We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BCE's Q2 Earnings Miss Estimates, Revenues Increase Y/Y
Read MoreHide Full Article
BCE Inc. (BCE - Free Report) reported second-quarter 2023 adjusted earnings per share (EPS) of C$0.79 (59 cents) compared with C$0.87 in the prior-year quarter. The Zacks Consensus Estimate for the same was pegged at 60 cents.
Quarterly total operating revenues moved up 3.5% year over year to C$6,066 million ($4,516.3 million). The consensus estimate was pegged at $4,552.9 million. This was driven by a 1.3% rise in service revenues, which totaled C$5,303 million, and Product revenues improved 21.5% to C$763 million.
The uptick was due to solid residential Internet growth and higher Bell Communication and Technology Services (Bell CTS) sales.
The company announced that it combined its Bell Wireless and Bell Wireline operating segments to form a segment called Bell CTS. Going Forward, the company will report its segment results under Bell CTS and Bell Media.
Bell CTS’ operating revenues increased 4.3% year over year to C$5,354 million, driven by strong service and product revenue growth.
Service revenues jumped 1.9% to C$4,591 million, driven by growth in mobile phone, connected device subscriber bases, retail Internet subscriber base growth and higher wireless roaming revenues. This was partly offset by the continued decline in legacy voice, data and satellite TV services and retention and bundle discounts on residential home services.
Product revenues were up 21.5% to C$763 million, driven by sales of expensive mobile phones and higher sales of data equipment to enterprise business customers.
Postpaid mobile phone net subscriber activations were 111,282, up 33.8% year over year. The number of postpaid mobile phone net subscriber activations rose as a result of higher gross subscriber activations, sustained momentum of 5G, immigration growth, stronger business client demand and successful promotion.
Prepaid mobile phone and net subscriber activations decreased owing to higher customer churn due to promotional offers on postpaid plans.
Bell Media generated revenues of C$805 million, declining 1.9% year over year. The revenues decreased due to lower advertising revenues.
Other Details
Adjusted EBITDA in the reported quarter was C$2,645 million, up 2.1% year over year. The uptick was due to an increase of 2.8% in the CTS segment, partly offset by the decrease of 5.3% in the media segment. The adjusted EBITDA margin was 43.6% compared with 44.2% in the prior-year quarter.
Cash Flow
BCE generated C$2,365 million of cash from operating activities compared with C$2,597 million in the prior-year quarter. The free cash flow was C$1,016 million compared with C$1,333 million a year ago due to lower cash flows from operating activities.
2023 Outlook
BCE issued the financial guidance for 2023. It expects revenue growth between 1% and 5% and adjusted EBITDA between 2% and 5%.
Free cash flow growth is projected to be in the range of 2-10%. The annualized common dividend per share is estimated to be C$3.87.
The company has declared a quarterly dividend of C$0.9675 cents per share, payable on Oct 16, to shareholders of record on Sep 15, 2023.
The Zacks Consensus Estimate for InterDigital’s 2023 EPS has increased 0.1% in the past 60 days to $8.08. The company’s long-term earnings growth rate is 13.9%.
InterDigital’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 170.9%. Shares of IDCC have rallied 53.9% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 EPS has increased 4.8% in the past 60 days to $2.82.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 6.7%. Shares of BMI have surged 80.5% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 EPS has increased 9.7% in the past 60 days to $3.93.
WWD’s long-term earnings growth rate is 13.5%. Shares of WWD have gained 20.2% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BCE's Q2 Earnings Miss Estimates, Revenues Increase Y/Y
BCE Inc. (BCE - Free Report) reported second-quarter 2023 adjusted earnings per share (EPS) of C$0.79 (59 cents) compared with C$0.87 in the prior-year quarter. The Zacks Consensus Estimate for the same was pegged at 60 cents.
Quarterly total operating revenues moved up 3.5% year over year to C$6,066 million ($4,516.3 million). The consensus estimate was pegged at $4,552.9 million. This was driven by a 1.3% rise in service revenues, which totaled C$5,303 million, and Product revenues improved 21.5% to C$763 million.
The uptick was due to solid residential Internet growth and higher Bell Communication and Technology Services (Bell CTS) sales.
BCE, Inc. Price, Consensus and EPS Surprise
BCE, Inc. price-consensus-eps-surprise-chart | BCE, Inc. Quote
Segmental Results
The company announced that it combined its Bell Wireless and Bell Wireline operating segments to form a segment called Bell CTS. Going Forward, the company will report its segment results under Bell CTS and Bell Media.
Bell CTS’ operating revenues increased 4.3% year over year to C$5,354 million, driven by strong service and product revenue growth.
Service revenues jumped 1.9% to C$4,591 million, driven by growth in mobile phone, connected device subscriber bases, retail Internet subscriber base growth and higher wireless roaming revenues. This was partly offset by the continued decline in legacy voice, data and satellite TV services and retention and bundle discounts on residential home services.
Product revenues were up 21.5% to C$763 million, driven by sales of expensive mobile phones and higher sales of data equipment to enterprise business customers.
Postpaid mobile phone net subscriber activations were 111,282, up 33.8% year over year. The number of postpaid mobile phone net subscriber activations rose as a result of higher gross subscriber activations, sustained momentum of 5G, immigration growth, stronger business client demand and successful promotion.
Prepaid mobile phone and net subscriber activations decreased owing to higher customer churn due to promotional offers on postpaid plans.
Bell Media generated revenues of C$805 million, declining 1.9% year over year. The revenues decreased due to lower advertising revenues.
Other Details
Adjusted EBITDA in the reported quarter was C$2,645 million, up 2.1% year over year. The uptick was due to an increase of 2.8% in the CTS segment, partly offset by the decrease of 5.3% in the media segment. The adjusted EBITDA margin was 43.6% compared with 44.2% in the prior-year quarter.
Cash Flow
BCE generated C$2,365 million of cash from operating activities compared with C$2,597 million in the prior-year quarter. The free cash flow was C$1,016 million compared with C$1,333 million a year ago due to lower cash flows from operating activities.
2023 Outlook
BCE issued the financial guidance for 2023. It expects revenue growth between 1% and 5% and adjusted EBITDA between 2% and 5%.
Free cash flow growth is projected to be in the range of 2-10%. The annualized common dividend per share is estimated to be C$3.87.
The company has declared a quarterly dividend of C$0.9675 cents per share, payable on Oct 16, to shareholders of record on Sep 15, 2023.
Zacks Rank & Other Stocks to Consider
BCE currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology space are InterDigital (IDCC - Free Report) , Badger Meter (BMI - Free Report) and Woodward (WWD - Free Report) . Badger Meter and Woodward sport a Zacks Rank #1 (Strong Buy), whereas InterDigital carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for InterDigital’s 2023 EPS has increased 0.1% in the past 60 days to $8.08. The company’s long-term earnings growth rate is 13.9%.
InterDigital’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 170.9%. Shares of IDCC have rallied 53.9% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 EPS has increased 4.8% in the past 60 days to $2.82.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 6.7%. Shares of BMI have surged 80.5% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 EPS has increased 9.7% in the past 60 days to $3.93.
WWD’s long-term earnings growth rate is 13.5%. Shares of WWD have gained 20.2% in the past year.