In This Article:
What Happened?
Shares of cable, internet, and telephone services provider Charter (NASDAQ:CHTR) jumped 11.2% in the afternoon session after the company reported strong first-quarter 2025 results, with earnings and EBITDA exceeding analysts' estimates, signaling improved cost control and solid profit growth. On the other hand, its number of internet subscribers missed. Zooming out, we think this was a decent quarter featuring some areas of strength but also some blemishes.
The shares closed the day at $373, up 11.4% from previous close.
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What The Market Is Telling Us
Charter’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. Moves this big are rare for Charter and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 17.6% on the news that the company reported second-quarter 2024 earnings. Charter beat analysts' total internet customers and adjusted EBITDA expectations. Free cash flow also improved significantly (came in at $1.3B) and was above analysts' estimates. Overall, this was a really good quarter that should please shareholders.
Charter is up 6.8% since the beginning of the year, and at $373.28 per share, it is trading close to its 52-week high of $408.02 from November 2024. Investors who bought $1,000 worth of Charter’s shares 5 years ago would now be looking at an investment worth $734.17.
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