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Shaw Communications (SJR) Q2 Earnings & Revenues Lag Estimates

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Shaw Communications (SJR - Free Report) reported second-quarter fiscal 2022 adjusted earnings from continuing operations of 31 cents per share, missing the Zacks Consensus Estimate by 3.13%.

Total revenues came in at $1.069 billion, missing the consensus mark by 4.13%.

In domestic currency, Shaw reported earnings of C$0.39 per share, down 9.3% year over year. Total revenues increased 2% year over year to C$1.36 billion.

Segmental Update

Wireline revenues (76.5% of total revenues) dropped 1.3% on a year-over-year basis to C$1.04 billion. Wireline customers declined by roughly 58,081 in the reported quarter compared with a loss of nearly 66,030 in the year-ago quarter.

Wireline - Consumer revenues fell 2.4% to C$887 million. Wireline - Business revenues of C$153 million were up 5.5% year over year.

Wireless revenues (23.8% of total revenues) increased 3.9% on a year-over-year basis to C$323 million. Shaw added 41,189 new wireless customers in the reported quarter.

The Wireless division currently operates in Ontario, Alberta and British Columbia, covering roughly 50% of the Canadian population.

Wireless - Service revenues (73.7% of total segment revenues) were up 9.2% from the year-ago quarter’s figure to C$238 million.

ABPU fell 8.8% year over year to C$37.38. ARPU declined 1.06% from the year-ago quarter’s levels to C$36.43.

Wireless - Equipment revenues (26.3% of segment revenues) fell 28% year over year to C$85 million.

Shaw Communications Inc. Price, Consensus and EPS Surprise

 

Shaw Communications Inc. Price, Consensus and EPS Surprise

Shaw Communications Inc. price-consensus-eps-surprise-chart | Shaw Communications Inc. Quote

 

Operating Details

Operating, general and administrative expenses declined 3.06% year over year to C$727 million.

In second-quarter fiscal 2022, adjusted EBITDA rose 0.78% year over year to C$632 million. Adjusted EBITDA margin expanded 60 bps on a year-over-year basis to 46.5%.

Segment-wise, Wireline’s adjusted EBITDA dropped 5.7% to C$509 million. The Wireline segment’s adjusted EBITDA margin contracted 230 bps on a year-over-year basis to 48.9%.

Wireless adjusted EBITDA surged 26.8% to C$123 million. The Wireless segment’s adjusted EBITDA margin increased from 44.5% to 51.7%.

Cash Flow Details

As of Feb 28, 2022, Shaw Communications had cash and cash equivalents of $351 million. The company’s net debt position was C$5.598 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$249 million compared with C$250 million in the year-ago quarter.

Free cash flow was C$217 million compared with C$248 million in the year-ago quarter.

Zacks Rank & Stocks to Consider

Shaw Communications currently has a Zacks Rank #2 (Buy).

Some better-ranked stocks in the Consumer Discretionary sector include Funko (FNKO - Free Report) , Cedar Fair (FUN - Free Report) and Nintendo (NTDOY - Free Report) , each carrying a Zacks Rank #1 (Strong Buy),at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cedar Fair, Funko, and Nintendo are scheduled to report their quarterly results on May 4, May 5, and, May 10, respectively.

The Zacks Consensus Estimate for Funko’s first-quarter 2022 earnings is pegged at $0.20 per share, down by 6 cents over the past 60 days.

The consensus mark for Cedar Fair’s first-quarter 2022 earnings is pegged at a loss of $1.96 per share, unchanged the past 30 days.

The Zacks Consensus Estimate for Nintendo’s fourth-quarter 2022 earnings is pegged at $0.48 per share, unchanged over the past 60 days.

 


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