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BCE Inc. (BCE - Free Report) reported second-quarter 2022 adjusted earnings per share of C$0.87 (68 cents) compared with C$0.83 in the prior-year quarter. The Zacks Consensus Estimate for the same was pegged at 65 cents.
Quarterly total operating revenues moved up 2.9% year over year to C$5,861 million ($4,593 million). The consensus estimate was pegged at $4,530 million. This was driven by a 3.8% rise in service revenues, which totaled C$5,233 million, reflecting solid wireless, residential Internet and media growth. Product revenues declined 4.6% to C$628 million, owing to reduced mobile device transactions and business wireline data equipment sales.
Significant broadband investments, 5G network acceleration program and an increase in mobile phone blended ARPU bolstered the company’s operating momentum.
Bell Wireless’ operating revenues increased 5.5% year over year to C$2,246 million, driven by strong service revenue growth and higher year-over-year revenues from international roaming. This was partly offset by lower year-over-year product revenues. Product revenues were down 0.9% to C$543 million.
Service revenues jumped 7.8% to C$1,703 million, driven by growth in mobile phone and connected device subscriber bases; and higher blended mobile phone average revenue per user due to easing covid restrictions and rising international roaming revenue.
This reflects a reduction in sales transaction volumes attributable to longer handset lifecycles and a high mix of pre-owned device customer activations. Bell Wireless added 110,761 post-paid and prepaid mobile phone subscribers compared with 46,247 in the second quarter of 2021.
Bell Wireline revenues decreased 0.3% to C$2,995. Wireline service revenues increased 0.6% to C$2,909 million. The uptick was driven mainly by higher residential Internet revenues, partly offset by continued declines in legacy voice, data and satellite TV services, lower sales of IP connectivity and business service solutions; and partly due to large enterprise customers deferring project spending due to the COVID-related disruptions and the sale of Createch on Mar 1, 2022.
Product revenues fell 23.2% to C$86 million mainly due to lower sales of data equipment to enterprise business customers resulting from delayed spending from the pandemic-induced supply-chain disruptions.
Bell Media generated revenues of C$821 million, up 8.7% year over year. The rise was driven by higher subscriber revenues and increased TV advertiser spending.
Other Details
Adjusted EBITDA in the reported quarter was C$2,590 million, up 4.6% year over year. The rise was driven by an increase of 8.3% in wireless, 1.7% in wireline segments and 5.6% in media. The adjusted EBITDA margin was 44.2% compared with 43.5% in the prior-year quarter.
Cash Flow
BCE generated C$2,597 million of cash from operating activities compared with C$2,499 million in the prior-year quarter. Free cash flow was C$1,333 million compared with C$1,245 million a year ago due to higher cash flows from operating activities.
2022 Outlook
BCE issued the financial guidance for 2022. It expects revenue growth between 1% and 5% and adjusted EBITDA between 2% and 5%. Adjusted earnings per share are estimated to grow 2-7%. Free cash flow growth is projected to be 2-10%. Annualized common dividend per share is estimated to be C$3.68.
The company has declared a quarterly dividend of 92 cents per share, payable on Oct 15, 2022 to shareholders of record on Sep 15, 2022.
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have jumped 22.9% in the past year.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 7% in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 5.7% of their value in the past year.
The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $2.76 per share, declining 15.9% in the past 60 days. The long-term earnings growth rate is anticipated to be 15%.
InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 141.1%. Shares of IDCC have declined 12.8% in the past year.
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BCE Q2 Earnings & Revenues Surpass Estimates, Rise Y/Y
BCE Inc. (BCE - Free Report) reported second-quarter 2022 adjusted earnings per share of C$0.87 (68 cents) compared with C$0.83 in the prior-year quarter. The Zacks Consensus Estimate for the same was pegged at 65 cents.
Quarterly total operating revenues moved up 2.9% year over year to C$5,861 million ($4,593 million). The consensus estimate was pegged at $4,530 million. This was driven by a 3.8% rise in service revenues, which totaled C$5,233 million, reflecting solid wireless, residential Internet and media growth. Product revenues declined 4.6% to C$628 million, owing to reduced mobile device transactions and business wireline data equipment sales.
Significant broadband investments, 5G network acceleration program and an increase in mobile phone blended ARPU bolstered the company’s operating momentum.
BCE, Inc. Price, Consensus and EPS Surprise
BCE, Inc. price-consensus-eps-surprise-chart | BCE, Inc. Quote
Segmental Results
Bell Wireless’ operating revenues increased 5.5% year over year to C$2,246 million, driven by strong service revenue growth and higher year-over-year revenues from international roaming. This was partly offset by lower year-over-year product revenues. Product revenues were down 0.9% to C$543 million.
Service revenues jumped 7.8% to C$1,703 million, driven by growth in mobile phone and connected device subscriber bases; and higher blended mobile phone average revenue per user due to easing covid restrictions and rising international roaming revenue.
This reflects a reduction in sales transaction volumes attributable to longer handset lifecycles and a high mix of pre-owned device customer activations. Bell Wireless added 110,761 post-paid and prepaid mobile phone subscribers compared with 46,247 in the second quarter of 2021.
Bell Wireline revenues decreased 0.3% to C$2,995. Wireline service revenues increased 0.6% to C$2,909 million. The uptick was driven mainly by higher residential Internet revenues, partly offset by continued declines in legacy voice, data and satellite TV services, lower sales of IP connectivity and business service solutions; and partly due to large enterprise customers deferring project spending due to the COVID-related disruptions and the sale of Createch on Mar 1, 2022.
Product revenues fell 23.2% to C$86 million mainly due to lower sales of data equipment to enterprise business customers resulting from delayed spending from the pandemic-induced supply-chain disruptions.
Bell Media generated revenues of C$821 million, up 8.7% year over year. The rise was driven by higher subscriber revenues and increased TV advertiser spending.
Other Details
Adjusted EBITDA in the reported quarter was C$2,590 million, up 4.6% year over year. The rise was driven by an increase of 8.3% in wireless, 1.7% in wireline segments and 5.6% in media. The adjusted EBITDA margin was 44.2% compared with 43.5% in the prior-year quarter.
Cash Flow
BCE generated C$2,597 million of cash from operating activities compared with C$2,499 million in the prior-year quarter. Free cash flow was C$1,333 million compared with C$1,245 million a year ago due to higher cash flows from operating activities.
2022 Outlook
BCE issued the financial guidance for 2022. It expects revenue growth between 1% and 5% and adjusted EBITDA between 2% and 5%. Adjusted earnings per share are estimated to grow 2-7%. Free cash flow growth is projected to be 2-10%. Annualized common dividend per share is estimated to be C$3.68.
The company has declared a quarterly dividend of 92 cents per share, payable on Oct 15, 2022 to shareholders of record on Sep 15, 2022.
Zacks Rank & Stocks to Consider
BCE currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader technology space are Cadence Design Systems (CDNS - Free Report) , Badger Meter (BMI - Free Report) and InterDigital (IDCC - Free Report) . Cadence Design Systems and Badger Meter sport a Zacks Rank #1 (Strong Buy) whereas InterDigital carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have jumped 22.9% in the past year.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 7% in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 5.7% of their value in the past year.
The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $2.76 per share, declining 15.9% in the past 60 days. The long-term earnings growth rate is anticipated to be 15%.
InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 141.1%. Shares of IDCC have declined 12.8% in the past year.