Shareholders might have noticed that Rogers Communications Inc. (TSE:RCI.B) filed its annual result this time last week. The early response was not positive, with shares down 2.2% to CA$39.92 in the past week. Revenues were CA$21b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of CA$3.20 were also better than expected, beating analyst predictions by 13%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Rogers Communications after the latest results.

View our latest analysis for Rogers Communications

Following last week's earnings report, Rogers Communications' 14 analysts are forecasting 2025 revenues to be CA$20.9b, approximately in line with the last 12 months. Per-share earnings are expected to shoot up 22% to CA$3.96. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$21.0b and earnings per share (EPS) of CA$4.09 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The average price target fell 6.3% to CA$57.35, with reduced earnings forecasts clearly tied to a lower valuation estimate. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Rogers Communications at CA$79.00 per share, while the most bearish prices it at CA$39.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Rogers Communications' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.6% growth on an annualised basis. This is compared to a historical growth rate of 8.5% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.3% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Rogers Communications.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Rogers Communications' revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Rogers Communications. Long-term earnings power is much more important than next year's profits. We have forecasts for Rogers Communications going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Rogers Communications , and understanding it should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.