Charter Communications (CHTR, Financial) was noted as a top detractor in the Oakmark Global Select Fund's 1st-Quarter Commentary 2024. The company faced challenges with a slight decline in broadband subscribers, attributed to a competitive market and the anticipated end of a government subsidy program. Despite these hurdles, Charter continues to grow earnings, invest in high-return projects, and repurchase stock, reinforcing confidence in its long-term potential.
"In February, the stock price fell when the company reported that broadband subscribers declined 0.2% sequentially. We anticipate that broadband subscriber growth will remain challenging in the near term due to a heightened competitive environment and the likely wind-down of a government subsidy program. However, we expect these competitive forces will abate over the medium term and that Charter’s broadband subscriber base will return to normal growth. In the meantime, the company continues to grow earnings, invest in high-return capital projects and repurchase stock. We maintain our belief in the long-term prospects of Charter Communications." — David Herro (Trades, Portfolio), Oakmark Global Select Fund, Q1 2024 Fund Letter
Read full letter at gurufocus David Herro's Oakmark Global Select Fund 1st-Quarter Commentary 2024 Q1 page.
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