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Is Rogers Communications Stock a Buy After Posting Strong Q4 Results?

Shares of Rogers Communications (TSX:RCI.B)(NYSE:RCI) have been rallying in recent months. And last week, the company gave investors even more of a reason to be bullish as the media and telecom company posted its latest results.

For 2023, Rogers achieved significant growth, capitalizing on the acquisition of Shaw Communications to expand its wireless and cable services across Canada. The company reported a 27% increase in service revenue, reaching $16.8 billion, and a 34% rise in Adjusted EBITDA to $8.6 billion. With a 24% increase in postpaid mobile phone customers, Rogers ended the year with 11.6 million wireless and 4.2 million retail internet customers.

The final quarter of 2023 saw exceptional growth, with service revenue up by 30%, driven by a 9% increase in wireless service revenue and a remarkable 94% increase in cable service revenue. This success is attributed to the seamless integration of Shaw Mobile and strategic market expansion. Rogers also led in technological innovation, partnering with SpaceX and Lynk Global for satellite-to-mobile coverage and launching critical 5G services, positioning itself for even more long-term growth opportunities down the road.

This year, the company projects its service revenue will grow between 8% to 10% and adjusted EBITDA will improve by 12% to 15%. The company's bullish 2024 outlook is backed by plans for substantial capital expenditures of $3.8 billion to $4.0 billion to sustain network advantages and shareholder returns.

Rogers is currently trading around its 52-week highs and at a forward price-to-earnings multiple of just under 14. It also pays a dividend which yields 3.2%. For long-term investors, this can be a relatively safe stock to buy and hold.