STAMFORD, Conn. - Charter Communications , Inc. (NASDAQ:CHTR) experienced a significant 10% surge in its stock price following the release of its second-quarter financial results, which surpassed analyst expectations.
The company reported an adjusted EPS of $8.49, which was notably higher than the analyst estimate of $7.99. Revenue also exceeded forecasts, coming in at $13.69 billion against the anticipated $13.59 billion.
The positive market response was driven by the company's earnings and revenue beat, indicating strong performance despite a challenging economic environment. Chris Winfrey, President and CEO of Charter, attributed the success to the company's transformational initiatives and focus on customer growth, which have led to increased EBITDA through efficiencies and an improved service and sales infrastructure.
Year-over-year, the second-quarter revenue saw a marginal increase of 0.2%, driven by significant growth in residential mobile service revenue, which soared by 36.9%, and a 1.3% rise in residential Internet revenue. However, the company did face a decrease in total residential and small and medium business (SMB) Internet customers by 149,000, primarily due to the end of the FCC's Affordable Connectivity Program (ACP) subsidies. Despite the loss of Internet customers, Charter's residential mobile lines saw a robust increase of 557,000.
Charter's Adjusted EBITDA for the quarter grew by 2.6% compared to the same period last year, reaching $5.7 billion. Capital expenditures for the quarter amounted to $2.9 billion, including significant investments in line extensions. The company's net cash flows from operating activities also showed a healthy increase from the prior year, totaling $3.9 billion.
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