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The Zacks Consensus Estimate for third-quarter 2022 revenues is pegged at $13.67 billion, indicating a 3.96% increase from the year-ago quarter’s reported figure.
The consensus mark for earnings has remained unchanged at $7.98 in the past 30 days, suggesting growth of 22.77% from the figure reported in the year-ago quarter.
Charter’s earnings beat the Zacks Consensus Estimate in all of the last four quarters. CHTR has a trailing four-quarter earnings surprise of 19.36%, on average.
Let’s see how things are shaping up for the upcoming announcement.
Charter Communications, Inc. Price and EPS Surprise
Charter’s top line in the to-be-reported quarter is expected to have been impacted by declining Internet subscribers. In the last reported quarter, Charter’s had 30.253 million internet customers, up only 2.1% year over year. Charter lost 21K Internet customers in the last reported quarter.
Charter’s third-quarter 2022 top line is expected to be impacted by increasing competition from the likes of Netflix (NFLX - Free Report) and Amazon’s Amazon Prime. Charter lost 226,000 video customers in the second quarter of 2022. Video customer growth is expected to have slowed in the third quarter.
Netflix dominates the video streaming service, which has been spending aggressively on building its original content portfolio. It is the most prominent competitor of CHTR in the video-streaming space.
However, collaboration with companies like Comcast (CMCSA - Free Report) and Apple’s Apple TV+ is expected to have helped Charter ward off competition in the third quarter of 2022.
CHTR has collaborated withComcast to develop and offer a new streaming platform on various branded 4K streaming devices and smart TVs. The joint venture will provide CHTR with Comcast’s Flex and hardware, helping it attract new customers to counter competition.
Charter’s third quarter 2022 results are also expected to have been positively impacted by its strategy to invest $5 billion in constructing a fiber-optic network buildout. This will help provide broadband access to approximately 1 million customer locations across 24 states in the coming years.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and 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 -2.50% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stock to Consider
Here is another company worth considering, as our model shows that it has the right combination of elements to beat on earnings in its upcoming release:
Image: Bigstock
What's in Store for Charter Communications' (CHTR) Q3 Earnings?
Charter Communications (CHTR - Free Report) is set to report third-quarter 2022 results on Oct 28.
The Zacks Consensus Estimate for third-quarter 2022 revenues is pegged at $13.67 billion, indicating a 3.96% increase from the year-ago quarter’s reported figure.
The consensus mark for earnings has remained unchanged at $7.98 in the past 30 days, suggesting growth of 22.77% from the figure reported in the year-ago quarter.
Charter’s earnings beat the Zacks Consensus Estimate in all of the last four quarters. CHTR has a trailing four-quarter earnings surprise of 19.36%, on average.
Let’s see how things are shaping up for the upcoming announcement.
Charter Communications, Inc. Price and EPS Surprise
Charter Communications, Inc. price-eps-surprise | Charter Communications, Inc. Quote
Factors to Consider
Charter’s top line in the to-be-reported quarter is expected to have been impacted by declining Internet subscribers. In the last reported quarter, Charter’s had 30.253 million internet customers, up only 2.1% year over year. Charter lost 21K Internet customers in the last reported quarter.
Charter’s third-quarter 2022 top line is expected to be impacted by increasing competition from the likes of Netflix (NFLX - Free Report) and Amazon’s Amazon Prime. Charter lost 226,000 video customers in the second quarter of 2022. Video customer growth is expected to have slowed in the third quarter.
Netflix dominates the video streaming service, which has been spending aggressively on building its original content portfolio. It is the most prominent competitor of CHTR in the video-streaming space.
However, collaboration with companies like Comcast (CMCSA - Free Report) and Apple’s Apple TV+ is expected to have helped Charter ward off competition in the third quarter of 2022.
CHTR has collaborated withComcast to develop and offer a new streaming platform on various branded 4K streaming devices and smart TVs. The joint venture will provide CHTR with Comcast’s Flex and hardware, helping it attract new customers to counter competition.
Charter’s third quarter 2022 results are also expected to have been positively impacted by its strategy to invest $5 billion in constructing a fiber-optic network buildout. This will help provide broadband access to approximately 1 million customer locations across 24 states in the coming years.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and 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 -2.50% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stock to Consider
Here is another company worth considering, as our model shows that it has the right combination of elements to beat on earnings in its upcoming release:
ZoomInfo Technologies (ZI - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ZI’s shares have lost 28.9% in the year-to-date period compared with the Zacks Computer - Integrated Systems industry’s decline of 9.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.