By Charter shares experienced a steep decline of 12% and were trading at $336.86. According to Dow Jones Market Data, this marks the largest percentage decrease since December 2022 and the lowest close since June 2023. Additionally, the stock ranked as the second-worst performer in the S&P 500 on Friday, with the index itself seeing a minor increase of 0.3%.
Charter reported that its total residential and small- and medium-business internet customers decreased by 61,000 during the fourth quarter of 2022. This figure was in stark contrast to the expectations of analysts surveyed by FactSet, who anticipated an increase of 6,000 internet customers.
During the earnings call, Chief Executive Christopher Winfrey acknowledged the challenges faced in achieving internet growth within the existing footprint due to increased competition from fixed wireless providers.
Decrease in Residential Video Customers
Financial Report
For the fourth quarter, Charter reported earnings of $7.07 per share on revenue of $13.71 billion. However, these figures fell short of expectations from analysts surveyed by FactSet, who had predicted earnings of $8.76 per share on revenue of $13.7 billion.
Market Reaction
The negative performance of Charter Communications also influenced other companies in the industry. Disney stock saw a decrease of 0.9% on Friday, while Comcast witnessed a decline of 3.6%.
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