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Rogers Communications Inc. (RCI - Analyst Report), the largest telecom company in Canada is set to release its fourth-quarter 2012 results before the opening bell on Feb 15, 2013.

Last quarter the company delivered an 8.99% positive earnings surprise. Let’s see how things are shaping up for this announcement.

Factors to Consider This Quarter

Rogers Communications is expanding its LTE (Long Term Evolution) network and currently the company has covered 60% of its footprint with LTE network. Wireless segment is expected to deliver impressive results for the company based on robust demand for smartphone and LTE-based devices.

However, the company is expected to continue with its loss in its cable TV business as the company faces increased competition due to entry of rival Bell Canada’s entry into the cable business. Additionally, softness in the advertisement market is also expected to impact its media business.

Earnings Whispers

Our proven model does not conclusively show that Rogers Communications is likely to beat the Zacks Consensus Estimate this quarter. That is because a stock needs to have both a positive Expected Surprise Prediction (ESP) (Read: Zacks Earnings ESP: A Better Method) and a Zacks Rank #1 (Strong Buy) or at least Zacks Rank #2 (Buy) or Zacks Rank #3 (Hold) for this to happen. Unfortunately this is not the case here as elaborated below.

Negative Zacks ESP: This is because the Most Accurate estimate stands at 68 cents while the Zacks Consensus Estimate is higher at 73 cents. This leads to an ESP of -6.85%.

Zacks Rank #3 (Hold): Rogers’ Zacks Rank #3 (Hold), however, increases the predictive power of ESP. That said we also need to have a positive ESP to be confident for an earnings surprise call.

Other Stocks to Consider

Here are some other companies to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Clearwire Corporation (CLWR) has earnings ESP of +29.17% and carries a Zacks Rank #2 (Buy).

Tivo Inc. (TIVO - Analyst Report) has earnings ESP of +8.33% and carries a Zacks Rank #2 (Buy).

Comcast Corporation (CMCSA - Analyst Report) has earnings ESP of +1.89% and carries a Zacks Rank #3 (Hold).

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