Rogers shares drop more than 3% after mixed Q3 earnings and continued technical weakness

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Rogers communications drops 3.18% today

Highlights

Rogers Communications reported Q3 2026 revenue of C$5.44 billion, up 1.8%, with adjusted EPS above analyst estimates.
Free cash flow jumped 65% to C$1.37 billion as the company plans a minority sale of sports, media, and entertainment assets by the first half of 2027.
Shares of Rogers traded at $32.11, down 3.18% with overbought technical signals and an expected five-day range of $31.22 to $33.07.

Mixed cash flow gains offset by dividend stability amid net income drop

Rogers Communications Inc. reported its third quarter 2026 financial results on October 23, 2026, with revenue rising 1.8% year-over-year to C$5.44 billion and adjusted EPS exceeding analyst estimates. Free cash flow increased 65% to C$1.37 billion, primarily owing to lower capital expenditures and efficiency gains, while net income fell 91% due to the absence of a prior-year non-cash gain. The company finalized the acquisition of the remaining 25% stake in Maple Leaf Sports & Entertainment and plans a minority sale of its sports, media, and entertainment assets by the first half of 2027 to reduce debt. The Board declared a quarterly dividend of C$0.50 per share, with a conservative payout ratio supported by cash flow, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees Rogers Communications under heavy technical and sentiment-driven pressure. He notes the bearish gap and persistent selling below key moving averages, despite revenue and EPS growth. Weakness in technical structure and the dramatic 91% net income drop also raise red flags for him. He cautions that overbought technical signals are not translating into upward price action, amplifying downside risk. Even with strong cash flow, Kharitonov highlights that investor sentiment remains sour. "I remain skeptical of any sustainable rebound until selling momentum reverses and the broader trend improves," he warns.

Viktoras Karapetjanc, expert at Traders Union, emphasizes strong operational progress and upcoming asset sales as strategic positives for Rogers. He believes the company’s 65% jump in free cash flow and expanding efficiency will support further corporate de-leveraging. Karapetjanc points to resilient adjusted EPS and a growing dividend, viewing these as foundational for long-term gains. With a minority asset sale on the horizon, he sees fresh capital inflow and lower debt as catalysts for renewed investor interest. "The bullish structure remains intact — I expect further growth as Rogers executes its strategic moves," Karapetjanc states confidently.

Sholanke Dele, market strategist, believes the net income collapse overshadows the otherwise positive EPS and cash flow trends. He sees macro headwinds and debt pressures likely to dampen market sentiment near term. Dele notes that the planned asset sale may take time to yield benefits, prolonging uncertainty. "For now, downside risk dominates — I would wait for clearer signs of recovery before turning positive," he says.

Short-term support emerges as overbought signals meet medium-term weakness

Rogers is trading above its 20-day moving average at $31.17, but below the 50-day ($34.07) and 200-day ($35.81) moving averages, indicating short-term support but ongoing medium- and long-term downside pressure. The near-term resistance is at $32.78 (Ichimoku Kijun), with immediate support at $31.83, the current session low. MACD shows strong selling momentum, while ADX and RSI indicate buying interest. Stochastic RSI, CCI, and BBP all point to overbought conditions, with BBP highlighting intraday buyer dominance. The Awesome Oscillator remains neutral. Overall, technical indicators present a mix of overbought signals and continued price weakness in the wake of a bearish market open.

Earlier, analysts noted that Rogers Communications was experiencing constructive near-term momentum but faced mixed technical signals, leading to expectations for consolidation while monitoring key support levels. The latest price drop and persistent pressure below major moving averages reinforce the prevailing sideways scenario, with attention now focused on the $31.22 support for signs of any further downside risk.

Source of Data: Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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