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Tickers in this Article: BCE, RCI
Rogers Communications Inc. (RCI) is slated to release its third-quarter 2012 results on Wednesday, October 24, after the closing bell. The current Zacks Consensus Estimate for the third quarter is pegged at 89 cents, representing a growth of 0.57% from the year-ago quarter. With respect to earnings surprise, Rogers has outperformed the Zacks Consensus Estimate in three out of the last four quarters with an average beat of 3.61%.

Second-Quarter Performance

On July 24, 2012, Rogers declared its financial results for the second quarter of fiscal 2012. Quarterly net income was $409 million or 76 cents per share compared with a net income of $410 million or cents 75 per share in the year-ago quarter. However, second-quarter, adjusted (excluding special items) earnings per share of 82 cents fell below the Zacks Consensus Estimate of 85 cents per share.  

Quarterly total revenue was $3,053 million, up 0.3% year over year, but missed the Zacks Consensus Estimate of $3,148 million.

Agreement of Estimate Revisions

For the third quarter of 2012, in the last 30 days, out of 6 analysts, one analyst revised the estimate upward while another moved in the opposite direction. Likewise, for fourth quarter of 2012, out of 7 analysts, one analyst increased the EPS estimate but another analyst decreased the same.

For fiscal 2012 and 2013, in the last 30 days, out of the nine analysts, two analysts raised their EPS estimate upward but none moved in the opposite direction.

Magnitude of Estimate Revisions

Over the last 30 days, the current Zacks Consensus Estimates for the third quarter of 2012 was just a penny above the previous EPS estimate of 88 cents. However, for the third quarter of 2012, the current Zacks Consensus Estimate was in line with the earlier EPS estimate of 68 cents.

For fiscal 2012, during the last 30 days, the current Zacks Consensus Estimates was a penny above the previous EPS estimate of $3.10. Likewise, for fiscal 2013, the current Zacks Consensus Estimates was a penny above the previous EPS estimate of $3.32.

Our Take

Despite stiff competition from BCE, Inc. (BCE), growing demand for mobile data and huge activation of latest smartphones coupled with faster deployment of LTE network has resulted in a 80% year over year increase of Internet usage by its subscribers, thereby driving the company's top line growth. Moreover, attractive dividend yield will further act as positive catalyst for the stock going forward.

Rogers Communications Inc. has a Zacks #1 Rank, implying a short-term Strong buy rating. Considering the fundamentals in the long run, we maintain our Outperform recommendation on the stock.

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