Charter jumps on Q1 results amid positive sentiment for tech, telecom earnings
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Class A shares of Charter Communications (NASDAQ:CHTR) on Friday gained as much as 8.4% to hit a session high at $371.52, their highest since early March, after the telecom company reported higher Q1 revenue and adj. EBITDA.
CHTR stock is also being helped by positive sentiment for technology and communication services stocks following strong results from Verizon (VZ), Microsoft (MSFT), Alphabet (GOOG) (GOOGL) and Meta Platforms (META) earlier this week.
CHTR stock is on track for its second straight day of solid gains and is among the top percentage gainers on both the S&P 500 (SP500) and the Nasdaq Composite (COMP.IND).
CHTR earlier in the day posted Q1 GAAP EPS of $6.65 which missed estimates by 95 cents. However, revenue rose 3.4% Y/Y to $13.65B and beat expectations by $40M. Moreover, Q1 adj. EBITDA came in at $5.4B, growing 2.6% Y/Y.
The company added 76K residential and small and medium business internet customers in Q1. Overall residential and small and medium business mobile lines increased by a hefty 686K.
"At the end of the first quarter, we had 6M total mobile lines. Just over 10% of our Internet customers now have mobile service and we expect mobile penetration to meaningfully grow over the next several years," CHTR CEO Christopher Winfrey said on the earnings conference call.
However, CHTR's quarterly cash flow performance dipped. Q1 net cash flows from operating activities was $3.3B versus $3.6B a year ago, while free cash flow was $664M versus $1.8B a year ago. The company said the decreases were due to an unfavorable change in working capital and higher capital expenditures.
More on telecom earnings

AT&T posts worst drop in years as analysts weigh another hard cash-flow road ahead
Verizon rises as it adds 633K subscribers in Q1
Comcast Non-GAAP EPS of $0.92 beats by $0.10, revenue of $29.69B beats by $350M
T-Mobile US GAAP EPS of $1.58 beats by $0.10, revenue of $19.63B misses by $430M