Rogers Communications Inc.
), a leading Canadian telecom and cable TV operator, is scheduled
to report its fourth-quarter 2013 financial results before the
opening bell on Feb 12, 2014.
In the last quarter, the company delivered a negative 2.13%
earnings surprise. Let's see how things are shaping up for this
Factors to be Considered this Quarter
Canadian regulatory authorities concluded that the Canadian
wireless market lacks competition. The government asserted that
having just three carriers on an average per market in Canada has
stifled competition, thereby resulting in higher rates and lower
penetration than many other countries. So, they are planning to
bring new entrants, which could pose tough competition to the
company in the coming days.
Rogers Communications entered into a 12-year broadcast and
multimedia agreement with National Hockey League (NHL) for
national rights to NHL games on all platforms and languages. The
agreement will start from the 2014-2015 session and will continue
up to the 2025-2026 session. Rogers Communications will pay
approximately $4.96 billion to NHL throughout the term.
Our proven model does not conclusively show that Rogers
Communications is likely to beat the Zacks Consensus Estimate
this quarter. This is because a stock needs to have both a
and a 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 $0.65 while
the Zacks Consensus Estimate is higher at $0.69. This leads to an
ESP of -5.8% for Rogers Communications.
Rogers Communications' Zacks Rank #4 (Sell), also decreases the
predictive power of ESP.
We caution investors against the stock going into the earnings
announcement, as a Zacks earnings ESP of -5.8% combined with a
Zacks Rank #4 lowers the possibility of an earnings surprise.
Other Stocks to Consider
Here are some companies to consider as our model shows these
have the right combination of elements to post an earnings beat
Cablevision Systems Corporation
) has earnings ESP of +33.33% and carries a Zacks Rank #2
) has earnings ESP of +9.38% and carries a Zacks Rank #3
Charter Communications, Inc.
) has earnings ESP of +138.10% and carries a Zacks Rank #3.
CHARTER COMM-A (CHTR): Free Stock Analysis
CABLEVISION SYS (CVC): Free Stock Analysis
ROGERS COMM CLB (RCI): Free Stock Analysis
SPRINT CORP (S): Free Stock Analysis Report
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