On Apr 25, 2014, we issued an updated research report on
Shaw Communications Inc.
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Shaw Communications has delivered positive earnings surprises in
two of the last four quarters last year, with an average beat of
0.16%. The company reported encouraging financial results for the
second quarter of fiscal 2014 where both the top and the bottom
line surpassed the respective Zacks Consensus Estimate.
Shaw Communications is gradually expanding its Wi-Fi network
across Western Canada and has also formed a pact with Winnipeg
and Victoria municipalities to extend coverage in those areas.
Currently, the Shaw Go WiFi facility is available in over 35,000
locations in Canada.
Also, Shaw Communications has deployed high-speed DOCSIS 3.0
network in several western Canadian markets under the brand name
of "Nitro Internet Service." This technology offers 100 Mbps of
download speed. Moreover, the company is authorized to repurchase
20 million shares within a period of one year. Such a substantial
share buyback plan coupled with increased dividend payments will
continue to drive shareholders wealth.
On the downside, Shaw Communications offers triple-play cable TV
and satellite TV, Internet, and wireline phone services, whereas
its main competitor,
), provides cable TV, Internet, wireline, and wireless services.
Telus shares a national wireless network with Bell Canada, a
). Its popular Optik TV, offering IPTV services, is quickly
eroding Shaw Communications' market share. To worsen matters,
considerable debt, rising capital expenditure and deteriorating
cash position may act as headwinds for the company moving ahead.
Shaw Communications currently carries a Zacks Rank #3 (Hold).
A better-ranked stock worth considering in this sector is
) with a Zacks Rank #2 (Buy).