Charter Communications Continues to Spend on Buybacks



Charter rewards shareholders

Charter Communications (CHTR) has been rewarding its shareholders with share buybacks. In the first quarter, the company repurchased 2.9 million shares worth $1.0 billion. Since September 2016, the company has repurchased ~$20.7 billion of its common stock.

Charter thinks that share buybacks have been a good opportunity to invest in the business. The company would also look at accretive merger and acquisition opportunities to create a good return on capital.

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Share repurchases are considered a more tax-efficient way to enhance shareholders’ returns compared to dividend payments. Repurchasing shares results in a decline in the number of a company’s outstanding shares, which boosts its EPS. As you can see in the above chart, Charter reported an adjusted EPS of $1.11 in the first quarter—compared to $0.70 in the first quarter of 2018.

Peer comparison

Comcast’s (CMCSA) adjusted EPS rose ~22.6% YoY (year-over-year) to $0.76 in the first quarter. Dish Network (DISH) hasn’t reported its financial results for the same quarter. Analysts expect Dish Network’s adjusted EPS to fall ~5.7% YoY to $0.66.


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