Rogers Communications (RCI 0.38%) stock posted substantial gains over the last week of trading. The company's share price gained 8.2% across the stretch and had briefly been up as much as 11.7%. Meanwhile, the S&P 500 gained roughly 0.5% in the week, and the Nasdaq Composite's level rose 1.5%.
Stocks broadly moved higher this week on hopes that the war in Iran will continue winding down, and Rogers stock also got a boost from the company's first-quarter results. Despite the post-earnings pop this week, Rogers is still down 4.4% year to date.
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Rogers posted strong Q1 results
Rogers recorded earnings per share of 1.01 Canadian dollars (CAD) on revenue of 5.48 billion CAD. While the company's per-share profit came in roughly 0.01 CAD below expectations, the performance still represented an improvement over the earnings of 0.99 per share recorded in the prior-year period. More importantly, sales for the period grew 10% year over year and significantly exceeded the average Wall Street analyst estimate. With the business unexpectedly posting double-digit sales growth in the quarter, the modest miss on earnings looks like no real concern.
NYSE: RCI
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What's next for Rogers?
Rogers is guiding for annual revenue to increase between 3% and 5% this year. While that suggests a significant deceleration compared to the growth rate in Q1, it reiterated the guidance management issued with the company's Q4 report -- and recent momentum suggests the business could post performance at the higher end of that target range. Competition in the telecom space is likely to remain intense, but the company's recent quarterly report and guidance were encouraging because they support the thesis that the business is still capable of at least delivering mid-single-digit growth.
