CHTR - Embedded Expectations Analysis - 2018 10 16
Charter Communications (CHTR:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 22.2x Uniform P/E. At these levels, the market has somewhat bullish expectations for the firm, however management may be concerned about continued video customer losses, new products, and the strength of customer relationshipsSpecifically, management may be concerned about continued challenges facing the traditional video industry, and their ability to repurpose existing local sports and news channels into high-quality channels. Moreover, they may lack confidence in their ability to sustain strong SMB relationship growth, low churn rates, and decreased retention-related call rates. In addition, they may be concerned about rising CapEx due to their increased spending on scalable infrastructure, and their ability to prevent continued video customer losses. Finally, they may lack confidence in their ability to increase penetration of the mobile subscriber base
Charter Communications is a holding company. Through its subsidiaries, the company is a cable operator and a broadband communications company providing video, Internet and voice services. The company also provides its mobile service to residential customers. In addition, the company sells video and online advertising inventory to local, regional and national advertising customers and communications and managed solutions to enterprise customers. The company also owns and operates regional sports networks and local sports, news and community channels. The company owns and operates a two-way telecommunications network which passes various households and small and medium businesses across United States.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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