Angeles Lakers games), SportsNet LA (Los Angeles Dodgers), SportsNet New York (New York Mets), and Spectrum News NY1.
Charter Communications's Financial Performance
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
Revenue Growth: Charter Communications displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 1.57%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Communication Services sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Charter Communications's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 10.53% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Charter Communications's ROE excels beyond industry benchmarks, reaching 9.88%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Charter Communications's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.98% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Charter Communications's debt-to-equity ratio surpasses industry norms, standing at 6.14. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
To track all earnings releases for Charter Communications visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.