Canada's Cogeco Communications Q3 revenue slightly misses estimates on lower US subscriber base

Cogeco Communications

15/07/2026 22:29

Overview
Canada telecom provider's Q3 revenue fell 4.7% yr/yr, slight miss to analyst expectations
Adjusted EPS for Q3 rose 29% yr/yr to C$2.35
Company took C$2.2 bln non-cash impairment charge in U.S. segment, resulting in net loss

Outlook
Cogeco Communications maintains fiscal 2026 financial guidelines as issued on April 9, 2026
Company now expects current income tax expense of about C$25 mln for fiscal 2026

Result Drivers
U.S. SEGMENT WEAKNESS - Revenue and adjusted EBITDA in the American telecommunications segment fell due to a lower subscriber base, more customers choosing Internet-only services, and a competitive pricing environment
CANADIAN INTERNET GROWTH - Canadian telecommunications revenue rose slightly, driven by cumulative high-speed Internet subscriber additions, partly offset by declines in video and wireline phone subscribers and competitive pricing
COST REDUCTIONS - Cost reduction initiatives and operating efficiencies from a transformation program partly offset lower revenue, supporting adjusted EBITDA

Company press release: ID:nCNWt8VLma

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
C$696.70 mln
C$701.28 mln (6 Analysts)
Q3 Adjusted EPS
 
C$2.35
 
Q3 Adjusted EBITDA
 
C$351.50 mln
 
Q3 Free Cash Flow
 
C$169.20 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the integrated telecommunications services peer group is "buy."
Wall Street's median 12-month price target for Cogeco Communications Inc is C$72.00, about 13.4% above its July 14 closing price of C$63.50
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)