Charter Communications (CHTR): Assessing Valuation After Earnings Miss, Customer Losses, and Layoffs

Charter Communications (CHTR) just reported quarterly results that landed short of expectations, with revenues essentially flat compared to last year. The company is also seeing continued losses in cable TV and internet customers, along with newly announced layoffs.

See our latest analysis for Charter Communications.

Charter's rocky quarter and news of major layoffs have clearly taken a toll on sentiment, with the share price falling nearly 29% year-to-date and a one-year total shareholder return of -24%. Despite small gains in some new revenue streams, recent momentum has been weak as investors weigh the impact of ongoing customer losses and industry disruption.

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With the share price down sharply and Charter trading well below analyst targets, investors may be wondering whether the market is offering a chance for value investors to step in, or if investors are simply bracing for more turbulence ahead.

Most Popular Narrative: 33% Undervalued

Charter’s most widely-followed valuation narrative puts fair value at a steep premium to the last close, pointing to room for upside if projections hold. With this view, the latest pricing seems to discount both the company’s operational strengths and expected financial progress.

Charter is leveraging its fully converged network and expanding CBRS deployment to handle increasing broadband and handset data usage efficiently. This should reduce costs and improve margins. The company is expanding its high-speed Internet offerings with multi-gigabit speeds and DOCSIS 4.0 upgrades that enhance network capabilities. These upgrades support customer growth and improve competitive positioning.

Read the complete narrative.

Want to discover what’s powering this bullish price target? Find out which bold profit assumptions and future margin targets are shaping this narrative's fair value roadmap.

Result: Fair Value of $373.60 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent challenges such as heightened competition and potential setbacks from regulatory changes could quickly disrupt this optimistic scenario.

Find out about the key risks to this Charter Communications narrative.

Build Your Own Charter Communications Narrative

If you see things differently, or want to look deeper into Charter’s data, you can craft your own view in under three minutes. Do it your way

A great starting point for your Charter Communications research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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