Rogers Communications: 4Q Earnings Exceed Analysts' Expectations

Shares of Rogers Communications Inc. (RCI) could get a lift on Friday morning after the company's fourth quarter results exceeded analysts' expectations.

Not only do strong results from its wireless business bode well, but the recent pullback in Roger's shares could contribute to a positive reaction, Desjardins Securities analyst Joseph MacKay told clients in a note.

Revenue in the quarter came in at C$2.69-billion, up 13% compared to a year earlier, while recurring EBITDA was C$957-million, up 25%, he noted. Wireless revenue rose 17% to C$1.47-billion and EBITDA for this segment rose 26% to C$658-million.

Mr. MacKay said:

With Bell (BCE) and TELUS (TU) having now reported 4Q results, we can determine that Rogers captured 42% of the post-paid gross additions in the quarter and 46% of the post-paid net additions.