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Charter Communications slightly misses Q3 revenue estimates, posts loss on franchise impairment

By Reuters News


Overview

  • US cable and broadband provider's Q3 revenue rose 9%, slightly missing analyst expectations

  • Company posted a net loss due to a $6.3 bln franchise impairment charge

  • Company announced new $2 bln annualized expense savings plan


Outlook

  • Charter targets $2 bln in annualized expense savings over next 18 months

  • Company expects 2026 pro forma capex, ex-transition, of about $13 bln

  • Charter says 2026 capex depends on network expansion, supply chain timing, and business growth


Result Drivers

  • RESIDENTIAL REVENUE DECLINE - Lower residential video and Internet revenue, partly offset by mobile and advertising sales, drove pro forma revenue decrease

  • MOBILE GROWTH - Higher mobile service revenue driven by mobile line growth and rate adjustments

  • COX INTEGRATION - Launch of Spectrum products in legacy Cox markets led to strong consumer demand and improved customer trends


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Miss*

$14.90 bln

$15.03 bln (7 Analysts)

Q3 Free Cash Flow

$674 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 12 "hold" and 6 "sell" or "strong sell"

  • The average consensus recommendation for the integrated telecommunications services peer group is "buy."

  • Wall Street's median 12-month price target for Charter Communications, Inc. is $140.00, about 11.2% above its November 5 closing price of $125.86

  • The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 3 three months ago


Reuters Recommended Reads

  • Nov 5 - Cable One Q3 revenue misses estimates on fewer residential data subscribers

  • Nov 5 - European telcos raise payouts as earnings improve in Q3

  • Nov 5 - Cogent Communications Q3 revenue falls, adjusted EBITDA misses estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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