Charter Shares Plunge on Q2 Miss, Subscriber Losses

Charter Communications shares dropped as much as 18%, marking the company's sharpest stock decline on record, after reporting second-quarter earnings that missed expectations. Adjusted EPS fell to $9.18, an earnings surprise of -8.66%, while revenue of $13.77 billion matched analyst estimates and was flat year-over-year. The company lost 111,000 residential broadband customers, a higher loss than analysts had forecast, and continued to see video subscriber declines, though at a slower pace due to new pricing and streaming options. Management reiterated confidence in the pending $34.5 billion merger with Cox Communications, citing successful past integrations. Despite outperforming the S&P 500 earlier in the year, Charter now faces increased scrutiny over long-term growth amid intensifying competition from mobile 5G and fiber services. Analysts cited flat revenue, modest EBITDA growth, and accelerating subscriber attrition as key reasons for the sell-off.