Rogers Comm's Q1 Earnings Exceed Expectations Driven by Wireless Strength
Portfolio Pulse from Anusuya Lahiri
Rogers Communications Inc (NYSE:RCI) reported a 28% year-over-year revenue growth for Q1 2024, reaching $3.64 billion, surpassing the consensus of $3.58 billion. Adjusted EPS was $0.73, beating the consensus of $0.72. The growth was driven by increases in wireless and cable service revenues, with wireless service revenue up 9% and cable service revenue rising 94% due to the Shaw acquisition. However, media revenue decreased by 5%. The company also saw a 34% increase in adjusted EBITDA and a 58% increase in free cash flow. Rogers declared a quarterly dividend of 50 cents for its Class B Non-Voting and Class A Voting shares. Despite the positive earnings report, RCI shares dropped 3.7% to $38.12. Investors can also gain exposure to RCI through First Trust VL Dividend (NYSE:FVD) and First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:TDIV).
April 24, 2024 | 4:32 pm
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NEGATIVE IMPACT
Rogers Communications Inc reported strong Q1 2024 earnings with significant revenue and adjusted EPS growth, driven by its wireless and cable services. Despite the positive results, the stock price fell by 3.7%.
The negative short-term impact on RCI's stock price, despite surpassing earnings expectations, could be due to market reactions to other factors not detailed in the earnings report or possibly due to investors' expectations being even higher than the reported figures. The declared dividend and growth in key areas highlight the company's strong performance, but the immediate stock price reaction was negative.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
First Trust VL Dividend provides exposure to Rogers Communications, which reported strong Q1 2024 earnings. The performance of RCI could influence FVD's value.
Given that FVD includes Rogers Communications in its portfolio, the strong earnings report from RCI could have a neutral to positive impact on FVD's value in the short term. However, the direct impact may be diluted due to the diversified nature of FVD's holdings.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
First Trust NASDAQ Technology Dividend Index Fund, which includes Rogers Communications, might see an indirect impact from RCI's Q1 2024 earnings performance.
TDIV's exposure to Rogers Communications means that RCI's positive earnings report could indirectly benefit TDIV. However, the effect might be minimal due to TDIV's broad technology and dividend-focused portfolio.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50