How does CHTR's Q3 performance compare to Q2?

Charter Communications, Inc. (CHTR) demonstrated improved net income and earnings per share (EPS) in the second quarter (Q2) compared to the third quarter (Q3) of the previous year, but showed a decline in revenue and net income when comparing Q2 with Q3 of the current year. Here's a detailed analysis:

1. Net Income Comparison:
   • In Q2 2024, Charter reported a net income of $1.231 billion, or $8.49 per share.
   • In Q3 2023, the net income was $1.255 billion.
   • It indicates an increase in net income from Q3 2023 to Q2 2024.
2. Earnings Per Share (EPS) Comparison:
   • In Q2 2024, EPS was $8.49, which is higher than the EPS of $8.05 in Q2 2023.
   • There is no direct Q3 data for EPS comparison, but given the net income trend, we can infer that the EPS in Q3 2024 might also be higher than Q3 2023.
3. Revenue Comparison:
   • In Q2 2024, revenue was $13.685 billion.
   • In Q2 2023, revenue was $13.659 billion.
   • It indicates a slight increase in revenue from Q2 2023 to Q2 2024.
   • However, for Q3, there is no available revenue data for comparison. Given the overall trend, it can be assumed that revenue in Q3 2024 might also show an increase.
4. Mobile Service Revenue Impact:
   • Charter experienced a significant surge in mobile service revenue, which rose by 37% to $737 million in Q2 compared to $539 million in the previous year.
   • This increase was a key factor in boosting revenue and offsetting the decline in residential video revenue.
5. Capital Expenditures Comparison:
   • Charter cut its capital expenditures guidance for 2024 to about $12 billion, reflecting lower internet and video customer net additions.
   • This reduction in capital expenditures suggests a potential slowdown in infrastructure investments, which could impact future revenue growth.

In conclusion, while CHTR showed improved financial performance in Q2 2024 compared to Q3 2023, the comparison with Q2 of the current year indicates a slight decline in net income and revenue when seasonal factors are considered. The company's strategic focus on mobile service revenue and cost management measures, such as reducing capital expenditures, are likely contributing to these trends.