Shaw Communications (SJR) Q2 Earnings: What's In Store?
Zacks Investment Research | Apr 09, 2017 10:11PM ET
Shaw Communications Inc. (NYSE:SJR) is scheduled to release second-quarter (ended Feb 28, 2017) fiscal 2017 results before the opening bell on Apr 12.
Last quarter, Shaw Communications posted a negative earnings surprise of 43.48%. Moreover, the company’s earnings lagged the Zacks Consensus Estimate in three of the previous four quarters, with an average miss of 10.04%.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
We are impressed with Shaw Communications’ ongoing efforts to reward its shareholders through dividend payments. On Jan 12, 2017, the board of directors of Shaw Communications declared monthly dividends of $0.09875 on the Class B Non-Voting Participating Shares and $0.098542 on Class A Participating Shares. The dividends were paid on Mar 30, 2017, to holders of record at the closure of business on Mar 15, 2017. The same dividends will again be paid on Apr 27, 2017 and May 30, 2017 to holders of record at the closuree of business on Apr 13, 2017 and May 15, 2017.
Shaw Communications had already placed itself as a pure-play Canadian telecom company following the divesture of its subsidiary Shaw Media to Corus Entertainment. The launch of mobile TV platform FreeRange TV, its SmartWiFi and SmartSecurity Services, and high-speed Internet services like WideOpen Internet 150 bode well for the company’s wired and wireless networks' business in the to-be reported quarter.
We also look forward to how the company’s decision to rebrand its wireless services affects subscriber count in the upcoming quarterly results. Meanwhile, Shaw Communications’ plans to launch an innovative voice-controlled television product, in association with Comcast Corp.'s X1 technology should help it regain market share in the western parts of Canada.
In spite of such positives, shares of Shaw Communications failed to beat the Zacks-categorized Earnings ESP Filter .
Zacks Rank : Shaw Communications has a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Meanwhile, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
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