RCI Earnings Prediction
The chart below shows how RCI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RCI sees a -1.33% change in stock price 10 days leading up to the earnings, and a +0.41% change 10 days following the report. On the earnings day itself, the stock moves by +0.08%. This data can give you a slight idea of what to expect for the next quarter's release.
RCI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.13B
0.73%
0.71%
Gross Margin
27.06%
10.13%
15.89%
Operating Margin
27.06%
10.13%
15.89%
Net Margin
10.26%
628.87%
32.56%
EPS
0.98
615.79%
32.43%
No Data Available
RCI Earnings Analysis
Rogers Communications, Inc. Corporation (RCI.N) Earnings Conference Call
Positive
Customer Growth Milestone: 1. Record Customer Additions: Rogers added a record 227,000 mobile phone and Internet net additions in Q3 2024, contributing to a total of 1.9 million net additions over the past 11 quarters.
Record Wireless EBITDA Margins: 2. Strong Wireless Margins: The company achieved wireless adjusted EBITDA margins of 66%, marking a 220 basis point increase year-over-year and setting a new all-time high.
Sports & Media Revenue Surge: 3. Significant Revenue Growth in Sports & Media: The Sports & Media segment reported an 11% increase in revenue and a 25% rise in adjusted EBITDA for the quarter, driven by strong performance from the Toronto Blue Jays and NHL on Sportsnet.
Cable EBITDA Growth: 4. Improved Cable Performance: Cable adjusted EBITDA increased by 5% year-over-year, with cable margins reaching an all-time high of 58%, up 330 basis points from the previous year.
Free Cash Flow Increase: 5. Free Cash Flow Growth: Rogers generated free cash flow of $915 million in Q3 2024, reflecting a 23% increase from the prior year, primarily due to higher adjusted EBITDA and lower interest expenses.
Negative
Cable Revenue Decline: 1. Declining Cable Revenue: Cable revenue decreased by 1% year-over-year, indicating ongoing challenges in the segment despite efforts to return to growth.
Debt Leverage Concerns: 2. High Debt Leverage Ratio: The company ended the quarter with a debt leverage ratio of 4.6x, which is still significantly above the target of 3.7x, highlighting ongoing debt concerns.
Customer Retention Challenges: 3. Increased Churn Rates: Postpaid mobile phone churn remained unchanged at 1.12%, indicating potential customer retention issues in a competitive market.
Wireless Revenue Slowdown: 4. Pressure on Wireless Revenue Growth: Wireless service revenue growth was only 2% year-over-year, suggesting a slowdown in revenue expansion amid competitive pressures.
Regulatory Impact on Growth: 5. Impact of Regulatory Changes: The government’s new immigration policies have led to a 40% year-on-year decline in foreign student additions, which could negatively impact future customer growth.
RCI FAQs
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RCI Earning Call Sentiment
Rogers Communications, Inc. (RCI) Q3 2024 Earnings Call Transcript
RCI.N
0.53%Positive
The earnings call summary indicates strong financial performance with increased revenues, improved margins, and significant debt reduction plans. The structured equity financing is a positive move, reducing debt leverage, which is expected to decrease to 3.7x by year-end. The Q&A session didn't reveal any major concerns, and management's responses were mostly positive. The reaffirmation of 2024 guidance and strategic moves like the MLSE investment further support a positive outlook. Thus, the stock price is likely to rise by 2% to 8% over the next two weeks.
