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Charter Communications (CHTR) Tops Q2 Earnings, Revenues

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Leading U.S cable TV operator, Charter Communications Inc. (CHTR - Free Report) , primarily offers three services – video, high-speed data and voice over its broadband cable systems to both residential and business customers.

The twin buyouts of Time Warner Cable and Bright House Networks helped Charter Communications to become the second-largest cable MSO in the U.S., after Comcast. Both these deals benefited the company in terms of geographic expansion and operating cost synergies, which in turn boosted its bottom line and free cash flow.

The company is also taking various initiatives to improve its Spectrum products and cloud-based user interfaces. Also, accelerated residential and commercial customer growth, investments in business services division and rollout of several initiatives bode well.

However, Charter Communications continues to face legal issues one after the other. The company was sued by Univision Communications over carriage licensing fees. Further, Fox News sued Charter Communications for paying low transmission rates for its news channel. Additionally, a saturated multi-channel video market in the U.S., threat from online video streaming service providers and a highly leveraged balance sheet are the near-term risks.

Charter Communications currently carries a Zacks Rank #3 (Hold). The company has suffered a massive negative average earnings surprise of 219.19% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Charter Communications beats Q2 earnings estimate in the second-quarter 2016. Our consensus earnings per share estimate were 22 cents while the company reported earnings per share of 99 cents.  Investors should note that these figures take out stock option expenses.

Revenue: Charter Communications generated proforma total revenue of $9,988 million, which is well above the Zacks Consensus Estimate of $8,044 million.

Key Stats to Note: During the second quarter of 2016, residential high-speed Internet subscribers rose by 236,000 to 20.667 million. Voice subscribers grew 83,000 to 10.255 million. However, video subscribers decreased by 152,000 to 16.934 million.

CHARTER COMM-A Price and EPS Surprise

CHARTER COMM-A Price and EPS Surprise | CHARTER COMM-A Quote

Check back later for our full write up on this Charter Communications earnings report later!

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