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Charter's (CHTR) Clientele Expands With Grocery Chain Deal (Revised)

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Charter Communications' (CHTR - Free Report) division, Spectrum Enterprise, is leaving no stone unturned to expand its technology solutions. Spectrum Enterprise’s portfolio includes networking and managed services solutions such as Internet access, Ethernet access, and network, voice and TV solutions.

Recently, the company announced that its all-in-one solution, Managed Network Edge, has been chosen by Heritage Grocers Group to provide network monitoring, cybersecurity protections, connectivity, and managed IT services to ensure critical network uptime and security for credit card transactions, AI-driven inventory tools, environmental monitoring IoT sensors, online ordering, and delivery services.

The Spectrum Enterprise team of professionals is continuously collaborating with clients to boost their business outcomes by providing solutions that are tailored to their evolving needs.

Expanding Clientele to Aid Near-Term Growth

Charter Communications’ division Spectrum Enterprise is riding on an expanding clientele and strong enterprise customer base, which are expected to drive top-line growth in the near term. Spectrum currently serves around 30.6 million residential and small and medium business (SMB) Internet customers.  

The Zacks Consensus Estimate for Charter Communications’ revenues for fiscal 2023 is pegged at $54.62 billion, indicating growth of 1.10% year over year.

The consensus mark for earnings has decreased by 8 cents over the past 30 days to $8.93 per share.

Spectrum has a broad portfolio of clients, which include Red Studios Hollywood, Redman Realty Group, and many more.

Recently, Red Studios Hollywood selected Spectrum Enterprise to boost its digital network by installing a high-speed, low-latency Fiber Internet Access (FIA) circuit with a second backup circuit.

Redman Realty Group also chose Spectrum Enterprise’s technology solutions to provide its clients with upgraded phone solutions and boost sales with the help of the latter’s modern network.

Spectrum also has partnerships with Cisco Systems (CSCO - Free Report) , RingCentral (RNG - Free Report) , AOC Connect and many more.

Spectrum recently introduced Secure Access with Cisco Duo and Cloud Security with Cisco+ Secure Connect, aiming to enhance cybersecurity solutions for businesses.

Spectrum has also teamed with RingCentral to offer SMBs and other enterprise customers high-speed internet and network solutions, as well as a reliable, secure, and user-friendly communications platform.

However, in the past six months, Charter Communications’ shares have declined 4.1% against the Zacks Consumer Discretionary sector’s rise of 1.2%. The decline is attributed to the persistent video-subscriber attrition, primarily due to cord-cutting and stiff competition from its contenders like Netflix and Disney+.

Zacks Rank & Stock to Consider

Currently, Charter Communications carries a Zacks Rank #4 (Sell).

A better-ranked stock in the broader Consumer Discretionary sector is Netflix (NFLX - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Netflix shares have returned 44.9% in the past year. The long-term earnings growth rate for NFLX is pegged at 21.3%.

(We are reissuing this article to correct a mistake. The original article, issued on January 11, 2024, should no longer be relied upon.)

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