The stock of Charter Communications (CHTR) is down 22% after the internet and broadband company reported financial results that showed it continues to lose customers at an alarming rate.
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The company said in its latest earnings print that it lost 120,000 internet subscribers over the period. Wall Street was expecting Charter to lose 92,000 subscribers. The heavy loss has reignited concerns about competition from fixed wireless and fiber connection services.
As for its actual financial results, Charter Communications reported earnings per share (EPS) of $9.17 a share, as revenue dipped 1% from a year ago to $13.6 billion. Analysts were expecting earnings of $9.96 a share and revenue of $13.5 billion.
A Path Forward for Charter Communications?
The sharp post-earnings selloff in CHTR stock brings its decline to 71% over the last five years. Analysts are increasingly pessimistic about the company’s path forward given the intense competition in the broadband internet space.
Analysts at Wall Street brokerage Benchmark just lowered their price target on CHTR stock to $435 from $455. Benchmark cited uncertain equity market conditions as the reason for the $20 reduction in its price target, saying the long-term outlook for Charter Communications remains unclear.
Is CHTR Stock a Buy?
Charter Communications stock has a consensus Hold rating among 13 Wall Street analysts. That rating is based on four Buy, six Hold, and three Sell recommendations issued in the last three months. The average CHTR price target of $272.45 implies 47% upside from current levels. These ratings could change after the company’s financial results.
