Stock Analyst Note
Charter Earnings: The Loss of Customer Subsidies Hasn’t Yet Hit Hard
While Charter isn’t in the clear, the second quarter provided some relief surrounding the Affordable Connectivity Program, or ACP, which fully ended in June. Net broadband customer losses during the quarter weren’t wildly different than peer Comcast’s, which made far less use of the program. Charter also again delivered impressive profitability gains while generating solid cash flow. We maintain our $490 fair value estimate and still view the shares as undervalued.