Rogers Communication (NYSE:RCI) Issues Quarterly Earnings Results

Key Points

• Rogers Communication beat Q2 expectations, reporting EPS of $0.83 versus $0.80 expected and revenue of $3.95 billion versus $3.91 billion estimated. Revenue rose 7.6% year over year, though EPS was lower than the $1.14 earned in the same quarter last year.
• Operating performance improved with consolidated service revenue up 8%, adjusted EBITDA up 3%, and free cash flow around CAD 1 billion, up 6% year over year. Management also highlighted lower capital spending and the company’s lowest capital intensity since Q1 2008.
• Wireless and sports/media were notable bright spots, as wireless net additions totaled 40,000 and churn fell to 0.94%, while Rogers Sports & Media revenue surged 53% to more than CAD 1.2 billion. The company also reaffirmed its outlook and maintained a quarterly dividend of C$0.50 per share.

Rogers Communication (NYSE:RCI - Get Free Report) TSE: RCI.B posted its earnings results on Wednesday. The Wireless communications provider reported $0.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.80 by $0.03, Zacks reports. Rogers Communication had a return on equity of 12.11% and a net margin of 32.00%.The company had revenue of $3.95 billion during the quarter, compared to analyst estimates of $3.91 billion. During the same period in the previous year, the company earned $1.14 EPS. The company's revenue for the quarter was up 7.6% compared to the same quarter last year.

Here are the key takeaways from Rogers Communication's conference call:

• Rogers posted solid Q2 results, with consolidated service revenue up 8%, adjusted EBITDA up 3%, and free cash flow of about CAD 1 billion, up 6% year over year.
• The company continued to drive lower capital intensity, with CapEx down 16% and capital intensity at 12% , the lowest since Q1 2008, and management said this should support stronger free cash flow in the second half and beyond.
• Wireless execution improved despite a tough market, with 40,000 net additions and postpaid churn falling to 0.94%. Management said the company is shifting away from aggressive discounting toward value-based plans and premium service features.
• Rogers Sports & Media delivered standout growth, with revenue up 53% to over CAD 1.2 billion and adjusted EBITDA rising sharply to CAD 69 million. Excluding MLSE, organic sports and media revenue still grew 13%, helped by Blue Jays-related revenue and higher subscriber income.
• Management reaffirmed its plan to acquire the remaining 25% of MLSE in Q4, then sell a minority non-voting stake in the combined sports/media platform, targeting first-half 2027 for monetization. They said proceeds would be used to pay down debt while preserving an investment-grade balance sheet.

Rogers Communication Stock Performance

RCI traded up $0.22 during midday trading on Thursday, reaching $33.17. The company had a trading volume of 106,578 shares, compared to its average volume of 1,230,526. The stock has a market cap of $17.92 billion, a PE ratio of 3.51, a P/E/G ratio of 4.17 and a beta of 0.64. The company has a debt-to-equity ratio of 1.43, a quick ratio of 0.53 and a current ratio of 0.55. The business has a 50-day moving average price of $35.71 and a two-hundred day moving average price of $36.63. Rogers Communication has a 12-month low of $31.38 and a 12-month high of $41.14.

Rogers Communication Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 2nd. Stockholders of record on Tuesday, September 8th will be paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 6.0%. The ex-dividend date is Tuesday, September 8th. Rogers Communication's payout ratio is presently 15.30%.

Analyst Ratings Changes

Several research analysts recently commented on RCI shares. Barclays reduced their price target on Rogers Communication from $37.00 to $36.00 and set an "equal weight" rating for the company in a research report on Thursday, July 16th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Rogers Communication in a report on Wednesday, June 17th. Raymond James Financial initiated coverage on Rogers Communication in a research report on Wednesday, July 15th. They issued an "outperform" rating on the stock. Scotiabank reaffirmed an "outperform" rating on shares of Rogers Communication in a report on Tuesday, July 7th. Finally, Desjardins reissued a "hold" rating on shares of Rogers Communication in a report on Thursday, April 23rd. Four equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $36.00.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Invesco Ltd. grew its holdings in shares of Rogers Communication by 52.3% in the second quarter. Invesco Ltd. now owns 934,712 shares of the Wireless communications provider's stock worth $27,724,000 after purchasing an additional 321,124 shares during the last quarter. EverSource Wealth Advisors LLC grew its position in shares of Rogers Communication by 52.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,981 shares of the Wireless communications provider's stock worth $59,000 after buying an additional 683 shares during the last quarter. Marshall Wace LLP increased its stake in shares of Rogers Communication by 36.5% during the second quarter. Marshall Wace LLP now owns 37,179 shares of the Wireless communications provider's stock valued at $1,103,000 after buying an additional 9,951 shares during the period. Cerity Partners LLC raised its holdings in shares of Rogers Communication by 7.0% during the second quarter. Cerity Partners LLC now owns 11,007 shares of the Wireless communications provider's stock valued at $326,000 after acquiring an additional 724 shares in the last quarter. Finally, AXA S.A. boosted its holdings in Rogers Communication by 231.1% in the second quarter. AXA S.A. now owns 49,945 shares of the Wireless communications provider's stock valued at $1,481,000 after acquiring an additional 34,860 shares in the last quarter. 45.49% of the stock is owned by institutional investors.

Key Headlines Impacting Rogers Communication

Here are the key news stories impacting Rogers Communication this week:

• Positive Sentiment: Rogers reported Q2 2026 EPS of $0.83 and revenue of $3.95 billion, both ahead of Wall Street estimates, while total service revenue rose 8% and free cash flow increased 6%. Rogers Communications Reports Second Quarter 2026 Results
• Positive Sentiment: The company reaffirmed its 2026 outlook, signaling confidence in continued growth in service revenue, EBITDA, capital spending, and free cash flow. Rogers Communications Reports Second Quarter 2026 Results
• Positive Sentiment: Rogers declared a quarterly dividend of C$0.50 per share, implying an annualized yield of about 6.1%, which may appeal to income-focused investors. Rogers Communications Declares 50 Cents per Share Quarterly Dividend
• Neutral Sentiment: Management highlighted strength in wireless and cable operations, lower churn, and progress on sports monetization through the planned purchase of the remaining minority stake in MLSE, which could unlock value later but does not immediately change results. Rogers Communications Reports Second Quarter 2026 Results
• Neutral Sentiment: One offset is that Q2 earnings fell from $1.14 a year ago to $0.83, so the stock’s move is being driven more by the beat versus expectations and cash-flow improvement than by year-over-year EPS growth. Rogers Communication (RCI) Surpasses Q2 Earnings and Revenue Estimates

Rogers Communication Company Profile

Rogers Communications Inc is a Canadian integrated communications and media company headquartered in Toronto, Ontario. The company provides a broad range of telecommunications services to residential and business customers across Canada, including wireless voice and data services, cable television, high-speed internet, and home phone services. In the enterprise market it offers managed IT, data center and cloud solutions, networking and connectivity services targeted to small businesses, large enterprises and public sector clients.

In addition to connectivity services, Rogers operates a significant media portfolio that includes national and regional television and radio assets, sports broadcasting properties and other content businesses.

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