Rogers Communication RCI and Shaw Communications are poised to receive approximately C$13 million ($9.58 million) from Canada's merger court. This follows the court's declaration that the Competition Bureau's attempt to block the merger, led by the commissioner of competition Matthew Boswell, was "unreasonable."
According to the tribunal's statement, the companies argued that Boswell's approach during the legal proceedings needlessly escalated tensions, leading to substantial cost increments.
The Rogers-Shaw merger experienced an intense opposition from Canada’s antitrust regulator, whose attempts to block the deal were rejected by the Competition Tribunal and Canadian merger court.
In March, Canada approved Rogers Communication's acquisition of Shaw Communications after securing binding commitments to pay financial penalties if the company failed to create new jobs and invest in network expansion.
Rogers Communication, Inc. Price and Consensus
Rogers Communication, Inc. price-consensus-chart | Rogers Communication, Inc. Quote
Recent Investments to Boost RCI’s Top Line
Rogers Communication has made considerable investments in the past and is planning to do so in the future as well. These investments are expected to help the company stay up to date with technology, which will boost RCI’s top line in the upcoming quarters.
The Zacks Consensus Estimate for RCI’s 2023 revenues is pegged at $14.79 billion, indicating year-over-year growth of 25.08%. The Zacks Consensus Estimate for earnings is pegged at a profit of $3.2 per share, indicating a year-over-year decline of 9.97%.
Together, Rogers Communications and the Ontario government are directing a joint investment of $8.8 million to introduce the Ontario Cybersecurity Excellence Initiative (“OCEI”). This initiative aims to enhance the province's cybersecurity competitiveness and facilitate the integration of cybersecurity technologies across various industries.
The Canadian Cyber Threat Exchange, a privately-run non-profit entity, along with Toronto Metropolitan University's Rogers Cybersecure Catalyst, will assume leadership roles in driving OCEI's objectives. This venture is made possible by the funding from the Ontario government and RCI, which is supplemented by additional non-monetary contributions, resulting in a cumulative budget of $10 million over three years.
After the merger of Rogers and Shaw was approved, the company announced its intention to allocate $6.5 billion toward various enhancements to its network infrastructure in the next five years. Additionally, RCI is committed to expanding connectivity for low-income Canadians and 5G connectivity services. The company anticipates contributing $7 billion to Western Canada's GDP over this duration, consequently generating 3,000 employment opportunities.
The Zacks Consensus Estimate for RCI’s 2023 wireless postpaid subscribers is pegged at 7.19 million, indicating year-over-year growth of 32%. The Zacks Consensus Estimate for wireless prepaid subscribers is pegged at 8.44 million, indicating year-over-year growth of 6.07%.
Zacks Rank & Key Picks
Currently, Rogers Communication carries a Zacks Rank #3 (Hold).
Shares of RCI have decreased 12.6% year to date against the Zacks Consumer Discretionary sector’s rise of 9.5% in the same period.
SP Plus SP, Sonos SONO and Skechers SKX are some better-ranked stocks from the broader sector which investors can consider. Currently, SP, SONO and SKX sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of SP Plus have gained 12% year to date. The Zacks Consensus Estimate for SP’s 2023 revenues is pegged at $891.75 million, indicating a year-over-year increase of 12.25%. The consensus mark for earnings is pegged at 73 cents per share, which has decreased by 2 cents over the past 30 days.
Shares of Sonos have surged 17.9% year to date. The Zacks Consensus Estimate for SONO’s 2023 revenues is pegged at $1.66 billion, indicating a year-over-year decline of 5.46%. The consensus mark is pegged at a loss of 3 cents per share, which has decreased by 8 cents over the past 30 days.
Shares of Skechers have gained 18.6% year to date. The Zacks Consensus Estimate for SKX’s 2023 revenues is pegged at $8.09 billion, indicating year-over-year growth of 8.71%. The consensus mark for earnings is pegged at 77 cents per share, which has decreased by 3 cents over the past 30 days.
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