The Chicago Entrepreneur

Charter stock falls after 2023 capex forecast comes in above Wall Street expectations

Shares of Charter Communications Inc. were off more than 5% in after-hours trading Tuesday after the company held an investor day, which contained expectations for next year’s capital expenditures. Charter expects $6.5 billion to $6.8 billion in full-year capital expenditures, excluding those from line extensions, according to the presentation. Charter also anticipates capital expenditures from line extensions to be about $4 billion. Together, that amounts to $10.5 billion to $10.8 billion. The FactSet consensus was for just shy of $9 billion. Charter expects that the line extensions will allow it to expand connectivity “to additional residential and business locations” in a way that “will enhance Charter’s customer and financial growth,” according to its slide presentation. “Charter currently expects capital expenditures, excluding line extensions capital expenditures, to peak in either 2024/2025 due to network evolution, and to decline thereafter,” the company added in that presentation.

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