Cogeco (TSE:CGO – Get Free Report) issued its quarterly earnings results on Thursday. The company reported C$2.04 earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of C$713.89 million during the quarter. Cogeco had a negative return on equity of 49.57% and a negative net margin of 11.80%.
Here are the key takeaways from Cogeco’s conference call:
- Fiscal 2027 guidance points to weaker results, with revenue expected to decline by low- to mid-single digits and adjusted EBITDA by mid- to high-single digits, largely due to continued competitive pressure in the U.S.
- Breezeline’s U.S. internet customer losses increased as fiber overbuilding, aggressive promotions, and other competitive threats intensified; management does not expect a significant improvement in U.S. subscriber trends this fiscal year.
- Canada is expected to deliver relatively stable revenue and EBITDA in fiscal 2027. Internet additions reaccelerated, wireless sales remained strong, and oxio continued to set internal sales records, although fourth-quarter margins benefited from nonrecurring items and favorable mix factors that may not repeat.
- Cogeco Communications generated CAD 554 million in fiscal 2026 free cash flow, up 7.3% year over year on a constant-currency basis, and expects CAD 500 million to CAD 550 million in fiscal 2027 despite lower EBITDA, supported by capital efficiencies and transformation initiatives.
- The company reduced leverage to 3.1x and expects roughly 3.0x by the end of fiscal 2027 while continuing to repay debt. It also raised its dividend by 2% for the 23rd consecutive year and expects further benefits from AI automation, wireless growth, oxio/welo expansion, and the DIRECTV streaming partnership.
Cogeco Trading Down 1.4%
Shares of Cogeco stock opened at C$46.29 on Friday. Cogeco has a 1 year low of C$43.51 and a 1 year high of C$77.04. The company’s fifty day simple moving average is C$50.98 and its 200-day simple moving average is C$61.94. The company has a market cap of C$446.37 million, a price-to-earnings ratio of -1.29, a PEG ratio of -0.28 and a beta of 0.92. The company has a current ratio of 0.60, a quick ratio of 0.51 and a debt-to-equity ratio of 916.00.
Wall Street Analyst Weigh In
Separately, Canadian Imperial Bank of Commerce reduced their price objective on Cogeco from C$67.00 to C$60.00 and set a “neutral” rating for the company in a research note on Thursday, October 8th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Buy” and a consensus price target of C$75.33.
Read Our Latest Analysis on CGO
About Cogeco
Cogeco Inc is a North American leader in the telecommunications and media sectors. Through Cogeco Communications Inc, 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. Through Cogeco Media, we operate 21 radio stations in Canada, primarily in the province of Quebec, as well as a news agency. We take pride in our strong presence in the communities we serve and in our commitment to a sustainable future.
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