Rogers Communication (NYSE:RCI) Releases Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Rogers cut planned 2026 CapEx by roughly 30% to CAD 2.5–2.7 billion and raised full‑year free cash flow guidance to CAD 4.1–4.3 billion, helping drive net leverage down to 3.8x and prompting plans for accelerated debt paydown.
• Rogers Sports & Media revenue surged ~82% to ~CAD 1 billion, and management intends to buy the remaining 25% of MLSE, combine assets and sell a minority stake in an entity it values at >CAD 25 billion to unlock value and fund debt reduction.
• Q1 results showed a slight EPS beat at $0.74 (vs. $0.73 est.) on revenue of $3.94 billion (well below a cited $5.44B expectation), with wireless ARPU down to CAD 55.60; the stock dipped ~2.6% and the company maintains a quarterly dividend of $0.50 (annual yield ~5.5%).

Rogers Communication (NYSE:RCI - Get Free Report) TSE: RCI.B issued its quarterly earnings data on Wednesday. The Wireless communications provider reported $0.74 EPS for the quarter, beating the consensus estimate of $0.73 by $0.01, Zacks reports. The company had revenue of $3.94 billion during the quarter, compared to analysts' expectations of $5.44 billion. Rogers Communication had a net margin of 32.00% and a return on equity of 12.48%. Rogers Communication's revenue for the quarter was up 10.2% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.99 earnings per share.

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

• Rogers cut planned 2026 capital spending by roughly 30% to CAD 2.5–2.7 billion, targeting a ~12% capital intensity and raising full‑year free cash flow guidance to CAD 4.1–4.3 billion, implying ~CAD 800 million of incremental FCF versus 2025.
• Wireless finished Q1 with ~33,000 net adds and improved margins (+40 bps to 65%), but mobile phone ARPU declined to CAD 55.60 (down ~2.4%) amid industry promotional pressure.
• Rogers Sports & Media revenue jumped ~82% to ~CAD 1 billion and EBITDA improved to breakeven; management plans to buy the remaining 25% of MLSE, combine assets and sell a minority stake in an entity they value at >CAD 25 billion to unlock value and fund debt reduction.
• Balance sheet momentum: net leverage fell to 3.8x, liquidity of ~CAD 6 billion (CAD 1.4B cash + CAD 4.6B facilities), and the company issued CAD 2.3 billion of subordinated notes while planning accelerated debt paydown.
• Management says regulatory policy is disincentivizing investment, leading to permanently lower run‑rate CapEx via project cancellations, deferrals and efficiency moves, and it expects some restructuring costs — a potential long‑term headwind to network expansion and growth.

Rogers Communication Stock Down 2.6%

Shares of NYSE:RCI traded down $0.96 during midday trading on Friday, reaching $36.39. The company's stock had a trading volume of 425,908 shares, compared to its average volume of 1,253,854. The firm has a 50 day moving average of $37.47 and a 200-day moving average of $37.41. The firm has a market capitalization of $19.66 billion, a P/E ratio of 3.84, a PEG ratio of 6.40 and a beta of 0.72. The company has a quick ratio of 0.57, a current ratio of 0.61 and a debt-to-equity ratio of 1.48. Rogers Communication has a 12-month low of $24.67 and a 12-month high of $41.14.

Rogers Communication Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, July 6th. Shareholders of record on Tuesday, June 9th will be given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 5.5%. The ex-dividend date of this dividend is Tuesday, June 9th. Rogers Communication's payout ratio is presently 15.89%.

Institutional Trading of Rogers Communication

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

Wall Street Analyst Weigh In

Several brokerages have issued reports on RCI. Weiss Ratings reiterated a "hold (c+)" rating on shares of Rogers Communication in a research report on Friday, December 26th. Barclays reiterated a "positive" rating and set a $37.00 target price on shares of Rogers Communication in a research report on Tuesday, January 27th. Royal Bank Of Canada restated an "outperform" rating on shares of Rogers Communication in a report on Tuesday, January 13th. TD Cowen restated a "buy" rating on shares of Rogers Communication in a report on Friday, January 30th. Finally, Desjardins restated a "hold" rating on shares of Rogers Communication in a report on Thursday. Four analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $36.00.

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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