Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$411.71Last close (Oct 26, 2023)
Post-Earnings Price$373.01Open (Oct 27, 2023)
Price Change
$-38.70(-9.40%)
- Charter's subsidized rural markets are achieving nearly 50% penetration at the 12-month mark, faster than initial expectations, indicating strong growth potential.
- Spectrum One is performing well, with mobile retention rates better than expected and customers actively using the service, leading to significant growth in mobile lines.
- The company anticipates EBITDA growth will improve as pressures from investments begin to abate moving into 2024, expecting upward trends to continue.
- Bear Case for Charter Communications ($CHTR):*
- Slower Growth and Competitive Pressures in Core Broadband Markets: Charter is experiencing slower broadband subscriber growth in its core markets than expected, partly due to increased competition from fixed wireless access providers, particularly in the lower-end, price-sensitive customer segments. The usual back-to-school reconnects have not returned to previous levels, indicating a stunted growth in the broadband market.
- Rising Capital Expenditures and Uncertain Return on Rural Investments: The company's capital expenditures are increasing significantly due to network evolution initiatives and accelerated rural expansion. Adjusting the timing of network upgrades may not fully offset additional line extension spending, leading to higher total capital expenses. Additionally, uncertainty surrounding participation in the federal BEAD program due to unfavorable guidelines may limit future growth opportunities in rural broadband expansion.