CHTR
Charter Communications (NASDAQ: CHTR) posted modest revenue declines driven by lower residential revenue...
Article Summary
HOLD- Charter Communications (NASDAQ: CHTR) posted modest revenue declines driven by lower residential revenue and lower broadband ARPU, while EBITDA declined 3.2% excluding Cox transition expenses.
- Charter Communications added 406,000 Spectrum mobile lines in the second quarter, marking 16% growth over the last 12 months, while adding 400,000 new wireless lines and reducing video customer losses by 21,000.
- Charter posted flat net income and $1.3 billion in net income, with free cash flow down $75 million year-over-year due to lower capital spending and share repurchases.
- However, the company posted 172,000 Internet customer losses and a $65 million increase in transition expenses related to the pending Cox transaction, reflecting higher-than-expected costs tied to the integration of Cox.
- Guidance calls for modest ARPU growth in broadband and wireless, with wireless ARPU expected to stabilize sequentially in Q3, and a tailwind from rate-cost pass-throughs in late July and early August.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | -0.9% | 25% | 0.0 ptsDeclining (-0.9%) - NOT a growth stock |
| EPS Growth Next 5Y ? | 13.0% | 25% | 35.0 ptsBelow Screener (13.0%) - Modest outlook |
| Target Price Upside ? | 90.3% | 20% | 100.0 ptsMassive Upside (90.3%) - Target: $234.65 vs Current: $123.31 |
| Gross Margin % ? | 46.2% | 15% | 60.0 ptsSolid (46.2%) - Decent margins |
| Drawdown from 52-Wk High ? | -69.1% | 15% | 100.0 ptsDeep Discount (-69.1%) - Best entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About CHTR
- Charter Communications, Inc. operates as a broadband connectivity company in the United States.
- The company offers subscription-based internet, mobile, video, and voice services; broadband connectivity services, including fixed internet, WiFi, and mobile; Spectrum internet products; advanced WiFi services; and in-home WiFi, which provides customers with high performance wireless routers and managed WiFi services to enhance their wireless internet experience.
- It also offers wireline voice communications services using voice over internet protocol technology; Call Guard, an advanced caller ID and robocall blocking solution; video programming and video services, including access to an interactive programming guide with parental controls, video on demand and pay-per-view services; and broadband communications solutions, such as internet access, data networking, fiber connectivity, video entertainment, and business telephone services.
- In addition, the company provides advertising services on cable television networks, various streaming services, and advertising platforms for local, regional and national businesses.
- Further, it offers production and technical services for regional sports networks; owns and manages local news channels, including Spectrum News NY1® and Spectrum News SoCal; and delivers broadband connectivity solutions to apartments, single-family gated communities, off-campus student housing, senior residences, and RV parks.
- The company was founded in 1993 and is headquartered in Stamford, Connecticut.