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.
Why Is Rogers Communication (RCI) Up 2.5% Since the Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Rogers Communication, Inc. (RCI - Free Report) . Shares have added about 2.5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Rogers Communications Q3 Earnings Beat, Revenues Miss
Net Income
Quarterly net income was approximately $372.66 million compared with $335.16 million in the year-ago quarter. Adjusted earnings per share of 81 cents were above the Zacks Consensus Estimate of 79 cents.
Revenue
Quarterly total revenue was around $2,856 million, up 7.5% year over year and below the Zacks Consensus Estimate of $2,897 million.
Operating Metrics
Adjusted operating profit was $1,167.47 million compared with $1,105.23 million in the year-ago quarter. Quarterly adjusted operating profit margin was 40.9% versus 39.7% from the year-ago quarter.
Cash Flow
During the reported quarter, Rogers Communications generated $1098.84 million of cash from operations compared with $945.63 million at the end of Jun 2016. Free cash flow was $429.32.12 million compared with $477.20 million in the year-ago quarter.
Liquidity
In the quarter under review, change in the cash and cash equivalents on Rogers Communications’ balance amounted $31.12 million. Total outstanding long-term debt was approximately $10,098.69million compared with $12,233.34 million at the end of Dec 2016.
WirelessSegment
Quarterly total revenue was around $1,706.12 million, up 5% year over year. Service revenues totaled $1,604.78 million, up 7% from the year-ago quarter. Equipment sales were $101.34 million, down 20% year over year.
Quarterly adjusted operating profit for the segment was $769.27 million, up 9% year over year. Adjusted operating profit margin was 47.9% compared with 47.1% in the year-earlier quarter.
Quarterly blended ARPU (average revenue per user) was $50.89, compared with $49.72 in the year-ago quarter. As of Jun 30, the prepaid subscriber base totaled 1.786 million, with a gain of 97,000 subscribers from the year-ago quarter. Monthly churn rate was 3.04% compared with 3.49% in the prior-year quarter.
As of Sep 30, 2017, Rogers Communications’ postpaid wireless subscriber base totaled 8.839 million. In the third quarter, the company added 129,000 postpaid wireless subscribers. Quarterly postpaid ARPA (average revenue per account) was around $128.54 compared with $121.39 in the year-ago quarter. The monthly churn rate was 1.16% versus 1.26% in the prior-year quarter.
Cable Segment
Quarterly total revenue totaled $694.26 million, up 1% year over year. Service revenues totaled $693.46 million, up 1% year over year. Internet revenues were $322.39 million, up 6% year over year. Television (Video) revenues were $300.85 million, down 3% year over year. Telephony revenues totaled $70.22 million, down 7% year over year. Equipment sales were $0.798 million, down 50% year over year.
Quarterly adjusted operating profit for the segment was $351.12 million, up 2% year over year. Adjusted operating margin was 50.6% compared with 49.8% in the year-ago quarter.
As of Sep 30, the high-speed Internet subscriber count was 2.213 million. Rogers Communications added 27,000 high-speed Internet customers in the quarter. Video subscriber base totaled 1.753 million, after a loss of 18,000 users. Telephony subscriber count was 1.099 million. The company lost 4,000 telephony subscribers from the year-ago quarter.
MediaSegment
Quarterly total revenue amounted $411.77 million, down 3% year over year. Quarterly operating expenses declined 1% year over year to $359.89 million. Adjusted operating profit margin came in at 12.6% versus 14.8% with the year-ago quarter.
Business Solutions Segment
Quarterly total revenue totaled $77.41 million, up 2% year over year. Of the total, next-generation revenues were $64.64 million, up 5%. Legacy revenues were $11.17 million, down 18%. Service revenues were $75.81 million, up 1%. Equipment revenues were $1.59 million. Quarterly adjusted operating profit was $26.33 million, up 6% year over year. Adjusted operating margin was 34.0% compared with 32.6% in the year-ago quarter.
How have estimates been moving since then?
Analysts were quiet during the last month as none of them issued any earnings estimate revisions.
At this time, Rogers Communication's stock has a nice Growth Score of B, though it is lagging a lot on the momentum front with a D. The stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for growth investors than value investors.
Outlook
Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Rogers Communication (RCI) Up 2.5% Since the Last Earnings Report?
It has been about a month since the last earnings report for Rogers Communication, Inc. (RCI - Free Report) . Shares have added about 2.5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Rogers Communications Q3 Earnings Beat, Revenues Miss
Net Income
Quarterly net income was approximately $372.66 million compared with $335.16 million in the year-ago quarter. Adjusted earnings per share of 81 cents were above the Zacks Consensus Estimate of 79 cents.
Revenue
Quarterly total revenue was around $2,856 million, up 7.5% year over year and below the Zacks Consensus Estimate of $2,897 million.
Operating Metrics
Adjusted operating profit was $1,167.47 million compared with $1,105.23 million in the year-ago quarter. Quarterly adjusted operating profit margin was 40.9% versus 39.7% from the year-ago quarter.
Cash Flow
During the reported quarter, Rogers Communications generated $1098.84 million of cash from operations compared with $945.63 million at the end of Jun 2016. Free cash flow was $429.32.12 million compared with $477.20 million in the year-ago quarter.
Liquidity
In the quarter under review, change in the cash and cash equivalents on Rogers Communications’ balance amounted $31.12 million. Total outstanding long-term debt was approximately $10,098.69million compared with $12,233.34 million at the end of Dec 2016.
WirelessSegment
Quarterly total revenue was around $1,706.12 million, up 5% year over year. Service revenues totaled $1,604.78 million, up 7% from the year-ago quarter. Equipment sales were $101.34 million, down 20% year over year.
Quarterly adjusted operating profit for the segment was $769.27 million, up 9% year over year. Adjusted operating profit margin was 47.9% compared with 47.1% in the year-earlier quarter.
Quarterly blended ARPU (average revenue per user) was $50.89, compared with $49.72 in the year-ago quarter. As of Jun 30, the prepaid subscriber base totaled 1.786 million, with a gain of 97,000 subscribers from the year-ago quarter. Monthly churn rate was 3.04% compared with 3.49% in the prior-year quarter.
As of Sep 30, 2017, Rogers Communications’ postpaid wireless subscriber base totaled 8.839 million. In the third quarter, the company added 129,000 postpaid wireless subscribers. Quarterly postpaid ARPA (average revenue per account) was around $128.54 compared with $121.39 in the year-ago quarter. The monthly churn rate was 1.16% versus 1.26% in the prior-year quarter.
Cable Segment
Quarterly total revenue totaled $694.26 million, up 1% year over year. Service revenues totaled $693.46 million, up 1% year over year. Internet revenues were $322.39 million, up 6% year over year. Television (Video) revenues were $300.85 million, down 3% year over year. Telephony revenues totaled $70.22 million, down 7% year over year. Equipment sales were $0.798 million, down 50% year over year.
Quarterly adjusted operating profit for the segment was $351.12 million, up 2% year over year. Adjusted operating margin was 50.6% compared with 49.8% in the year-ago quarter.
As of Sep 30, the high-speed Internet subscriber count was 2.213 million. Rogers Communications added 27,000 high-speed Internet customers in the quarter. Video subscriber base totaled 1.753 million, after a loss of 18,000 users. Telephony subscriber count was 1.099 million. The company lost 4,000 telephony subscribers from the year-ago quarter.
MediaSegment
Quarterly total revenue amounted $411.77 million, down 3% year over year. Quarterly operating expenses declined 1% year over year to $359.89 million. Adjusted operating profit margin came in at 12.6% versus 14.8% with the year-ago quarter.
Business Solutions Segment
Quarterly total revenue totaled $77.41 million, up 2% year over year. Of the total, next-generation revenues were $64.64 million, up 5%. Legacy revenues were $11.17 million, down 18%. Service revenues were $75.81 million, up 1%. Equipment revenues were $1.59 million. Quarterly adjusted operating profit was $26.33 million, up 6% year over year. Adjusted operating margin was 34.0% compared with 32.6% in the year-ago quarter.
How have estimates been moving since then?
Analysts were quiet during the last month as none of them issued any earnings estimate revisions.
Rogers Communication, Inc. Price and Consensus
Rogers Communication, Inc. Price and Consensus | Rogers Communication, Inc. Quote
VGM Scores
At this time, Rogers Communication's stock has a nice Growth Score of B, though it is lagging a lot on the momentum front with a D. The stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for growth investors than value investors.
Outlook
Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.