Executive Summary
Charter Communications reported solid Q3 2024 results with continued top-line stability and solid operating profitability, supported by a resilient broadband franchise and strengthening advertising revenue mix. Revenue reached $13.795 billion, up 1.55% year-over-year and 0.80% quarter-over-quarter, while EBITDA stood at $5.336 billion and operating income at $3.356 billion. Net income of $1.28 billion and diluted EPS of $8.82–$8.99 (basic $8.99) reflect durable profitability amid ongoing capex and program investments.
The quarter showcased healthy operating discipline, with gross margin at roughly 40.4% and operating margin around 24.3%, underscoring the business’s ability to translate scale into earnings. Free cash flow (FCF) was $1.342 billion as cash flow from operations was $3.905 billion and capital expenditures were $2.563 billion, yielding positive FCF despite aggressive network investment. The balance sheet remains highly leveraged, with total debt near $96.3 billion and net debt around $95.6 billion, translating to a debt-to-capitalization of ~87% and an interest coverage of 2.6x. The company ended the period with cash and cash equivalents of $0.75 billion. Management commentary on capex cadence, debt management, and strategic initiatives remains a key driver of the investment thesis, though explicit forward-looking guidance is not included in the provided data. Overall, Charter’s core asset base and cash-generation profile justify a constructive view, balanced against elevated leverage and growth capex commitments.
Key Performance Indicators
Key Insights
Revenue: $13.795B, YoY +1.55%, QoQ +0.80%
Gross Profit: $5.58B, YoY +5.58%, QoQ +1.01% (Gross margin ~40.45%)
Operating Income: $3.356B, YoY +7.36%, QoQ +0.42% (Operating margin ~24.33%)
Net Income: $1.28B, YoY +1.99%, QoQ +3.98%
EPS (diluted): $8.82; EPS: $8.99 (YoY +6.77%, QoQ +4.66%)
EBITDA: $5.336B (EBITDA margin ~38.68%)
Free Cash Flow: $1.342B
Cash from Operations: $3.905B
Capital Expenditures: $(2.563)B
Cash at End of Period: $0.75B
Total Assets: $149.371B; Total Liabilities: $131.317B; S...
Financial Highlights
Revenue: $13.795B, YoY +1.55%, QoQ +0.80%
Gross Profit: $5.58B, YoY +5.58%, QoQ +1.01% (Gross margin ~40.45%)
Operating Income: $3.356B, YoY +7.36%, QoQ +0.42% (Operating margin ~24.33%)
Net Income: $1.28B, YoY +1.99%, QoQ +3.98%
EPS (diluted): $8.82; EPS: $8.99 (YoY +6.77%, QoQ +4.66%)
EBITDA: $5.336B (EBITDA margin ~38.68%)
Free Cash Flow: $1.342B
Cash from Operations: $3.905B
Capital Expenditures: $(2.563)B
Cash at End of Period: $0.75B
Total Assets: $149.371B; Total Liabilities: $131.317B; Stockholders’ Equity: $14.099B
Total Debt: $96.313B; Net Debt: $95.592B
Current ratio: 0.341; Debt-to-Capitalization: 0.871; Interest Coverage: 2.56
Price/Earnings: 9.05x; EV/EBITDA: 26.40x; P/B: 3.29x; P/S: 3.36x; FCF per share: $9.43; Operating Cash Flow per Share: $27.44
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
13.80B |
1.55% |
0.80% |
| Gross Profit |
5.58B |
5.58% |
1.01% |
| Operating Income |
3.36B |
7.36% |
0.42% |
| Net Income |
1.28B |
1.99% |
3.98% |
| EPS |
8.99 |
6.77% |
4.66% |
Key Financial Ratios
operatingProfitMargin
24.3%
operatingCashFlowPerShare
$27.44
freeCashFlowPerShare
$9.43
Management Commentary
Transcript not provided in the data. No earnings-call transcript content available to extract themes or quotes.
Transcript not available in the provided data.
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Transcript not available in the provided data.
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Forward Guidance
No explicit forward guidance was provided in the supplied data. Based on the reported metrics and the company’s capital allocation, the plausible outlook involves moderate revenue growth in the low-single digits driven by broadband demand and advertising upside, continued EBITDA margin resilience around mid- to high-30s percent, and persistent but elevated capex spend (network and technology upgrades). Investors should monitor: (1) cadence of capital expenditures and resulting free cash flow; (2) deleveraging progress given a high debt load and modest interest coverage; (3) any commentary on pricing power, ARPU trends, and advertising mix; (4) regulatory/franchise developments affecting cost of capital and investment pace. If Charter can stabilize leverage and maintain FCF generation in the current macro environment, the long-term investment thesis remains favorable relative to peers with weaker liquidity profiles. Key monitors: debt maturity profile, refinancing risk, and the trajectory of cash conversion from operating activities to free cash flow.