Charter Communications (NASDAQ:CHTR) Hits New 1-Year Low on Disappointing Earnings

Key Points

• Charter reported Q1 EPS of $9.17 vs. consensus $10.01 (a $0.84 miss) and revenue of $13.6B (-1% Y/Y), sending the stock down to an intraday 52-week low around $178 on heavy volume.
• Management cited heavier-than-expected broadband subscriber losses amid aggressive competitor promotions, and an investor probe by Kuehn Law adds a legal/executive-risk overhang that likely amplified the selloff.
• Analyst responses are mixed—Goldman cut its target to $185 and put a sell rating while Benchmark remains constructive—leaving a consensus Hold with an average price target (~$334) well above the current share price.

Charter Communications, Inc. (NASDAQ:CHTR - Get Free Report) reached a new 52-week low during mid-day trading on Saturday following a weaker than expected earnings announcement. The company traded as low as $178.00 and last traded at $180.13, with a volume of 13317343 shares changing hands. The stock had previously closed at $241.78.

The company reported $9.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $10.01 by ($0.84). Charter Communications had a return on equity of 24.63% and a net margin of 9.10%.The business had revenue of $13.60 billion for the quarter, compared to the consensus estimate of $13.56 billion. During the same quarter in the previous year, the company earned $8.42 earnings per share. The firm's revenue was down 1.0% on a year-over-year basis.

Key Charter Communications News

Here are the key news stories impacting Charter Communications this week:

• Positive Sentiment: Mobile growth, stronger advertising sales and ongoing buybacks provide some offsets to broadband weakness; bulls point to sustainable cash flow and a lower leverage profile. Seeking Alpha bullish note
• Positive Sentiment: Some sell‑side support remains: Benchmark lowered its target slightly but kept a Buy rating with a high upside target vs. the current share level. Benchmark target report
• Neutral Sentiment: Company released its full Q1 materials (press release, slide deck, earnings transcript) for investor review — useful for modeling but not market-moving by itself. Q1 press release / slide deck
• Neutral Sentiment: Reported short-interest data appears anomalous (zero shares reported and NaN increase), so there's no clear signal from short-position metrics at this time.
• Negative Sentiment: Q1 EPS missed consensus: $9.17 vs. ~$10.01 expected, a primary catalyst for the selloff. Zacks earnings summary
• Negative Sentiment: Broadband subscriber losses exceeded expectations as rivals ran aggressive promotions; this worsens revenue risk and renews competition concerns from fixed wireless and fiber providers. Reuters on broadband losses
• Negative Sentiment: Revenue down ~1% Y/Y to $13.6B and industry commentary highlights the result as a sector drag — contributing to the sharp intra‑day drop. WSJ revenue report
• Negative Sentiment: Kuehn Law announced an investor probe into possible officer/director breaches, which raises legal/exec‑risk overhang for shareholders. GlobeNewswire on law firm probe

Wall Street Analyst Weigh In

Several research analysts have issued reports on the stock. Sanford C. Bernstein set a $220.00 target price on shares of Charter Communications in a report on Wednesday, January 28th. The Goldman Sachs Group dropped their target price on shares of Charter Communications from $210.00 to $185.00 and set a "sell" rating on the stock in a report on Monday, February 2nd. Benchmark dropped their target price on shares of Charter Communications from $455.00 to $435.00 and set a "buy" rating on the stock in a report on Thursday. Weiss Ratings reiterated a "sell (d+)" rating on shares of Charter Communications in a report on Friday, March 27th. Finally, Zacks Research upgraded shares of Charter Communications from a "strong sell" rating to a "hold" rating in a report on Monday, February 16th. Six investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and six have issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and an average price target of $334.00.

Institutional Trading of Charter Communications

A number of institutional investors have recently modified their holdings of CHTR. Optimize Financial Inc acquired a new stake in Charter Communications during the 3rd quarter valued at approximately $1,557,000. Wealth Enhancement Advisory Services LLC lifted its stake in Charter Communications by 245.3% during the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 14,717 shares of the company's stock valued at $4,069,000 after acquiring an additional 10,455 shares during the period. AustralianSuper Pty Ltd purchased a new position in shares of Charter Communications during the 3rd quarter valued at approximately $28,651,000. Rakuten Investment Management Inc. acquired a new position in shares of Charter Communications in the 3rd quarter valued at $5,260,000. Finally, CWM LLC lifted its stake in shares of Charter Communications by 764.5% in the 3rd quarter. CWM LLC now owns 23,195 shares of the company's stock valued at $6,381,000 after purchasing an additional 20,512 shares during the period. 81.76% of the stock is currently owned by institutional investors.

Charter Communications Stock Performance

The company has a debt-to-equity ratio of 4.65, a quick ratio of 0.39 and a current ratio of 0.39. The firm's 50 day moving average is $224.64 and its 200-day moving average is $219.43. The stock has a market capitalization of $22.81 billion, a price-to-earnings ratio of 4.96, a PEG ratio of 0.40 and a beta of 1.03.

Charter Communications Company Profile

Charter Communications, Inc is a U.S.-based telecommunications and mass media company that provides broadband communications and video services to residential and business customers. Operating primarily under the Spectrum brand, the company offers high-speed internet, cable television, digital voice (phone) and wireless services, as well as managed and enterprise networking solutions for commercial customers. Charter's service portfolio targets both consumer and business markets with bundled and standalone offerings designed to meet streaming, connectivity and communications needs.

The company's consumer-facing products include Spectrum Internet, Spectrum TV and Spectrum Voice, while Spectrum Mobile provides wireless service through arrangements with national wireless carriers.

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