Charter Communications Loses Residential Internet Customers In Q1, Reports Sharp Drop In Video Subscriptions
Portfolio Pulse from Anusuya Lahiri
Charter Communications Inc (NASDAQ:CHTR) reported a slight revenue growth of 0.2% in Q1 2024 to $13.68 billion, missing expectations. EPS was $7.55, below the consensus of $7.92. The company saw a drop in residential internet and video customers but grew in internet, mobile service, and commercial sectors. Adjusted EBITDA margin increased to 40.2%, though free cash flow decreased due to higher capital expenditures. Charter reiterated its 2024 capex outlook and maintains its revenue and EPS consensus. CHTR stock has fallen over 19% in the past 12 months.
April 26, 2024 | 2:41 pm
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NEGATIVE IMPACT
Charter Communications reported lower-than-expected Q1 2024 earnings and revenue, with a significant loss in residential internet and video customers.
The missed earnings and revenue expectations, combined with the loss of residential internet and video customers, are likely to negatively impact investor sentiment and stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Invesco S&P 500 Equal Weight Communication Services ETF (NYSE:RSPC) is exposed to Charter Communications, which underperformed in Q1 2024.
RSPC's exposure to CHTR means the ETF could be negatively impacted by Charter's Q1 earnings miss and revenue shortfall, potentially affecting its performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Tidal ETF Trust God Bless America ETF (NYSE:YALL) offers exposure to Charter Communications, which reported disappointing Q1 2024 results.
Given YALL's exposure to CHTR, the ETF could see a negative impact due to Charter's disappointing Q1 results, affecting its performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50