Shaw Communications ( SJR Quick Quote SJR - Free Report) reported first-quarter fiscal 2022 adjusted earnings from continuing operations of 31 cents per share, beating the Zacks Consensus Estimate by 3.33%. Total revenues came in at $1.10 billion, beating the consensus mark by 0.49%. In domestic currency, Shaw reported earnings of C$0.39 per share, up 25.8% year over year. Total revenues increased 1.2% year over year to C$1.39 billion. Segmental Update
Wireline revenues (76.3% of total revenues) increased 0.1% on a year-over-year basis to C$1.06 billion. Wireline customers declined by roughly 78,100 in the reported quarter compared with a loss of nearly 100,900 in the year-ago quarter.
Wireline - Consumer revenues decreased 1.6% to C$896 million. Wireline - Business revenues of C$161 million were up 11% year over year. Wireless revenues (24% of total revenues) increased 4.7% on a year-over-year basis to C$332 million. Shaw added 55,600 new wireless customers in the reported quarter.
Wireless division currently operates in Ontario, Alberta and British Columbia, covering roughly 50% of the Canadian population.
Wireless - Service revenues (72% of total segment revenues) were up 11.2% from the year-ago quarter to C$239 million. ABPU fell 9.4% year over year to C$38.67. ARPU declined 3.4% from the year-ago quarter to C$36.95. Wireless - Equipment revenues (28% of total revenues) decreased 8.8% year over year to C$93 million. Operating Details
Operating, general and administrative expenses declined 1.3% year over year to C$753 million.
In first-quarter fiscal 2022, adjusted EBITDA grew 4.3% year over year to C$633 million. Adjusted EBITDA margin expanded 140 bps on a year-over-year basis to 45.7%. Segment-wise, Wireline’s adjusted EBITDA decreased 1.5% to C$524 million. The Wireline segment’s adjusted EBITDA margin contracted 80 bps on a year-over-year basis to 49.6%. Wireless adjusted EBITDA surged 45.3% to C$109 million. The Wireless segment’s adjusted EBITDA margin increased from 34.9% to 45.6%. Cash Flow Details
As of Nov 30, 2021, Shaw Communications had cash worth $292 million. The company’s net debt position was C$5.67 billion.
Moreover, the company’s net debt leverage ratio was 2.2X, below management’s optimal range of 2.5X-3X. In the quarter under review, capital expenditures were C$225 million compared with C$227 million in the year-ago quarter. Free cash flow was C$236 million compared with C$225 million in the year-ago quarter. Zacks Rank & Stocks to Consider
Shaw Communications currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader consumer discretionary sector include Brunswick ( BC Quick Quote BC - Free Report) , Electronic Arts ( EA Quick Quote EA - Free Report) and Nexstar Media ( NXST Quick Quote NXST - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Brunswick, Electronic Arts and Nexstar are scheduled to report their quarterly results on Jan 27, Feb 1 and Feb 22, respectively. The Zacks Consensus Estimate for Brunswick’s fourth-quarter 2021 earnings is pegged at $1.33 per share, unchanged over the past 60 days. The consensus mark for EA’s third-quarter fiscal 2022 earnings is pegged at $3.20 per share, down 0.9% over the past 60 days. The Zacks Consensus Estimate for Nexstar’s fourth-quarter 2021 earnings is pegged at $4.87 per share, unchanged over the past 60 days.