Earnings Preview For Shaw Communications (SJR)

Shaw Communications Inc. SJR is reporting 2011 fiscal second-quarter earnings before the bell on Wednesday April 13. Analysts expect the company to post earnings of $0.37 per share on revenues of $1.25 billion. Earnings estimates have been flat over the past 60 days.

Investors will focus on cable subscriber losses to see if they have stabilized. Losses have been accelerating lately. Cash flow levels will also be on the radar of investors because wireless losses have been holding cash flow down. It is unlikely that the stock will rally after the announcement unless these issues are positively addressed.

The company has only exceeded earnings estimates once in the past four quarters. Debt levels are high and management will need to address how it intends to draw its debt down. The stock has been in a tight range over the past year, but is actually trading near its 52-week high of $22.89.

Shaw provides broadband cable television, Internet, digital phone, telecommunications, and satellite direct-to-home (DTH) services primarily in Canada and the United States. It offers cable television services, including analog and digital video services with access to HD channels, premium and VOD channels, music channels, and an interactive program guide.