The 10-second takeaway
For the quarter ended March 31 (Q1), Charter Communications met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP loss per share contracted.
Gross margins contracted, operating margins dropped, and net margins expanded.
Charter Communications reported revenue of $1.83 billion. The nine analysts polled by S&P Capital IQ expected to see a top line of $1.84 billion on the same basis. GAAP reported sales were 3.2% higher than the prior-year quarter's $1.77 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.95. The eight earnings estimates compiled by S&P Capital IQ averaged -$0.55 per share. GAAP EPS were -$0.95 for Q1 versus -$0.97 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 55.4%, 120 basis points worse than the prior-year quarter. Operating margin was 12.6%, 290 basis points worse than the prior-year quarter. Net margin was -5.1%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.87 billion. On the bottom line, the average EPS estimate is -$0.45.
Next year's average estimate for revenue is $7.51 billion. The average EPS estimate is -$1.81.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Charter Communications is outperform, with an average price target of $70.09.
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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. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.