CHTR - Embedded Expectations Analysis - 2020 07 24
Charter Communications, Inc. (CHTR:USA) currently trades above recent averages relative to UAFRS-based (Uniform) earnings, with a 25.0x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about churn, labor costs, and demandSpecifically, management may have concerns about the sustainability of reduced churn, programming costs, and the progress of their Peacock discussion with NBC. Furthermore, they may have concerns about headwinds related to labor costs, and about continued elevated service transactions. Moreover, they may lack confidence in the sustainability of data usage and network traffic, residential broadband product demand, and stability in their enterprise business. Finally, they may be exaggerating the capabilities of their CBRS spectrum, and the potential of a cable company M&A
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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