Cogeco’s third-quarter revenue was $742 million, the analyst consensus predicted. (photo: lesaffaires.com)
What do you do with titles from Cogeco, Cineplex, and Barrick Gold? Here are some recommendations from analysts who are likely to move prices soon. Note: the author may have a completely different opinion than the analysts.
Cogeco (CCA, $68.43): US operations remain a soft spot
The company, which provides high-speed internet, television and residential telephony, all powered by fiber optics, disclosed results on Friday for the third quarter of 2023 that were relatively in line with expectations.
Jerome Dubrell, an analyst at Desjardin Securities, points out that the number of subscribers in Canada exceeded expectations, but it was the opposite in the United States, while the resumption of operations in Ohio is slower than expected.
In the wireless segment, management said it has begun negotiations to acquire a mobile virtual network operator (MVNO). The company also made a new investment in the sector with the purchase of wireless spectrum in Quebec for $60 million (M$).
Third-quarter revenue was $742 million, as expected by consensus of analysts. The same goes for adjusted earnings before interest, taxes, and amortization (EBITDA) at $351 million, the analyst notes.
Free cash flow was $104 million, similar to the same period last year, but above expectations of $77 million. The variance was due, among other things, to capital expenditures that were $12 million lower than expected.
After this quarter, management maintains its guidance for the full year of 2023. However, she notes that it will have to contend with some headwinds, including higher inflation and interest rates, as well as strong competition.
The Desjardins Securities analyst recommends buying the stock with a $83 target.
Cineplex (CGX, $9.25): It’ll have to deal with the actors’ strike
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