The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Charter Communications met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP loss per share contracted.
Gross margins dropped, operating margins dropped, and net margins expanded.
Charter Communications booked revenue of $1.83 billion. The 10 analysts polled by S&P Capital IQ hoped for sales of $1.83 billion on the same basis. GAAP reported sales were 2.8% higher than the prior-year quarter's $1.78 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.46. The 12 earnings estimates compiled by S&P Capital IQ predicted -$0.21 per share on the same basis. GAAP EPS were -$0.64 for Q4 compared to -$0.75 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.7%, 140 basis points worse than the prior-year quarter. Operating margin was 14.1%, 190 basis points worse than the prior-year quarter. Net margin was -3.7%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.84 billion. On the bottom line, the average EPS estimate is -$0.07.
Next year's average estimate for revenue is $7.49 billion. The average EPS estimate is $0.59.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Charter Communications is outperform, with an average price target of $63.97.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.