Telecommunications company Charter Communications (NASDAQ:CHTR) reported a mixed set of fourth-quarter numbers. Following the earnings announcement, shares of the company tanked about 4% on Friday.
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Revenue increased 3.5% year-over-year to $13.7 billion, matching the analysts’ expectations. The top-line growth can be attributed to higher mobile, advertising, and commercial revenues. Meanwhile, earnings per share of $7.69 missed the Street’s estimates of $8.83 and declined 13.9% year-over-year.
In Q4, Charter’s total residential, small, and medium business (SMB) broadband customers increased by 105,000. Furthermore, total residential and SMB mobile lines climbed by 615,000.
Looking ahead, the company expects its capital expenditures, excluding line extensions, to be between $6.5 billion and $6.8 billion in 2023.
Charter CEO Chris Winfrey said, “In 2023 and the coming years, we remain focused on three core initiatives — network evolution, footprint expansion and operational execution. Each of these initiatives will deliver benefits for a growing base of customers, our employees and local communities, with long-term value creation for our shareholders.”
Is CHTR a Good Stock to Buy?
Following the earnings, JPMorgan analyst Philip Cusick reiterated a Buy rating on the stock but lowered the price target to $450 from $470. The analyst believes Charter’s EBITDA to grow by low to mid-single digits, going forward. The company benefits from a combination of slow broadband growth and higher prices.
Overall, CHTR stock has a Moderate Buy consensus rating based on 11 Buys and five Holds. The average price target of $487.93 implies 23.7% upside potential. Shares of the company have gained 7.3% over the past three months.
