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Shaw Communications Inc. (NYSE:SJR) provides broadband cable television, Internet, home phone, telecommunications services, and satellite direct-to-home services in Canada and the United States. The company offers cable television services; digital phone services; high definition (HD) television, including three dimensional HD; on demand programming comprising impulse pay-per-view and video-on-demand services; and Internet access services to residential and small business subscribers.

It is scheduled to report its Q3 2012 results on June 28, 2012, after the bell.

Technical Overview


Key Metrics

  • Market Cap: 8.29B
  • 52-week trading range: 18.25 - 23.24
  • Trailing P/E: 13.31
  • Forward P/E: 11.95
  • Price/Sales: 1.74
  • Price/Book: 2.61
  • PEG Ratio: 3.15
  • Total Debt: 5.17B
  • Annual dividend yield: 4.80%
  • Return on Equity: 21.76%
  • Return on Assets: 6.67%

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last quarters. In the last quarter it reported $0.38 EPS, beating analyst estimates of $0.37.

The consensus EPS is $0.43 based on 7 analysts' estimates, down from $0.45 a year ago. Revenue estimates are $1.30B, up from $1.28B a year ago. The median target price by analysts for the stock is $19.77.

Average recommendation: Overweight

Source: Marketwatch

Latest Developments

  • On May 15, 2012, Shaw Communications Inc. announced its agreement with the City of Winnipeg to improve the City's network access and connection by providing a sophisticated 35-site Virtual Private Local Area Network Service (VPLS).
  • On April 13, 2012, Shaw Communications Inc. announced that Board of Directors has declared monthly dividends of $0.080833 on Class B Non-Voting Participating Shares and $0.080625 on Class A Participating Shares, payable on each of June 28, July 30 and August 30, 2012 to holders of record at the close of business on June 15, July 15 and August 15, 2012, respectively.
  • On March 27, 2012, Shaw Communications Inc. announced its agreement to provide BC Biomedical Laboratories Inc. with communications services for their 45 Patient Services Centres located throughout the Lower Mainland of British Columbia.
  • On February 14, 2012, Shaw Communications Inc. announced its successful bid to provide Snamprogetti Canada Inc. with communications services for Husky's Sunrise Energy Project construction camp.
  • On January 18, 2012, Shaw Communications Inc. announced that it has entered into a five-year $1 billion bank credit facility having a maturity date in January 2017 with a syndicate of ten financial institutions, including The Toronto-Dominion Bank as lead arranger and sole bookrunner, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Bank of Nova Scotia as syndication agents and Bank of Tokyo-Mitsubishi as documentation agent.
  • On January 12, 2012, Shaw Communications Inc. announced that its Board of Directors has declared the quarterly dividend on its Cumulative Redeemable Rate Reset Preferred Shares, Series A (the Series A Shares) for the three-month period ended March 31, 2012.
  • On January 12, 2012, Shaw Communications Inc. announced that its Board of Directors has increased the equivalent annual dividend rate to $0.97 on its Class B Non-Voting Participating Shares and $0.9675 on its Class A Participating Shares.

Competitors

Shaw Communications, Inc. operates in CATV Systems industry. The company could be compared to BCE, Inc. (NYSE:BCE), Rogers Communications Inc. (NYSE:RCI), Time Warner Cable Inc. (NYSE:TWC), and Virgin Media, Inc. (NASDAQ:VMED). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

(click to enlarge)SJR Chart

SJR data by YCharts

Competitors' Latest Development

  • On June 20, 2012, Time Warner Cable Inc announced that it has commenced an underwritten public offering of sterling denominated notes with a 30 year maturity. The net proceeds from the issuance of the notes are expected to be used for general corporate purposes, which may include the repayment of debt.
  • On June 20, 2012, Time Warner Cable Inc announced that it has priced an underwritten public offering of GBP650 million aggregate principal amount of 5.250% notes due 2042.
  • On May 18, 2012, Time Warner Cable Inc announced that its Board of Directors declared a quarterly dividend of $0.56 per share on the Company's Common Stock, payable in cash on June 15, 2012 to stockholders of record at the close of business on May 31, 2012.
  • On May 17, 2012, Reuters reported that Viacom, Inc., the parent of MTV and Comedy Central, has settled lawsuits with Time Warner Cable Inc over whether cable subscribers may watch shows on mobile devices such as Apple Inc's iPad.
  • On April 26, 2012, Time Warner Cable Inc announced that it expect fiscal 2012 diluted EPS including Insight will now be in the upper end of the $5.25 to $5.50 range that it provided in on the fourth-quarter earnings call.
  • On February 18, 2012, MSG Media announced that it has reached a tentative agreement with Time Warner Cable Inc for carriage of networks - MSG, MSG+ and Fuse, effective immediately, including tonight's match-up between the New York Knicks and the New Orleans Hornets, as well as the Devils and Sabres games.
  • On February 8, 2012, Virgin Media Inc announced that it expects the first quarter 2012 revenue growth to be no greater than the revenue growth that the Company saw in the fourth quarter of 2011.
  • On January 26, 2012, Time Warner Cable Inc. announced that its Board of Directors replenished its share repurchase authorization to $4 billion effective today. The timing of purchases will be based on market conditions and other factors.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Shaw Communications Reports June 28 After The Close