Rogers Communication Stock Should Be Launching Higher


Canadian communications and media giant Rogers Communication (NYSE: RCI) Shares hit new all-time highs of $ 64.55 before falling despite the relative weakness of benchmarks. Broadband provider seeks to complete and integrate its $ 26 billion acquisition of Shaw Communications in 2021, during the first half of fiscal year 2022, pending final ISED approvals and the Canadian Competition Bureau. The company is a leader in 5G coverage and performance in Canada. Rogers Communication is reaching milestones in its 10G initiative by successfully testing 8 gigabit symmetric upload and download speeds on its fiber-powered networks. Prudent investors seeking exposure to the broadband communications and media segment in Canada can monitor the opportunistic setbacks of Rogers Communication’s actions.



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Publication of results for the first quarter of the financial year 2022

On April 20, 2022, Rogers Communication released its first quarter 2022 tax results for the quarter ended March 2022. The company reported earnings per share (EPS) of CAD 0.91, excluding consensus analyst estimates for a profit of 0 CAD. .83, exceeding estimates by CAD0.08. Revenue rose 3.8% year-on-year (YoY) to CAD 3.62 billion, below analysts’ estimates of CAD 3.6 billion. The company declares a dividend of Class B shares without a vote and Class A shares of 50 cents. Rogers Communication increased the service’s total revenue targeting to 6% to 8% from 4.6%. The company expects adjusted EBITDA to increase from 8% to 10%, from 6% to 8%.

Takeaway calls

Rogers Communication CEO Tony Staffieri outlined the three focus priorities that include better business execution across all segments, increased investment in customer service and network infrastructure, and successful completion of Shaw’s acquisition. the first half of 2022. He detailed the progress made during the quarter in each of the priorities. Each of its segments generated better-than-expected revenue and profitability with the goal of accelerating process efficiency and opportunities for improvement. Wireless revenue increased 7% year-over-year due to improved ARPU rotation and growth. The postpaid cell phone added 66,000 with 3% ARPU up to $ 57.25. Cable revenue grew 2% and adjusted EBITDA increased 13%. Media revenue grew 10% with the return of revenue to the stage of the highest sports-related advertising. The company plans to spend $ 3 billion on infrastructure investment. CEO Saffieri commented: “As you saw yesterday, we announced a major milestone in our 10G initiative, where we successfully tested symmetrical 8 gigabit upload and download speeds on our fiber-powered networks. Impressive by any standard , this technology will be available to customers in the not too distant future. ” The company generated $ 800 million in cash flow from operations, 20% more driven by higher adjusted EBITDA.

Acquisition of Shaw Communications

The company received CRTC approval in March 2022 for its acquisition of Shaw Communications. Financing is completed with debt offers. The company is waiting for two government agencies to receive approval from ISED and the Canadian Competition Bureau. The company believes that these approvals will pass, “… both the Rogers and Shaw teams believe that the strength of this transaction is convincing to all stakeholders, especially Canadians. As we move forward, our acquisition of “Shaw will really enable Rogers to accelerate innovation and drive competition across the country. It’s important to emphasize that together with Shaw, we will have the scale needed to significantly bridge the digital divide, and we can’t do it alone.”

Rogers Communication shares should be launched higher

Opportunistic RCI withdrawal levels

The use of rifle charts in weekly and daily time periods provides an accurate view of the landscape for RCI actions. The weekly rifle chart peaked at about $ 64.65 Fibonacci level (fib). before falling sharply to the 5-period weekly moving average (MA) at $ 57.47. The 15-period weekly MA rises to $ 53.59. Weekly Top Bollinger Bands (BB) are at $ 62.56. The weekly stochastic peaked again and fell below the 100 band. The 50-period weekly MA support is $ 50.59 and the 200-period MA support is $ 48.75. The weekly Low Market Structure (MSL) breakout triggered purchase to the level of $ 46.88. The daily upward trend of the rifle chart stalled as the 5-period MA starts to drop to $ 59.06 in a flat 15-period MA to $ 58.38. Daily MA for 50 periods is $ 54.77 and BBs are under $ 53.59. The 200-period MA daily support is $ 50.19. The daily stochastic formed a reverse mini puppy that fell through the 80’s band swinging down through the 60’s band. Prudent investors can watch opportunistic withdrawal levels at $ 55.87 fib, $ 54.71 fiber, $ 52.70 fiber, $ 52.26 fiber, $ 51.39 fiber, $ 50.02 fiber, $ 47.90 fiber dollars and $ 46.77 fiber. Upward trajectories range from $ 62.00 fib to the level of $ 72.73 fib.



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