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BCE's Q3 Earnings Match Estimates, Revenues Increase Y/Y
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BCE Inc. (BCE - Free Report) reported third-quarter 2023 adjusted earnings per share (EPS) of C$0.81 (60 cents) compared with C$0.88 in the prior-year quarter. The Zacks Consensus Estimate was pegged at 60 cents.
Quarterly total operating revenues moved up 0.9% year over year to C$6,080 million ($4,532.5 million). The consensus estimate was pegged at $4,561.7 million. This was driven by a 1.7% rise in service revenues, which totaled C$5,281 million, whereas Product revenues declined 3.9% to C$799 million.
The uptick was due to solid residential Internet growth and higher Bell Communication and Technology Services (Bell CTS) sales.
The company announced that it combined its Bell Wireless and Bell Wireline operating segments to form a segment called Bell CTS. Going forward, the company will report its segment results under Bell CTS and Bell Media.
Bell CTS’ operating revenues increased 1.1% year over year to C$5,461 million, driven by strong service revenue growth.
Service revenues jumped 2% to C$4,662 million, driven by growth in mobile phone, connected device subscriber bases, retail Internet subscriber base growth and higher wireless roaming revenues. This was partly offset by the continued decline in legacy voice, data and satellite TV services and retention and bundle discounts on residential home services.
Product revenues were down 3.9% to C$799 million due to the timing of mobile device and land mobile radio systems sales to large enterprise customers in the government sector and lower consumer electronics sales.
Postpaid mobile phone net subscriber activations were 142,886, down 14.8% year over year. The number of postpaid mobile phone net subscriber activations decreased owing to higher customer churn due to promotional offers on postpaid plans. This was partly offset by higher gross subscriber activations, sustained momentum of 5G, immigration growth, stronger business client demand and successful promotion.
Prepaid mobile phone and net subscriber activations decreased owing to higher customer churn due to promotional offers on postpaid plans and lower gross activations.
Bell Media generated revenues of C$710 million, declining 1.3% year over year. The revenues decreased due to lower advertising revenues.
Other Details
Adjusted EBITDA in the reported quarter was C$2,667 million, up 3.1% year over year. The uptick was due to an increase of 2.4% in the CTS segment and 11.5% in the media segment. The adjusted EBITDA margin was 43.9% compared with 43% in the prior-year quarter.
Cash Flow
BCE generated C$1,961 million of cash from operating activities compared with C$1,996 million in the prior-year quarter. The free cash flow was C$754 million compared with C$642 million a year ago due to lower capital expenditures.
2023 Outlook
BCE issued the financial guidance for 2023. It expects revenue growth between 1% and 5% and adjusted EBITDA between 2% and 5%.
Free cash flow growth is projected to be in the range of 2-10%. The annualized common dividend per share is estimated to be C$3.87. The company has declared a quarterly dividend of C$0.9675 cents per share, payable on Jan 15, 2024, to shareholders of record on Dec 15, 2023.
The Zacks Consensus Estimate for Asure Software’s 2023 EPS has increased 5.9% in the past 60 days to 54 cents.
Asure Software’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 676.4%. Shares of ASUR have surged 47.3% in the past year.
The Zacks Consensus Estimate for Flex’s 2023 EPS has gained 3.6% in the past 60 days to $2.56. Flex’s long-term earnings growth rate is 12.4%. Shares of FLEX have gained 20.1% in the past year.
The Zacks Consensus Estimate for Wix’s 2023 EPS has increased 0.3% in the past 60 days to $3.36.
Wix’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 319.3%. Shares of WIX have rallied 5.1% in the past year.
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BCE's Q3 Earnings Match Estimates, Revenues Increase Y/Y
BCE Inc. (BCE - Free Report) reported third-quarter 2023 adjusted earnings per share (EPS) of C$0.81 (60 cents) compared with C$0.88 in the prior-year quarter. The Zacks Consensus Estimate was pegged at 60 cents.
Quarterly total operating revenues moved up 0.9% year over year to C$6,080 million ($4,532.5 million). The consensus estimate was pegged at $4,561.7 million. This was driven by a 1.7% rise in service revenues, which totaled C$5,281 million, whereas Product revenues declined 3.9% to C$799 million.
The uptick was due to solid residential Internet growth and higher Bell Communication and Technology Services (Bell CTS) sales.
BCE, Inc. Price, Consensus and EPS Surprise
BCE, Inc. price-consensus-eps-surprise-chart | BCE, Inc. Quote
Segmental Results
The company announced that it combined its Bell Wireless and Bell Wireline operating segments to form a segment called Bell CTS. Going forward, the company will report its segment results under Bell CTS and Bell Media.
Bell CTS’ operating revenues increased 1.1% year over year to C$5,461 million, driven by strong service revenue growth.
Service revenues jumped 2% to C$4,662 million, driven by growth in mobile phone, connected device subscriber bases, retail Internet subscriber base growth and higher wireless roaming revenues. This was partly offset by the continued decline in legacy voice, data and satellite TV services and retention and bundle discounts on residential home services.
Product revenues were down 3.9% to C$799 million due to the timing of mobile device and land mobile radio systems sales to large enterprise customers in the government sector and lower consumer electronics sales.
Postpaid mobile phone net subscriber activations were 142,886, down 14.8% year over year. The number of postpaid mobile phone net subscriber activations decreased owing to higher customer churn due to promotional offers on postpaid plans. This was partly offset by higher gross subscriber activations, sustained momentum of 5G, immigration growth, stronger business client demand and successful promotion.
Prepaid mobile phone and net subscriber activations decreased owing to higher customer churn due to promotional offers on postpaid plans and lower gross activations.
Bell Media generated revenues of C$710 million, declining 1.3% year over year. The revenues decreased due to lower advertising revenues.
Other Details
Adjusted EBITDA in the reported quarter was C$2,667 million, up 3.1% year over year. The uptick was due to an increase of 2.4% in the CTS segment and 11.5% in the media segment. The adjusted EBITDA margin was 43.9% compared with 43% in the prior-year quarter.
Cash Flow
BCE generated C$1,961 million of cash from operating activities compared with C$1,996 million in the prior-year quarter. The free cash flow was C$754 million compared with C$642 million a year ago due to lower capital expenditures.
2023 Outlook
BCE issued the financial guidance for 2023. It expects revenue growth between 1% and 5% and adjusted EBITDA between 2% and 5%.
Free cash flow growth is projected to be in the range of 2-10%. The annualized common dividend per share is estimated to be C$3.87.
The company has declared a quarterly dividend of C$0.9675 cents per share, payable on Jan 15, 2024, to shareholders of record on Dec 15, 2023.
Zacks Rank & Stocks to Consider
BCE currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Asure Software (ASUR - Free Report) , Flex (FLEX - Free Report) and Wix.com (WIX - Free Report) . Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Asure Software’s 2023 EPS has increased 5.9% in the past 60 days to 54 cents.
Asure Software’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 676.4%. Shares of ASUR have surged 47.3% in the past year.
The Zacks Consensus Estimate for Flex’s 2023 EPS has gained 3.6% in the past 60 days to $2.56. Flex’s long-term earnings growth rate is 12.4%. Shares of FLEX have gained 20.1% in the past year.
The Zacks Consensus Estimate for Wix’s 2023 EPS has increased 0.3% in the past 60 days to $3.36.
Wix’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 319.3%. Shares of WIX have rallied 5.1% in the past year.