|Bid||315.68 x 900|
|Ask||321.22 x 800|
|Day's range||310.07 - 320.96|
|52-week range||250.10 - 396.64|
|Beta (3Y monthly)||1.22|
|PE ratio (TTM)||8.03|
|Earnings date||31 Jan 2019 - 4 Feb 2019|
|Forward dividend & yield||N/A (N/A)|
|1y target est||376.40|
Does the December share price for Charter Communications, Inc. (NASDAQ:CHTR) reflect it's really worth? Today, I will calculate the stock's intrinsic value by estimating the company's future cash flows and Read More...
Verizon (VZ) recently introduced a service called MyNumbers, which allows its wireless customers to work with up to five phone numbers on a single handset, making it easy for people to have separate numbers for personal, business, and other uses without having to carry around multiple phones. Although MyNumbers mostly sees Verizon catching up to the competition because T-Mobile (TMUS) and AT&T (T) have already launched their variants of the service, it could help Verizon boost its customer retention. Under Verizon’s MyNumbers service, each added line is charged at $15 per month, which looks cheaper than buying a separate device for each use even for those customers who upgrade their handsets regularly.
Verizon (VZ) launched its residential 5G service, known as Verizon 5G Home, in four cities in the United States on October 1. The Verizon 5G Home service has entered its third month in December. Verizon still isn’t disclosing its 5G Home subscription metrics, but the company recently shared details suggesting that the service is off to a great start.
Comcast (CMCSA) and Charter Communications (CHTR) have diversified into the wireless market, selling mobile services using Verizon’s (VZ) 4G LTE (long-term evolution) network. The arrangement with Verizon restricts Comcast and Charter to selling mobile services in their footprints.
Although T-Mobile (TMUS) hopes to close its deal to merge with Sprint (S) as early as in the first quarter of 2019, the path isn’t smooth, as the deal continues to face strong resistance. Fearing reduced competition in the wireless market and possible job losses, more than a dozen groups, including labor unions, have recently asked the Democrat-controlled US House of Representatives to hold a hearing on the T-Mobile-Sprint merger deal.
Of the 14 Reuters-surveyed analysts covering Frontier Communications (FTR) stock on November 29, only 7% recommended “buy,” while 43% recommended “hold” and 50% recommended “sell.” Frontier stock has fallen ~56.4% in the last 12 months and ~45.7% year-to-date. Based on the stock’s November 29 price of $3.67, analysts’ target price of $5.16 implies they expect the stock to rise ~40.6% over the next 12 months. The target price has fallen from $6.37 a month ago.
As of November 28, Verizon (VZ) was the largest US telecom company by market capitalization at $248.2 billion, followed by AT&T (T) at $223.7 billion. Meanwhile, Charter Communications (CHTR) had a market capitalization of $75.2 billion, as showcased in the chart below.
On November 28, Dish Network (DISH) appointed Suma Nallapati as the new senior vice president and chief digital officer. Nallapati will report to the company’s chief information officer, Atilla Tinic. Nallapati will join the company in mid-January. Nallapati is expected to ensure that Dish Network is well-positioned with the application delivery and digital strategy implementation. Nallapati is expected to overlook sales, e-commerce, customer and partner management, billing and other various operational support systems, and help the company to perform better.
Charter Communications (CHTR), the second-largest cable operator in the United States, continued to lose video customers in the third quarter. The company lost a net 66,000 residential video customers in the third quarter as compared to 104,000 net losses in the year-ago quarter. Charter’s residential video customers declined by ~1.6% YoY to reach 16.1 million at the end of September 30. This reduction in residential video subscribers is due to intense competition from low-cost over-the-top (or OTT) video streaming players.
In the third quarter, Frontier Communications’ (FTR) customer losses continued as it shed broadband customers. In the third quarter, Frontier lost net 61,000 broadband customers compared to a net loss of 63,000 in the previous year’s quarter and a net loss of 32,000 in the previous quarter. Frontier’s number of broadband customers had fallen ~5.0% year-over-year to 3.8 million as of September 30.
In the third quarter, Frontier Communications’ (FTR) customer losses continued as it shed video customers. Frontier lost net 37,000 total video customers in the third quarter, including 8,000 DISH customers. However, the company lost net 36,000 total video customers in the previous year’s quarter, including 10,000 DISH customers.
Frontier Communications (FTR) has been focusing on cost savings in order to boost its adjusted EBITDA. The company is targeting a $500 million run-rate EBITDA benefit by the end of 2020 in its next phase of transformation initiatives. Frontier is undertaking revenue enhancement initiatives to boost consumer and commercial revenues, which should benefit its EBITDA by $150 million–$200 million.
Frontier Communications (FTR) has been continuously spending on capex to improve its network. In the third quarter, Frontier spent $329 million on capex, with ~75% of its capital spending focused on productivity-enhancing and revenue-generating projects. In order to compete with leading US cable operators such as Comcast (CMCSA) and Charter Communications (CHTR), which have witnessed the maximum broadband net customer additions compared to other companies, Frontier Communications will have to focus on speed superiority.
Following its disappointing third-quarter earnings results, Frontier Communications (FTR) lowered its guidance for adjusted EBITDA and adjusted FCF (free cash flow) in 2018. Frontier now expects its adjusted FCF to reach $625 million in 2018, down from the $800 million it expected earlier. The company now expects its adjusted EBITDA to reach $3.55 billion in 2018, down from the $3.6 billion it projected earlier. The company expects its capex to be in the range of $1.15 billion–$1.2 billion.
Dish Network (DISH) and HBO are engaged in a bitter carriage negotiation dispute that has resulted in HBO channels going dark on Dish’s platforms. The HBO blackout has affected as many as 2.5 million Dish customers, including those on the company’s Internet-based SlingTV service.
Earlier this month, the (American Cable Association) asked the government to investigate Comcast’s (CMCSA) business practices.
Comcast (CMCSA) would prefer to let the Sky team run its business, Comcast CEO Brian Roberts suggested in a recent interview with Bloomberg. The reason Comcast wants to take a hands-off approach to managing Sky is that it believes that the Sky team better understands the markets in which Sky operates.
In February, before its boardroom power struggles deepened and its CEO, Les Moonves, stepped down, CBS Corporation (CBS) issued a strong 2018 outlook.
Charter (CHTR) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Verizon (VZ) is managing the challenges of the pay-TV market by focusing on its Fios Internet offering in the wireline component. In the third quarter, Verizon added 54,000 Fios Internet customers as compared to 66,000 net additions in the year-ago quarter. However, the net gains in Fios Internet connections were partially offset by 52,000 net declines in high-speed Internet connections. As a result, total net broadband connections for Verizon increased by 2,000 in the third quarter.
AT&T’s (T) DIRECTV NOW is a video streaming service that delivers content directly to consumers over the Internet as a substitute for traditional satellite or cable connections. In the third quarter, the telecom company added 49,000 customers to its DIRECTV NOW video streaming service, down from 296,000 DIRECTV NOW net customer additions in the third quarter of 2017.
Like other pay-TV service operators, AT&T (T) is facing a decline in its US pay-TV subscriber base due to cord-cutting. In the third quarter, AT&T lost 346,000 traditional US pay-TV customers. This number includes 359,000 satellite TV customer losses and 13,000 U-verse TV customer gains. In addition, Comcast (CMCSA) and Charter Communications (CHTR) had lost 95,000 and 66,000 residential video customers, respectively. This reduction in the traditional pay-TV customer base is mostly driven by rapid growth in the over-the-top (or OTT) video viewing trends.