Rogers Communications Inc. (NYSE:RCI) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Rogers Communications Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 5.49% to $0.96 in the quarter versus EPS of $0.91 in the year-earlier quarter.
Revenue: Rose 5.11% to $3.21 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Rogers Communications Inc. reported adjusted EPS income of $0.96 per share. By that measure, the company missed the mean analyst estimate of $0.98. It missed the average revenue estimate of $3.24 billion.
Quoting Management: “During the second quarter, we delivered both revenue and earnings growth while successfully leveraging our superior networks to deliver strong data growth across both our broadband cable and wireless platforms,” said Nadir Mohamed, President and Chief Executive Officer of Rogers Communications Inc. “At the same time, we also drove further margin expansion at our Wireless, Cable and Business Solutions divisions and continued to make significant investments in our networks and service infrastructure. Despite a heightened level of regulatory activity in the Canadian wireless communications sector, we remain steadfastly focused on the execution of our strategy and the delivery of the most innovative products and reliable service to our customers.”
Key Stats (on next page)…
Revenue increased 7.82% from $2.98 billion in the previous quarter. EPS increased 20% from $0.80 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.00 to a profit $0.97. For the current year, the average estimate has moved up from a profit of $3.48 to a profit of $3.51 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)