Despite Charter Missing Earnings Estimates, The Stock Is Rising.

In spite of disappointing revenue figures in its first quarter, the company's stock price rose on Friday following the release of largely positive earnings. In the wake of Charter Communications' first-quarter earnings report, which was largely positive, its shares rose on Friday in response.

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Charter Communications' Spectrum brand reported a miss for its first quarter’s earnings, but investors ignored this fact, focusing instead on other metrics that were more important to them.

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In the first quarter of this year, it reported revenue of $13.65 billion, a 3.4% increase over the same quarter a year ago, which was higher than analysts expected revenue of $13.63 billion.

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A total of 666,000 residential mobile lines were added to the company's network during the first quarter of this year, an increase of 357,000 over the prior quarter. Several analysts, including Jonathan Chaplin of New Street Research, claimed that the increase "blew away expectations" in a report published Friday. 

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There have been significant increases in the percentage of new lines purchased since Spectrum One was introduced, as Jessica Fischer pointed out during the earnings call since the majority of new lines have existed with existing Internet customers.

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As she mentioned last quarter, converged users tend to have significantly lower churn rates than those who subscribe to the traditional service, which is Spectrum One, which combines internet, Wi-Fi, and mobile. 

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Residential internet subscribers increased by 67,000 during the quarter compared to a year ago, when there were 164,000 subscribers.

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The company has a goal that by year's end, it hopes to have 300,000 of its stores open in Ohio, Wisconsin, and Michigan to help it expand into rural areas, he said on the earnings call. 

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According to Chaplin, the company is deploying fiber in markets where there is no real competition at present. This has made us confident that it is a good investment.

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There has been a 7.5% rise in Charter shares in Friday's trading. In fact, it is among the top-performing S&P 500 stocks this year, up 8.6%.

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