Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com -- Charter Communications (NASDAQ:CHTR), Inc. reported second-quarter earnings that fell short of analyst expectations, sending shares down 6.8% as investors reacted to the earnings miss and continued customer losses.
The cable and internet provider posted adjusted earnings per share of $9.18, missing the analyst consensus of $9.58, while revenue came in at $13.77 billion, matching analyst estimates and representing a modest 0.6% increase year-over-year. The revenue growth was primarily driven by residential mobile service revenue, which surged 24.9%, and residential Internet revenue, which grew 2.8%.
Charter continued to face challenges with customer retention, losing 117,000 Internet customers during the quarter, though this marked an improvement from the 149,000 decline in the same period last year. The company’s total customer relationships decreased by 162,000 to 31.2 million.
"Our converged connectivity revenue grew by over 5% in the second quarter, with a long runway for growth," said Chris Winfrey, President and CEO of Charter. "Our seamless connectivity products offer the fastest speeds at the best price."
The company’s mobile business remained a bright spot, with 500,000 new mobile lines added during the quarter, bringing the total to 10.9 million lines, a 23.7% increase YoY. Video customer losses also showed improvement, with a decline of 80,000 compared to 408,000 in the year-ago quarter.
Second quarter Adjusted EBITDA grew 0.5% YoY to $5.7 billion, while free cash flow decreased 19.3% to $1.0 billion, primarily due to unfavorable changes in mobile device working capital and the timing of cash taxes and interest payments.
Charter also lowered its full-year 2025 capital expenditure forecast to approximately $11.5 billion from $12.0 billion, citing timing of network evolution spending and lower commercial and rural line extension expenditures.