Charter Communications (CHTR, Financial) reported first-quarter revenue of $13.7 billion, slightly surpassing analysts' expectations of $13.67 billion. This outcome reflects the company's sustained commitment to providing superior network services and products at competitive prices, which has long been a cornerstone of its operational strategy.
The President and CEO, Chris Winfrey, emphasized that the company's strategic focus is yielding positive results, as demonstrated by the latest financial performance. The organization continues to aim for strong customer growth, improved EBITDA, and substantial free cash flow in forthcoming periods, thereby promising significant returns for shareholders.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for Charter Communications Inc (CHTR, Financial) is $407.10 with a high estimate of $660.00 and a low estimate of $273.00. The average target implies an upside of 21.40% from the current price of $335.33. More detailed estimate data can be found on the Charter Communications Inc (CHTR) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, Charter Communications Inc's (CHTR, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Charter Communications Inc (CHTR, Financial) in one year is $408.51, suggesting a upside of 21.82% from the current price of $335.33. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Charter Communications Inc (CHTR) Summary page.
CHTR Key Business Developments
Release Date: January 31, 2025
- Revenue Growth: Increased by 1% for the full year 2024.
- EBITDA Growth: Full year EBITDA growth accelerated to 3.1%.
- Net Income: $1.5 billion in the fourth quarter, up from $1.1 billion last year.
- Internet Customer Losses: Lost 177,000 Internet customers in the fourth quarter.
- Mobile Line Additions: Added 529,000 mobile lines in the fourth quarter.
- Video Customer Decline: Declined by 123,000 in the fourth quarter.
- Capital Expenditures: $3.1 billion in the fourth quarter; $11.3 billion for the full year 2024.
- Free Cash Flow: $984 million in the fourth quarter.
- Debt Principal: $93.8 billion at the end of the fourth quarter.
- Leverage Ratio: Net debt to last 12-month adjusted EBITDA at 4.13 times.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Charter Communications Inc (CHTR, Financial) successfully managed the end of the Affordable Connectivity Program, retaining roughly 90% of former ACP customers.
- Spectrum Mobile business added over 2 million lines in 2024, making it the fastest-growing mobile provider in the US.
- Revenue grew by 1% in 2024, with full-year EBITDA growth accelerating to 3.1%, driven by strong mobile growth and cost efficiency initiatives.
- Charter's multiyear investment initiatives, including network evolution and expansion, are delivering tangible results.
- The company relaunched the Spectrum brand with a focus on seamless connectivity and entertainment, which is expected to enhance customer value and satisfaction.
Negative Points
- Unexpected natural disasters, including hurricanes and wildfires, negatively impacted subscriber numbers and financial results.
- Fourth-quarter adjusted EBITDA was reduced by approximately $35 million due to hurricane-related customer credits and revenue losses.
- Charter experienced a decline in residential customers by 2.2% over the last year.
- The end of the ACP program led to higher churn, resulting in approximately 140,000 Internet losses in the fourth quarter.
- Charter's capital expenditures are expected to peak at approximately $12 billion in 2025, putting temporary pressure on free cash flow growth.
