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Charter Communications’ Key Priorities for 2019

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Charter Communications priorities for 2019

During the UBS Global Media and Communications Conference held last week, Thomas Rutledge, Charter Communications’ (CHTR) chair and CEO, discussed the company’s top priorities for 2019. Rutledge stated that the company expects to wrap up the Time Warner Cable and Bright House Networks integration process by the end of 2018, with the benefits of recent investments materializing in 2019.

In addition, Charter anticipates lower capital-intensive business in 2019 post-integration. The company also expects improved subscriber trends and moderate price increases to drive better residential revenue growth.

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Revenue and EPS forecast

Analysts expect Charter’s sales and adjusted EPS to be $43.5 billion and $5.50, respectively, in 2018 and $45.5 billion and $7.57, respectively, in 2019. The telecommunications company reported sales of $41.6 billion and adjusted EPS of $2.75 in 2017.

Charter’s third-quarter revenue rose ~4.1% YoY (year-over-year) to $10.9 billion, which was $43 million short of Reuters’ consensus revenue expectation. Its adjusted EPS of $1.36 beat Wall Street’s forecast of $1.04.

In comparison, Comcast’s (CMCSA) adjusted EPS rose ~27.5% YoY to reach $0.65 in the third quarter. Verizon’s (VZ) adjusted EPS rose ~24.5% YoY to reach $1.22, while AT&T’s (T) adjusted EPS rose ~21.6% YoY to $0.90 in the same quarter. Frontier Communications (FTR) reported adjusted EPS of -$0.07 in the third quarter compared to -$0.94 in the same period a year earlier.

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