Rogers Communications Inc. (RCI) continues to top analysts’ expectations and shares are surging.
Company Description
Rogers is a Canadian communications and media company that provides wireless and data services. The company is one of the major Canadian cable television providers, in addition to radio broadcasting.
Revenue Rising
On Oct 27 Rogers released its operating results for the third quarter. Revenue rose 2%, to just over $3 billion. This led to net income of $485 million, or 78 cents per share.
The Zacks Consensus Estimate was just 51 cents, making this the third consecutive earnings surprise for Rogers.
Optimistic CEO
Nadir Mohamed, President and CEO, said, “Importantly, the results of the quarter reflect record high growth in our wireless data revenues which contributed significantly to the strong double-digit adjusted operating profit growth and margin expansion at Wireless…”
Plenty of RevisionsM
In the past 30 days, 6 analysts have submitted 10 upward estimate revisions for full-year 2009. The Zacks Consensus Estimate is now $2.19, up from $1.87 in that span.
Next year’s estimates are averaging $2.34, up from $2.15. If met, the company would have year-over-year earnings growth of 14% and 7%, respectively.
The Chart
Shares of RCI just broke out of a trading range with strong momentum. However, the stock remains cheap as one share sill run you just over 13 times forward earnings.
