Shares of Charter Communications Inc.
CHTR,
were down more than 5% in after-hours trading on Tuesday after the company held an investor day that included expectations for next year’s capital spending. According to the presentation, Charter expects investments of $6.5 billion to $6.8 billion for the full year, excluding those from line expansions. Charter also anticipates that capital expenditures for line expansions will be approximately $4 billion. Together, that amounts to $10.5 to $10.8 billion. The FactSet consensus was close to $9 billion. Charter anticipates the line expansions will allow it to expand connectivity “to additional residential and commercial locations” in a way that “will increase Charter’s customer and financial growth,” according to the slide presentation. “Charter currently anticipates that capital expenditures, excluding line expansion expenditures, will either peak in 2024/2025 due to network development and decline thereafter,” the company added in that presentation.
