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Key Takeaways
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Charter Communications stock led S&P 500 gainers Friday after the company reported more revenue and a greater number of mobile phone lines than expected.
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The parent company of Spectrum internet and cable also lost fewer video subscribers than analysts had forecast.
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Profit came in narrowly below estimates, and Charter lost more internet subscribers than projected.
Charter Communications (CHTR) stock soared 11% to lead S&P 500 gainers Friday after the company added more mobile phone lines and lost fewer video customers than analysts had expected in the first quarter.
The owner of Spectrum cable, internet, and phone services generated $13.74 billion in revenue, up slightly year-over-year and above the $13.68 billion Visible Alpha forecast. Earnings per share (EPS) came in at $8.42, up nearly 12% from the year-ago quarter but still 7 cents shy of estimates.
Charter added 514,000 mobile phone lines in the quarter, better than the roughly 477,000 that analysts were expecting. The company lost 60,000 internet subscribers, more than expected, but about 9,000 of those losses were due to the January wildfires in California.
'Simplified Pricing' Cited for Lower-Than-Expected Video Subscriber Loss
The company also lost fewer video subscribers than estimated at 181,000, much improved from the 405,000-subscriber decline a year ago. Charter said its narrowing loss was "driven by new and simplified pricing and packaging," like its bundle that gives cable subscribers access to the ad-supported tier of a number of streaming services.
With today's surge, Charter shares moved into positive territory for 2025.
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