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What's in Store for Charter Communications' (CHTR) Q1 Earnings?
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Charter Communications (CHTR - Free Report) is set to report first-quarter 2022 results on Apr 29.
The Zacks Consensus Estimate for first-quarter 2022 revenues is pegged at $13.21 billion, indicating a 5.49% increase from the year-ago quarter’s reported figure.
The consensus mark for earnings has moved down 0.5% to $6.52 in the past 30 days, suggesting growth of 58.64% from the figure reported in the year-ago quarter.
Charter’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed the same in one. CHTR has a trailing four-quarter earnings surprise of 12.04%, on average.
Let’s see how things are shaping up for the upcoming announcement.
Factors to Consider
Charter’s top line in the to-be-reported quarter is expected to have benefited from increasing Internet subscribers fueled by work-from-home and learn-from-home trends and a spike in media consumption.
Charter’s Spectrum News carried strong viewership in January 2022, averaging increases in linear viewership of 7% and reaching more than 2.9 million daily viewing households across all digital and linear platforms in January, the highest number of cross-platform households reached by Spectrum News since February 2021. In January, the Spectrum News App surpassed 1.8 million total downloads since its July 2020 launch.
Charter’s Spectrum News cemented its place as the most-watched news network by Spectrum customers in March. The network averaged more than 2.6 million daily viewing households on its linear and digital platforms across its 12-state local news footprint.
The high media consumption of consumer, which has made Spectrum News the most watched channel for three consecutive months, is likely to have continued in the to-be reported quarter.
Charter Communications, Inc. Price and EPS Surprise
The Zacks Consensus Estimate for Residential-Internet revenues is pegged at $5.49 billion, indicating 7.9% growth from the figure reported in the year-ago quarter. The consensus mark for Residential-Internet subscribers is pegged at 28.35 million, suggesting a subscriber growth of 3.6% year-over-year.
As of Dec 31, 2021, Charter had 32.1 million total customer relationships, with 939K net new customer relationships added over the last 12 months.
The company had 28 million residential Internet customers, up 4.1% year over year, in fourth-quarter 2021. Internet revenues rose 11.6% year over year to $5.42 billion, driven by growth in Internet customers, promotional rate step-ups, reduced bundles discounts and higher bundled revenue allocation. The trend is likely to have continued in the to-be-reported quarter.
Charter Communication’s expanding mobile subscriber base is also a key catalyst. The consensus mark for first-quarter mobile revenues is pegged at $664 million, indicating a surge of 34.9% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for Residential Video revenues is pegged at $4.36 billion, indicating growth of 0.4% from the figure reported in the year-ago quarter.
However, Charter has been suffering due to video-subscriber attrition stemming from cord-cutting and stiff competition from Netflix, Disney+ and Amazon prime video.
Small and medium-sized businesses have been the worst hit during the pandemic. Charter’s substantial exposure (roughly 2 million customers) to this cohort is expected to have dented the company’s advertising revenue growth in the to-be-reported quarter.
The Zacks Consensus Estimate for advertising sales is pegged at $373 million, calling for an 8.4% increase from the figure reported in the year-ago quarter.
Key Q1 Highlights
By the end of March, Charter Communications announced the launch of Spectrum Internet 100. The company will be offering Internet 100 across virtually all of its entire 41-state service area.
On Mar 3, Charter’s Spectrum announced that it would release an eight-episode Spectrum Originals dramedy series, Panhandle.
Set in the Florida panhandle, The Sony (SONY - Free Report) Pictures Television Studios produced-series will have a nine-month exclusive run on Spectrum (free, without ads) and then will have an exclusive free advertising-supported window on Roku’s (ROKU - Free Report) The Roku Channel as a Roku Original.
This move will help Sony expand its relationship with Charter’s Spectrum through the former’s new collective collaboration with Roku, further augmenting the audience for the series.
In February, Spectrum in agreement with NBCUniversal, a Comcast (CMCSA - Free Report) subsidiary, announced a multi-platform content offering for NBCUniversal’s coverage of the XXIV Olympic Winter Games from Beijing, China, from Feb 3-20, 2022.
Per the agreement, Spectrum subscribers will have access to Comcast-owned NBCUniversal’s Winter Olympics-record 2,800+ hours of Olympic programming, including coverage of all competition sessions on-demand.
Zacks Rank
Charter has a Zacks Rank #3 (Hold) currently.
CHTR is down 20.8% in the past year compared with the Zacks Cable Television industry’s decline of 12.1% and the Consumer Discretionary sector’s fall of 20.8%.
Image: Bigstock
What's in Store for Charter Communications' (CHTR) Q1 Earnings?
Charter Communications (CHTR - Free Report) is set to report first-quarter 2022 results on Apr 29.
The Zacks Consensus Estimate for first-quarter 2022 revenues is pegged at $13.21 billion, indicating a 5.49% increase from the year-ago quarter’s reported figure.
The consensus mark for earnings has moved down 0.5% to $6.52 in the past 30 days, suggesting growth of 58.64% from the figure reported in the year-ago quarter.
Charter’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed the same in one. CHTR has a trailing four-quarter earnings surprise of 12.04%, on average.
Let’s see how things are shaping up for the upcoming announcement.
Factors to Consider
Charter’s top line in the to-be-reported quarter is expected to have benefited from increasing Internet subscribers fueled by work-from-home and learn-from-home trends and a spike in media consumption.
Charter’s Spectrum News carried strong viewership in January 2022, averaging increases in linear viewership of 7% and reaching more than 2.9 million daily viewing households across all digital and linear platforms in January, the highest number of cross-platform households reached by Spectrum News since February 2021. In January, the Spectrum News App surpassed 1.8 million total downloads since its July 2020 launch.
Charter’s Spectrum News cemented its place as the most-watched news network by Spectrum customers in March. The network averaged more than 2.6 million daily viewing households on its linear and digital platforms across its 12-state local news footprint.
The high media consumption of consumer, which has made Spectrum News the most watched channel for three consecutive months, is likely to have continued in the to-be reported quarter.
Charter Communications, Inc. Price and EPS Surprise
Charter Communications, Inc. price-eps-surprise | Charter Communications, Inc. Quote
The Zacks Consensus Estimate for Residential-Internet revenues is pegged at $5.49 billion, indicating 7.9% growth from the figure reported in the year-ago quarter. The consensus mark for Residential-Internet subscribers is pegged at 28.35 million, suggesting a subscriber growth of 3.6% year-over-year.
As of Dec 31, 2021, Charter had 32.1 million total customer relationships, with 939K net new customer relationships added over the last 12 months.
The company had 28 million residential Internet customers, up 4.1% year over year, in fourth-quarter 2021. Internet revenues rose 11.6% year over year to $5.42 billion, driven by growth in Internet customers, promotional rate step-ups, reduced bundles discounts and higher bundled revenue allocation. The trend is likely to have continued in the to-be-reported quarter.
Charter Communication’s expanding mobile subscriber base is also a key catalyst. The consensus mark for first-quarter mobile revenues is pegged at $664 million, indicating a surge of 34.9% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for Residential Video revenues is pegged at $4.36 billion, indicating growth of 0.4% from the figure reported in the year-ago quarter.
However, Charter has been suffering due to video-subscriber attrition stemming from cord-cutting and stiff competition from Netflix, Disney+ and Amazon prime video.
Small and medium-sized businesses have been the worst hit during the pandemic. Charter’s substantial exposure (roughly 2 million customers) to this cohort is expected to have dented the company’s advertising revenue growth in the to-be-reported quarter.
The Zacks Consensus Estimate for advertising sales is pegged at $373 million, calling for an 8.4% increase from the figure reported in the year-ago quarter.
Key Q1 Highlights
By the end of March, Charter Communications announced the launch of Spectrum Internet 100. The company will be offering Internet 100 across virtually all of its entire 41-state service area.
On Mar 3, Charter’s Spectrum announced that it would release an eight-episode Spectrum Originals dramedy series, Panhandle.
Set in the Florida panhandle, The Sony (SONY - Free Report) Pictures Television Studios produced-series will have a nine-month exclusive run on Spectrum (free, without ads) and then will have an exclusive free advertising-supported window on Roku’s (ROKU - Free Report) The Roku Channel as a Roku Original.
This move will help Sony expand its relationship with Charter’s Spectrum through the former’s new collective collaboration with Roku, further augmenting the audience for the series.
In February, Spectrum in agreement with NBCUniversal, a Comcast (CMCSA - Free Report) subsidiary, announced a multi-platform content offering for NBCUniversal’s coverage of the XXIV Olympic Winter Games from Beijing, China, from Feb 3-20, 2022.
Per the agreement, Spectrum subscribers will have access to Comcast-owned NBCUniversal’s Winter Olympics-record 2,800+ hours of Olympic programming, including coverage of all competition sessions on-demand.
Zacks Rank
Charter has a Zacks Rank #3 (Hold) currently.
CHTR is down 20.8% in the past year compared with the Zacks Cable Television industry’s decline of 12.1% and the Consumer Discretionary sector’s fall of 20.8%.
You can see the complete list of Zacks #1 Rank stocks here.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.