Yesterday, we found out that the Metro (TSE:MRU) supermarket chain posted a win for earnings, but still lost ground with shareholders. Today, Rogers Communications (TSE:RCI.B) did about the opposite. Its earnings proved a bit of a disappointment, but shares still made a fractional gain regardless in Thursday morning’s trading.
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Reports noted that Rogers added 69,000 monthly subscribers to its wireless phone roster, which was below the 72,380 analysts were expecting. Rogers found itself embroiled in a price war with several of its primary competitors, as both wireless service and wireline broadband costs were cut. That in turn put extra pressure on Rogers, and its results accordingly. Canada’s recent political shift in immigration did Rogers few favors, as fewer immigrants and international students were brought into the country, meaning fewer sign-ups from that quarter.
Yet all was not bad news. Rogers posted a narrow win in revenue, bringing in C$5.48 billion against the C$5.4 billion analysts were expecting. But earnings per share brought in a much broader win, with Rogers posting C$1.46 per share against analysts’ expectations calling for C$1.36 per share.
Bolstered Dividend
And, perhaps better still for shareholders, Rogers announced a dividend, which should help keep losses from getting too pronounced. Rogers announced a quarterly dividend of $0.50 for both Class A voting shares and Class B non-voting shares. Anyone holding shares on March 10, 2025 will be eligible to receive the dividend, which will be paid April 2.
As for the future outlook, Rogers is not looking for any barn-burner results going forward. Adjusted earnings before interest, taxes, depreciation and amortization growth will come in between nothing and 3% for 2025. Given that those earnings were up 12% in 2024, that is a significant step down.
Is Rogers Communications a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on TSE:RCI.B stock based on six Buys, three Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 30.62% loss in its share price over the past year, the average TSE:RCI.B price target of C$54.89 per share implies 31.24% upside potential.
