Performance and Market Position - Roger Communications (RCI) shares have dropped 23.4% year to date (YTD), underperforming the Zacks Consumer Discretionary sector's growth of 10.1% and the Zacks Cable Television industry's increase of 0.4% [1] - RCI's underperformance is attributed to stiff competition from TELUS and BCE in the wireless operations and communication cable markets [2] - RCI's cable revenues reduced 1% year over year to 1.97billioninQ32024duetoadeclineintheHomePhoneandSatellitesubscriberbase[2]TechnologicalAdvancementsandPortfolioExpansion−RCItestedDOCSIS4.0withComcastXERmodemtoincreasedownloadspeedtofourgigabitsanduploadspeedtoonegigabit,integratingAI,cloudfunctions,anddataprocessingcapabilities[3]−RCIenhancedtheDOCSIS3.1platformtodevelopnetworkresilienceandprovidestableconnectivitywithquickerdownloadanduploadspeeds[4]−RCIpartneredwithSpaceXtoprovideemergencyalertsviasatellitetomobilephonesindisaster−affectedareasinCanada[4]−RCIinkedastrategicagreementtobuyoutBell′s37.53.8 billion and C4billion,withfreecashflowexpectedintherangeofC2.9-C3.1billion[7]−TheZacksConsensusEstimateforRCI′sfiscal2024revenuesispeggedat14.78 billion, indicating year-over-year growth of 3.33% [8] - The consensus mark for earnings is pegged at 3.55pershare,implyingyear−over−yeargrowthof5.341.05 per share, indicating year-over-year growth of 20.69% [8] - The consensus mark for Q4 fiscal 2024 revenues is pegged at $3.87 billion, indicating a year-over-year decline of 1.22% [9] - RCI's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average surprise of 3.87% [9] Valuation and Market Outlook - RCI shares are currently undervalued, with a Value Score of A and a forward 12-month Price/Earnings (P/E) ratio of 9.23X, lower than the Zacks Consumer Discretionary sector's 19.34X [10] - RCI has a Zacks Rank 3 (Hold), suggesting investors may want to wait for a more favorable entry point [10]
Rogers Communications(RCI) ZACKS·2024-11-12 14:21