Rogers Communications Inc.
(
RCI
) is slated to release its third-quarter 2012 results on
Wednesday, October 24, after the closing bell. The current Zacks
Consensus Estimate for the third quarter is pegged at 89 cents,
representing a growth of 0.57% from the year-ago quarter.
With respect to earnings surprise, Rogers has outperformed the
Zacks Consensus Estimate in three out of the last four quarters
with an average beat of 3.61%.
Second-Quarter Performance
On July 24, 2012, Rogers declared its financial results for
the second quarter of fiscal 2012. Quarterly net income was $409
million or 76 cents per share compared with a net income of $410
million or cents 75 per share in the year-ago quarter. However,
second-quarter, adjusted (excluding special items) earnings per
share of 82 cents fell below the Zacks Consensus Estimate of 85
cents per share.
Quarterly total revenue was $3,053 million, up 0.3% year over
year, but missed the Zacks Consensus Estimate of $3,148
million.
Agreement of Estimate Revisions
For the third quarter of 2012, in the last 30 days, out of 6
analysts, one analyst revised the estimate upward while another
moved in the opposite direction. Likewise, for fourth quarter of
2012, out of 7 analysts, one analyst increased the EPS estimate
but another analyst decreased the same.
For fiscal 2012 and 2013, in the last 30 days, out of the nine
analysts, two analysts raised their EPS estimate upward but none
moved in the opposite direction.
Magnitude of Estimate Revisions
Over the last 30 days, the current Zacks Consensus Estimates
for the third quarter of 2012 was just a penny above the previous
EPS estimate of 88 cents. However, for the third quarter of 2012,
the current Zacks Consensus Estimate was in line with the earlier
EPS estimate of 68 cents.
For fiscal 2012, during the last 30 days, the current Zacks
Consensus Estimates was a penny above the previous EPS estimate
of $3.10. Likewise, for fiscal 2013, the current Zacks Consensus
Estimates was a penny above the previous EPS estimate of
$3.32.
Our Take
Despite stiff competition from
BCE, Inc.
(
BCE
), growing demand for mobile data and huge activation of latest
smartphones coupled with faster deployment of LTE network has
resulted in a 80% year over year increase of Internet usage by
its subscribers, thereby driving the company's top line growth.
Moreover, attractive dividend yield will further act as positive
catalyst for the stock going forward.
Rogers Communications Inc. has a Zacks #1 Rank, implying a
short-term Strong buy rating. Considering the fundamentals in the
long run, we maintain our Outperform recommendation on the
stock.
BCE INC (BCE): Free Stock Analysis Report
ROGERS COMM CLB (RCI): Free Stock Analysis
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