Last week has been pretty eventful for the telecom industry. On the earnings front, Canadian telecom behemoths Rogers Communications Inc. (RCI – Free Report) and Shaw Communications Inc. (SJR – Free Report) reported mixed results. Rogers Communications’ bottom line surpassed the Zacks Consensus Estimate while top line missed the same. Similarly, Shaw Communications’ bottom line matched the Zacks Consensus Estimate while top line missed the same.
U.S. telecom giant Verizon Communications Inc. (VZ – Free Report) entered into a three-year minimum purchase agreement with Corning Inc. (GLW – Free Report) to buy fiber optic cables and associated hardware for nationwide wireless broadband network. Per the deal, Verizon will acquire up to 20 million kilometers (12.4 million miles) of optical fiber each year from 2018 through 2020 from Corning, with a minimum purchase commitment of $1.05 billion.
As per a recent report by Reuters, Verizon is considering a counterbid to acquire Straight Path Communications Inc., a leading provider of fixed wireless spectrum licenses. Notably, AT&T Inc. (T – Free Report) announced its decision to purchase Straight Path Communications in an all stock merger deal on Apr 10. Total value of the AT&T deal was around $1.6 billion after considering the liabilities of Straight Path. Both Verizon and AT&T currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, Windstream Holdings Inc. (WIN – Free Report) entered into a $228 million deal to acquire Broadview Networks, a leading provider of cloud-based unified communications solutions to small and mid-sized businesses (SMBs). Windstream expects the acquisition to close in the third quarter of 2017 subject to necessary regulatory clearances. Moody’s Investors Service described Windstream’s recent agreement to purchase Broadview as a positive move.
More on the merger and acquisitions front, Crown Castle International Corp. (CCI – Free Report) , a leading wireless communication tower operator in the U.S. recently inked a deal to acquire privately-held Wilcon Holdings LLC (Wilcon) for approximately $600 million from Pamlico Capital and other unit holders of Wilcon. Wilcon is a premier service provider of dark fiber, lit transport, internet access and colocation services in Southern California.
Read the last Telecom Stock Roundup for Apr 13, 2017.
Recap of the Week’s Most Important Stories
1. Rogers Communications’ first quarter 2017 adjusted earnings per share of 46 cents were above the Zacks Consensus Estimate of 43 cents. Quarterly total revenue came in at around $2,521.8 million, up 6.61% year over year but below the Zacks Consensus Estimate of $2,523.8 million. (Read more: Rogers Communications Q1 Earnings Beat, Revenues Miss)
2. Shaw Communications’ second quarter 2017 adjusted earnings per share of 23 cents were in line with the Zacks Consensus Estimate….