Shares of telecommunications company Charter Communications (CHTR) - Get Report jumped on Friday after it reported better-than-expected third-quarter earnings amid an increase in new internet customer users, which helped offset a drop in video and wireless subscribers.
The Stamford, Conn.-based company said it earned $387 million, or $1.74 a share, vs. $493 million, or $2.11 a share, in the comparable year-ago quarter. Analysts polled by FactSet had been expecting earnings of $1.67 a share. Revenue for the quarter was $11.45 billion vs. consensus estimates of $11.41 billion.
During the third quarter, Charter generated residential and small-business Iinternet net additions of 380,000, which helped offset video net losses of 75,000 and wireline voice net losses of 190,000, the company said.
The company added 276,000 mobile lines in the third quarter, compared with 208,000 mobile line net additions in the second quarter of 2019. As of Sept. 30, Charter served a total of 794,000 mobile lines.
- Charter Communications Shares Rise on KeyBanc Upgrade
- Analyst Favorites With Strong Buyback Activity: Charter Communications Ranks As A Top Pick
"Our strategy of offering high-quality products with good service at attractive prices is working and continues to produce strong customer relationship growth," CEO Tom Rutledge said in a statement.
Charter currently expects capital expenditures, excluding capital expenditures related to mobile, to be slightly below $7 billion in 2019 vs. $8.9 billion in 2018.
Shares of Charter were up 5.15%, or $22.40 a share, at $457.47 in morning trading on Friday. The company offers its services to consumers and businesses under the branding of Spectrum.
Save 57% during our Halloween Sale. Don't let this market haunt you and join Jim Cramer's Investment Club, Action Alerts PLUS. Click here to sign up!