Charter Communications to Report Q2 Earnings: What's in the Cards?

Charter Communications CHTR is scheduled to report its second-quarter 2025 results on July 25.The Zacks Consensus Estimate for second-quarter 2025 revenues is pegged at $13.76 billion, indicating a marginal increase of 0.52% from the figure reported in the year-ago quarter.The consensus mark for earnings is pinned at $10.05 per share, which has been revised downward by 0.1% over the past 30 days. The figure suggests an 18.37% increase from the year-ago reported figure.CHTR surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters, and missed once, with an average surprise of 5.05%.Let us see how things are shaping up for the upcoming announcement.What Our Model SaysPer the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not exactly the case here.Charter Communications currently has an Earnings ESP of +3.24% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.Charter Communications, Inc. Price and EPS Surprise Charter Communications, Inc. price-eps-surprise | Charter Communications, Inc. QuoteFactors to ConsiderCharter Communications is expected to have navigated a complex second quarter marked by transformative strategic developments alongside operational challenges that are likely to have influenced subscriber trends and cost structures heading into earnings results.The company's $34.5 billion acquisition agreement with Cox Communications, announced May 16, represented the quarter's most significant development. The merger created potential for enhanced scale advantages and $500 million in annual cost synergies, though integration expenses and regulatory review costs are likely to have pressured near-term margins. Charter Communications also expanded its Disney DIS distribution partnership in late June, adding Hulu to all Spectrum TV Select packages, potentially slowing video subscriber declines that had improved to 181,000 losses in the first quarter versus 405,000 the prior year.Mobile services continued strong momentum from Charter Communications' first-quarter performance of 514,000 net additions and 33.5% revenue growth. The company's CBRS deployment reached full phase across 23 markets during the second quarter, with mobile traffic increasingly riding Charter Communications' network infrastructure rather than Verizon's macro network, supporting margin expansion in this key growth segment.However, significant operational challenges emerged during the quarter. An infrastructure attack in Van Nuys, California, disrupted service to more than 50,000 customers for up to 30 hours, highlighting increased security costs and service restoration expenses. Charter classified the incident as domestic terrorism, part of an industry-wide pattern affecting consumers through thousands of similar attacks.Network evolution timelines extended further, with DOCSIS 4.0 deployment pushed to 2027 due to equipment certification delays, potentially impacting competitive positioning against fiber overbuilders and 5G fixed wireless access providers who continued aggressive expansion during the second quarter.Economic headwinds intensified through the quarter, with consumer spending growth decelerating and consumer confidence declining. These conditions are likely to have pressured Charter Communications’ subscriber acquisition and pricing power for premium services, particularly as streaming services reached nearly 45% of TV viewing time in May, surpassing broadcast and cable combined for the first time.The competitive environment remained challenging with T-Mobile TMUS adding more than 400,000 fixed wireless customers and AT&T T reaching 30 million fiber locations passed during the second quarter. However, the regulatory environment improved with net neutrality elimination, providing operational flexibility, though this benefit is expected to have been offset by continued pressure from wireless and fiber competitors targeting CHTR's broadband customer base.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AT&T Inc. (T): Free Stock Analysis Report The Walt Disney Company (DIS): Free Stock Analysis Report Charter Communications, Inc. (CHTR): Free Stock Analysis Report T-Mobile US, Inc. (TMUS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks