What's in the Cards for Charter Communications Stock in Q4 Earnings?

Charter Communications CHTR is scheduled to report fourth-quarter 2024 results on Jan. 31.Find the latest earnings estimates and surprises on Zacks Earnings Calendar.The Zacks Consensus Estimate for fourth-quarter 2024 revenues is pegged at $13.88 billion, indicating a 1.23% increase from the year-ago quarter’s reported figure.The consensus mark for earnings is pegged at $9.54 per share, which moved up 0.95% over the past 7 days, suggesting growth of 34.94% on a year-over-year basis.CHTR beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters and missed twice, the average negative surprise being 1.44%.Charter Communications, Inc. Price and EPS Surprise  Charter Communications, Inc. price-eps-surprise | Charter Communications, Inc. Quote Let us see how things are shaping up for the upcoming announcement.Factors to ConsiderCharter Spectrum has been performing exceptionally well, with 545,000 new mobile line additions in the third quarter of 2024, driven by high port-ins and increased adoption of its unlimited plans. The robust growth is likely to have contributed to CHTR’s continued top-line growth in the fourth quarter.Charter Spectrum’s revamped pricing and packaging strategy, which includes attractive bundling options like gig internet for $40/month when paired with two unlimited mobile lines or video services, has been showing promising results. These offers are expected to have driven higher sales, increased average revenue per user and reduced churn in the to-be-reported quarter.CHTR’s partnerships with leading content providers, including Warner Bros. Discovery WBD and Comcast CMCSA, are enabling the inclusion of retail streaming apps like Max and Peacock for Spectrum TV Select customers. This approach of bundling video with broadband is expected to have boosted customer retention and driven higher bundle penetration in the fourth quarter.Max, WBD’s premium streaming service, is offered to Spectrum TV Select customers at no extra cost. Customers get Max With Ads, featuring top content like HBO Originals, Max Originals and movies from WBD.CHTR’s multi-year partnership with CMCSA’s NBCUniversal allows Spectrum TV Select customers to access Peacock at no extra cost. CHTR also offers CMCSA’s broadcast, entertainment, Hispanic, news and sports networks as part of the cable package.However, certain challenges are expected to have weighed on CHTR’s fourth-quarter results. The expiration of the Affordable Connectivity Program (ACP) in June 2024 has had lasting effects on CHTR. While CHTR has retained the majority of former ACP beneficiaries, residual impacts are expected to have continued in the fourth quarter, including an estimated 100,000 incremental non-pay disconnects.Furthermore, hurricanes Helene and Milton caused significant service outages in the third quarter. Although restoration efforts have been successful for many customers, lingering storm-related impacts are expected to have weighed on fourth-quarter results, including additional one-time operating expenses and revenue offsets due to bill credits for affected CHTR customers.The ongoing industry-wide decline in traditional video and wireline voice services is expected to have created pressure on CHTR’s top line in the to-be-reported quarter. In the third quarter of 2024, video customers decreased by 294,000, and wireline voice customers declined by 288,000. These trends might have persisted in the fourth quarter.Key Q4 AnnouncementsCharter Spectrum launched Gigabit Internet, Mobile, Tv and Voice Services to homes and businesses in Ohio, Tennessee, Norway and South Carolina as part of its rural broadband expansion initiative. The results of this expansion are likely to be reflected in the to-be-reported quarter.Charter Spectrum also announced a multi-year agreement with NRG to develop and create unique gaming experiences and content for U.S. fans.Charter Communications and Liberty Broadband LBRDK announced that they had entered a definitive agreement under which Charter has agreed to acquire LBRDK in an all-stock transaction. This acquisition of LBRDK will further strengthen CHTR’s prospects in the to-be-reported quarter.Charter Communications also announced the launch of Spectrum Ready for multifamily properties or bulk single families to enable instant activation of the Internet as well as Wi-Fi services in case of relocation. The service was made available in 41 states. This is likely to boost CHTR’s fourth-quarter 2024 revenues.CHTR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Comcast Corporation (CMCSA): Free Stock Analysis Report Charter Communications, Inc. (CHTR): Free Stock Analysis Report Warner Bros. Discovery, Inc. (WBD): Free Stock Analysis Report Liberty Broadband Corporation (LBRDK): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks