We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Roger's Shares Fall 24% YTD: How Should Investors Play the Stock?
Read MoreHide Full Article
Roger Communications (RCI - Free Report) shares have dropped 23.4% year to date (YTD), underperforming the broader Zacks Consumer Discretionary sector’s growth of 10.1%
Its shares have also lagged the Zacks Cable Television industry and peers, including Broadcom (AVGO - Free Report) , Charter (CHTR - Free Report) and Liberty Global (LBTYA - Free Report) . During the same period, shares of Broadcom, Liberty Global and Charter have gained 60.4%, 16.6% and 1.8%, respectively. The industry has increased 0.4% YTD.
RCI’s underperformance can be attributed to stiff competition from TELUS and BCE in the wireless operations market and in the communication cable market. For third-quarter 2024, RCI’s cable revenues reduced 1% year over year to $1.97 billion due to a decline in the Home Phone and Satellite subscriber base.
Rogers Communications tested DOCSIS 4.0 with Comcast XER modem to increase its download speed to four gigabits and upload speed to one gigabit, and to integrate AI, cloud functions as well as data processing capabilities to drive customer satisfaction.
RCI’s enhancement to the DOCSIS 3.1 platform aims to develop network resilience and provide stable connectivity as well as quicker download and upload speed to its users, making the brand an industry pioneer in delivering such speed through Hybrid Fibre Coax arrangement.
Roger’s is also expanding its portfolio by bringing its partners’ SpaceX’s latest technology to users in Canada to provide emergency alerts via satellite to mobile phones in areas affected by disasters.
RCI also inked a strategic agreement to buyout Bell’s 37.5% ownership in Maple Leaf Sports & Entertainment (MLSE) to become the largest owner with a 75% stake in MLSE. The deal is expected to conclude by mid-2025 and will allow RCI to expand its portfolio in media and live sports offerings.
Rogers already owns Toronto Blue Jays, Rogers Centre and Sportsnet and is further expanding its portfolio in the live sports industry.
In the lifestyle and entertainment market, Rogers has partnered with Disney to bring Disney+ to Ignite TV users free of cost.
RCI entered into an agreement with Warner Bros. Discovery to launch and distribute Discovery channels such as Discovery Science, Animal Planet and MotorTrend.
RCI Fiscal 2024 Guidance Positive
For 2024, Rogers expects total service revenues to grow between 8% and 10%. Adjusted EBITDA is expected to grow in the range of 12-15%.
Capital expenditure is expected between C$3.8 billion and C$4 billion. Free cash flow is expected in the range of C$2.9-C$3.1 billion.
Rogers’ Fiscal 2024 Earnings Estimates Steady
For fiscal 2024, the Zacks Consensus Estimate for revenues is pegged at $14.78 billion, indicating year-over-year growth of 3.33%.
The consensus mark for earnings is pegged at $3.55 per share, down by a cent in the past 30 days and implying year-over-year growth of 5.34%.
The Zacks Consensus Estimate for fourth-quarter fiscal 2024 is pegged at $1.05 per share, up 9.3% in the past 30 days and indicating year-over-year growth of 20.69%.
The consensus mark for fourth-quarter fiscal 2024 revenues is pegged at $3.87 billion, indicating a year-over-year decline of 1.22%.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, delivering an average surprise of 3.87%.
Image: Bigstock
Roger's Shares Fall 24% YTD: How Should Investors Play the Stock?
Roger Communications (RCI - Free Report) shares have dropped 23.4% year to date (YTD), underperforming the broader Zacks Consumer Discretionary sector’s growth of 10.1%
Its shares have also lagged the Zacks Cable Television industry and peers, including Broadcom (AVGO - Free Report) , Charter (CHTR - Free Report) and Liberty Global (LBTYA - Free Report) . During the same period, shares of Broadcom, Liberty Global and Charter have gained 60.4%, 16.6% and 1.8%, respectively. The industry has increased 0.4% YTD.
RCI’s underperformance can be attributed to stiff competition from TELUS and BCE in the wireless operations market and in the communication cable market. For third-quarter 2024, RCI’s cable revenues reduced 1% year over year to $1.97 billion due to a decline in the Home Phone and Satellite subscriber base.
Rogers Communication, Inc. Price and Consensus
Rogers Communication, Inc. price-consensus-chart | Rogers Communication, Inc. Quote
Will Expanding Portfolio Aid Rogers’ Prospects?
Rogers Communications tested DOCSIS 4.0 with Comcast XER modem to increase its download speed to four gigabits and upload speed to one gigabit, and to integrate AI, cloud functions as well as data processing capabilities to drive customer satisfaction.
RCI’s enhancement to the DOCSIS 3.1 platform aims to develop network resilience and provide stable connectivity as well as quicker download and upload speed to its users, making the brand an industry pioneer in delivering such speed through Hybrid Fibre Coax arrangement.
Roger’s is also expanding its portfolio by bringing its partners’ SpaceX’s latest technology to users in Canada to provide emergency alerts via satellite to mobile phones in areas affected by disasters.
RCI also inked a strategic agreement to buyout Bell’s 37.5% ownership in Maple Leaf Sports & Entertainment (MLSE) to become the largest owner with a 75% stake in MLSE. The deal is expected to conclude by mid-2025 and will allow RCI to expand its portfolio in media and live sports offerings.
Rogers already owns Toronto Blue Jays, Rogers Centre and Sportsnet and is further expanding its portfolio in the live sports industry.
In the lifestyle and entertainment market, Rogers has partnered with Disney to bring Disney+ to Ignite TV users free of cost.
RCI entered into an agreement with Warner Bros. Discovery to launch and distribute Discovery channels such as Discovery Science, Animal Planet and MotorTrend.
RCI Fiscal 2024 Guidance Positive
For 2024, Rogers expects total service revenues to grow between 8% and 10%. Adjusted EBITDA is expected to grow in the range of 12-15%.
Capital expenditure is expected between C$3.8 billion and C$4 billion. Free cash flow is expected in the range of C$2.9-C$3.1 billion.
Rogers’ Fiscal 2024 Earnings Estimates Steady
For fiscal 2024, the Zacks Consensus Estimate for revenues is pegged at $14.78 billion, indicating year-over-year growth of 3.33%.
The consensus mark for earnings is pegged at $3.55 per share, down by a cent in the past 30 days and implying year-over-year growth of 5.34%.
The Zacks Consensus Estimate for fourth-quarter fiscal 2024 is pegged at $1.05 per share, up 9.3% in the past 30 days and indicating year-over-year growth of 20.69%.
The consensus mark for fourth-quarter fiscal 2024 revenues is pegged at $3.87 billion, indicating a year-over-year decline of 1.22%.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, delivering an average surprise of 3.87%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
RCI Shares – Buy, Hold or Sell?
RCI shares are currently undervalued, as indicated by a Value Score of A.
In terms of the forward 12-month Price/Earnings (P/E) ratio, RCI is trading at 9.23X, lower than the Zacks Consumer Discretionary sector’s 19.34X.
However, we expect prospects to remain dull given the intense competition in wireless operations and the communication cable market.
RCI currently has a Zacks Rank #3 (Hold), which implies that investors may want to wait for a more favorable entry point.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.