Rogers Communications Inc.
), a leading telecom carrier in Canada, is set to release its
second-quarter 2013 results after the market closes on Jul 24,
In the last quarter, the company delivered a 1.27% negative
earnings surprise. Let's see how things are shaping up for this
Factors to be Considered this Quarter
New entrants in Canada's wireless market are expected to
provide stiff competition to Rogers in the region, where they
have acquired spectrum by teaming up with rival carriers. BCE
Inc.'s entry into cable TV services is expected to slash Rogers'
market share and cap margin expansion. Rogers' Media segment
could be affected by the continued softness in the advertising
market and a double-digit revenue dip is expected in its
However, continuous expansion of Rogers' LTE footprint along
with the availability of various LTE-enabled devices will benefit
the company's Wireless segment. Furthermore, Rogers recently
entered into an agreement with Shaw Communications to acquire
Shaw's cable systems in Hamilton and Ontario. It also aims to
avail an option to purchase Shaw's Advanced Wireless Services
(AWS) spectrum holdings in 2014. Shaw's cable, Internet and
telephone service will allow Rogers to expand its operations in
Southern Ontario and provide cost synergies.
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 Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to
happen. Unfortunately this is not the case here as elaborated
Negative Zacks ESP:
This is because the Most Accurate estimate stands at 93 cents
while the Zacks Consensus Estimate is higher at 95 cents. This
leads to an ESP of -2.11% for Rogers.
Zacks Rank #3 (Hold):
Rogers' Zacks Rank #3 decreases the predictive power of ESP.
We caution investors against the stock going into the earnings
announcement, as a Zacks earnings ESP of -2.11% combined with a
Zacks Rank #3 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:
Cablevision Systems Corporation.
) has an Earnings ESP of +120.00% and carries a Zacks Rank #3
) currently has an Earnings ESP of +2.19% and holds a Zacks Rank
) currently has an Earnings ESP of +1.39% and holds a Zacks Rank
APPLE INC (AAPL): Free Stock Analysis Report
CBS CORP (CBS): Free Stock Analysis Report
CABLEVISION SYS (CVC): Free Stock Analysis
ROGERS COMM CLB (RCI): Free Stock Analysis
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