These Analysts Cut Their Forecasts On Charter Communications After Downbeat Earnings

Charter Communications, Inc CHTR reported weaker-than-expected fourth-quarter earnings on Friday.

Charter Communications reported fourth-quarter FY23 revenue growth of 0.3% year-on-year to $13.711 billion, beating the consensus of $13.699 billion. EPS of $7.07 missed the consensus of $8.73, according to data from Benzinga Pro.

Revenue growth of 3.0% in Internet, 35.7% in Mobile service, and 0.9% in Commercial aided the top line. Adjusted EBITDA margin expanded by 50 bps to 40.6%.

Charter Communications expects a 2024 Capex of $12.2 billion – $12.4 billion versus the actual of $11.1 billion in FY23.

"Our rural footprint expansion is exceeding our deployment and penetration targets," said Chris Winfrey, President and CEO of Charter. "Our network evolution and convergence efforts remain on course. And we are beginning to see the benefits of investments in our employees and digital service to improve the customer experience. We are executing on a clear strategy to ensure we offer consumers the best products and services, all while saving them money. Not only now, but in the future."

Charter Communications shares fell 16.5% to close at $319.21 on Friday.

These analysts made changes to their price targets on Charter Communications after the company reported quarterly results.

• JP Morgan cut the price target on Charter Communications from $445 to $370. JP Morgan analyst Sebastiano Petti downgraded the stock from Overweight to Neutral.
• Barclays slashed Charter Communications price target from $325 to $280. Barclays analyst Kannan Venkateshwar maintained an Underweight rating.

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