Rogers Communications (TSX:RCI.B) is one of the largest communications and media companies in North America. Shares of Rogers have dropped 3.2% month-over-month as of late morning trading on Monday, July 31. The stock is down 8.6% so far in 2023. Moreover, its shares are still up 1.5% in the year-over-year period.
This company released its second quarter (Q2) fiscal 2023 earnings on July 26. Rogers delivered total revenue of $5.04 billion – up 30% compared to the previous year. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. This measure aims to give a clearer picture of a company’s profitability. In Q1, Rogers reported adjusted EBITDA growth of 38% to $2.19 billion. Moreover, adjusted net income came in at $544 million or $1.02 per diluted share – up from $463 million or $0.86 per diluted share.
The acquisition of Shaw has provided a big boost to Rogers’ business in the near and medium term. That should continue to significantly bolster year-over-year earnings in the quarters ahead. For the rest of fiscal 2023, Rogers is projecting total service revenue growth between 26% and 30%, adjusted EBITDA growth between 33% and 36%, and free cash flow between US$2,200 and US$2,500.
Shares of this top telecom stock currently possess a favourable price-to-earnings ratio of 19. Moreover, Rogers offers a quarterly dividend of $0.50 per share. That represents a 3.4% yield. Rogers offers very nice value compared to most of its industry peers at the time of this writing.
