The company also pays a dividend yielding an attractive 3.6% and trades at a discount to its peers. It is a Zacks #2 Rank (Buy) stock.
Third Quarter Results
Rogers reported third quarter earnings per share of 81 cents, beating the Zacks Consensus Estimate by 7 cents. This marked the 7th consecutive positive earnings surprise for the company.
Continued gains in wireless data revenues drove total operating revenue 3% higher compared to the same quarter in 2009. The Rogers retail division saw revenue drop 8% due to declines in video rental and sales.
Meanwhile, total operating profit improved 3% year-over-year while free cash flow grew an impressive 16%.
Growth
Estimates continue to rise as Rogers continues to beat expectations.
The Zacks Consensus Estimate for 2010 is $2.82. This represents a 13% increase over 2009 EPS. The 2011 estimate is currently $3.14, equating to 11% EPS growth.
It is a Zacks #2 Rank (Buy) stock.
Income
Rogers pays a juicy dividend yielding 3.6%. The company produces strong and stable cash flows, so its payout ratio of 44% is very manageable.
Valuation
Rogers trades at 11.1x forward estimates, a discount to the industry average of 17.5x. It also trades at 5.5x cash flow, which is in-line with its peers.
Read the September 16 article here.
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Todd Bunton is the Growth & Income Stock Strategist for Zacks.com.
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