Rogers Communications Inc.
), one of the leading telecom carriers of Canada,is set to
release its first-quarter 2013 results after the market opens on
Apr 24, 2013.
In the last quarter, the company delivered a 20.55% positive
earnings surprise. Let's see how things are shaping up for this
Factors to be Considered This Quarter
Increased competition within its Cable segment is expected to
remain the biggest concern for Rogers. Rival BCE Inc.'s entry
into cable TV services is expected to slash Rogers' market share
and cap margin expansion. Rogers' Media segment could get
affected by the continued softness in the advertising market and
a double-digit revenue dip is expected in its publishing
However, during the quarter, Rogers has reached a multi-year
deal with AMC Networks Inc. that will line-up the latter's
popular channels with Rogers' digital cable and will also limit
Our proven model does not conclusively show that Rogers
Communications is likely to beat the Zacks Consensus Estimate
this quarter. That is because a stock needs to have both a
positive Expected Surprise Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for
this to happen. Unfortunately this is not the case here as
Negative Zacks ESP:
This is because the Most Accurate estimate stands at 78 cents
while the Zacks Consensus Estimate is higher at 79 cents. This
leads to an ESP of -1.27% for Rogers.
Zacks Rank #2 (Buy):
However, Rogers' Zacks Rank #2 increases the predictive power of
We caution investors against the stock going into the earnings
announcement, as a Zacks earnings ESP of -1.27% combined with
Zacks Rank# 2 lowers the possibility of an earnings surprise.
Other Stocks to Consider
Here are some other companies to consider as our model shows
they have the right combination of elements to post an earnings
beat this quarter:
RESEARCH IN MOT (BBRY): Free Stock Analysis
CBS CORP (CBS): Free Stock Analysis Report
ROGERS COMM CLB (RCI): Free Stock Analysis
AT&T INC (T): Free Stock Analysis Report
To read this article on Zacks.com click here.
Research In Motion Ltd.
) currently has an Earnings ESP of +500.00% and holds a Zacks
Rank #2 (Buy)
) has an Earnings ESP of +1.56% and carries a Zacks Rank #2
) currently has an Earnings ESP of +1.47% and holds a Zacks
Rank #2 (Buy)