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Charter (CHTR) to Report Q2 Earnings: What's in the Cards?
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Charter Communications (CHTR - Free Report) is set to report second-quarter 2020 results on Jul 31.
The Zacks Consensus Estimate for second-quarter 2020 revenues is pegged at $11.61 billion, indicating a 2.3% increase from the year-ago quarter’s reported figure.
Moreover, the consensus mark for earnings has decreased 4.1% to $2.57 over the past 30 days, suggesting growth of 84.9% from the figure reported in the year-ago quarter.
Notably, Charter beat on earnings in two of the trailing four quarters, missing the same in the other two, the average negative surprise being 2.60%.
Charter Communications, Inc. Price and EPS Surprise
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Charter’s top line in the to-be-reported quarter is expected to have benefited from an increased number of Internet subscribers amid the coronavirus outbreak. Increased media consumption and work-from-home wave are expected to have augured well for this cable giant.
Notably, the company had 25.471 million residential Internet customers, up 2.3% year over year in first quarter. Internet revenues grew 9.5% year over year to $4.41 billion.
The Zacks Consensus Estimate for Residential-Internet revenues is pegged at $4.48 billion, indicating 9.2% growth from the figure reported in the year-ago quarter. The consensus mark for Internet subscribers is pegged at 25.815 million, implying 6.5% year-over-year subscriber growth.
Charter’s expanding mobile subscriber base is also a key catalyst. The consensus mark for second-quarter mobile revenues stands at $259 million, indicating a surge of 64% from the figure reported in the year-ago quarter.
However, Charter persistently suffers video-subscriber attrition, primarily due to cord-cutting and stiff competition from streamers like Netflix, Disney+ and Amazon prime video. Rising job losses due to coronavirus are expected to have intensified cord-cutting, while subscription dues are also likely to have shot up.
The Zacks Consensus Estimate for Video revenues is pegged at $4.39 billion, suggesting almost no change from the figure reported in the year-ago quarter.
Charter is also participating in the FCC's Keep Americans Connected Pledge, pausing disconnects and collection efforts for residential and SMB customers impacted by coronavirus. Notably, small and medium-sized businesses are the worst hit by coronavirus and Charter’s substantial exposure (roughly 2 million customers) to this cohort is expected to have negatively impacted its top-line growth in the to-be-reported quarter.
Weakness in SMB is also expected to have hurt Charter’s advertising business. The Zacks Consensus Estimate for advertising sales is pegged at $287 million, implying a 27.3% decline from the figure reported in the year-ago quarter and 21.4% fall from the figure reported in the previous quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Charter has an Earnings ESP of -14.96% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Take Two Interactive Software (TTWO - Free Report) has an Earnings ESP of +12.97% and is #2 Ranked.
Etsy (ETSY - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #2.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Charter (CHTR) to Report Q2 Earnings: What's in the Cards?
Charter Communications (CHTR - Free Report) is set to report second-quarter 2020 results on Jul 31.
The Zacks Consensus Estimate for second-quarter 2020 revenues is pegged at $11.61 billion, indicating a 2.3% increase from the year-ago quarter’s reported figure.
Moreover, the consensus mark for earnings has decreased 4.1% to $2.57 over the past 30 days, suggesting growth of 84.9% from the figure reported in the year-ago quarter.
Notably, Charter beat on earnings in two of the trailing four quarters, missing the same in the other two, the average negative surprise being 2.60%.
Charter Communications, Inc. Price and EPS Surprise
Charter Communications, Inc. price-eps-surprise | Charter Communications, Inc. Quote
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Charter’s top line in the to-be-reported quarter is expected to have benefited from an increased number of Internet subscribers amid the coronavirus outbreak. Increased media consumption and work-from-home wave are expected to have augured well for this cable giant.
Notably, the company had 25.471 million residential Internet customers, up 2.3% year over year in first quarter. Internet revenues grew 9.5% year over year to $4.41 billion.
The Zacks Consensus Estimate for Residential-Internet revenues is pegged at $4.48 billion, indicating 9.2% growth from the figure reported in the year-ago quarter. The consensus mark for Internet subscribers is pegged at 25.815 million, implying 6.5% year-over-year subscriber growth.
Charter’s expanding mobile subscriber base is also a key catalyst. The consensus mark for second-quarter mobile revenues stands at $259 million, indicating a surge of 64% from the figure reported in the year-ago quarter.
However, Charter persistently suffers video-subscriber attrition, primarily due to cord-cutting and stiff competition from streamers like Netflix, Disney+ and Amazon prime video. Rising job losses due to coronavirus are expected to have intensified cord-cutting, while subscription dues are also likely to have shot up.
The Zacks Consensus Estimate for Video revenues is pegged at $4.39 billion, suggesting almost no change from the figure reported in the year-ago quarter.
Charter is also participating in the FCC's Keep Americans Connected Pledge, pausing disconnects and collection efforts for residential and SMB customers impacted by coronavirus. Notably, small and medium-sized businesses are the worst hit by coronavirus and Charter’s substantial exposure (roughly 2 million customers) to this cohort is expected to have negatively impacted its top-line growth in the to-be-reported quarter.
Weakness in SMB is also expected to have hurt Charter’s advertising business. The Zacks Consensus Estimate for advertising sales is pegged at $287 million, implying a 27.3% decline from the figure reported in the year-ago quarter and 21.4% fall from the figure reported in the previous quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Charter has an Earnings ESP of -14.96% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
GoPro (GPRO - Free Report) has an Earnings ESP of +43.66% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.
Take Two Interactive Software (TTWO - Free Report) has an Earnings ESP of +12.97% and is #2 Ranked.
Etsy (ETSY - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #2.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>