Charter Posts In-Line Q4 Sales, Beats Earnings Estimates

Key Highlights:

* Q4 CY2024 Revenue: $13.93 billion (1.6% YoY growth, in line with estimates)
* EPS (GAAP): $10.10 (9.5% beat)
* Adjusted EBITDA: $5.76 billion (0.8% beat)
* Internet Subscribers: 28.03 million (2.55 million YoY decline)
* Free Cash Flow Margin: 7.1% (similar to Q4 2023)

Company Overview:

Charter Communications, Inc. (NASDAQ:CHTR) is a leading telecommunications provider offering cable television, high-speed internet, and voice services under the Spectrum brand.

Sales Growth:

* Annualized revenue growth of 3.8% over the past five years
* Flat revenue growth over the past two years

Internet Subscriber Trends:

* Internet subscribers remain flat over the past two years
* Video subscriber base has declined by 7.8% YoY on average

Financial Health:

* Weak cash profitability over the past two years
* Free cash flow margin of 7.1% (lower than industry average)
* Large capital expenditures and working capital requirements

Q4 Earnings Summary:

* Revenue met expectations, despite a decline in internet subscribers
* Earnings per share beat analysts' estimates
* Mixed market reaction, with the stock initially rising after the results

Analyst Outlook:

* Sell-side analysts forecast flat revenue growth over the next 12 months
* Consensus free cash flow margin estimate of 7.7% for the next year

Conclusion:

Charter's mixed Q4 results suggest that the company faces demand challenges and limited free cash flow generation. While the EPS beat is encouraging, investors should further evaluate the company's long-term growth prospects and financial health before making investment decisions.