What To Expect From Charter's (CHTR) Q1 Earnings

Petr Huřťák /
2024/04/25 3:01 am EDT

Cable, internet, and telephone services provider Charter (NASDAQ:CHTR) will be reporting results tomorrow morning. Here's what to expect.

Charter met analysts' revenue expectations last quarter, reporting revenues of $13.71 billion, flat year on year. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

Is Charter a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Charter's revenue to be flat year on year at $13.74 billion, slowing from the 3.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $7.87 per share.

Charter Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing four upward and six downward revisions over the last thirty days.Charter has missed Wall Street's revenue estimates five times over the last two years.

Looking at Charter's peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Nike posted flat year-on-year revenue, beating analysts' expectations by 1.1%, and Carnival reported revenues up 22%, in line with Wall Street's consensus estimates. Nike traded down 7% following the results while Carnival was also down 4.1%.

Read our full analysis of Nike's results here and Carnival's results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share price declining 6.6% over the last month. Charter is down 8.4% during the same time and is heading into earnings with an average analyst price target of $352.4 (compared to share price of $268.99).

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