Cogeco Communications (TSE:CCA) Posts Earnings Results

Cogeco Communications (TSE:CCA) announced its earnings results on Thursday. The company reported C$2.05 EPS for the quarter, FiscalAI reports. Cogeco Communications had a negative net margin of 39.55% and a negative return on equity of 43.35%. The company had revenue of C$695.49 million for the quarter.

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 Trading Down 0.2%

Shares of CCA stock opened at C$53.17 on Friday. Cogeco Communications has a twelve month low of C$48.18 and a twelve month high of C$77.40. The stock’s fifty day simple moving average is C$55.41 and its 200 day simple moving average is C$63.34. The company has a quick ratio of 0.49, a current ratio of 0.59 and a debt-to-equity ratio of 229.76. The firm has a market capitalization of C$2.23 billion, a P/E ratio of -2.01, a P/E/G ratio of 4.77 and a beta of 1.08.

Key Cogeco Communications News

Here are the key news stories impacting Cogeco Communications this week:

• Positive Sentiment: TD maintained a Buy rating and continues to see substantial upside, despite lowering its price target to C$81 from C$83. TD analyst rating
• Positive Sentiment: Canaccord Genuity also retained a Buy rating, reducing its target to C$61 from C$68. The revised target still implies potential appreciation from current levels. Canaccord Genuity analyst rating
• Neutral Sentiment: Scotia lowered its target to C$63 from C$64 while maintaining a Sector Perform rating. BMO Capital Markets cut its target to C$60 from C$65 and kept a Market Perform rating, signaling limited near-term conviction. Scotia analyst rating
• Negative Sentiment: Cogeco reported lower fourth-quarter adjusted earnings and revenue. Reported quarterly EPS was C$2.05 on revenue of C$695.49 million, while the company posted a negative net margin of 39.56% and negative return on equity of 38.76%. Cogeco Communications reports lower Q4 adjusted earnings and revenue
• Negative Sentiment: National Bank Financial cut its target sharply to C$53 from C$69 and assigned a Sector Perform rating. Desjardins reduced its target to C$53 from C$64 and maintained a Hold rating, leaving little implied upside. Desjardins analyst rating

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. National Bank Financial cut their price target on shares of Cogeco Communications from C$69.00 to C$53.00 and set a “sector perform” rating for the company in a report on Friday. Canadian Imperial Bank of Commerce lowered their price objective on shares of Cogeco Communications from C$71.00 to C$65.00 and set a “neutral” rating for the company in a research report on Thursday, October 8th. Canaccord Genuity Group cut their target price on Cogeco Communications from C$68.00 to C$61.00 and set a “buy” rating for the company in a research note on Friday. Scotia reduced their target price on Cogeco Communications from C$64.50 to C$63.00 and set a “sector perform” rating on the stock in a report on Friday. Finally, TD reduced their target price on Cogeco Communications from C$83.00 to C$81.00 and set a “buy” rating on the stock in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of C$65.55.

About Cogeco Communications

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.