Why Charter Communications Plummeted Today
Shares of Charter Communications (NASDAQ: CHTR) fell by about 7.2% Friday. The broadband, cable, and now mobile service provider released its first-quarter earnings before the opening bell, and actually beat expectations on profits and delivered revenue that was in line with them.
So why did the stock fall so much? Well, the Nasdaq Composite was down 4.2% on Friday after other tech sector players delivered disappointing reports after the closing bell Thursday, and the S&P 500 fell by 3.6%. With investors broadly in a nervous mood, and feeling particularly skeptical about technology and the highly competitive telecom market, Charter's numbers weren't good enough to put them at ease.
In Q1, Charter delivered 5.4% revenue growth and 5.4% adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) growth, in line with estimates. Its earnings per share of $6.90 actually beat the consensus estimate, but many investors who follow this stock don't really focus on net income.
Source Fool.com
