uploads///Telecom Charter Q Adjusted EPS

What Analysts Expect from Charter Communications’ 4Q17 Earnings

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Dec. 4 2020, Updated 10:52 a.m. ET

Charter Communications’ earnings in 4Q17

Charter Communications (CHTR) plans to report its results for 4Q17 on February 2, 2018. In this series, we’ll a look at the expectations for Charter Communications’ 4Q17 performance. Wall Street analysts expect Charter Communications’ adjusted earnings per share (or EPS) to reach ~$0.88 in 4Q17.

In 3Q17, Charter Communications reported EPS of $0.19, down from $0.69 in 3Q16 on a pro forma basis. The telecom company had missed Wall Street analysts’ consensus earnings expectations by ~81.4% in 3Q17. 

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Charter Communications’ (CHTR) net income attributable to its shareholders decreased from $189.0 million in 3Q16 to $48.0 million in 3Q17 on a pro forma basis. This decrease was primarily due to higher D&A[1. depreciation and amortization] in 3Q17. However, it was partly offset by higher YoY (year-over-year) adjusted EBITDA.[2. earnings before interest, tax, depreciation, and amortization]

In 3Q17, Charter Communications’ adjusted EBITDA was $3.8 billion, up from $3.6 billion in 3Q16 on a pro forma basis. The company’s adjusted EBITDA margin grew to 36.5% in 3Q17 from 36.2% in 3Q16.

Charter Communications faces intense competition

In the cable industry, satellite broadcasters such as DIRECTV and Dish Network (DISH) pose the greatest competitive threat to Charter Communications. In July 2015, AT&T (T) had acquired DIRECTV, making it the largest pay-TV service provider in the United States (SPY)

Charter Communications has reported a reduction in the number of video subscribers due to low-cost, OTT (over-the-top) video streaming services such as Netflix (NFLX) and Amazon’s (AMZN) Prime Video.

In the next part, we’ll take a look at the total revenue growth that we can expect from Charter Communications in 4Q17.

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