Charter Communications Meets on the Top Line, Misses Where It Counts
Charter Communications (NAS: CHTR) reported earnings on Feb. 27. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Charter Communications met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP loss per share contracted.
Gross margins dropped, operating margins dropped, and net margins expanded.
Charter Communications booked revenue of $1.83 billion. The 10 analysts polled by S&P Capital IQ hoped for sales of $1.83 billion on the same basis. GAAP reported sales were 2.8% higher than the prior-year quarter's $1.78 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.46. The 12 earnings estimates compiled by S&P Capital IQ predicted -$0.21 per share on the same basis. GAAP EPS were -$0.64 for Q4 compared to -$0.75 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.7%, 140 basis points worse than the prior-year quarter. Operating margin was 14.1%, 190 basis points worse than the prior-year quarter. Net margin was -3.7%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.84 billion. On the bottom line, the average EPS estimate is -$0.07.
Next year's average estimate for revenue is $7.49 billion. The average EPS estimate is $0.59.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Charter Communications is outperform, with an average price target of $63.97.
- Add Charter Communications to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.