Notable Mover: Shaw Communications, Inc. (NYSE:SJR)

Shaw Communications, Inc. (NYSE:SJR) reported earnings for the three months ended Feb2016 on April 14, 2016. The company earned $0.24 per share on revenue of $1.34B. Analysts had been modeling earning per share of $0.34 with $1.35B in revenue.

Shaw Communications, Inc. (SJR) on April 14, 2016 announced consolidated financial and operating results for the quarter ended February 29, 2016. Revenue from continuing operations for the quarter and year-to-date of $1.15 billion and $2.30 billion increased 3.0% and 3.4% over the comparable periods, respectively. Operating income before restructuring costs and amortization1 for the quarter and year-to-date of $502 million and $1.01 billion improved 0.8% and 2.5% over the comparable periods, respectively.

Chief Executive Officer, Brad Shaw said, “We have successfully closed the acquisition of WIND Mobile (“WIND”) on March 1, 2016 and the disposition of Shaw Media Inc. (“Shaw Media”) on April 1, 2016. We believe these two transformative transactions better position Shaw for growth over the long term. With the acquisition of WIND and with our customers’ connectivity needs at the heart of the strategic decisions we make, we are combining the power of our fibre, coax, WiFi and wireless networks to deliver a seamless experience of anytime and anywhere connectivity for our customers.”

Basis of presentation

The Company sold Shaw Media to Corus Entertainment Inc. (“Corus”) for consideration of approximately $2.65 billion which is comprised of $1.85 billion in cash and 71,364,853 Corus Class B non-voting participating shares issued at $11.21 per share. Given the announcement of the sale occurred in the second quarter, the assets, liabilities, operating results and operating cash flows for Shaw Media in the current and comparable periods are presented as discontinued operations – separate from the Company’s continuing operations.

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Shaw Communications, Inc. earnings per share showed a decreasing trend of -2.7% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 144%.Analysts project EPS decline over the next 5 years at -3%. It has EPS annual growth over the past 5 fiscal years of 7.5% when sales grew 8.1. It reported 3% sales growth, and -18.9% EPS decline in the last quarter.

The stock is trading at $19.14, up 24.25% from 52-week low of $15.66. The stock trades down -12.11% from its peak of $22.73 and 10.45% above the consensus price target of $21.14. Its volume clocked up at 0.42 million shares which is lower than the average volume of 0.69 million shares. Its market capitalization currently stands at $9.15B.