We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Charter Communications (CHTR) Q3 Earnings Miss Estimates
Read MoreHide Full Article
Charter Communications Inc. (CHTR - Free Report) reported disappointing financial results in third-quarter 2017, wherein both the top and the bottom line lagged the Zacks Consensus Estimate.
GAAP net income in the reported quarter was $48 million compared with net income of $189 million in the year-ago quarter. Quarterly earnings of 19 cents per share were well below the Zacks Consensus Estimate of $1.04.
Charter Communications, Inc. Price, Consensus and EPS Surprise
Third-quarter 2017 total revenues of $10,458 million increased 4.2% year over year but missed the Zacks Consensus Estimate of approximately $10,485 million.
Residential segment revenues came in at $8,380 million compared with $8,028 million in the year-ago quarter. Within the Residential segment, Video revenues totaled $4,213 million, up 2.9% year over year. Internet revenues came in at $3,556 million, increasing 10.9% from the prior-year quarter, while Voice revenues were $611 million, declining 16.1% year over year.
Commercial revenues totaled $1,484 million, reflecting an increase of 8% year over year. Within the Commercial segment, small and medium business revenues were $931 million, up 7.4% year over year. Enterprise revenues came in at $553 million, increasing 8.9% on a year-over-year basis.
Advertising revenues were $373 million, declining 11.1% year over year. Other revenues came in at $221 million, increasing 3% year over year.
Quarterly operating costs and expenses were $6,639 million compared with $6,401 million in the year-ago quarter. Third-quarter adjusted EBITDA was $3,819 million compared with $3,636 million in the year-ago quarter. EBITDA margin came in at 36.5% compared with 36.2% in third-quarter 2016.
In the third quarter of 2017, Charter Communications generated $2,908 million of cash from operations compared with $2,801 million a year ago. Free cash flow in the reported quarter was $594 million compared with $1,001 million in the year-ago quarter.
At the end of the reported quarter, Charter Communications had $2,164 million of cash and cash equivalents and $68,132 million of outstanding debt compared with $1,535 million and $62,464 million, respectively, at the end of 2016. The debt-to-capitalization ratio at the end of the reported quarter was 0.61 compared with 0.54 at the end of 2016.
Charter Communications currently carries a Zacks Rank #4 (Sell). The company competes with AT&T Inc. (T - Free Report) , DISH Network Corp. and Comcast Corp. (CMCSA - Free Report) in the intensely competitive pay-TV industry. AT&T and DISH Network have a Zacks Rank #4, while Comcast carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Subscriber Statistics
Residential Segment: As of Sep 30, 2017, Charter Communications’ residential high-speed Internet subscribers increased 249,000 to 22.282 million. Voice subscribers grew 27,000 to 10.405 million. However, video subscribers decreased 104,000 to 16.542 million.
Monthly residential revenues per customer were $110.12 compared with $109.70 in the prior-year quarter. Single Play penetration was 40.7%, Double Play penetration was 25.3% and Triple Play penetration was 34%.
Commercial Segment: As of Sep 30, 2017, Charter Communications had 440,000 video, 1,321,000 high-speed Internet and 881,000 voice subscribers. During the reported quarter, the company added 15,000 video customers, 36,000 high-speed Internet and 34,000 voice customers. Monthly small and medium business revenues per customer were $206.64 compared with $214.53 in the prior-year quarter. Enterprise customers were 0.108 million, increasing 16.1% year over year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Charter Communications (CHTR) Q3 Earnings Miss Estimates
Charter Communications Inc. (CHTR - Free Report) reported disappointing financial results in third-quarter 2017, wherein both the top and the bottom line lagged the Zacks Consensus Estimate.
GAAP net income in the reported quarter was $48 million compared with net income of $189 million in the year-ago quarter. Quarterly earnings of 19 cents per share were well below the Zacks Consensus Estimate of $1.04.
Charter Communications, Inc. Price, Consensus and EPS Surprise
Charter Communications, Inc. Price, Consensus and EPS Surprise | Charter Communications, Inc. Quote
Third-quarter 2017 total revenues of $10,458 million increased 4.2% year over year but missed the Zacks Consensus Estimate of approximately $10,485 million.
Residential segment revenues came in at $8,380 million compared with $8,028 million in the year-ago quarter. Within the Residential segment, Video revenues totaled $4,213 million, up 2.9% year over year. Internet revenues came in at $3,556 million, increasing 10.9% from the prior-year quarter, while Voice revenues were $611 million, declining 16.1% year over year.
Commercial revenues totaled $1,484 million, reflecting an increase of 8% year over year. Within the Commercial segment, small and medium business revenues were $931 million, up 7.4% year over year. Enterprise revenues came in at $553 million, increasing 8.9% on a year-over-year basis.
Advertising revenues were $373 million, declining 11.1% year over year. Other revenues came in at $221 million, increasing 3% year over year.
Quarterly operating costs and expenses were $6,639 million compared with $6,401 million in the year-ago quarter. Third-quarter adjusted EBITDA was $3,819 million compared with $3,636 million in the year-ago quarter. EBITDA margin came in at 36.5% compared with 36.2% in third-quarter 2016.
In the third quarter of 2017, Charter Communications generated $2,908 million of cash from operations compared with $2,801 million a year ago. Free cash flow in the reported quarter was $594 million compared with $1,001 million in the year-ago quarter.
At the end of the reported quarter, Charter Communications had $2,164 million of cash and cash equivalents and $68,132 million of outstanding debt compared with $1,535 million and $62,464 million, respectively, at the end of 2016. The debt-to-capitalization ratio at the end of the reported quarter was 0.61 compared with 0.54 at the end of 2016.
Charter Communications currently carries a Zacks Rank #4 (Sell). The company competes with AT&T Inc. (T - Free Report) , DISH Network Corp. and Comcast Corp. (CMCSA - Free Report) in the intensely competitive pay-TV industry. AT&T and DISH Network have a Zacks Rank #4, while Comcast carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Subscriber Statistics
Residential Segment: As of Sep 30, 2017, Charter Communications’ residential high-speed Internet subscribers increased 249,000 to 22.282 million. Voice subscribers grew 27,000 to 10.405 million. However, video subscribers decreased 104,000 to 16.542 million.
Monthly residential revenues per customer were $110.12 compared with $109.70 in the prior-year quarter. Single Play penetration was 40.7%, Double Play penetration was 25.3% and Triple Play penetration was 34%.
Commercial Segment: As of Sep 30, 2017, Charter Communications had 440,000 video, 1,321,000 high-speed Internet and 881,000 voice subscribers. During the reported quarter, the company added 15,000 video customers, 36,000 high-speed Internet and 34,000 voice customers. Monthly small and medium business revenues per customer were $206.64 compared with $214.53 in the prior-year quarter. Enterprise customers were 0.108 million, increasing 16.1% year over year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>