Rogers ROG Q2 2025 Earnings Preview Downside Risk Amid Lowered FY2026 Estimates

Forward-Looking Analysis
Rogers (ROG) is set to release its Q2 2025 earnings report on July 31st. Analysts project revenue of $199 million, reflecting a 7.21% year-over-year decrease. Despite this, the company is expected to achieve earnings growth with a trailing EPS of $0.91. Rogers' earnings are forecasted to grow by 48.18% next year, with EPS estimates rising from $3.57 to $5.29 per share. However, Desjardins has lowered their FY2026 earnings estimates for Rogers. The company is also expected to grow earnings and revenue by 62.5% and 3.6% per annum, respectively. The strategic cost-cutting measures, including an 8% reduction in CAPEX, could play a crucial role in sustaining profitability. Overall, Rogers' performance hinges on the effective management of these challenges and opportunities.

Historical Performance Review
In Q1 2025, Rogers reported revenue of $190.50 million and a net income loss of $1.40 million, resulting in an EPS of -$0.08. The gross profit stood at $57.00 million. This performance met EPS expectations and exceeded revenue forecasts, indicating a stable operational footing despite the net loss.

Additional News
Recently, Desjardins lowered their FY2026 earnings estimates for Rogers Communications. The company has completed transformational investments, reporting revenue and adjusted EBITDA growth in its Wireless and Cable segments. Rogers also achieved a 2% year-over-year growth in revenue/EBITDA and maintained a 45% consolidated operating margin amid high interest rates. These strategic maneuvers, alongside a significant cost-cutting initiative, reflect Rogers' efforts to bolster its financial health and streamline operations.

Summary & Outlook
Rogers exhibits a mixed financial picture with strong revenue and EBITDA growth in key segments but faces challenges due to lowered future earnings estimates. The company's strategic cost-cutting and transformational investments are positive growth catalysts. However, the reduced FY2026 earnings forecast poses a risk. Given these factors, the outlook for Rogers remains neutral, contingent on how effectively it navigates the evolving financial landscape and capitalizes on its growth opportunities.