Angus Mordant / Bloomberg via Getty Images
Takeaways
- Charter Communications stock led S&P 500 gainers Friday after the company reported more revenue and a greater number of mobile phone lines than expected.
- The parent company Spectrum internet and Cable also lost fewer subscribers to video than analysts had predicted.
- Charter lost more internet users than expected and its profit was just below the estimates.
Charter Communications (CHTR) stock soared 11% to lead S&P 500 gainers Friday after the company added more mobile phone lines and lost fewer video customers than analysts had expected in the first quarter.
The owner’s of Spectrum cable, phone, and internet services generated $13.74 Billion in revenue. This was a slight year-overyear increase and well above Visible Alpha’s forecast of $13.68 Billion. The earnings per share (EPS), which came in at $8.42 was up nearly 12% compared to the previous quarter, but still 7 cents short of expectations.
Charter added 514,000 new mobile phone lines, which was better than the 477,000 analysts expected. The company lost more than 60,000 internet users, which was higher than expected. However, 9,000 of these losses were caused by the January wildfires that ravaged California.
'Simplified Pricing' Cited for Lower-Than-Expected Video Subscriber Loss
The company lost fewer video subscriptions than estimated at 181,000. This is a significant improvement from the 405,000 subscriber decline of a year ago. Charter said its narrowing loss was "driven by new and simplified pricing and packaging," like its bundle that gives cable subscribers access to the ad-supported tier of a number of streaming services.
With today's surge, Charter shares moved into positive territory for 2025.
