What to Expect When Rogers and CN Rail Report

Two great businesses are set to kick-off a barrage of Canadian earnings.

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The Motley Fool

Earnings season has been in full swing south of the border for a couple weeks and it’s just about to heat up here in Canada (like the weather, hopefully).

Rogers Communications (TSX:RCI.B,NYSE:RCI) and CN Rail (TSX:CNR,NYSE:CNI) are scheduled to make their first quarter releases later today.  Here’s what to expect….


Analysts expect Rogers to announce first quarter earnings of $0.77 with full year estimates currently pegged at $3.45.  First quarter and full year revenues are expected to be $3.1 billion and $12.8 billion respectively.  During the last month, according to Capital IQ, four of the 10 analysts that make up the consensus have downwardly revised their estimate for this quarter’s earnings.  We’ll see if these downward revisions allow Rogers to “beat” the lowered expectations.

CN Rail

First quarter earnings of $1.21/share are expected out of CN later today.  The long, tough winter that many parts of Canada have had could lead to quarterly results that are a tad shy of this estimate.  19 of the 24 analysts that form the consensus have taken their first quarter estimate down in the past month.  If first quarter EPS is light, the achievability of the current full-year EPS estimate of $6.12 will come into question.  Company guidance will be important.

Though Rogers and CN operate in different businesses, they share one dominant characteristic.  Both companies have a moat.  Companies that have a moat are relatively rare in the Canadian market, which is why we’ve created a special FREE report that profiles 3 U.S. businesses that offer this very same characteristic.  “3 U.S. Stocks Every Canadian Should Own” will help you to load up your portfolio with a diversified collection of world-class businesses.  Simply click here to receive this FREE report!

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Fool contributor Iain Butler does not own any of the companies mentioned in this report at this time.  David Gardner owns CN Rail.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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