Rogers Communications Inc.
), the largest telecom company in Canada is set to release its
fourth-quarter 2012 results before the opening bell on Feb 15,
Last quarter the company delivered an 8.99% positive earnings
surprise. Let's see how things are shaping up for this
Factors to Consider This Quarter
Rogers Communications is expanding its LTE (Long Term
Evolution) network and currently the company has covered 60% of
its footprint with LTE network. Wireless segment is expected to
deliver impressive results for the company based on robust demand
for smartphone and LTE-based devices.
However, the company is expected to continue with its loss in
its cable TV business as the company faces increased competition
due to entry of rival Bell Canada's entry into the cable
business. Additionally, softness in the advertisement market is
also expected to impact its media business.
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) or at least Zacks Rank #2
(Buy) or Zacks Rank #3 (Hold) for this to happen. Unfortunately
this is not the case here as elaborated below.
Negative Zacks ESP:
This is because the Most Accurate estimate stands at 68 cents
while the Zacks Consensus Estimate is higher at 73 cents. This
leads to an ESP of -6.85%.
Zacks Rank #3 (Hold):
Rogers' Zacks Rank #3 (Hold), however, increases the predictive
power of ESP. That said we also need to have a positive ESP to be
confident for an earnings surprise call.
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:
) has earnings ESP of +29.17% and carries a Zacks Rank #2
) has earnings ESP of +8.33% and carries a Zacks Rank #2
has earnings ESP of +1.89% and carries a Zacks Rank #3
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TIVO INC (TIVO): Free Stock Analysis Report
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