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

Core Viewpoint - Charter Communications (CHTR) is expected to report its fourth-quarter 2024 results on January 31, with revenue estimates indicating a slight increase compared to the previous year [1][2]. Financial Performance - The Zacks Consensus Estimate for fourth-quarter 2024 revenues is $13.88 billion, reflecting a 1.23% increase from the same quarter last year [2]. - The consensus estimate for earnings is $9.54 per share, which represents a 34.94% year-over-year growth, having increased by 0.95% over the past week [2]. Recent Performance Trends - CHTR has beaten the Zacks Consensus Estimate for earnings in two of the last four quarters, with an average negative surprise of 1.44% [3]. Growth Drivers - Charter Spectrum added 545,000 new mobile lines in Q3 2024, driven by high port-ins and increased adoption of unlimited plans, contributing to top-line growth in Q4 [5]. - The revamped pricing and packaging strategy, including attractive bundling options, is expected to drive higher sales and reduce churn [6]. - Partnerships with content providers like Warner Bros. Discovery and Comcast have enhanced customer retention and bundle penetration [7][8]. Challenges - The expiration of the Affordable Connectivity Program in June 2024 has led to an estimated 100,000 incremental non-pay disconnects, impacting Q4 results [9]. - Service outages caused by hurricanes Helene and Milton in Q3 are expected to have lingering effects, including additional operating expenses and revenue offsets [10]. - The ongoing decline in traditional video and wireline voice services has created pressure on CHTR's top line, with a decrease of 294,000 video customers and 288,000 wireline voice customers in Q3 [11]. Strategic Initiatives - Charter Spectrum launched Gigabit Internet and other services in several states as part of its rural broadband expansion, which is likely to positively impact Q4 revenues [13]. - An acquisition agreement with Liberty Broadband is expected to strengthen CHTR's prospects in the upcoming quarter [14]. - The launch of Spectrum Ready for multifamily properties aims to enhance service activation and is anticipated to boost revenues [15].