Shares of Charter Communications Inc. (NASDAQ:CHTR) edged lower in premarket trading on Friday after the company reported first-quarter earnings below expectations, even as revenue slightly exceeded forecasts.
The stock fell around 1.98% following the release.
Earnings Miss, Revenue Holds Up
Charter posted adjusted earnings per share of $9.17 for the quarter ended March 31, missing the $9.91 consensus estimate by $0.74.
Revenue declined 1.0% year-on-year to $13.6 billion but came in just ahead of analyst expectations of $13.55 billion. The drop was largely driven by weaker residential video revenue, partly offset by continued growth in mobile services.
Customer Trends Mixed
The company reported a loss of 120,000 internet customers during the quarter, compared with a loss of 59,000 in the same period last year.
Charter added 368,000 mobile lines, down from 507,000 additions a year earlier. As of March 31, the group served 29.6 million internet customers and 12.1 million mobile lines.
“We remain confident about our ability to win in the marketplace and grow over the longer term,” said Chris Winfrey. “As we continue to improve our products, pricing, packaging, and service, and complete our rural and network initiatives, we are poised for improving customer and free cash flow growth.”
Cash Flow Pressured by Investment
Adjusted EBITDA fell 2.2% year-on-year to $5.6 billion, while free cash flow dropped 12.3% to $1.4 billion, mainly due to higher capital spending.
Capital expenditures rose 19.0% from the prior year to $2.9 billion, including $812 million spent on network line extensions during the quarter.
Buybacks and Outlook
Charter repurchased 4.3 million shares for $963 million over the period.
The company expects full-year 2026 capital expenditures to reach approximately $11.4 billion as it continues investing in network expansion and infrastructure.