Home News Charter Stocks Hit by Large Broadband Subscriber Loss – Monitor This Key Price Level

Charter Stocks Hit by Large Broadband Subscriber Loss – Monitor This Key Price Level

by SuperiorInvest

Key takeaways

  • Shares of Charter Communications traded sharply lower on Friday after the cable provider reported a loss of 61,000 broadband customers.
  • The company faces increasing competition from leading telecommunications companies that offer wireless and fiber services on their networks.
  • The charter stock may find support on the chart around $305 from two notable lows that formed in October and December of last year.

Letter Communications, Inc.

Source: TradingView.com.

Shares of Charter Communications (CHTR) plunged 16.5% on Friday after the Connecticut-based cable provider reported a loss of 61,000 broadband subscribers in the December quarter. Even though Charter Chief Financial Officer Jessica Fischer warned in December that the company could see a reduction in Internet customers, analysts expected the company to post a slight increase in broadband subscriptions during the period.

The company, which calls its services Spectrum, posted fourth-quarter earnings per share (EPS) of $7.07, missing the Wall Street consensus of $8.76. However, the top line reported modest growth of 0.3% from the previous year, driven by the addition of 546,000 mobile customers, increased Internet prices and promotional improvements. For the full year, Charter reported a 1.1% increase in total revenue to $54.6 billion, while net income fell 10% to $4.6 billion.

Charter, along with other cable providers, has faced increased competition from leading companies within the telecommunications sector that deploy wireless and fiber services on their networks. Its main rival, Comcast (CMCSA), reported last week that it had lost 34,000 broadband customers in the fourth quarter.

“While we are executing well on our long-term strategic initiatives and Spectrum One is working to drive mobile growth, Internet growth in our current footprint has been a challenge, driven, no doubt, by more persistent competition from wireless services.” landlines and similar levels of landline telephone services. excessive construction activity,” Charter CEO Chris Winfrey told analysts on the company’s earnings conference call.

CHTR's share price fell sharply on Friday to record its biggest one-day percentage drop since its listing in 2010. The move follows the 50-day moving average recently crossing below the 200-day moving average to generate an aptly named “death cross” chart pattern. Looking ahead, keep an eye on how the price responds to the $305 level, an area that may find support at two prominent lows that formed in October and December of last year.

Charter shares fell 0.7% to $317.00 in pre-market trading Monday around 8:40 a.m. ET.

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As of the date of writing this article, the author does not hold any of the above securities.

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