The investment community appears to believe that things are finally turning around for Charter Communications (Nasdaq: CHTR), the St. Louis, Mo.-based cable TV company that has had both moments of strength and ongoing struggles since exiting from Chapter 11 bankruptcy protection more than two and a half years ago.
The company showed signs of a stronger rebound with its first quarter 2012 earnings performance, which had followed a widening net loss around the middle of 2011 and several years of quarterly video subscriber losses. More than anything, however, financial analysts are optimistic about the effect that Charter CEO Tom Rutledge, hired away from Cablevision Systems (NYSE: CVC) last December, is having on Charter, and will continue to have in the near future, according to Investor's Business Daily.
Analysts seem to like the odds that Rutledge, who has hired other former Cablevision executives to join him at Charter, will be able to improve cash flow for the company. While Rutledge has stocked Charter's executive ranks with Cablevision veterans, he also may have created a minor stir by having the Midwestern company commit to open an office in New York City for its executives, while the Charter headquarters remains in St. Louis.
The New York move is not surprising, given that Rutledge currently is commuting to St. Louis from the East Coast, and is anything, it should help the company continue to bond with the NYC analyst community. However, Charter president of West operations Steve Apodaca did tender his resignation last week, just one day after the announcement of the move.
- read the Investor's Business Daily story
Charter president of operations Steve Apodaca resigned last week
Charter's first quarter earnings performance was its best in years
Charter was able to emerge from bankruptcy protection in late 2009