uploads///Telecom Charter Q Adjusted EPS

What Analysts Expect from Charter Communications’ 2Q17 Earnings


Jul. 27 2017, Published 7:33 a.m. ET

Charter Communications’ earnings in 2Q17

In this series, we’ll look at the expectations for Charter Communications’ (CHTR) performance during 2Q17. Wall Street analysts anticipate Charter Communications’ adjusted EPS (earnings per share) to reach ~$1.01 in 2Q17. CHTR’s 2Q17 conference call is scheduled for July 27, 2017.

In 1Q17, Charter Communications (CHTR) reported EPS of $0.57, compared to $0.65 in 1Q16 on a pro forma basis. In 1Q17, the company had generated $155 million of net income attributable to its shareholders on a pro forma basis.

This net income declined from $179 million in 1Q16, due to higher severance-related expenses and D&A (depreciation and amortization). However, this decline was mostly offset by higher adjusted EBITDA.[1. earnings before interest, tax, depreciation, and amortization]

In 1Q17, Charter Communications generated adjusted EBITDA of $3.7 billion, compared to $3.4 billion in 1Q16 on a pro forma basis. The company’s adjusted EBITDA margin expanded from 35.2% in 1Q16 to 35.9% in 1Q17.

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Charter faces intense competition

Charter Communications (CHTR) continuously faces more intense competition in the cable industry, with satellite broadcasters such as Dish TV (DISH) and DIRECTV being the greatest current threats. DIRECTV was purchased by AT&T (T) in July 2015, making it the largest pay-TV player in the United States.

Also, Charter Communications’ declining video customer trend is mainly due to low-cost, OTT (over-the-top) video streaming services such as Amazon (AMZN) and Netflix (NFLX).

In the next part, we’ll take a look at how much revenue growth we can expect from Charter Communications in 2Q17.


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