Charter Communications (CHTR) delivered better-than-expected Q3 2021 results for the period ending September 30, 2021. Revenue and earnings came above consensus estimates, as the value of connectivity products allowed the company to achieve over 1 million new customer relationships. CHTR shares fell 4.44% to close at $674.89 on October 29.
Charter Communications is a U.S. company that offers cable and broadband services to more than 30 million customers through its Spectrum brand. Its core services include internet access, data networking, video programming, voice communications, and local advertising services.
Revenue in Q3 landed at $13.1 billion, up 9.2% year-over-year and exceeding consensus estimates of $12.93 billion. The increase was mostly driven by a 9.4% residential revenue growth and 45.4% mobile revenue growth. (See Top Smart Score Stocks on TipRanks)
Adjusted EBITDA, on the other hand, climbed 13.9% year-over-year to $5.3 billion, with net income attributable to shareholders totaling $1.2 billion. Diluted EPS came in at $6.50, compared to $3.90 delivered the same quarter last year and above consensus estimates of $5.71.
During the quarter, Charter Communications residential customer relationships increased by 163,000, compared to a growth of 416,000 in the same quarter last year. The company ended the quarter with 29.8 million residential customer relationships, representing a 3.2% year-over-year growth.
The company also added 243,000 residential internet customers and saw residential video customers decrease by 133,000. Additionally, residential wireline voice customers declined by 230,000. On the other hand, SMB customer relationships grew by 22,000 in the quarter.
Moreover, Charter Communications repurchased 5.3 million shares in the quarter for approximately $4 billion. Going forward, focus is on growing customers, EBITDA, and free cash flow to increase shareholder value.
Recently, Pivotal Research analyst Jeffrey Wlodarczak reiterated a Buy rating on the stock with a $1,000 price target, implying 48.17% upside potential to current levels.
Consensus among analysts is a Moderate Buy, based on 10 Buys, 6 Holds, and 1 Sell. The average Charter Communications price target of $826 implies 22.39% upside potential to current levels.