Charter Communications Q2 revenue slightly misses on weakness in residential video services
Charter Communications Q2 revenue slightly misses on weakness in residential video services
Overview
US cable and broadband provider's Q2 revenue fell 1.7%, slightly missing analyst expectations
Adjusted EBITDA declined 4.3% year-over-year as revenue fell and costs remained flat
Company repurchased 4.0 mln shares for $838 mln during the quarter
Outlook
Charter expects 2026 capital expenditures, excluding Cox transaction impacts, of about $11.4 bln
Company expects to complete network evolution initiative in 2027
Result Drivers
VIDEO REVENUE DECLINE - Lower residential video revenue driven by a higher mix of lower-priced packages, increased costs allocated to programmer streaming applications, and a decline in video customers
INTERNET REVENUE DROP - Internet revenue declined due to a decrease in Internet customers and changes in pricing and packaging mix
MOBILE GROWTH - Mobile service revenue rose 18.9% year-over-year, driven by growth in mobile lines and rate adjustments
Company press release: ID:nPnbvM8yma
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Miss* | $13.50 bln | $13.51 bln (15 Analysts) |
Q2 EPS |
| $10.66 |
|
Q2 Free Cash Flow |
| $969 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 6 "strong buy" or "buy", 13 "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 $195.00, about 54.2% above its July 23 closing price of $126.50
The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 5 three months ago
Reuters Recommended Reads
July 23 - Comcast posts smaller-than-expected drop in Q2 revenue and adjusted EPS
July 22 - AT&T tops targets for new wireless subscribers as bundle offers spur demand
July 23 - T-Mobile Q2 revenue slightly misses analyst 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.)