Charter Communications Q1 revenue slightly beats estimates on mobile service growth

Overview

• US cable and broadband provider's Q1 revenue declined 1% yr/yr, slightly beating analyst expectations

• EPS for Q1 reported at $9.17

• Company repurchased $963 mln in stock during Q1

Outlook

• Charter expects 2026 capital expenditures of about $11.4 bln, excluding Cox transaction impacts

• Company says actual 2026 capex will depend on network evolution pace, supply chain, and business growth

• Charter expects to complete its network evolution initiative in 2027

Result Drivers

• VIDEO REVENUE DECLINE - Co said lower residential video revenue, due to a higher mix of lower-priced packages, increased costs for programmer streaming applications, and fewer video customers, drove overall revenue decline

• INTERNET REVENUE PRESSURE - Internet revenue fell 1.3% yr/yr, as a decline in Internet customers outweighed favorable changes in bundled revenue allocation and rate adjustments

• MOBILE SERVICE GROWTH - Mobile service revenue rose 15.1% yr/yr, driven by mobile line growth and rate adjustments, partly offset by less favorable bundled revenue allocation

Company press release: ID:nPn67pLV7a

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 11 "hold" and 6 "sell" or "strong sell"

• The average consensus recommendation for the integrated telecommunications services peer group is "buy."

• Wall Street's median 12-month price target for Charter Communications Inc is $270.00, about 11.7% above its April 23 closing price of $241.78

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

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