Cogeco Communications (TSE:CCA) Posts Earnings Results

Cogeco Communications (TSE:CCA) announced its earnings results on Thursday. The company reported C$2.05 earnings per share (EPS) for the quarter, FiscalAI reports. The business had revenue of C$695.49 million during the quarter. Cogeco Communications had a negative net margin of 39.56% and a negative return on equity of 38.76%.

Here are the key takeaways from Cogeco Communications’ conference call:

• Fiscal 2027 guidance calls for weaker results, with revenue expected to decline by a low- to mid-single-digit percentage and adjusted EBITDA by a mid- to high-single-digit percentage, primarily due to continued U.S. competition.
• Breezeline faces intensifying U.S. pressure from fiber overbuilders, cable operators, fixed wireless access and aggressive promotional offers; management does not expect a significant improvement in U.S. subscriber trends during fiscal 2027.
• The Canadian business remains comparatively healthy, supported by renewed internet customer growth, strong wireless sales and continued momentum at the oxio digital brand, although management expects Canadian revenue and EBITDA to remain broadly stable rather than grow materially.
• Cogeco Communications generated CAD 554 million in fiscal 2026 free cash flow, increased its dividend for the 23rd consecutive year and expects fiscal 2027 free cash flow of CAD 500 million to CAD 550 million, despite lower EBITDA and higher financing costs.
• Cost and capital efficiencies remain key offsets, with CapEx expected to decline to CAD 425 million–CAD 475 million as network upgrades near completion; debt leverage fell to 3.1 times and management expects modest further deleveraging in fiscal 2027.

Cogeco Communications Stock Performance

Shares of CCA opened at C$53.28 on Friday. Cogeco Communications has a one year low of C$48.18 and a one year high of C$77.40. The company has a debt-to-equity ratio of 241.79, a current ratio of 0.47 and a quick ratio of 0.49. The company has a market cap of C$2.24 billion, a PE ratio of -2.02, a price-to-earnings-growth ratio of 4.77 and a beta of 1.08. The firm has a 50-day moving average of C$55.54 and a 200-day moving average of C$63.41.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on CCA shares. Scotiabank cut their price target on Cogeco Communications from C$68.00 to C$64.50 and set a “sector perform” rating for the company in a report on Tuesday, October 20th. Canadian Imperial Bank of Commerce cut their target price on shares of Cogeco Communications from C$71.00 to C$65.00 and set a “neutral” rating on the stock in a research report on Thursday, October 8th. Desjardins reduced their price objective on shares of Cogeco Communications from C$68.00 to C$64.00 and set a “hold” rating on the stock in a research note on Wednesday, October 7th. Royal Bank Of Canada lowered their price objective on shares of Cogeco Communications from C$74.00 to C$70.00 and set a “sector perform” rating for the company in a research report on Friday, July 10th. Finally, National Bank Financial dropped their price target on Cogeco Communications from C$70.00 to C$69.00 and set a “sector perform” rating on the stock in a research report on Monday, August 31st. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Cogeco Communications currently has a consensus rating of “Moderate Buy” and an average price target of C$71.17.

Cogeco Communications Company Profile

Cogeco Communications Inc is a leading telecommunications provider committed to bringing people together through powerful communications and entertainment experiences. We provide world-class Internet, wireless, video and wireline phone services to 1.6 million residential and business subscribers in Canada and thirteen states in the United States. Our services are marketed under the Cogeco and oxio brands in Canada, and under the Breezeline brand in the U.S. We take pride in our strong presence in the communities we serve and in our commitment to a sustainable future.