Cogeco Communications (TSX:CCA) is a Montreal-based communications company that operates throughout North America. Shares of this telecom stock have climbed 11% in 2021 as of close on October 22. The stock has dropped 4.4% month over month.
The company is set to release its fourth and final batch of fiscal 2021 results on November 11. Today, I want to take a quick snapshot of the stock and discuss why it looks like a great buy ahead of its next earnings release.
Cogeco released its third quarter 2021 results on July 14. Revenue rose 3.1% year-over-year to $624 million. Canadian broadband services delivered revenue growth of 10%, largely on the back of the DERYtelecom acquisition that was completed on December 14, 2020.
American broadband services revenue also delivered growth of 7.2%. Meanwhile, adjusted EBITDA rose 0.8% year-over-year to $297 million. Moreover, cash flow increased 13% to $132 million.
Profit rose to $102 million or $1.89 per share in the third quarter of 2021. Cogeco Communications benefited from lower financial expenses and marginal growth in its adjusted EBITDA. The company maintained its fiscal 2021 guidance.
Shares of Cogeco Communications possess a favourable price-to-earnings ratio of 13. Moreover, it last had an RSI of 29. That puts the telecom stock in technically oversold territory. Better yet, it offers a quarterly dividend of $0.64 per share. This represents a 2.3% yield.
