Charter Communications (NASDAQ:CHTR) shares are tanking today after the cable and broadband company reported third-quarter results that lagged revenue expectations and revealed a decline in video customers.
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While Charter’s revenue rose by 0.2% year-over-year to $13.6 billion, it missed expectations by $40 million. However, EPS of $8.25 outpaced expectations by $0.19. During the quarter, the total number of residential and small and medium business (SMB) internet customers grew by 63,000 to 30.6 million. Additionally, the total number of residential and SMB mobile lines increased by 594,000 to 7.2 million.
However, Charter experienced a 6% decrease in its total video customers to 14.38 million and a 10.4% drop in total voice customers to 8.26 million. The loss of video customers was primarily due to the temporary loss of Disney (NYSE:DIS) programming in early September.
Despite these challenges, Charter’s adjusted EBITDA during the quarter ticked marginally higher by 0.7% to $5.4 billion. For Fiscal Year 2023, Charter expects capital expenditures (excluding line extensions) of about $7.2 billion. In Q3, the company executed share repurchases worth $854 million, and its total principal amount of debt stood at $97.6 billion at the end of September.
What is the Price Prediction for CHTR?
Overall, the Street has a Moderate Buy consensus rating on Charter. After a nearly 10% slide in its share price over the past month, the average CHTR price target of $494 implies a 28.7% potential upside.
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