Rogers Communications Inc.
) is set to release first-quarter 2014 financial results after
the closing bell on April 21, 2014.
In the last quarter, the company delivered an 11.80% negative
earnings surprise. Let's see how things are shaping up for this
Factors to Influence This Quarter
We expect significant expansion of LTE networks, growing
demand for mobile data, increased smartphone activations and
continuous acquisitions to boost Rogers' financial results in the
However, stiff competition from local carriers and a highly
leveraged balance sheet may act as headwinds for the company
going forward. Rogers' Wireless segment performed disappointingly
in certain operating metrics in the fourth quarter of 2013. In
the Wireless segment, Network and Equipment sales for the
reported quarter were down 2% and 13%, respectively.
Rogers' cable operations are currently facing increased
competition. BCE Inc.'s entry into cable TV services is
intensifying competition and may likely slash Rogers' market
share and cap margin expansion. BCE Inc. is aggressively rolling
out IPTV network and is offering attractively priced triple-play
services, which are quite popular particularly among the low-end
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, 2 or 3 for this to happen. Unfortunately,
this is not the case here as elaborated below.
Zero Zacks ESP:
This is because both the Most Accurate estimate and the Zacks
Consensus Estimate are poised at 64 cents. This leads to an
Earnings ESP of 0.00% for Rogers Communications.
Zacks Rank #4 (Sell):
Rogers Communications' Zacks Rank #4. We caution against stocks
with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the
earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
We caution investors against the stock going into the earnings
announcement, as the combination of an Earnings ESP of 0.00% with
a Zacks Rank #4 lowers the possibility of an earnings
Other Stocks to Consider
Here are some other companies to consider as our model shows
these have the right combination of elements to post an earnings
beat this quarter.
Dish Network Corp.
) with Earnings ESP of +4.70% and a Zacks Rank #3 (Hold).
Time Warner Cable Inc.
) with Earnings ESP of +0.60% and a Zacks Rank #3.
) with Earnings ESP of +33.33% and a Zacks Rank #3.
DISH NETWORK CP (DISH): Free Stock Analysis
ROGERS COMM CLB (RCI): Free Stock Analysis
TIVO INC (TIVO): Free Stock Analysis Report
TIME WARNER CAB (TWC): Free Stock Analysis
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