Rogers Communications (RCI) reported first-quarter 2025 adjusted earnings of 69 cents per share, which missed the Zacks Consensus Estimate by 2.82% and remained flat year over year. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)Revenues of $3.47 billion missed the consensus mark by 1.19% and decreased 4.6% year over year.In domestic currency (Canadian dollar), adjusted earnings remained flat year over year at C$0.99 per share. Total revenues increased 1.5% year over year, rea ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Rogers Corp. (ROG) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 29. On th ...

Core Insights - Rogers Communications has been ranked as the most reliable 5G wireless network in Canada by umlaut, reinforcing its leadership in network reliability [1][2] - The company has won umlaut's "Best in Test" wireless benchmark award for seven consecutive years, demonstrating top performance in voice, data, and reliability [2][3] - Rogers has invested over $40 billion in its networks over the last decade and plans to invest an additional $4 billion in capital investments this year [4] Company Commitment - The company is dedicated to providing Canadians with the best networks and plans, emphasizing the importance of reliability for customers [3] - Rogers' 5G network now reaches more than 2,500 communities across Canada, showcasing its commitment to expanding network coverage [4] Benchmarking and Recognition - Umlaut, a global leader in independent benchmarking, conducts extensive drive tests and uses crowdsourced data to measure network performance across over 200 mobile networks in more than 120 countries [3]

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Core Points - The winner of Canada's Got Talent will receive a life-changing prize of $1 million, making it the largest cash prize in Canadian television history, along with an additional $50 from Howie Mandel and financial advice from CIBC [2] - Each Golden Buzzer recipient will be awarded $25,000, totaling $150,000, sponsored by CIBC to support their ambitions [2] Performances Summary - The Jambo Brothers from Nairobi, Kenya performed a stunt act - Beverly Saraza from Toronto received a standing ovation for her cover of "Bang Bang" - Strongman Tulga from Mongolia performed a dangerous stunt holding a 330-pound pole with his teeth [4] - The Martin Boys from Woodstock, NB showcased an original country song "Miracle Cure" [4] - Comedian Sai Kit Lo from Markham, ON impressed the judges with his humor [4] - Choir! Choir! Choir! from Toronto engaged the audience with a mashup of "We Will Rock You" and "Rock You" [4] - Chantaal from France delivered an entertaining drag rendition of "My Heart Will Go On" [4] - Illumin Drone Shows from Toronto presented a synchronized drone performance with 600 lights [4] - Wes-P, a viral performer from Japan, captivated the audience with a suspenseful act [4] - Carsim Birmingham from Vancouver received a Golden Buzzer for his emotional performance of "Lay Me Down" [4]

Core Insights - Rogers Communications has been recognized as the most reliable internet provider in Canada by Opensignal, highlighting its commitment to delivering high-quality communications and entertainment experiences [1][2] - The company has also been acknowledged for having the most reliable wireless network in Canada, showcasing its consistent performance across different services [2] - Rogers has invested nearly $70 billion in network infrastructure over the past 20 years, aiming to enhance reliability and provide multi-gig speeds to almost eight million homes in 2025 [3] Company Performance - The Opensignal report indicates that Rogers excels in overall reliability experience, consistent quality, and download speed, reinforcing its market position [2][5] - The introduction of Rogers Xfinity is part of the company's strategy to offer industry-leading internet technology and a comprehensive suite of products for enhanced user experiences [3] Investment and Infrastructure - Rogers continues to invest in its network to ensure a world-class experience for Canadians, with a focus on improving internet technology and service reliability [3] - The ongoing investments are aimed at supporting increased demand for gaming, streaming, and other online activities among consumers [3]

Business Segments and Operations - The company operates two strategic segments: Advanced Electronics Solutions (AES) and Elastomeric Material Solutions (EMS), with non-core businesses reported in the Other segment[16]. - In 2024, the company sold to approximately 2,900 customers worldwide, with no individual customer representing more than 10% of total net sales[20]. - The company employs approximately 3,200 people globally, with 1,100 in North America, 1,100 in EMEA, and 1,000 in APAC[30]. - The company has established Rogers Innovation Centers in Chandler, Arizona; Rogers, Connecticut; Eschenbach, Germany; and Suzhou, China, focusing on the development of new high-tech materials[24]. Financial Performance and Risks - The company recognized a net payment of $4.9 million from INOAC as part of a joint venture separation agreement, resulting in a gain of $7.7 million[19]. - In 2024, a 10% strengthening of the U.S. dollar relative to other currencies would have resulted in a decrease to net sales and net income of approximately $8.6 million and $4.1 million, respectively[157]. - A 10% weakening of the U.S. dollar relative to other currencies would have resulted in an increase to net sales and net income of approximately $10.5 million and $4.9 million, respectively[157]. - As of December 31, 2024, the interest rate on the revolving credit facility was 6.30%, with a 100-basis point increase in SOFR resulting in an immaterial increase in interest expense for the year[158]. - The company has no borrowings outstanding under its revolving credit facility as of December 31, 2024[158]. Raw Materials and Supply Chain - Key raw materials include copper, polymer, polytetrafluoroethylene, and silicone materials, with some sourced from sole or limited-source suppliers[27][28]. - The company is exposed to fluctuations in the cost of raw materials, particularly copper and ceramic, which are key materials in its products[159]. - The company utilizes hedging strategies to minimize the risk of market-driven price changes in copper, the most frequently used commodity in its manufacturing processes[159]. - The company does not currently use hedging strategies for other commodity-based raw materials but regularly reviews such strategies[159]. Corporate Culture and Innovation - The company emphasizes a culture of respect and ethical practices, connecting day-to-day work with organizational objectives[31]. - The company aims to minimize lost workdays and promote health and safety, with a vision that everyone goes home safely every day[32]. - The company has a history of innovation, which is a key component of its overall business strategy, driven by R&D efforts[24]. - The company competes primarily on innovation, product quality, and technical support, differentiating itself from both large multinationals and smaller regional producers[22]. Governance and Leadership - The company provides access to its financial reports and governance documents on its website[36]. - The company has a diverse executive team with extensive experience in various relevant industries[35]. Risk Management - The company monitors foreign exchange risks and manages them on specific transactions using analytical techniques and sensitivity analysis[157].

Financial Data and Key Metrics Changes - Fourth quarter revenues were $192 million, a decline of 9% from the prior quarter, aligning with the guidance midpoint [18][41] - Gross margin for Q4 was 32.1%, approximately 300 basis points lower than Q3 due to volume [18][46] - Full year sales decreased by 9% to $830 million, primarily driven by declines in industrial and EV/HEV markets [18][99] - Adjusted earnings for the full year were $2.72 per share, down from $3.78 in 2023 [99] Business Line Data and Key Metrics Changes - AES revenue decreased by 9% to $102 million in Q4, with lower wireless infrastructure sales partially offset by higher ADAS revenue [44][102] - EMS revenue fell by approximately 8% to $86 million due to lower industrial sales and seasonal declines in portable electronics [44][102] - Aerospace and defense sales improved sequentially, contributing to a double-digit growth rate for the full year [21][79] Market Data and Key Metrics Changes - The EV/HEV market saw a significant decline, with curamik power substrate sales dropping substantially due to inventory destocking [14][20] - Industrial sales were lower in Q4 as customers managed year-end inventory levels, consistent with contraction in U.S. and European PMI data [24][80] - Wireless infrastructure sales experienced the largest decline among market segments due to the completion of shipments to an Indian program [25][81] Company Strategy and Development Direction - The company is focused on operational excellence and innovation, securing new design wins and launching new products [16][26] - A local-for-local manufacturing strategy is being executed, with new facilities in China to support growth and mitigate supply chain risks [35][91] - The company is also enhancing its M&A pipeline, identifying strategic acquisition targets to bolster growth [30][86] Management's Comments on Operating Environment and Future Outlook - Management noted significant market headwinds in 2024, particularly in industrial and EV/HEV markets, with expectations for a gradual recovery in the second half of 2025 [14][72] - The first quarter of 2025 is expected to be flat in sales, with cautious ordering from customers due to ongoing uncertainties [15][72] - Management remains confident in the company's ability to navigate challenges and position itself for growth when market conditions improve [61][132] Other Important Information - The company generated free cash flow of $71 million in 2024, maintaining similar levels to the prior year [52][99] - An $8 million impairment related to the ERP system was recorded, offset by a gain from a joint venture separation [51][108] - Capital expenditures for 2024 were $56 million, with expectations to decrease in 2025 as expansion projects conclude [110][111] Q&A Session Summary Question: How should revenue be viewed on a segment and end market basis for Q1? - Management indicated a slight decrease in portable electronics and significant impacts from the curamik business due to inventory issues and EV/HEV slowdowns [122][124] Question: Do you expect to return to positive year-over-year growth by the second half of 2025? - Management expects Q1 to be the low point, with a stronger second half anticipated due to gradual recovery in the curamik market and seasonal improvements in portable electronics [128][132] Question: What actions are being considered to protect margins and cash flow? - Management emphasized ongoing cost control and efficiency improvements as top priorities, with expectations for growth in key segments despite headwinds [130][135]

Company Performance - Rogers Corp. reported quarterly earnings of $0.46 per share, exceeding the Zacks Consensus Estimate of $0.45 per share, but down from $0.60 per share a year ago, indicating a 23.33% year-over-year decline [1] - The company achieved an earnings surprise of 2.22% for the quarter, following a previous quarter where it had a surprise of 15.29% with earnings of $0.98 per share against an expectation of $0.85 [1][2] - Over the last four quarters, Rogers Corp. has surpassed consensus EPS estimates four times [2] Revenue Analysis - For the quarter ended December 2024, Rogers Corp. posted revenues of $192.2 million, which missed the Zacks Consensus Estimate by 0.16% and represents a decline from $204.6 million in the same quarter last year, reflecting a year-over-year decrease of 6.00% [2] - The company has only topped consensus revenue estimates once in the last four quarters [2] Stock Performance and Outlook - Rogers Corp. shares have decreased approximately 10.7% since the beginning of the year, contrasting with the S&P 500's gain of 4.2% [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers and future earnings expectations [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.72, with expected revenues of $200.2 million, and for the current fiscal year, the estimate is $3.57 on revenues of $848.8 million [7] - The estimate revisions trend for Rogers Corp. is mixed, resulting in a Zacks Rank 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Electronics - Miscellaneous Components industry, to which Rogers Corp. belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Financial Performance - Q4 2024 net sales were $192.2 million, an 8.6% decrease from Q3 2024 and a 6.1% decrease from Q4 2023[5]. - GAAP net income for Q4 2024 was a loss of $0.5 million, compared to a profit of $10.7 million in Q3 2024 and $23.2 million in Q4 2023[4]. - Adjusted net income for Q4 2024 was $8.6 million, down from $18.2 million in Q3 2024 and $11.3 million in Q4 2023[7]. - Adjusted earnings per diluted share for YTD 2024 was $2.72, compared to $3.78 in YTD 2023, a decrease of approximately 28.0%[21]. - Free Cash Flow for Q4 2024 was $18.3 million, a decrease from $49.4 million in Q4 2023[25]. - Total Net Sales for Q4 2024 were $192.2 million, leading to an Adjusted EBITDA of $23.3 million[24]. Margins and Profitability - Gross margin for Q4 2024 decreased to 32.1% from 35.2% in Q3 2024, primarily due to lower volume and unfavorable product mix[6]. - Adjusted operating margin for Q4 2024 was 4.7%, compared to 6.3% in Q4 2023, indicating a decrease of 25.4%[19]. - The company reported an adjusted EBITDA margin of 8.1% for YTD 2024, down from 11.2% in YTD 2023, indicating a decrease of approximately 27.7%[19]. - Adjusted EBITDA for Q4 2024 was $23.3 million, with an Adjusted EBITDA margin of 12.1%, down from 11.4% in Q4 2023[24]. Segment Performance - Advanced Electronics Solutions (AES) segment net sales in Q4 2024 were $102.4 million, an 8.7% decrease from Q3 2024[5]. - Elastomeric Material Solutions (EMS) segment net sales in Q4 2024 were $86.3 million, an 8.4% decrease from Q3 2024[5]. Cash and Assets - Ending cash and cash equivalents increased to $159.8 million, up $13.4 million from the prior quarter[8]. - Cash and cash equivalents increased from $131.7 million in December 31, 2023 to $159.8 million in December 31, 2024, an increase of approximately 21.3%[16]. - Total current assets decreased from $526.9 million in December 31, 2023 to $493.9 million in December 31, 2024, a decline of approximately 6.4%[16]. - Total assets decreased from $1,517.2 million in December 31, 2023 to $1,481.1 million in December 31, 2024, a decline of approximately 2.4%[16]. - Total liabilities increased from $265.6 million in December 31, 2023 to $229.5 million in December 31, 2024, a decrease of approximately 13.6%[16]. - The company’s retained earnings increased from $1,155.0 million in December 31, 2023 to $1,181.1 million in December 31, 2024, an increase of approximately 2.3%[16]. Future Outlook - The company expects Q1 2025 net sales to be between $180 million and $195 million, with a gross margin of 29.0% to 30.5%[9]. - The company expects GAAP Earnings per Diluted Share for Q1 2025 to range from $(0.26) to $0.04, with Adjusted Earnings per Diluted Share projected between $0.10 and $0.40[27]. - Capital expenditures for 2025 are projected to be between $40 million and $50 million[9]. - The company is focusing on securing new design wins and improving its cost structure in 2025[4]. Costs and Adjustments - Acquisition and related integration costs in Q4 2024 amounted to $(7.5) million, impacting overall profitability[23]. - Non-Acquisition Capital Expenditures for YTD 2024 were $(56.1) million, compared to $(57.0) million in YTD 2023[25]. - Intangible Amortization for Q4 2024 was $3.1 million, slightly down from $3.3 million in Q4 2023[23]. - Restructuring and related costs in Q4 2024 totaled $16.9 million, significantly higher than $1.4 million in Q4 2023[23]. - The company reported a total of $92.5 million in adjustments for YTD 2024, compared to $91.0 million in YTD 2023[23].